FINAL 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.

Senate Committee on Energy & Utilities

House Committe on Energy & Utilities

AS PASSED LEGISLATURE

BACKGROUND:

The Bonneville Power Administration is a federal agency that markets and transmits electricity produced 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.

VOTES ON FINAL PASSAGE:

      Senate    45     0

      House 95   1