On October 22, 2019, BPA issued the Financial Reserves and Business Unit (BU) Cash Split Review Record of Decision (ROD) which addresses the resolution of the financial reserves business unit misallocation errors. This decision corrects errors in the allocation of cash between Power and Transmission through BPA’s internal cash split model, the BU Cash Split Model. The errors in the BU Cash Split Model, which date back to 2003, understated Power’s share of cash and overstated Transmission’s share of cash in the Bonneville Fund. Total cash in the Bonneville Fund was unaffected. Consistent with BPA’s commitment to transparency and openness, the review process, which began in 2018, included a detailed analysis of the BU Cash Split Model, three public workshops, followed by multiple opportunities for formal and informal comments. In late July 2019, BPA published its proposed corrective actions and requested public feedback. A 22-day comment period followed. The ROD issued on October 22, 2019, contains BPA’s final resolution of the BU Cash Split errors. Detailed information can be found in the ROD below, along with materials from the financial reserves review process.
Financial Reserves and Business Unit (BU) Cash Split Review Record of Decision (ROD)