197 



not expected to change. The Forum would likely be used to detennine the nonpower 

 requirements for the Federal projects within the confines of the System Operation 

 Strategy. FNCA does not dictate the design of the Forum, nor would the Forum dictate 

 a partictilar structiire or agreement for FNCA. 



2.3.2 Canadian Entitlement Allocation Agreements 



Under the Columbia River Treaty, Canada built three storage dams on the upper 

 reaches of the Columbia River in British Columbia. The regulation of stream flows 

 made possible by these projects enabled dams dov^mstream in the U.S. to produce more 

 dependable capacity and average annual usable energy, and also provided increased 

 flood protection. The Treaty requires that the U.S. and Canada share the benefits of the 

 extra power-producing capability equaUy. 



Because Canada did not need additional power at the time of the Treaty, it sold its 

 benefits, called the Canadian Entitlement, to a group of utilities in the Northwest for a 

 period of 30 years from the completion date of each of the three Canadian projects. The 

 Canadian Entitlement is actually generated at the 11 U.S. projects downstream of the 

 Canadian border. Five of these projects are owned by public utility districts (PUDs) - 

 Chelan, Douglas, and Grant; six are owned and operated by the Federal govenunent. 

 The Canadian Entitlement Allocation Agreements determine the amount of power each 

 PUD projects is entitled to generate of the total. BPA, as the representative of the U5. 

 government, and the PUDs are signatories to the agreements. 



The agreements begin to terminate in 1998, and they expire completely by 2003. Canada 

 has indicated they do not wish to resell the Canadian Entitlement to VS. utilities. The 

 return of Canada's share of power begins in 1998. New Canadian Entitlement 



• Final Draft - September 15, 1993 28 



