COMMENT FOR BPM 209 - Energy Delivery Failure Charge

Submitted Jan. 26, 2024, 11:48 a.m.



01: Please supply any comments related to the Introduction, Definitions, or Background sections.

No response submitted.

02: Please supply any comments related to the Notification of Anticipated Delivery Failure section (3) .

1.  Notification of Anticipated Deliver Failure:  This section does not include steps for recording the non-delivered amounts in After The Fact (Actual) data. Submission of After the Fact/Actual data that corresponds to a energy delivery and/or non-delivery from the program should be required by both parties.

2.  E-Tags don’t hold non-delivery information, they hold delivery schedule. So the E-Tag should be updated to the correct 'delivery' schedule.

03: Please supply any comments related to the Calculation of Delivery Failure Charge section (4).

1.  If failure to deliver occurs during negative price conditions the receiving party is not harmed. There should be no charge for failure to deliver during negative price events.

2.  Charge Rates and Delivery Failure Factors:  The combination of 'Cumulative Delivery Failure Window' (5 years) and 'Charge Rate' (multiplier factors - 5/10/20 and 25/50) raise question of if the factors are excessive. A participant could have a delivery failure, make hundreds of deliveries under the program and 9 binding seasons later (5 years) have a second delivery failure and be assessed a charge with a 50 times adder.  We should ensure delivery failure penalties are stiff, but we also need to be concerned about them being excessive and punitive!  Consider conducting some analysis with realistic data to determine how these factors might play out.

In addition, section 5 already addresses a maximum dollar limit in a single FS year (winter and summer binding period) - has an analysis been completed to show that a 50x factor doesn’t immediately trigger the Maximum dollar trigger? Or at what point the two converge (how many delivery failures using these multiples trigger the Maximum dollar limit)? Calculation needs to account for a delivery failure would only happen when no energy is available to purchase from the market - as a result the hourly energy price would be very high.

04: Please supply any comments related to the Dollar Limit on Delivery Failure Charges During a Forward Showing Year section (5).

1.  The closing paragraph suggests repeat offenders are limited in their penalties.  An example would give this better context for the BPM.  Also note the typo for "increased"

05: Please supply any comments related to the Allocation of Revenues from Payment of Delivery Failure Charges section (6).

No response submitted.

06: Please supply any comments related to the Waiver of an Energy Deployment Obligation section (7).

1,  Section 7.4:  BPA requests the language state:  "Therefore, to enable BPA to comply with its statutory preference obligations while participating in the Operations Program, it is recognized that the following waiver of the Delivery Failure and any associated Delivery Failure Charge (and of any other charge that would be assessed as a result of an Energy Delivery Failure) is presumptively established if:"

 

07: Please supply any comments related to the Possible Expulsion for Repeated Energy Delivery Failures section (8).

No response submitted.

General Comment

Thank you for the opportunity to comment.

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