Sales of Electric Power to the Bonneville Power Administration; Revisions to Average System Cost Methodology

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The Bonneville Power Administration (Bonneville) has submitted for the Federal Energy Regulatory Commission (Commission)'s approval a new methodology for determining the average system cost (ASC) of a utility's resources under the Pacific Northwest Electric Power Planning and Conservation Act (Northwest Power Act). Bonneville requested that the Commission revise its regulations to incorporate the new methodology and to make the revised regulations effective October 1, 2008. On an interim basis, the Commission is conditionally revising its regulations governing the ASC methodology used by Bonneville in its Residential Exchange Program. The Commission also is requesting comments on whether, on a final basis, the Commission should approve the new ASC methodology proposed by Bonneville.