The Financial-Based Cost Recovery Adjustment Clause, or FB CRAC, allows a temporary, one-year adjustment to the base rates in addition to the Load-Based CRAC for non-Slice customers, if the Power Business Line's accumulated net revenues fall below a preset threshold. It can trigger in any or all 5 years of the rate period. It is designed to generate additional cash in a given fiscal year.

The thresholds for triggering the FB CRAC vary depending on the particular year of the rate period. The rate adjustment is based on the prior August's third-quarter-review forecast of year-end accumulated net revenues. If the forecast accumulated net revenues are below the threshold, the Administrator will propose an FB CRAC adjustment by the end of August that will apply to rates beginning in October. BPA will notify customers in September of the percentage increase. A true-up will be made in the second half of the year if actual accumulated net revenues differ from the forecast.

December 23, 2005 - Final LB & FB CRAC Results:  The final results for the LB CRAC rate adjustment for the April 1, 2006 through September 30, 2006 (CRAC 10) period, the true-up for the LB CRAC 8 period, and the FY 2006 FB CRAC True-up are now available on the December 14, 2005 LB & FB CRAC Workshop page.  For a summary of the final results, see the December 16, 2005 letter (PDF, 1 page, 108 KB).

November 30, 2005 (4 p.m.) - LB & FB CRAC Workshop Scheduled on December 14:  BPA has scheduled a combined LB & FB CRAC workshop on Wednesday, December 14, to present the calculations for the LB CRAC10 Adjustment for April 1, 2006, through September 30, 2006;  the LB CRAC8 "True-Up" for April 1, 2005, through September 30, 2005;  and the FB CRAC "True-Up" for April 1, 2006, through September 30, 2006.  The workshop will be held in the BPA Rates Hearing Room beginning at 9 a.m.  If you would like to participate by telephone, please call Cynthia Jones at 503-230-5459.  A second LB CRAC workshop will be held on December 23 only if substantive issues are raised at this workshop.  For additional information, see the November 30 letter from Elizabeth Evans (PDF, 1 page, 117 kb).

September 8, 2005 - Final FB and SN CRAC Rate Adjustments for FY 2006:  BPA announced today a 1.6 percent reduction in average FY 06 wholesale power rates compared to FY 05 rates, resulting from a 4.41 percent FB CRAC adjustment and a 1.75 percent SN CRAC adjustment.  These final rate adjustments were formally presented at a workshop this afternoon.  Electronic versions of the workshop handouts are currently available in the Power Rates document queue.  These materials will be officially-posted at a later date on the September 8 workshop page.  For more information, see today's BPA news release and the September 2005 Issue Alert.

August 31, 2005 - FB/SN CRAC Workshop Scheduled on September 8:  The final Financial-Based and Safety Net CRAC rate adjustments for FY 2006 will be presented at a workshop on Thursday, September 8, from 2 - 3 p.m. in the BPA Rates Hearing Room. This workshop is a follow-up to the August 9 FB/SN CRAC workshop.  If you would like to participate by telephone, please call Cynthia Jones at (503) 230-5459.

August 26, 2005 - FB/SN CRAC Workshop Postponed:  The FB/SN CRAC workshop that was tentatively rescheduled for August 30 has been postponed until early September.

August 16, 2005 - FB/SN CRAC Workshop Rescheduled:  The FB/SN CRAC workshop that was tentatively scheduled on August 23 has been tentatively rescheduled for Tuesday, August 30, 2005, from 9 a.m. until noon, in the BPA Rates Hearing Room.  [August 31 Note: This workshop has been rescheduled on September 8, from 2 - 3 p.m.]  This workshop is a follow-up to the August 9 workshop that presented the initial calculations for the FY 2006 FB & SN CRAC power rate adjustments.  Please note that revised versions of the handouts at the August 9 workshop have been posted on the August 9 workshop page.  Reminder:  Comments on the proposed FB & SN CRAC rate adjustments for FY 2006 must be submitted by Friday, August 19, 2005.  For more information and instructions on how to submit written comments, see the July 13, 2005 letter (PDF, 1 page, 108 kb).

