Revision of ACS-26 Rate Schedules; Public Hearing and Opportunities for Public Review and Comment

Issuing agencies

Abstract

Bonneville is holding an expedited rate proceeding pursuant to Section 7(i) of the Pacific Northwest Electric Power Planning and Conservation Act (Northwest Power Act) to propose revisions to its rate schedules for Ancillary and Control Area Services (ACS-26) to provide for the suballocation of new Neutrality and Uplift Charges and Credits associated with the CAISO's EIM. The Northwest Power Act requires that Bonneville's rates be established based on the record of a formal hearing. By this notice, Bonneville announces the commencement of an expedited rate proceeding, designated as the "BP-26E" proceeding, for the limited purpose of revising the ACS-26 rate schedules as described above. The proposed effective date is February 1, 2027, subject to approval by the Federal Energy Regulatory Commission.

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<title>Federal Register, Volume 91 Issue 193 (Wednesday, October 7, 2026)</title>
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[Federal Register Volume 91, Number 193 (Wednesday, October 7, 2026)]
[Notices]
[Pages 64148-64151]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20518]


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DEPARTMENT OF ENERGY

Bonneville Power Administration

[BPA File No.: BP-26E]


Revision of ACS-26 Rate Schedules; Public Hearing and 
Opportunities for Public Review and Comment

AGENCY: Bonneville Power Administration (Bonneville or BPA), Department 
of Energy (DOE).

ACTION: Revision of ACS-26 Rate Schedules for Suballocation of new 
Charges and Credits in the California Independent System Operator's 
(CAISO) Energy Imbalance Market (EIM).

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SUMMARY: Bonneville is holding an expedited rate proceeding pursuant to

[[Page 64149]]

Section 7(i) of the Pacific Northwest Electric Power Planning and 
Conservation Act (Northwest Power Act) to propose revisions to its rate 
schedules for Ancillary and Control Area Services (ACS-26) to provide 
for the suballocation of new Neutrality and Uplift Charges and Credits 
associated with the CAISO's EIM. The Northwest Power Act requires that 
Bonneville's rates be established based on the record of a formal 
hearing. By this notice, Bonneville announces the commencement of an 
expedited rate proceeding, designated as the ``BP-26E'' proceeding, for 
the limited purpose of revising the ACS-26 rate schedules as described 
above. The proposed effective date is February 1, 2027, subject to 
approval by the Federal Energy Regulatory Commission.

DATES: 
    Prehearing Conference: A prehearing conference for the BP-26E 
proceeding will be held at 1 p.m. on October 21, 2026, via WebEx. The 
WebEx information will be available on Bonneville's website at 
<a href="http://www.bpa.gov/bp-26e-rate-case">www.bpa.gov/bp-26e-rate-case</a> or from the Hearing Clerk.
    Intervention: Petitions to intervene in the BP-26E proceeding must 
be filed on Bonneville's secure website no later than 4:30 p.m. on 
October 22, 2026. Part III of this notice, ``Public Participation in 
the BP-26E Proceeding,'' provides details about requesting access to 
the secure website and filing a petition to intervene.
    Objections to Proposed Settlement: Written objections to the 
proposed settlement in the BP-26E proceeding must be filed on 
Bonneville's secure website no later than 4:30 p.m. on October 23, 
2026. Parts I and III of this notice, ``Introduction'' and ``Public 
Participation in the BP-26E Proceeding,'' respectively, describe the 
proposed settlement and provide details about filing a written 
objection.
    Participant Comments: Written comments by non-party participants 
must be received by October 23, 2026, to be considered in the 
Administrator's Record of Decision (ROD). Part III of this notice, 
``Public Participation in the BP-26E Proceeding,'' provides details 
about submitting participant comments.

FOR FURTHER INFORMATION CONTACT: Ms. Elissa Haley, NKS-7, BPA 
Communications, Bonneville Power Administration, P.O. Box 14428, 
Portland, Oregon 97293; by phone toll-free at 1-800-622-4519; or by 
email to <a href="/cdn-cgi/l/email-protection#d5b0bbbdb4b9b0ac95b7a5b4fbb2baa3"><span class="__cf_email__" data-cfemail="cbaea5a3aaa7aeb28ba9bbaae5aca4bd">[email&#160;protected]</span></a>.
    The Hearing Clerk for this proceeding can be reached via the 
contact information provided on Bonneville's website at <a href="https://www.bpa.gov/energy-and-services/rate-and-tariff-proceedings/bp-26e-rate-case">https://www.bpa.gov/energy-and-services/rate-and-tariff-proceedings/bp-26e-rate-case</a>.
    Please direct questions regarding Bonneville's secure website to 
the Hearing Coordinator via email at <a href="/cdn-cgi/l/email-protection#a8cbdfcfdac1cececdc6e8cad8c986cfc7de"><span class="__cf_email__" data-cfemail="03607464716a6565666d436173622d646c75">[email&#160;protected]</span></a> or, if the 
question is time-sensitive, via telephone at (503) 230-5107.
    Responsible Officials: Mr. Brian McConnell, Manager of Transmission 
Tariff, Rates, and Regulatory Activities, is the official responsible 
for the development of Bonneville's transmission, ancillary, and 
control area services rates.

