Final Study for Bonneville Power Administration's 1986 Variable Industrial Power Rate Proposal.

Technical Report · Sun Jun 01 04:00:00 EDT 1986

OSTI ID:5591006

In this study, BPA is proposing a Variable Industrial Power (VI-86) rate option for its aluminum smelter loads. This rate would provide a predetermined contractual tie between the price of BPA's power and the US market price of aluminum. Establishing such a tie between input price (electricity) and output price (aluminum) will enhance the ability of aluminum producers to operate over the entire business cycle. This should reduce the cyclicality of smelter operations. Increasing the price of power when aluminum prices are high is intended to compensate BPA for any decrease in BPA's revenues when the lower rates occur. Various proposals for and discussions of a variable rate for BPA's direct service industrial (DSI) customers have occurred throughout the region over the past year. This study is the result of analyses conducted and evidence received from the rate hearings conducted on the Variable Rate (VI-86). This study describes the Variable rate proposed by BPA and the analyses conducted in support of the rate.

• Research Organization: USDOE Bonneville Power Administration, Portland, OR. Office of Power and Resources Management
• OSTI ID: 5591006
• Report Number(s): DOE/BP-678; ON: DE86014106
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
36 MATERIALS SCIENCE
360101 -- Metals & Alloys-- Preparation & Fabrication
ALUMINIUM
Aluminum industry and trade - Power supply
BONNEVILLE POWER ADMINISTRATION
COST
ECONOMICS
ELEMENTS
Electric utilities - Rates
INCOME
INDUSTRY
METAL INDUSTRY
METALS
NATIONAL ORGANIZATIONS
RATE STRUCTURE
SMELTERS
SMELTING
US DOE
US ORGANIZATIONS