BPA revenues $197M below financial performance target

PORTLAND, Ore. — The Bonneville Power Administration released its first official forecast of the expected financial performance for fiscal year 2024 on Feb. 13, according to an announcement from the organization. 

The statement said dry winter conditions in the Pacific Northwest have resulted in agency net revenues of -$102 million, $197 million below the financial performance target. 

BPA’s Executive Vice President and Chief Financial Officer Marcus Harris commented on the estimates in the statement.

“These estimates could significantly change by the second quarter since the forecast does not include the impacts from the January cold snap, which realized significantly higher power purchase expense as a result of record low hydro generation combined with record high power prices,” Harris wrote. “We entered the fiscal year with healthy reserve levels, which have helped us navigate the volatility we saw this January. In this environment of volatile weather and market prices, liquidity is paramount and something we will be focused on maintaining going forward.”

Power Services’ net revenue forecast is -$109 million, which is $209 million below agency targets. This decrease is primarily due to higher power purchase expenses and is slightly offset by increases in operating revenues, the statement said. 

Transmission Services’ net revenues are forecast to be $3 million, which is $7 million above agency targets. According to the announcement, this is driven largely by lower depreciation expenses and higher interest income.

BPA forecasts ending the year with 121 days cash on hand, which exceeds BPA’s minimum target of 60 days.

BPA’s first quarter quarterly business review is available at www.bpa.gov.