July 13, 2005 (6 p.m.) - FB/SN CRAC Workshops Scheduled on August 9 and August 23:  BPA will hold a workshop on Tuesday, August 9, 2005, to present initial calculations for the Financial-Based Cost Recovery Adjustment Clause (FB CRAC) and the Safety Net Cost Recovery Adjustment Clause (SN CRAC) rate adjustments for fiscal year 2006.  This workshop begins a public comment period that closes on Friday, August 19, 2005.  BPA expects to announce the final FB/SN CRAC rate adjustments for FY 2006 at a workshop tentatively scheduled on Tuesday, August 23, 2005.  [Note: The workshop tentatively scheduled on August 23 to announce the final rate adjustments has been rescheduled on September 8, from 2 - 3 p.m.]  Both workshops will be held in the BPA Rates Hearing Room beginning at 9 a.m. and will conclude around noontime.  For more information and instructions on how to submit written comments, see the July 13, 2005 letter (PDF, 1 page, 108 kb).

September 16, 2004 - Final FB and SN CRAC Rate Adjustments for FY 2005:  BPA announced in today's letter from the Administrator (PDF, 4 pages, 147 kb) a 7.5 percent reduction in average FY 05 wholesale power rates compared to FY 04 rates, resulting from an 11.16 percent FB CRAC adjustment and a zero percent SN CRAC adjustment. A second FB/SN CRAC workshop will not be scheduled to discuss the final rates since the decision was based on the same material presented at the August 18th workshop. BPA's responses to public comments (PDF, 2 pages, 14 kb), the updated Actual and Projected PF-02 Adjusted Rates chart (PDF, 1 page, 12 kb) and the CRAC 7 monthly rates tables for the first six months of FY 2005 (PDF, 3 pages, 13 kb) are now available on the August 18th workshop page. For more information, see BPA's September 16, 2004 News Release.
[Notes: The "CRAC 7 monthly rates tables" document originally posted here at 11 a.m. was corrected and reposted at 1 p.m.  See also the PBL FY 2004 Third Quarter Review Forecast of Generation Accumulated Net Revenue (PDF, 2 pages, 110 kb, dated August 2004, posted January 3, 2005).]

September 3, 2004 - FB/SN CRAC Workshop Scheduled for September 7, 2004 is CANCELLED:  As announced in today's letter (PDF, 1 page, 101 kb), the workshop that was tentatively scheduled for September 7th is no longer necessary because there have been no substantive changes in the information presented at the August 18, 2004 workshop. The Financial-Based and Safety Net Cost Recovery Adjustment Clause rate adjustments for FY 2005 will be announced in mid-September.

August 4, 2004 - FB/SN CRAC Workshops Scheduled for August 18th and September 7th:  BPA will hold a workshop on Wednesday, August 18, 2004, to present initial calculations for the Financial-Based Cost Recovery Adjustment Clause and the Safety Net Cost Recovery Adjustment Clause for fiscal year 2005. This workshop will be followed by a public comment period that closes on Friday, August 27, 2004. BPA expects to announce the final FB/SN CRAC rate adjustments for FY 2005 at a workshop tentatively scheduled on Tuesday, September 7, 2004. Both workshops will be held in the BPA Rates Hearing Room beginning at 9 a.m. For more information and instructions on how to submit written comments, see the August 3, 2004 Letter to Rate Case Parties and Customers (PDF, 1 page, 25 kb). [Note: The September 7th workshop has been cancelled. See September 3rd announcement for more information.]

June 25, 2004 - Materials Now Available for Discussion and Comment:  As previously announced on June 18th, BPA has scheduled a workshop on Thursday, July 1st (9 a.m.) to discuss financial and rate forecasts and scenarios for FY 2004-2006. This workshop kicks off a month-long discussion with the region concerning the administrator's upcoming decisions regarding power rates in FY 2005. BPA is interested in your comments and suggestions regarding BPA's analysis and estimates prior to the release of its FY 2005 power rate adjustment proposal in mid-August. These materials are now available for public comment on the July 1st Workshop page. Comments on these materials will be accepted through Friday, July 30, 2004. For instructions on how to comment, see the June 18th letter from Paul Norman (PDF, 2 pages, 31 kb).

