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Overview
BPA and its FCRPS partners face growing investment requirements to replace and modernize aging infrastructure, add capacity to serve loads and integrate new generating resources, and fulfill regional commitments for energy efficiency and fish and wildlife restoration. At the same time, BPA's access to low cost sources of capital is constrained.
BPA lacks an agency-wide method to prioritize diverse investments. A systematic, value-based method for prioritizing capital investments across business units is a leading practice among top performing utilities.
BPA proposed developing a method for prioritizing investments during the 2012 Capital Investment Review (CIR). Two workshops were held to discuss alternative approaches and a timeline. Stakeholders then submitted comments and recommendations for BPA's use in developing its methodology. BPA carefully reviewed the stakeholder comments and is considering them as it develops its agency-wide prioritization process.
BPA's agency-wide prioritization process comprises three phases:
- Phase 1 - Process and methodology design - August/September 2012
- Phase 2 - Test/Prove and prepare for implementation - September 2012 through February 2013
- Phase 3 - Begin implementation - March 2013
Scheduled workshops are shown on the BPA Public Calendar
Goals of the new process:
- Further the agency's strategic priorities/objectives
- Provide a "level playing field" for projects with different risk/cost/benefit characteristics from various asset categories
- Optimize the agency's investment portfolio within capital, labor, rate, and other constraints
- Ensure decision-making is risk-informed and supported by thorough analysis
- Provide transparency both internally and externally
- Enable efficient, timely decision making
The methodology and process will be directed at maximizing the long-term operational and economic value of assets.
Meeting Materials
September 24th Workshop
April 30th Conference Call
April 19th Workshop
POC: Doug Ballou
File format: PDF
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Finance & Rates
