The Bonneville Power Administration has proposed compensating wind-energy producers within its section of the grid for periodically reducing their output when that's necessary to keep the electricity supply from exceeding demand during high river flows.

As BPA envisions the arrangement thus far, it would propose splitting the cost of the compensation about equally between users of its Federal Base System and wind energy producers in its grid. That would come in a rate case.

Transmission and Distribution World said the plan has a series of steps that begin with reducing hydro power in conjunction with other agencies, then offering low-price or even free power to generators who could cut their fuel costs by stopping their own production, then compensating wind generators for going offline.

Without some compensation, wind producers would take a hit because the current financial structure, including tax and renewable energy credits, depends on continued output, T&DW explained.