SENATE 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

Senate Hearing Date(s):February 5, 1987

Majority Report:  Do pass.

      Signed by Senators Williams, Chairman; Owen, Vice Chairman; Benitz, Cantu, Nelson, Smitherman.

Senate Staff:Glenn Blackmon (786-7455)

                  February 26, 1987

AS PASSED SENATE, FEBRUARY 25, 1987

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.

Fiscal Note:      none requested

Senate Committee - Testified: Ed McGuire, Washington State Energy Office; Marc Sullivan, NWCAC