Wind operators, RNP protest latest BPA proposal

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Wind energy operators say the Bonneville Power Administration's latest proposal falls short.

A coalition of wind energy operators sent a letter Monday to U.S. Energy Secretary Steven Chu outlining their complaints with the Bonneville Power Administration's new proposal to partially compensate them for the time their turbines stand idle when too much power from hydro sources crowds the grid.

The letter, signed by executives from Pacific Power, NextEra Energy Resources LLC, EDP Renewables North America LLC, Invenergy Wind North America LLC and Iberdrola Renewables Inc., airs concerns that BPA is not playing fair.

"BPA's self-regulation of its transmission system has harmed consumers," the letter reads. "Last year BPA artificially increased the value of its power resources (and raised power prices in the West when it had a cash surplus) by unilaterally revoking the contractual transmission rights of renewable energy generators located in Bonneville's control area."

The letter (available for download as a PDF here) is the latest salvo in a nearly year-long dispute between BPA and wind energy operators over what to do when high water in BPA's dam system prompted the administration to require the wind farms feeding its system to shut down to prevent an oversupply of power.

The dispute went to federal court and in December, the Federal Energy Regulatory Committee found in favor of wind energy companies and asked BPA to come up with a solution.

BPA proposed one last week, saying it would partially compensate wine energy operators for lost revenue if they are required to shut down again.

The proposal has not been well received as wind energy advocates say that the cost-sharing proposal dodges FERC's order issued on December 7 that the BPA file an open access transmission tariff that would prevent discrimination of different types of power.

"Our opposition centers on the principle of non-discrimination and contractual sanctity, both of which are essential to ensure continued momentum for new renewables and related economic vitality in our region," said Rachel Shimshak, executive director of Renewable Northwest Project, in a statement released Monday. "Wind generators are willing to consider some cost allocation, but only if BPA fulfills the FERC request to file an enforceable tariff that will ensure non-discrimination."

"BPA's actions do not reflect the Administration's goals of nondiscriminatory transmission access, consumer protection and promoting the development of renewable energy," the wind energy companies wrote in their letter to Chu.

On Tuesday, the nonprofit Save Our Wild Salmon, also released a statement finding fault with the BPA proposal.

"The Bonneville Power Administration continues to use salmon as an excuse for policy decisions regarding wind power cut-offs, despite a lack of scientific evidence supporting their claim," the statement read.

The group has been vocal about findings that spilling excess water over dams, a practice BPA could have employed as a way to reduce the problems associated with overgeneration. BPA follows rules laid down by the Clean Water Act which holds that spilling too much water over the dams is harmful to fish.

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