HOUSE BILL REPORT

SJM 8005

BYSenators Williams, Smitherman, Benitz, Owen, Stratton, Nelson, Tanner, Bauer, Rasmussen, Zimmerman, Saling and McCaslin

Petitioning Congress and the President to prohibit the sale of BPA.

House Committe on Energy & Utilities

Majority Report:  Do pass.  (14)

      Signed by Representatives Nelson, Chair; Todd, Vice Chair; Armstrong, Barnes, Brooks, Gallagher, Hankins, Jacobsen, Jesernig, Madsen, May, Miller, Sutherland and Unsoeld.

House Staff:Fred Adair (786-7113) and Ted Hunter (786-7114)

AS PASSED HOUSE APRIL 17, 1987

BACKGROUND:

The Bonneville Power Administration (BPA) is a federal agency that markets and transmits electricity produced mainly by hydroelectric projects in the Pacific Northwest.  Nearly half of the electricity produced in the region is marketed by BPA.

The Reagan Administration has proposed to sell, or "privatize," BPA for $8.85 billion, which is the amount of the outstanding debt owed by BPA to the federal treasury.  As an alternative, the Administration has proposed raising BPA's annual debt service payments.  The proposals were rejected by Congress in 1986 but have been renewed in 1987.

SUMMARY:

Congress is urged to reject again the proposal to sell the Bonneville Power Administration or increase its debt obligation.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Tim Stearns, Northwest Conservation Act Coalition (He took no position for or against but offered a viewpoint).

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Our position should be that the region would oppose action that would lead to a rate increase, but the concept of a sale should not be rejected out of hand.  Evaluate the terms.  There should be regional control.

House Committee - Testimony Against:      None Presented.