SUPPLEMENTARY INFORMATION: 

Table of Contents

Part I. Introduction and Procedural Matters
Part II. Scope of the BP-26E Proceeding
Part III. Public Participation in the BP-26E Proceeding
Part IV. Summary of Rate Proposal
Part V. Proposed Rate Schedules

Part I--Introduction and Procedural Matters

A. Introduction

    Bonneville is proposing to revise limited provisions of its ACS-26 
rate schedules in response to tariff changes made by CAISO in 
association with CAISO's implementation of an Extended Day Ahead Market 
(EDAM). Although Bonneville is not currently participating in EDAM, 
Bonneville is a participant in CAISO's EIM, and section IV.D of 
Bonneville's ACS-26 rate schedule, ``EIM Neutrality and Uplift Charges 
and Credits,'' provides for the suballocation of charges and credits 
Bonneville receives from CAISO in the EIM. In advance of the 
implementation of the EDAM, CAISO revised its Market Operator Tariff to 
add or change certain EIM Neutrality and Uplift Charges and Credits. 
Bonneville is now proposing to revise certain provisions in section 
IV.D of the ACS-26 rate schedules to provide for the suballocation of 
the new charges and credits. Bonneville's proposal in the BP-26E 
proceeding is limited to this purpose. The proposed changes to the ACS-
26 rate schedules do not affect current transmission rate levels or 
power rates.

B. Proposed Settlement

    Bonneville held public meetings on November 6 and December 15, 
2025, to discuss the proposed rate schedule revisions with 
stakeholders. In addition, Bonneville and stakeholders participated in 
a settlement conference on January 20, 2026, to discuss the potential 
to settle the proposed rate schedule revisions in the BP-26E 
proceeding. After the settlement conference, Bonneville circulated a 
settlement proposal among the participants, and Bonneville and 
participants had additional discussion and exchanged additional 
proposals via email. On February 13, 2026, Bonneville circulated a 
proposed settlement agreement, titled the ``Principles of Settlement 
for the BP-26E Rate Proceeding,'' and asked for participants to notify 
Bonneville by February 20, 2026, of any objections. Bonneville has 
received no objections to the proposed settlement agreement circulated 
on February 13, 2026. A link to the proposed settlement agreement is 
provided in Part V of this notice.
    The proposed settlement agreement provides for Bonneville to notify 
the Hearing Officer for the BP-26E proceeding about the agreement and 
for a deadline to be established for any party in the proceeding to 
either object to the proposed settlement or waive the right to contest 
the settlement. If there are no objections to the proposed settlement, 
Bonneville staff will continue with proposing adoption of the 
settlement by the Administrator. If there is an objection, Bonneville 
will notify all parties and decide how to proceed with respect to the 
initial proposal in the BP-26E proceeding.

C. Expedited Process and Proposed Procedural Schedule

    In light of the limited purpose of the BP-26E proceeding and the 
proposed settlement, Bonneville intends to conduct an expedited hearing 
process for the review of the proposed revisions to the rate schedules. 
An expedited proceeding will allow the proposed rate schedule revisions 
to take effect closer in time to the May 1, 2026 ``go live'' date of 
CAISO's EDAM.
    Sections 1010.4(b)(4) and 1010.22 of the Rules of Procedure that 
govern Bonneville's rate proceedings, Federal Register, 83 FR 39993 
(Aug. 13, 2018), provide for expedited rate processes. In order to 
facilitate the expedited process in the BP-26E proceeding, pursuant to 
Section 1010.1(e) of the Rules of Procedure, the Administrator 
authorizes the Hearing Officer to waive any procedural requirements of 
the rules for the purpose of developing the record and completing the 
proceeding on an expedited basis. The Rules of Procedure are on 
Bonneville's website at <a href="https://www.bpa.gov/Finance/RateCases/RulesProcedure/Pages/default.aspx">https://www.bpa.gov/Finance/RateCases/RulesProcedure/Pages/default.aspx</a>.
    Bonneville has made prospective parties aware of its intent to use 
an expedited process and schedule for the BP-26E proceeding. The 
Hearing Officer is directed to use the following procedural schedule 
unless a notice of