June 18, 2004 - Rates and Finances Workshop Scheduled on July 1st:  BPA will conduct an informational workshop on Thursday, July 1, 2004, that will cover financial forecasts for FY 2004-2006, resulting rate levels, and Treasury Payment Probability levels. Staff from PBL's Rates and Finance group will provide an informational briefing and answer questions. The workshop will be held in the BPA Rates Hearing Room beginning at 9 a.m.  See the June 18, 2004 Letter from PBL's Senior Vice President (PDF, 2 pages, 31 kb) for additional information.

May 25, 2004 - FY 2004 Second Quarter Financial Results:   On May 1st, BPA published the FY 2004 Second Quarter Review which includes a preliminary forecast of end-of-year generation accumulated net revenues. See also the PBL FY 2004 Second Quarter Review Generation Accumulated Net Revenue Forecast (PDF, 2 pages, 19 kb). The forecast of accumulated net revenues for the end of the current fiscal year is (-)$552 M. Since the threshold for the FB CRAC is forecasted accumulated net revenues of (-)$264 M, the second quarter review forecast indicates that the FB CRAC is likely to trigger for FY 2005 unless the revenue situation changes dramatically by the end of the third quarter.
[For information on last year's "audited actual" revenues, see PBL FY 2003 Generation Audited Accumulated Net Revenues (PDF, 2 pages, 14 kb, dated March 2004).]

December 18, 2003 - LB CRAC Workshop: At today's workshop, BPA explained: 1) the preliminary calculation of the sixth Load-Based CRAC (CRAC6) for April 2004 through September 2004; 2) the true up for the LB CRAC that was in place from April 2003 through September 2003 (LB CRAC4); and 3) a correction to the SN CRAC rate case numbers. Today's workshop materials are temporarily available in the Power Rates Queue and will be posted at a later date on the December 18th workshop page.
[Note: This LB CRAC workshop announcement is included here because the December 18th workshop also discussed the FB and SN CRACs (corrections to the August 28th FB/SN CRAC workshop materials).]

November 18, 2003 - Official versions of the materials/handouts for the August 14th, August 28th, and September 18th FB/SN CRAC Workshops have been posted on individual workshop web pages (and removed from the "Queue"). All of these materials can now be accessed via the FB/SN CRAC Workshops page.

September 10, 2003 - Workshop Scheduled on September 18th to Discuss Possible IOU Public Litigation Settlement: BPA will hold a workshop for customers and interested parties to explain how BPA would implement the SN CRAC in the event of a settlement of the IOU Public Litigation. The workshop will be held on Thursday, September 18, 2003, beginning at 9:00 a.m. in the Rates Hearing Room at 911 NE 11th Avenue, Portland, Oregon. To participate by telephone, please call Cynthia Jones (503) 230-5459 or Cain Bloomer (503-230-7443) in advance of the workshop.

August 28, 2003 - Final FB and SN CRAC Rate Adjustments for FY 2004: At today's FB/SN CRAC workshop, BPA presented an average rate adjustment for FY 2004 of 2.2% above FY 2003 average rates. The Power Business Line's FY 2003 year-end accumulated net revenues (PDF, 3 pages, 33 kb) are projected to be (-)$594 million. Absent a settlement of litigation between the IOUs and public power customers, the FB CRAC will be 12.28% and the SN CRAC will be 11.46%. For more information, see BPA's August 28th News Release. Today's workshop materials, including BPA's response to public comments are temporarily available in the Power Rates Queue and will be posted at a later date on the August 28th workshop page. A workshop is scheduled for Thursday, September 18, beginning at 9 a.m. in the BPA Rates Hearing Room to address the impact of a settlement on rates, should a settlement occur, as well as other outstanding issues. Additional information will be forthcoming and details will be posted to this website.

