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Question 3 : BP A is considering unbundling the services it provides such as 



transnussion, storage, load-shaping and integration services. What are the 

 potential benefits and drawbacks of unbundling? If BPA pursues 

 unbundling, what services should be unbundled and how should the price 

 for these services be calculated? Are there some BPA services that cannot 

 be unbundled? 



Are you aware of any examples in either the public or private sectors of 

 unbundled wholesale power services? 



Answer: We first wish to provide brief background information on how BPA 



packages its existing services. BPA currently meets the main product 

 needs of its customers through its utility and Direct Service Industry power 

 sales contracts and through shorter term arrangements in the surplus power 

 markets. The power sales contracts provide a range of service packages 

 designed to meet the different needs of customers ranging fi-om extremely 

 small publicly-owned utilities to large investor-owned utilities. Each of 

 these service packages is then sold at prices established under BPA's rate 

 schedules. BPA also provides a variety of other services such as 

 transmission and storage to customers based upon individual needs. 



Each service package includes those services BPA and its customers 

 negotiated based on prior contracts and requests as most valuable to a 

 particular set of customers and excludes other services. For example, 

 BPA's firm power service package for small customers and many DSIs 

 includes transmission and transformation of Federal power fi-om network 

 voltages (generally 230 kV) to the customer's distribution voltage 

 (generally 13.8 kV). The service package for larger utilities who generally 

 receive Federal power deliveries at network voltages does not include this 

 specific service. Conversely, BPA's service package for larger utilities with 



