High market prices and dry conditions drive second quarter financial results

Power Services' net revenue forecast is negative $285 million, which is $385 million below agency targets. Higher power purchase expenses are the main driver. Transmission Services' net revenues are forecast to be $1 million, which is $5 million above target. Increased operating revenues were offset by higher operating expenses and cost pressures related to commercial activities.

“Record low generation combined with record market prices have made this a challenging year from a financial standpoint," said Marcus Harris, BPA's executive vice president and chief financial officer. “Despite these challenges, the financial measures we have put in place have positioned us to meet our reserves targets. Through these first two quarters, we continue to execute on all financial plan targets except for net revenue as a result of significant power purchase expense."

Agency financial reserves for risk are forecast to be $720 million at the end of the fiscal year, a decrease of $567 million from the prior year. BPA forecasts ending the year with 97 days cash on hand, which exceeds BPA's minimum threshold of 60 days.

BPA's second quarter quarterly business review is available at https://www.bpa.gov/about/finance/quarterly-business-review.