The Load-Based Cost Recovery Adjustment Clause, or LB CRAC, allows an adjustment to the base rates to recover the anticipated augmentation costs to meet load that cannot be recovered with the base rates.

Because BPA will be acquiring this additional power in a highly volatile market, it is not possible to accurately forecast the cost of purchasing this power over the entire five-year rate period. Accordingly, the LB CRAC has been designed to be responsive to changes in the market price of power. Prior to each six month period of the 2002-2006 rate period (beginning October 2001), BPA will establish the LB CRAC for that six-month period. The LB CRAC will be calculated based on the current forecast of forward market prices for each year, shaped, and the amount by which contracted loads exceed BPA's resources. About 90 days after the end of each six-month period, BPA will true up the LB CRAC based on actual augmentation purchases during the period, and a debit or credit will be made to the customer's bill.

BPA establishes the LB CRAC percentage about 90 days prior to the beginning of the next six-month period. Then, about 90 days after the end of the most recent six-month period, BPA calculates the over- or under-collection of actual LB CRAC revenues for the previous six-month period. Any over- or under-collection is treated separately from any charges for augmentation costs for the upcoming six-month period. About 15 days prior to the date that BPA establishes the LB CRAC percentage, BPA will conduct a public workshop to provide all participants with the calculations that were used to develop the LB CRAC.

The final LB CRAC Workshop to True-Up any changes in period 10 of the FY 2002-2006 rate period is scheduled for December 13, 2006.

• June 28, 2006 Letter (announcement/summary of final LB CRAC 9 True-Up results)
  (PDF, 110 kb, posted June 29, 2006)
  
• Final LB CRAC 9 True-Up Results (issued June 26, 2006)
  (PDF, 6 pages, 91 kb, posted here on June 29, 2005)
  - LB CRAC 9 True-Up for October 2005 - March 2006
  [Note: This workshop was only required to establish the true-up adjustment for LB CRAC 9. Since no forward looking LB CRAC was determined, Table 1 and 3 - 8 (pages 2 - 5) are omitted from the final LB CRAC results package.  The LB CRAC 9 true-up adjustment posted here is about $330,000 larger than the adjustment discussed in the June 14 workshop. The increase is due to issues identified and corrected during the independent auditor review of the LB CRAC 9 true-up calculations.]
   

• December 16, 2005 Letter (announcement/summary of final LB CRAC results)
  (PDF, 1 page, 108 kb, posted December 23, 2005)
  [Note:  The LB CRAC 8 true-up results included in this letter are out-of-date.  For more information, see the "REVISED Final LB CRAC Results" document below.]
  
• REVISED Final LB CRAC Results (revised 01-31-2006)
  (PDF, 10 pages, 99 KB, posted here on February 1, 2006)
  - LB CRAC 10 Adjustment for April 2006 - September 2006
  - LB CRAC 8 True-Up for April 2005 - September 2005 (REVISED)
  [Note: In its audit of the LB CRAC 8 true-up for the April 2005 - September 2005 rate period, BPA's independent auditor discovered a data error in the monthly energy reports used in calculating the true-up.  The consequence is that the Slice and non-Slice customers covered by the Load-Based CRAC owe BPA an additional $1.3 million for the LB CRAC 8 period compared to the preliminary amount announced in the December 14 workshop.]
   

• June 17, 2005 Letter (announcement/summary of final LB CRAC results)
  (PDF, 1 page, 120 kb, posted June 17, 2005)
• Final LB CRAC Results (PDF, 10 pages, 102 kb, posted June 17, 2005)
    - Final LB CRAC 9 Adjustment for October 2005 - March 2006
    - Final LB CRAC 7 True-Up for October 2004 - March 2005
    - Forecasts of Future LB CRAC percentages
      [Note: These forecasts are only estimates and they absolutely will change.]
• Actual & Forecasted Rate Adjustments Chart (LB, FB, & SN CRACs) for FY 2002-2006 (updated for CRAC 9 adjustment)
  (PDF, 1 page, 58 kb, posted June 17, 2005)

