BILL REQ. #:  H-3465.1 

Prefiled 12/4/2003. Read first time 12/05/2003.   Referred to Committee on Technology, Telecommunications & Energy.

     TO THE HONORABLE GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES, AND TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, AND TO THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES, IN CONGRESS ASSEMBLED, AND TO THE OFFICE OF MANAGEMENT AND BUDGET, AND TO THE HONORABLE SPENCER ABRAHAM, SECRETARY OF THE UNITED STATES DEPARTMENT OF ENERGY, AND TO THE HONORABLE MEMBERS OF THE BOARDS OF DIRECTORS OF THE PUBLIC AGENCY UTILITIES AND THE INVESTOR-OWNED UTILITIES WHO ARE SERVED BY THE BONNEVILLE POWER ADMINISTRATION:
     We, your Memorialists, the Senate and House of Representatives of the State of Washington, in legislative session assembled, respectfully represent and petition as follows:
     WHEREAS, The economy in Washington and the Pacific Northwest is struggling to recover from the economic downturn, and high electricity costs have contributed to the struggles; and
     WHEREAS, The effects of the economic struggle have hurt consumers, workers, businesses, and all sectors of the economy; and
     WHEREAS, The Bonneville Power Administration's 2.2 percent rate increase which took effect on October 1st will further harm the economy; and
     WHEREAS, This rate increase is in addition to 46 percent rate increases imposed in the past two years, in response to the energy crisis of 2000-2001; and
     WHEREAS, The Bonneville Power Administration has been working with public and private utilities since the announced rate increase to try to lower that rate increase; and
     WHEREAS, The Bonneville Power Administration recently announced a proposed agreement that, if signed by all participants, would eliminate the 2.2 percent rate increase and in fact lower rates to 7.4 percent below the average fiscal 2003 rates; and
     WHEREAS, The proposed agreement has been described by Kyle McSlarrow, United States Deputy Secretary of Energy, as striking a balance of interests of all parties, and an important step in the region's effort to stabilize rates and promote economic recovery; and
     WHEREAS, The resulting rate reduction of nearly 10 percent would greatly benefit the regional economy as a whole, which would be of benefit to consumers, businesses, ratepayers, workers, and the entire economy; and
     WHEREAS, Rate uncertainty has a chilling effect on capital investment decisions vital to economic recovery; and
     WHEREAS, In order for the proposed 10 percent rate reduction to take effect, the proposed agreement requires public agencies and other parties to drop their lawsuits against the Bonneville Power Administration that generally concern the benefits the Bonneville Power Administration provides to the investor-owned utilities under the Northwest Power Act of 1980; and
     WHEREAS, The proposed agreement also requires the investor-owned utilities to forego or defer 469 million dollars worth of monetary benefits and power payments between 2004 and 2006; and
     WHEREAS, The proposed agreement also requires the Bonneville Power Administration to seek additional cost reductions and revenue enhancements of approximately 100 million dollars in FY 2004 and FY 2005; and
     WHEREAS, All participants in the proposed agreement must sign the proposed agreement within 90 days of its announcement on October 23rd, and give final approval within 120 days, or the settlement fails to become final and the 2.2 percent rate increase remains in effect; and
     WHEREAS, Such failure would seriously harm the economy of the region now and into the future; and
     WHEREAS, The proposed agreement is supported by almost the entire Northwest Congressional delegation, and the Governors of Washington, Idaho, Montana, and Oregon; and
     WHEREAS, The proposed agreement will return immediate benefits to the Northwest economy and its citizens; and
     WHEREAS, Enactment of the proposed agreement will allow all involved to focus on the future, and to focus their collective efforts on formulating the optimum framework for a reliable, cost-effective power supply for the long term;
     NOW, THEREFORE, Your Memorialists respectfully pray that in a spirit of cooperation and a willingness to work together to benefit the economy of the entire region, which will help the economic outlook in each sector and segment of the region, all participants in the proposed agreement sign the agreement within the 90-day deadline, and give final approval within 120 days.
     BE IT RESOLVED, That copies of this Memorial be immediately transmitted to the Honorable George W. Bush, President of the United States, the Office of Management and Budget, the Honorable Spencer Abraham, Secretary of the United States Department of Energy, the honorable members of the Boards of Directors of the public agency utilities and the investor-owned utilities who are served by the Bonneville Power Administration, the President of the United States Senate, the Speaker of the House of Representatives, and each member of Congress from the State of Washington.