pfr ii scenarios
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BPA Power Function Review Date Issued: January 17, 2006PFR II Kick Off Meeting
January 23, 2006 Workshop
PFR II Scenarios
What would it take to get a 10% reduction in the Initial Proposal Average Rate?
Scenario 1:
• $175 M/year reduction in costs results in approximately a $3/MWh reduction in the Initial Proposal Average Rate
Scenario 2:
• Liquidity Tools and $50 M/year reduction in costs result in approximately a $3/MWh reduction in the Initial Proposal Average Rate ($2/MWh from liquidity tools and $1/MWh from cost reductions)
Scenario 3:
• Liquidity Tools and $125 M improvement in FY06 Expected Value Net Trading Floor revenues result in approximately a $3/MWh reduction in the Initial Proposal Average Rate ($2/MWh for liquidity tools and $1/MWh improved net trading floor sales)
Note: Liquidity tool impacts assume a fully flexible financial tool in these scenarios.
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