• Final LB CRAC Results (PDF, 10 pages, 28 kb, posted December 17, 2004)
    - Final LB CRAC 8 Adjustment for April 2005 - September 2005
    - Final LB CRAC 6 True-Up for April 2004 - September 2004
    - Forecasts of Future LB CRAC percentages
      [Note: These forecasts are only estimates and they absolutely will change.]
• Actual & Forecasted Rate Adjustments Chart (LB, FB, & SN CRACs) for FY 2002-2006 (updated for CRAC 8 adjustment)
  (PDF, 1 page, 67 kb, posted December 17, 2004)

• Final LB CRAC Results (PDF, 11 pages, 30 kb, posted June 24, 2004)
    - Final LB CRAC 7 Adjustment for October 2004 - March 2005
    - Final LB CRAC 5 True-Up for October 2003 - March 2004
    - Forecasts of Future LB CRAC percentages
      [Note: These forecasts are only estimates and they absolutely will change.]
• Actual & Forecasted Rate Adjustments Chart (LB, FB, & SN CRACs) for FY 2002-2006 (updated for CRAC 7 adjustment)
  (PDF, 1 page, 9 kb, posted June 24, 2004)

May 25, 2004, Record of Decision (ROD) on "Proposed Contracts or Amendments to Existing Contracts With the Regional Investor-Owned Utilities Regarding the Payment of Residential and Small-Farm Consumer Benefits Under the Residential Exchange Program Settlement Agreements FY 2007-2011"
(PDF, 31 pages, 153 kb, posted May 27, 2004)
This ROD describes BPA's decision to offer agreements to the region's investor-owned utilities to reduce near-term costs collected through the LB CRAC for FY 2005-2006.

December 30, 2003 Letter (announcing final LB CRAC results)
(PDF, 1 page, 24 kb, posted January 22, 2004)

December 18, 2003 LB CRAC Workshop: Final LB CRAC Results
(PDF, 11 pages, 153 kb, posted January 22, 2004)
  - Final LB CRAC 6 Adjustment for April 2004 - September 2004
  - Final LB CRAC 4 True-Up for April 2003 - September 2003
  - Forecasts of Future LB CRAC percentages
    [Note: These forecasts are only estimates and they absolutely will change.]

June 10, 2003 LB CRAC Workshop:   Presentation on Impacts of the Enron Settlement on LB CRAC (PDF, 6 pages, 24 kb, posted June 11, 2003)

[Related follow-up announcement]
June 20, 2003 - Decision Regarding LB CRAC Accounting Treatment for the Enron Settlement:   In response to a request from customers at the June 10th LB CRAC workshop, BPA staff met with senior management to discuss the LB CRAC's collection of actual cash outlays versus accruals relative to the Enron settlement. It has been decided that BPA will maintain its position that the amount collected through the LB CRAC for the Enron settlement will be the accrued expenses for the settlement, which are based on the expenses that would have occurred if the augmentation contracts were still in place. This is consistent with Generally Accepted Accounting Principles for regulated industries and the intent of the General Rate Schedule Provisions (GRSPs).

June 10, 2003 LB CRAC Workshop Handouts
(PDF, 12 pages, 153 kb, posted June 11, 2003)
  - Final LB CRAC 5 Adjustment for October 2003 - March 2004
  - Final LB CRAC 3 True-Up for October 2002 - March 2003
  - Forecasts for Future LB CRACs
    [Note: These forecasts are only estimates and they absolutely will change.]

December 12, 2002 Forecast of Future LB CRAC Percentages, Slice and non-Slice Rate Increases
(PDF, 11 kb, posted December 12, 2002)
  - Forecasts for October 2003 - September 2006
    [Note: These forecasts are only estimates and they absolutely will change.]

December 12, 2002 LB CRAC Workshop Handouts
(PDF, 10 pages, 35 kb, posted December 12, 2002)
  - Final LB CRAC 4 Adjustment for April 2003 - September 2003
  - Final LB CRAC 2 True-Up for April 2002 - September 2002

July 2, 2002 Forecast of Future LB CRAC Percentages, Slice and non-Slice Rate Increases

(PDF, 8 kb, posted July 3, 2002)
  - Forecasts for April 2003 - September 2006
    [Note: These forecasts are only estimates and they absolutely will change.]

