BPA made its 38th consecutive U.S. Treasury payment, bringing the cumulative total to more than $32 billion, the agency announced Oct. 5.

The $1.05 billion payment includes $806 million in principal, $187 million in interest and $56 million to cover a variety of other costs, including assistance to help irrigators repay their share of some Bureau of Reclamation projects.

The agency sets its rates to maintain an annual 97.5 percent probability of making the annual payments, which are paid after the fiscal year ends on Sept. 30.

FY 2021 marked the first year of the next phase of the Regional Cooperation Debt program with Energy Northwest that allows for the extension of low-cost debt.

While the previous phase focused on repaying high-interest federal appropriations, the current phase focuses on repaying federal bonds to replenish revolving Treasury borrowing authority (CU No. 1956 [13]), which allowed for early amortization of $332 million in U.S. Treasury bonds.

BPA may get some headroom on its current borrowing authority level if the House approves the currently stalled Infrastructure Investment and Jobs Act, which the Senate passed in August.

The provision would give Bonneville another $10 billion on top of the existing $7.7 billion "to finance the construction, acquisition and replacement of the Federal Columbia River Power System," according to a release prior to Senate passage from Sen. Maria Cantwell (D-Wash), who championed the provision (CU No. 2017 [15]).

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News Editor - Clearing Up

Rick Adair has been with NewsData since 2003, and is news editor for Clearing Up and editor for Water Power West. Previously, he covered environmental and energy issues in the Lake Tahoe area. He has a doctorate in earth sciences.