220 



TESTIMONY OF JOHN D. CARR, EXECUTIVE DIRECTOR 



DIRECr SERVICE INDUSTRIES, INC. 



BEFORE THE BONNEVILLE POWER ADMINISTRATION TASK FORCE 



OF THE COMMITTEE OF NATURAL RESOURCES 



September 25, 1993 



City Council Chambers 



Eugene, Oregon 



Chairman DeFazio, it is a pleasure to appear before the Bonneville Power 

 Administration Task Force. Your investigation and oversight of BPA is timely. The 

 agency must change if it is to remain a positive force environmentally and economically 

 in the Northwest. The Direct Service Industries look forward to working with you to 

 ensure that this happens. 



The Direct Service Industries, comprised of alimiinum, ti tanium, magnesium and 

 chemical producers, purchase their electrical power direcdy from the BonnevUle Power 

 Administration. 



As you know, the DSIs have been a vital part of the Northwest economy for more 

 than half a century. While directly bringing vital employment to the region, these 

 industries played a key role in the development of the Northwest's main economic 

 engine: the hydropower system. They continue to benefit this system in very valuable 

 ways. 



The DSIs use power in such a way that they help keep power prices low for all 

 other users in the Northwest. They also help promote energy efficiency and conservation 

 in the region. They make significant contributions to the region's fish and wildlife 

 enhancements, both financially and scientifically. 



The DSIs look forward to a bright futtire as partners with BPA, utilities and the 

 four Northwest states which benefit from these operations. 



BPA's recent initiatives to become competitive are driven by fundamental market 

 forces. Following the course set by natural gas and other deregulated industries, the 

 electric power industry on the West Coast is rapidly becoming a more open, competitive 

 market. BPA no longer enjoys a large price advantage and a virtual monopoly on the 

 high voltage transmission system. It must learn to operate in a more businesslike way if 

 it is to survive as a premier provider of energy and energy services. 



For any entity to become competitive, it must face competition for its products 

 and services. Not only must BPA become more competitive, but the regional power 

 system must become a more open, competitive market. Currently, BPA masks the price 