June 20, 2002 LB CRAC Workshop Handouts
(PDF, 10 pages, 45 kb, originally posted June 21, 2002, updated June 28, 2002, revised on July 2, 2002)
  - Final LB CRAC 3 Adjustment for October 2002 - March 2003
  - Final LB CRAC 1 True-Up for January - March 2002
[Note: This version of the workshop handouts was updated on June 28, 2002, to reflect updated load reduction costs that result in changes to the LB CRAC 3 percentage for October 2002 through March 2003, as well as changes in the rate increase for Slice and non-Slice products subject to the LB CRAC. It was revised again on July 2, 2002 to add footnotes on pages 4 and 5, and to remove the highlighting on page 6. See the June 28th Letter (PDF, 22 kb) for more information.]

March 21, 2002 LB CRAC Workshop Handouts:
  - Mark to Market Discussions (PDF, 2 pages, 14 kb, posted March 29, 2002)
  - Surplus Revenue Forecasts (PDF, 5 pages, 21 kb, posted March 29, 2002)
[Note: This version was updated on March 26, 2002, to reflect current market prices.]

March 7, 2002, Final LB CRAC "True-Up" Model:
(used to determine the Final LB CRAC True-Up for October - December 2001)
  - Interactive Excel Workbook Version (XLS, 15 spreadsheets, 254 kb, posted March 29, 2002)
  - Non-Interactive PDF Version (15 pages, 80 kb, posted March 29, 2002)

March 7, 2002 LB CRAC Workshop Handouts:
  - Final LB CRAC True-Up for October - December 2001 (PDF, 4 pages, 13 kb, posted March 8, 2002)
  - "Mark to Market" issue paper (PDF, 1 page, 11 kb, posted March 8, 2002)
  - Augmentation Purchases (PDF, 4 pages, 39 kb, posted March 8, 2002)

February 14, 2002, Draft LB CRAC "True-Up" Model:
(used to estimate the LB CRAC true-up for October - December 2001)
  - Interactive Excel Workbook Version (XLS, 15 spreadsheets, 252 kb, posted March 4, 2002)
  - Non-Interactive PDF Version (15 pages, 80 kb, posted March 4, 2002)

February 14, 2002 LB CRAC Workshop Handouts
(PDF, 8 pages, 22 kb, posted February 14, 2002)

January 28, 2002 LB CRAC Workshop Handouts
(PDF, 9 pages, 69 kb, posted February 5, 2002)

January 7, 2002 Letter (Workshops Announcement)
(PDF, 2 pages, 28 kb, posted January 22, 2002)

October 2001 - March 2002 "Adjusted" Power Rates
(PDF, 1 page, 6 kb, updated October 3, 2001, posted October 4, 2001)
Updated table of monthly rates with the 46% LB CRAC adjustment. This table is the same as the table that appears on page 3 of the "LB CRAC Final Results" document below.

LB CRAC Final Results
(PDF, 3 pages, 12 kb)
Originally posted June 29, 2001. Page 3 corrected on August 21, 2001 (with corrected IP rates) and again on October 3, 2001 (with corrected Slice rate). Re-posted on October 9, 2001.

June 29, 2001 Press Conference
BPA announces 46 percent Load-Based Cost Recovery Adjustment for October 2001 - March 2002 power rates.

Crosswalk Between Rate Mitigation Activities and LB CRAC
(PDF, 6 kb, posted June 29, 2001)

LB CRAC Final Public Model
(.XLS Spreadsheet, 210 kb, posted June 29, 2001).
[Note: Consistent with the Partial Settlement of BPA's Rate Case which stipulated that detailed data would be embargoed for 12 months, the actual data used in the calculation has been purged from this version of the model. As a result, there are numerous DIV by Zero messages. This is simply a result of the equations remaining but the data used by these equations has been omitted.]

Preliminary Load Reduction Results by customer group
(PDF, 2 pages, 9 kb, posted June 26, 2001)

Record of Decision (ROD) on Load Reduction Strategy and 9(c) Study
(PDF, 29 pages, 154 kb, posted June 25, 2001)
This ROD outlines the actions customers can take to contractually reduce their purchases from BPA. Actions range from doing more conservation to temporarily adding and using unplanned resources. This strategy also includes a determination under section 9(c) of the Northwest Power Act regarding possible future exports by utility customers of these unplanned resources.

June 6, 2001 LB CRAC Workshop