Discussion of H.R. 3508, the Pacific Northwest Electric Power Planning and Conservation Act

Answers were given to questions relating to proposed legislation concerning the Bonneville Power Administration. The legislation could expose regional consumers to more rate increases from powerplant construction cost overruns. Bonneville's contracting practices did not provide adequate financial protection, and their oversight efforts were hindered by staffing weaknesses. These areas should be strengthened. Additional energy sources should be diversified and developed only where necessary, and only the most cost effective developed first. Also, amendments to the legislation should be considered to limit the extent of Bonneville's participation in large powerplant construction and the costs that can be passed on to consumers. The legislation would enable direct service industrial customers to obtain new long-term contracts with Bonneville at substantially higher prices. The bill should be amended to assure industrial conservation of electricity and develop optional system reserves. The bill contained no provision to reverse the adverse impact of multipurpose dams on salmon and steelhead fish runs. It should be amended to encourage consolidation of management efforts, installation of improved facilities for fish passage, and establishment of minimum streamflows.