PORTLAND, Ore. — The Bonneville Power Administration recently announced higher than expected revenue for the first quarter of 2023.
The administration is forecasting a negative $215 million in net revenues, which is $80 million above its performance target, according to a press release.
Power Services expects to end the year with negative net revenues of $288 million, $4 million below its performance target and is mainly due to higher power purchase expenses.
Transmission Services expects to end the year with net revenues of $73 million, $84 million above projections, and attributed primarily to higher point-to-point long-term sales.
The administration forecasts controllable end-of-year expenses will be $10 million above target due to higher-than-expected maintenance expenses, software licensing and fleet costs.
The negative revenue targets for 2023 are the result of rate reductions resulting from the reserve distribution clause triggered by last year’s earnings.
At the end of 2022, the administration reported 233 days cash on hand, against a 60-day minimum threshold, triggering the clause.
The clause released $500 million from Power Services and $63.1 million from Transmission Services for other purposes, including reduced rates in 2023.
The administration’s full first quarter business review is available at www.bpa.gov.