[Congressional Record Volume 140, Number 101 (Thursday, July 28, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 28, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
  LEGISLATION RESOLVING BONNEVILLE POWER ADMINISTRATION'S FEDERAL DEBT

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                         HON. PETER A. DeFAZIO

                               of oregon

                    in the house of representatives

                        Thursday, July 28, 1994

  Mr. DeFAZIO. Mr. Speaker, today I am joined by 10 of my Northwest 
colleagues in introducing legislation designed to resolve the 
longstanding battle over the Bonneville Power Administration's debt to 
the Federal Treasury. This bill is fair to the U.S. Treasury and fair 
to Northwest electric ratepayers.
  Northwest electric ratepayers have been under attack from three 
successive administrations, starting with President Reagan's attempt to 
sell the Bonneville Power Administration to private investors, and 
going straight through to Vice President Al Gore's Government 
reinvention proposal, which would have raised BPA's rates unacceptably. 
Speaker Foley and Senator Hatfield deserve a lot of credit for 
protecting the Northwest from those attacks. Now is time to settle the 
matter once and for all.
  Very simply this bill will refinance the present value of 
Bonneville's appropriated Treasury debt at prevailing interest rates. 
In addition, we in the Northwest are agreeing to pay the Treasury $100 
million as a refinancing fee. It is a steep price, we believe, but will 
provide us a guarantee against future attacks on our debt repayment 
terms.
  I am pleased to say that the administration agrees with this approach 
and has agreed, by and large, with the terms of this bill. We still 
have some details to work out, but the largest share of the work is 
behind us.
  One significant provision in this bill allows BPA to include a 
provision in its power sales contracts with its utility customers that 
will enable Northwest utility customers and their ratepayers to make 
claims against the U.S. Treasury in the event any future Congress or 
administration seeks to alter the terms of this debt refinancing 
agreement. We believe this is a necessary protection for our ratepayers 
against specious claims of Federal subsidies.
  Allegations of so-called Federal subsidies for Pacific Northwest 
electric ratepayers have created a substantial degree of uncertainty 
for the Bonneville Power Administration and the region's economy. This 
bill will settle that issue for the foreseeable future and represents 
an important element in our efforts to keep the region's economy strong 
and growing.

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