[[Page 64150]]

objection to the proposed settlement is filed by the deadline below.
    Initial Proposal Released: Upon publication of the Federal Register 
Notice.
    Prehearing Conference: October 21, 2026.
    Deadline for Petitions To Intervene: October 22, 2026.
    Deadline for Notices of Objection to Proposed Settlement: October 
23, 2026.
    Close of Participant Comments: October 23, 2026.
    Final Record of Decision No Later Than: November 13, 2026.
    If an objection to the proposed settlement is filed, the Hearing 
Officer is directed to adopt an alternative procedural schedule to 
establish an expedited process for the rest of the proceeding. If an 
objection is filed, Bonneville will promptly schedule a scheduling 
conference with prospective parties to develop an alternative 
procedural schedule to propose to the Hearing Officer. Any procedural 
schedule adopted by the Hearing Officer must provide for issuance of 
the Administrator's Record of Decision no later than 90 days after 
publication of this Federal Register Notice. The Hearing Officer is 
encouraged to conclude the proceeding in less than 90 days and may 
circumscribe or reduce the timing or availability of any procedural 
activities in the case as he or she determines are unnecessary or 
overly burdensome in consideration of the limited scope and purpose of 
this case.

D. Ex Parte Communications

    Section 1010.5 of the Rules of Procedure prohibits ex parte 
communications. Ex parte communications include any oral or written 
communication (1) relevant to the merits of any issue in the 
proceeding; (2) that is not on the record; and (3) with respect to 
which reasonable prior notice has not been given. The ex parte rule 
applies to communications with all Bonneville and DOE employees and 
contractors, the Hearing Officer, and the Hearing Clerk during the 
proceeding. Except as provided, any communications with persons covered 
by the rule regarding the merits of any issue in the proceeding by 
other executive branch agencies, Congress, existing or potential 
Bonneville customers, nonprofit or public interest groups, or any other 
non-DOE parties are prohibited. The rule explicitly excludes and does 
not prohibit communications (1) relating to matters of procedure; (2) 
otherwise authorized by law or the Rules of Procedure; (3) from or to 
the Federal Energy Regulatory Commission (Commission); (4) that all 
litigants agree may be made on an ex parte basis; (5) in the ordinary 
course of business, about information required to be exchanged under 
contracts, or in information responding to a Freedom of Information Act 
request; (6) between the Hearing Officer and Hearing Clerk; (7) in 
meetings for which prior notice has been given; or (8) as otherwise 
specified in Section 1010.5(b) of the Rules of Procedure. The 
prohibition on ex parte communications applies from the date of 
publication of this notice and will remain in effect until the 
Administrator's Record of Decision is issued.

Part II--Scope of the BP-26E Proceeding

    The scope of the BP-26E rate proceeding is limited to consideration 
of the proposed revisions to section IV.D of the ACS-26 rate schedules 
to update the ``EIM Neutrality and Uplift Charges and Credits'' 
Bonneville receives from CAISO. Bonneville may revise the scope of the 
proceeding to include new issues that arise as a result of 
circumstances or events occurring outside the proceeding that are 
substantially related to the rates under consideration in the 
proceeding. See Rules of Procedure, Section 1010.4(b)(8)(iii), (iv). If 
Bonneville revises the scope of the proceeding to include new issues, 
Bonneville will provide public notice on its website, present testimony 
or other information regarding such issues, and provide a reasonable 
opportunity to intervene and respond to Bonneville's testimony or other 
information. Id.
    Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence that challenges the 
appropriateness or reasonableness of any other matter, issue, topic, or 
policy that is not directly related to the proposed revisions to 
section IV.D of the ACS-26 rate schedules.

Part III--Public Participation in the BP-26E Proceeding

A. Distinguishing Between ``Participants'' and ``Parties''

    Bonneville distinguishes between ``participants in'' and ``parties 
to'' the hearings. Separate from the formal hearing process, Bonneville 
will receive written comments, views, opinions, and information from 
participants who may submit comments without being subject to the 
duties of, or having the privileges of, parties to the hearing process. 
Participants do not have the same procedural rights and are not subject 
to the same procedural requirements as parties. Bonneville customers 
whose rates are subject to this proceeding, or their affiliated 
customer groups, may not submit participant comments. Members or 
employees of organizations that have intervened in the proceeding may 
submit participant comments as private individuals (that is, not 
speaking for their organizations) but may not use the comment 
procedures to address specific issues raised by their intervenor 
organizations.
    Written comments by participants will be included in the record and 
considered by the Administrator if they are received by October 23, 
2026. Participants should submit comments through Bonneville's website 
at <a href="https://www.bpa.gov/comment">https://www.bpa.gov/comment</a>. All comments should contain the 
designation ``BP-26E'' in the subject line.

