141 



Operating Plans that are based on the Annual Operating Plan and contain revisions 

 as mutually agreed 



Question It is my understanding that BPA, as the US Entity under the 

 Treaty, has been negotiating new agreements and plans related to the Treaty 

 Would you describe them please'' 



Answer: At the time the Treaty was signed in 1964, Canada did not have a 

 demand for its Entitlement A group of United States utilities formed the 

 Columbia Storage Power Excliange corporation to purchase the Entitlement from 

 Canada for a period of 30 years This purchase expires in phases beginning in 1998 

 through 2003 At that time, the United States Entity must deliver the Entitlement 

 to Canada at a point near Oliver, British Columbia, unless the Entities agree to 

 other arrangements pursuant to the Treaty. 



in 1994, the United States and Canada negotiated principles for proposed 

 agreement for delivery and disposition of the Canadian Entitlement The major 

 components of the proposed agreement provide that: First, the United States will 

 deliver Canada's Entitlement over existing lines rather than over a new high- 

 voltage line which otherwise would have to be built, probably from Grand Coulee 

 to Oliver, British Columbia, Second, the United States will permit Canada to 

 dispose of all or a portion of the Canadian Entitlement in the United States, and 

 Finally, the United States will purchase through September 15, 2024, that portion 

 of the Canadian Entitlement capacity that exceeds 950 megawatts for $180 million, 

 U S This capacity, estimated to be as much as 450 megawatts, would otherwise 

 be delivered to Canada 



The Entities are currently negotiating the Entity, Entitlement capacity buy 

 down, and transmission agreements to implement the principles The disposition 

 of the Canadian Entitlement in the United States will be authorized by an exchange 

 of notes between the United States and Canadian governments 



The United Stales Entity and Bonneville are also negotiating renewal of the 

 Pacific Northwest Coordination Agreement and the Canadian Entitlement 

 Allocation Agreements, two other agreements related to the Treaty. Under the 

 proposed Canadian Entitlement Allocation Agreements, non-Federal dam owners 

 with projects located downstream of Treaty storage will finance the $180 million 

 Capacity Entitlement capacity buy down in satisfaction and settlement of their 

 obligation to deliver Entitlement capacity to the United States Entity for deliver^' 

 to Canada An evaluation of the environmental impacts of the delivery of the 

 Entitlement, the Canadian Entitlement Allocation Agreements, and the Pacific 

 Northwest Coordination Agreement are being conducted in accordance with the 

 National Environmental Policy Act. No final decisions respecting these agreement 

 will be made until these processes have been concluded 



