Industrials Force BPA Discount

Fortnightly Magazine - December 1995
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Fifteen aluminum and chemical companies in the Northwest have joined together under the name "Direct Service Industries Inc." (DSI). Together, the 15 companies account for about 30 percent of BPA sales (3,000 megawatts (Mw)). Seven of them have forced the Bonneville Power Administration (BPA) to negotiate a cut-rate electric supply

contract, although the Federal Energy Regulatory Commission has yet to approve the new rates. These companies will now take 75 percent of their total requirements from BPA (about 1,300 Mw). Of the other eight companies in DSI, some are still negotiating with BPA for discounted rates, while others will now likely buy some or all of their power from other suppliers. BPA contracts require industrial customers to commit to buying their power from BPA over a

five-year period. But unless BPA can meet or beat a rate target of 2.26 cents per kilowatt-hour, its customers may terminate and find an alternate supplier.

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