August 14, 2003 - Initial Calculations for the FB and SN CRAC Rate Adjustments:  At today's FB/SN CRAC workshop, BPA presented the FY 2003 Third Quarter Financial Review and the PBL Generation Accumulated Net Revenues (ANR) Forecast. The Power Business Line's year-end accumulated net revenues are projected to be (-)$613 million. [Note: This preliminary ANR forecast was updated to (-)$594 million on August 18, 2003. See the August 28, 2003 announcement for a link to the Final ANR Forecast.]   The release of the ANR forecast and associated FB and SN CRAC materials at today's workshop marks the beginning of a public comment period. For more information, see the letter to rate case parties and customers dated August 1, 2003 (see August 1 announcement below). As noted in the letter, the deadline for public comments is Friday, August 22, 2003. Materials from today's workshop are temporarily available in the Power Rates Queue and will be posted at a later date on the August 14th workshop page. The next workshop will be held on Thursday, August 28, 2003, beginning at 9 a.m. in the BPA Rates Hearing Room, where BPA plans to announce the final FB and SN CRAC rate adjustments for FY 2004.

August 1, 2003 - FB and SN CRAC Workshops Scheduled on August 14th & 28th: In a letter issued today to rate case parties and customers, BPA announced two workshops for the FB and SN cost recovery adjustment clauses prior to implementing wholesale power rate adjustments for FY 2004. BPA will conduct a workshop on Thursday, August 14 to explain the forecast of Accumulated Net Revenues (ANR) for FY 2003 and to review the initial calculations for the FB and SN CRAC rate adjustments. The release of the ANR forecast and associated FB and SN CRAC materials marks the beginning of a public comment period. Written comments regarding the inputs to the calculation of the proposed FB and SN CRAC rate adjustments must be submitted no later than August 22, 2003. Today's letter (PDF, 28 kb) provides the details on how to submit comments. Following the public comment period, a second workshop will be conducted on Thursday, August 28, when BPA will announce the final FB and SN CRAC rate adjustments for FY 2004, including any adjustments based on feedback received during the comment period. Both workshops will begin at 9 AM in the BPA Rates Hearing Room, Room 223, located at 911 NE 11th Avenue in Portland. If you would like to participate in either of these workshops by telephone, please contact Cain Bloomer at 503-230-7443 or Cynthia Jones at 503-230-5459 in advance of the workshops to reserve a space on the conference bridge.

May 20, 2003 - FY 2003 Second Quarter Financial Results: On May 9th, BPA published the FY 2003 Second Quarter Review which includes a preliminary forecast of end-of-year generation accumulated net revenues. See also the PBL Generation Accumulated Net Revenues for Financial-Based Cost Recovery Adjustment Clause (PDF, 2 pages, 19 kb). The forecast of accumulated net revenues for the end of the current fiscal year is (-)$726 M. Since the threshold for the FB CRAC is forecasted accumulated net revenues of (-)$265 M, the second quarter review forecast indicates that the FB CRAC is likely to trigger for FY 2004 unless the revenue situation changes dramatically by the end of the third quarter.

February 11, 2003 - Power Business Line Report of FY 2002 Audited Actual Accumulated Net Revenues, Preliminary First Quarter Results for FY 2003: The Power Business Line has determined the financial results attributable to the generation function for fiscal year 2002. See PBL FY 2002 Generation Accumulated Net Revenues for Financial Based Cost Recovery Adjustment Clause (PDF, 2 pages, 14 kb, dated 02-10-2003). Information on BPA's preliminary first quarter results for FY 2003 is also now available.

September 25, 2002 - FB CRAC will trigger for FY2003: BPA calculations indicate that the Accumulated Net Revenues in the generation function will fall below the FB CRAC threshold for fiscal year 2002. The FB CRAC will trigger at the maximum recoverable amount of $135 million, which translates to an increase in rates of 10.97% above base rates, starting October 1, 2002 and continuing through September 30, 2003. See the September 25 letter to customers (PDF, 17 kb) for additional information. Also available are electronic versions of the three enclosures with the letter: final FB CRAC Calculations (PDF, 10 kb), FB CRAC Rate Increments (PDF, 8 kb), and Responses to Comments (PDF, 11 kb) received during the public comment period. On October 1, BPA will post new rates for fiscal year 2003 showing the cumulative effects of the LB and FB CRACs on base power rates.

