S-1632               _______________________________________________

                                 SUBSTITUTE SENATE JOINT MEMORIAL NO. 8001

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State of Washington                              50th Legislature                              1987 Regular Session

By Senate Committee on Energy & Utilities (originally sponsored by Senators Rasmussen, Barr and Bauer)

Read first time 2/06/87.

TO THE HONORABLE MEMBERS OF CONGRESS FROM THE STATES OF WASHINGTON, IDAHO, OREGON, AND MONTANA:

          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 Bonneville Power Administration proposed on December 29, 1986, to increase its electric rates by as much as fifteen percent; and

          WHEREAS, The Bonneville Power Administration also has proposed a possible second rate increase in 1988 of up to ten percent; and

          WHEREAS, Many electric utilities that buy power from the Bonneville Power Administration have expressed concern over the proposed rate increases and their effect on local economies; and

          WHEREAS, There is considerable concern that such rate increases would further reduce the Bonneville Power Administration's sales and enlarge the current electricity surplus, especially since oil and gas prices in the Pacific Northwest have dropped twenty-five to forty-five percent in the past year; and

          WHEREAS, The Legislature recognizes that the Bonneville Power Administration has an obligation to make scheduled payments to the federal treasury in full and on time and that the Pacific Northwest region has firmly committed itself to such repayments; and

          WHEREAS, The proposed rate increases are in part the result of plans to increase the Bonneville Power Administration's program spending by some $334 million  per year, or fifteen percent; and

          WHEREAS, The Legislature is concerned that the Bonneville Power Administration receive any rate increase necessary to maintain its financial health and meet its obligations, but that any rate increase be held to the minimum sufficient to accomplish this goal; and

          WHEREAS, Some of the Bonneville Power Administration's costs are beyond the agency's direct control and can be addressed only by Congress, such as increases in ratepayer-funded costs of the Corps of Engineers and the Bureau of Reclamation; and

          WHEREAS, The Bonneville Power Administration's proposed budget contains risk mitigation measures that might be unnecessary with an annual rate review process; and

          WHEREAS, Further scrutiny might reveal other areas where the Bonneville Power Administration's budget could be reduced without affecting the long-term costs of power;

          NOW, THEREFORE, Your memorialists respectfully pray that the members of Congress from the Pacific Northwest states give careful scrutiny to the Bonneville Power Administration's proposed budget, requiring the Bonneville Power Administration to demonstrate that any rate increase is necessary to meet its payments to the federal treasury and costs beyond the agency's direct control, and considering an annual rate review to reduce the need for budget contingencies.

          BE IT RESOLVED, That copies of this Memorial be immediately transmitted to each member of Congress from the States of Washington, Idaho, Oregon, and Montana.