4021 AMS NR S2723.1

HJM 4021 - S COMM AMD

By Committee on Natural Resources, Energy & Water

ADOPTED 04/16/2003

Beginning on page 1, after line 10, strike all material through "Washington." on page 3, line 2, and insert the following:

"WHEREAS, The State of Washington's economy is constructed on affordable and reliable electricity; and

WHEREAS, Energy prices in the Northwest are threatening businesses and industries, including aluminum companies; and

WHEREAS, The Bonneville Power Administration is proposing yet another rate increase to go into effect on October 1, 2003; and

WHEREAS, The proposed increase is 15% more than the current rates, which are already extremely high due to the more than 50% increase that has already occurred in the last couple of years; and

WHEREAS, This increase will cost the state's economy one billion dollars over the next three years; and

WHEREAS, Many industries moved to Washington to take advantage of low-cost hydroelectric power. They are now paying more for power in Washington than in most of their other locations in the nation; and

WHEREAS, Without affordable energy for these industries (aluminum, pulp and paper, aerospace, agriculture, etc.), thousands of family-wage jobs will be lost; and

WHEREAS, Many of these jobs are in rural and economically challenged areas. These industries are at the core of many Northwest communities and provide the foundation for numerous secondary employment opportunities and also provide substantial tax revenues; and

WHEREAS, The proposed rate increase will do more than jeopardize high paying jobs. The nation is suffering a severe recession and the Pacific Northwest is already the hardest hit region in the country; and

WHEREAS, Any increase in Bonneville Power Administration rates will only slow or prevent economic recovery as well as exacerbate the state's budget crisis; and

WHEREAS, The Bonneville Power Administration has the tools available to meet all of its legal obligations, including protecting fish and wildlife, without raising rates; and

WHEREAS, As a result of its $500 million in prepayments to Treasury to avoid a rate increase, the Bonneville Power Administration can cut costs (not just slow its rate of growth) and utilize its newly acquired additional borrowing authority and the flexibility it has garnered; and

WHEREAS, This region simply cannot support an additional billion dollar hit to its economy over the next three years;

NOW, THEREFORE, Your Memorialists respectfully communicate their request for the Bonneville Power Administration to refrain from adopting rate increases at this time, unless absolutely necessary to preserve its bond rating, and to use other tools at its disposal to manage costs until economic recovery is in sight.

BE IT RESOLVED, That copies of this Memorial be immediately transmitted to the Honorable George W. Bush, President of the United States, Steven Wright, Administrator of the Bonneville Power Administration, Spencer Abraham, Secretary of Energy, Tom Ridge, Secretary of the Department of Homeland Security, the President of the United States Senate, the Speaker of the House of Representatives, and each member of Congress from the State of Washington."

EFFECT: BPA is requested not to raise its rates unless absolutely necessary to preserve its bond ratings.

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