September 4, 2002 - Handouts from the FB CRAC public forum / workshop: BPA held a technical workshop today to discuss the FB CRAC estimate for FY 2003. Electronic versions of all the handouts are now available on the workshop web page. The deadline for comments regarding the FB CRAC is Friday, September 13, 2002. See the August 29th notification letter to customers (PDF, 25kb) for additional information on how to submit comments.

August 29, 2002 - FB CRAC Will Likely Trigger for FY 2003: Today BPA published the FY 2002 Third Quarter Financial Review and the PBL Generation Accumulated Net Revenues Forecast (PDF, 14 kb, updated August 30, 2002).  The forecast of accumulated net revenues for the end of fiscal year 2002 is (-)$637 M. Since the threshold for the FB CRAC is forecasted accumulated net revenues of (-)$408 M, the third quarter review forecast indicates that the FB CRAC will likely trigger for FY 2003.  For more information, see today's notification letter to customers (PDF, 25 kb).  As noted in the letter, the deadline for public comments is Friday, September 13, 2002, and BPA will conduct an FB CRAC public forum / workshop on Wednesday, September 4th at 9:00 AM.

August 16, 2002 - BPA will conduct a public forum on Wednesday, September 4, 2002, to explain the Accumulated Net Revenues forecast for end of FY02 and review whether the Financial Based Cost Adjustment Clause (FB CRAC) trigger has been reached, and if so, will present and explain the calculations for the FB CRAC. See August 15 letter to Rate Case Parties and Customers (PDF, 14 Kb) for additional information.

May 13, 2002 - FY 2002 Second Quarter Financial Results: On May 13, BPA published the FY 2002 Second Quarter Review, which includes a preliminary forecast of end-of-year generation accumulated net revenues. See also the PBL Generation Accumulated Net Revenues for Financial-Based Cost Recovery Adjustment Clause (PDF, 3 pages, 23 kb). The forecast of accumulated net revenues for the end of the fiscal year is (-)$554 M. Since the threshold for the FB CRAC is forecasted accumulated net revenues of (-)$408 M, the second quarter review forecast indicates that the FB CRAC is likely to trigger unless the revenue situation changes dramatically by the end of the third quarter.

April 9, 2002 - FY 2002 First Quarter Financial Results: On January 31st BPA published the FY 2002 First Quarter Review. The 2002 Final Supplemental General Rate Schedule Provisions (GRSPs) require that BPA post quarterly its preliminary, unaudited, year-to-date aggregate financial results for generation. The FY 2002 preliminary, unaudited, year-to-date net revenues for generation for the first quarter is (-)$46 M. This brings accumulated net revenues to (-)$294 M, however, this does not include FAS 133 or an adjustment for Energy Northwest debt.

February 1, 2002 - Power Business Line Report of FY2001 Accumulated Net Revenues: On January 29th BPA published an annual report showing net revenues for FY 2001 (see page 3 of the BPA FY2001 Annual Report). The Power Business Line has also determined the financial results attributable to the generation function. See PBL FY2001 Generation Accumulated Net Revenues for Financial Based Cost Recovery Adjustment Clause (PDF, 2 pages, 15 kb).

August 29, 2001 - FB CRAC Will Not Trigger: After careful review of the FY 2001 third quarter financials and the forecasted end-of-year financial results attributable to the generation function (Power Business Line), accumulated net revenues for FB CRAC do not fall below the threshold to trigger for fiscal year 2001. Therefore, FB CRAC will not affect FY 2002 rates. See PBL FY2001 Third Quarter Forecast of Accumulated Net Revenue (PDF, 20 kb) and BPA FY2001 Third Quarter Review. This decision is consistent with the guidelines in the 2002 Supplemental Power Rate Proposal Administrator's Final Record of Decision.