The Bonneville Power Administration announced week that it ended fiscal 2004 on Sept. 30 in positive territory despite another year of low water and less-than-projected power and transmission sales revenues.

Discounting certain accounting adjustments and proceeds from refinancing non-federal debt, BPA earned $66 million on total income of $3.2 billion.

Because BPA is a not-for-profit agency, any net revenue is applied to financial reserves for use in the event that low water reduces hydropower sales in future years.

"Even though we ended the year in the black, our power and transmission revenues were significantly lower than expected," said BPA Administrator Steve Wright. "By cutting costs and aggressively managing long-term debt, we were able to avoid dropping below the break-even line."

Compared to projections made as the fiscal year began, BPA revenues fell short by more than $200 million, Wright said.

Including the proceeds from non-federal debt refinancing and accounting adjustments, BPA's audited financial results for fiscal year 2004 show total net revenues of $504 million, as stated in the agency's annual financial report. Proceeds from refinancing non-federal debt associated with thermal plants are used to pay down U.S. Treasury obligations.

Surplus power sales fell short of projections as a result of a fifth consecutive year of under-average water conditions. Transmission revenues were also below estimates largely due to lower volumes of power transferred over the Northwest grid during the economic downturn. More efficient use of transmission contracts by customers was also a factor.