Bonneville Power Administration Will Continue to Supply Financial Support to WPPSS

The Bonneville Power Administration (BPA) will continue to provide "indispensable credit support" to three nuclear power plants that were issued $6.9 billion in outstanding bonds by the Washington Public Power Supply System (WPPSS), according to the American Banker.

The Portland, OR-based power agency purchases wholesale power from Energy Northwest, formerly known as WPPSS, and sells it to more than 100 public power utilities. BPA is currently working on extending the contracts with most of the utilities. A majority of the current contracts will expire in 2001.

According to the new billing agreements, BPA will most likely continue to receive revenue, which will ensure that the company will continue to purchase power from Energy Northwest and will make sure that the bonds for WPPSS Projects 1, 2, will be paid, according to American Banker.

In fiscal 1997, the BPA's payments allowed the former WPPSS to pay $464 million in principal and interest on its bonds, according to a BPA official. BPA has an obligation to back Energy Northwest's debt for its WPPSS Projects 1, 2, and 3.

WPPSS formally became Energy Northwest last year. The company adopted the new name in an attempt to rid itself of the stigma its name carried. In 1983 it defaulted on $2.25 billion in debt for its Projects 4 and 5, which was the largest municipal bond failure in U.S. history.