July 2011

BPA Issues Environmental Dispatch Policy

Dear Member:

The following article was recently released by Bonneville Power Administration (BPA):

High seasonal river flows and renewable hydroelectric generation led BPA to issue an interim decision to temporarily limit output from non-hydropower resources. The decision allows BPA to safeguard protected fish and assure reliable energy delivery without shifting extra costs to BPA electric customers.

To help cope with runoff from the largest snowpack in years, BPA issued the Environmental Redispatch policy. Under the policy, BPA first limits all coal, natural gas and other thermal generation to minimum levels required for grid stability and safety. As a last resort, BPA then limits wind power generation. BPA replaces any reduced thermal and wind generation with free renewable hydropower from federal dams on the Columbia River system. BPA is posting updates on generation limits at www.bpa.gov/go/afterhours.

The interim policy, which will remain in place until March 20, 2012, gives BPA the tools to match power generation to demand, which is necessary for dependable operation of the power grid.

“This was an extremely difficult decision for me. Despite months of searching through a robust public process, there was no good choice here,” said BPA Administrator Steve Wright. “I believe we have adopted the option that best preserves reliability, protects salmon and avoids increased costs on average to Northwest ratepayers.”

Reducing hydroelectric generation in high water conditions sends additional water through dam spillways. While some spill of water can help young salmon and steelhead migrate downstream, too much can cause potentially harmful levels of dissolved gases in the river.

“We’re fortunate in the Northwest to have extraordinary renewable hydropower and wind energy resources, but occasionally we have to adjust when nature gives us too much,” Wright said. “Wind remains an important part of our clean energy future and is growing quickly. This is an interim step, which appears unavoidable at this point to keep the power grid in balance while the region develops long-term solutions.”

BPA and other agencies will closely monitor river conditions and will lift any limits on power generation as soon as they are no longer needed. For more information, go to www.bpa.gov/corporate/AgencyTopics/ColumbiaRiverHighWaterMgmnt/

Bill A. Kopacz

General Manager

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