88 



14 



Revenues 



Question 1 : An estimate of the amount of revenues foregone per fiscal year since the 



irrigation discount was implemented in 1984, and an estimate of the revenue 

 increase per year fi-om FY 1994 to FY 1998 if it is eliminated. Is there any 

 statutory basis for the irrigation discount? 



Answer: The irrigation discount has been available since 198S and the participating utility 



must pass through the entire amoimt to the end-user irrigator. 



The annual amount of the irrigation discount since 198S is as follows: 



Year 



1985 

 1986 

 1986 

 1988 

 1989 

 1990 

 1991 

 1992 



Irrigation 

 Discount Amount 

 (S Kfillions) 



6.050 

 11.976 

 11.976 

 17.468 

 14.043 

 13.025 

 11.883 

 13.236 



Concerning the amount of revenue deficiency for future years, in BPA's initial rate 

 proposal BPA forecasted the revenue deficiency for the upcoming 2-year rate 

 period (FY 1994 and 1995) to be a total of $27,018 million. No forecast for years 

 beyond 1995 has been performed. 



BPA regrets that it must refi'ain fi-om addressing the question pertaining to the 

 statutory basis for the irrigation discount due to the prohibition on ex parte 

 communications that applies to issues pending resolution in rate hearings 

 conducted pursuant to section 7(i) of the Northwest Power Act. Please refer 

 to the explanation (Enclosure 1) at the end of this document. 