B. Petitions To Intervene

    Any entity or person intending to become a party to the BP-26E rate 
proceeding must file a petition to intervene through Bonneville's 
secure website (<a href="https://www.bpa.gov/secure/Ratecase/">https://www.bpa.gov/secure/Ratecase/</a>). A first-time 
user of Bonneville's secure website must create a user account to 
submit an intervention. Returning users may request access to the BP-
26E rate proceeding through their existing accounts and may submit 
interventions once their permissions have been updated. The secure 
website contains a link to the user guide, which provides step-by-step 
instructions for creating user accounts, generating filing numbers, 
submitting filings, and uploading interventions. Please contact the 
Rate Hearing Coordinator via email at <a href="/cdn-cgi/l/email-protection#bddecadacfd4dbdbd8d3fddfcddc93dad2cb"><span class="__cf_email__" data-cfemail="05667262776c6363606b456775642b626a73">[email&#160;protected]</span></a> or, if the 
question is time-sensitive, via telephone at (503) 230-5107 with any 
questions regarding the submission process.
    Petitions to intervene must conform to the format and content 
requirements in Sections 1010.6 and 1010.11 of the Rules of Procedure. 
Petitions to intervene must be uploaded to Bonneville's secure website 
by 4:30 p.m. on the deadline in the procedural schedule in Part I.C of 
this notice.

C. Notices of Objection to the Proposed Settlement of the BP-26E 
Proceeding

    Part I.B of this notice describes the proposed settlement that 
addresses the rate schedule revisions at issue in the BP-26E 
proceeding. Any party that opposes adoption of the proposed settlement 
of the BP-26E proceeding must file a written objection on Bonneville's 
secure website no later than 4:30 p.m. on the deadline in the 
procedural schedule in Part I.C of this

[[Page 64151]]

notice. A written objection must state each issue in the proposed 
settlement the party wants to preserve to contest in the BP-26 
proceeding. Any party that does not file a timely written objection 
will be deemed not to object to the proposed settlement.

D. Developing the Record

    The hearing record will include, among other things, the 
transcripts of the hearing, written evidence and argument entered into 
the record by Bonneville and the parties, written comments from 
participants, and other material accepted into the record by the 
Hearing Officer. The Hearing Officer will review and certify the record 
to the Administrator.
    The Administrator will make a final determination on the issue in 
this proceeding based on the record and such other materials and 
information as may have been submitted to or developed by the 
Administrator. The Final ROD will be made available to all parties. 
Bonneville will submit the Final ROD and the hearing record to the 
Commission for confirmation and approval after issuance of the Final 
ROD.

Part IV--Rate Proposal

    Bonneville provides imbalance service through the EIM under 
Schedules 4E and 9E in its open access transmission tariff and acts as 
the EIM Entity Scheduling Coordinator (EESC) for all loads, non-
participating resources, and interchange in its balancing authority 
area. The EIM responds to the differences between the schedules and 
actuals for loads, non-participating resources, and interchange, and 
Bonneville is billed (as the EESC) for these differences as imbalance. 
CAISO bills Bonneville through a series of ``charge codes,'' and 
Bonneville passes on the charges or credits under these charge codes to 
customers through provisions in section IV of the ACS-26 rate schedule.
    As part of CAISO's implementation of the EDAM, CAISO has adopted 
new or modified charges and credits it will allocate to Bonneville. The 
new or modified charges and credits are not addressed by Bonneville's 
current ACS-26 rate schedule. As a result, Bonneville proposes to make 
revisions in section IV.D of the ACS-26 rate schedule to provide for 
the suballocation of the new or modified charges and credits. 
Specifically, the ACS-26 rate schedule currently in effect would be 
replaced by the rate schedules identified at <a href="http://www.bpa.gov/bp-26e-rate-case">www.bpa.gov/bp-26e-rate-case</a>. Bonneville intends to request Commission approval of the revised 
rate schedule effective February 1, 2027.

Part V--Proposed Rate Schedules

    The proposed settlement agreement and the ACS-26 rate schedules at 
issue in the BP-26E proceeding are a part of this notice and are 
available for viewing and downloading on Bonneville's website at 
<a href="http://www.bpa.gov/bp-26e-rate-case">www.bpa.gov/bp-26e-rate-case</a>.

Signing Authority

    This document of the Department of Energy was signed on October 2, 
2026, by Travis R. Kavulla, Administrator and Chief Executive Officer 
of the Bonneville Power Administration, pursuant to delegated authority 
from the Secretary of Energy. That document with the original signature 
and date is maintained by DOE. For administrative purposes only, and in 
compliance with requirements of the Office of the Federal Register, the 
undersigned DOE Federal Register Liaison Officer has been authorized to 
sign and submit the document in electronic format for publication, as 
an official document of the Department of Energy. This administrative 
process in no way alters the legal effect of this document upon 
publication in the Federal Register.

    Signed on October 5, 2026.
Jennifer Hartzell,
Alternate Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2026-20518 Filed 10-6-26; 8:45 am]
BILLING CODE 6450-01-P


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