COMMISSION 
AGENDA MEMORANDUM                        Item No.          6e 
ACTION ITEM                            Date of Meeting       June 23, 2020 
DATE:     June 1, 2020 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Keith Warner, Aviation Utility Business Manager 
Mike Tasker, Senior Manager  Aviation Facilities & Infrastructure 
Eileen Francisco, Director of Aviation Facilities and Capital Program (acting) 
SUBJECT:  Power Services Supply with Bonneville Power Administration 
Amount of this request:               $1,000,000 
Total estimated project cost:           $1,000,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to execute a power supply contract
with the Bonneville Power Administration (BPA) for a portion of the electrical power
requirements to the Seattle-Tacoma International Airport (Airport). 
EXECUTIVE SUMMARY 
Aviation Facilities & Infrastructure (F&I) is requesting authorization to execute a power supply
contract for 3 megawatts of power (~15% of airport load) for a one-year period beginning
October 1, 2020. This supply fulfills a contractual commitment the Port established with BPA
during 2018 to acquire this additional power from non-Federal resources. The balance of the
airport power needs (~85%) during this term will continue to be supplied with Federal resources
provided by the BPA. 
While this 3-megawatt resource could be acquired from any generation source, a study of the
market determined that for the advantages of cost, environmental attributes and streamlined
contract administration, the best option is to acquire these 3 megawatts from BPA's trading desk.
This trading desk operates separately from the mainline BPA organization and markets excess
power (including non-Federal) resources throughout the Western US and Canada.

JUSTIFICATION 
The additional acquisition of the 3 average megawatts (aMW) of power supply provides full
power supply through the BPA system, streamlining forecasting, scheduling and billing
requirements. This power supply will meet or exceed BPA portfolio mix which is ~95% carbon
free.

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. __6e__                              Page 2 of 3 
Meeting Date: June 23, 2020 

Diversity in Contracting 
Not applicable. 
DETAILS 
The BPA has been the sole power provider to the Airport since 2001 and the parties have a power
supply contract in-force through September 2028.  That base contract allows for the Port to
receive preference BPA power up to the threshold of 17.1 average megawatts (aMW) annually.
A Port load forecast in mid-2018 indicated that with anticipated airport growth this 17.1 aMW
threshold would be exceeded by 3 aMW beginning in Oct 2020. The Airport notified BPA of this
additional power requirement and committed that it would acquire the 3 aMW outside of the
Federal power system rather than through BPA.  Consistent with the Century Agenda, this
additional power was targeted to be acquired from renewable sources. This external load
commitment was factored into the BPA rate case for that specific rate period. 
Since that time in mid-2018, on-going conservation efforts at the airport and updated forecasts
no longer indicate the need for much if any of the 3aMW beginning in Oct 2020. Additionally,
acquiring non-Federal based power requires additional staff for power forecasting, balancing and
procurement. As a result, in coordination with key stakeholders, the Airport Utilities department
notified BPA in Oct 2019 that it would provide the 3 aMW for a one-year period, but beyond that,
would return to a full requirements customer of BPA where all power requirements are fulfilled
through the BPA base contract. This authorization allows the BPA trading desk to provide the
3amw power supply through their integrated structure. 
Scope of Work 
Provide 3 Megawatts of firm power, scheduled and delivered to airport substations for the period
of Oct 1, 2020 through Sep 30, 2021. 

Schedule 
Activity 
Commission authorization                      June 2020 
Agreement Execution                         July 2020 
Delivery Commences                         Oct 1, 2020 

ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Acquire additional power supply from wholesale market 
Cost Implications: 
Pros: 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. __6e__                              Page 3 of 3 
Meeting Date: June 23, 2020 
(1)      Possible choice of power supply characteristics 
Cons: 
(1)      Higher unit cost for equivalent clean resources 
(2)      Limited market interest in small, one-year power contract 
(3)      Requires rapid development and release of RFP and contract negotiations, exercising
outside legal support. 
(4)      Requires  additional  Port  staff  time  to  manage  multiple  contracts  and  hourly
forecasting. 
This is not the recommended alternative. 
Alternative 2  Execute a 3 aMW power contract with BPA. 
Cost Implications: $1,000,000 
Pros: 
(1)      Provides reliable, clean power at competitive firm fixed price rates. 
(2)      Single entity (BPA) providing power supply, transmission and ancillary services rather
than coordinating through multiple parties 
(3)      Working directly with BPA for this limited portion of the Airport power supply is more
efficient and at lower cost than engaging through another counter-party. 
Cons: 
(1)      Administrative effort will be required to forecast hourly power requirements for oneyear
period. 
This is the recommended alternative. 

FINANCIAL IMPLICATIONS 
Annual Budget Status and Source of Funds 
The cost under this contract are included in the annual operating budget. The approved 2020
operating expense budget included the electrical supply in amount of $7,649,972. This
authorization for approximately 15% of the Airport power supply lies within the budgeted
amount. The funding source would be the Airport Development Fund. 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 

Template revised June 27, 2019 (Diversity in Contracting).