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QUESTION 10: Power Sales Contracts 



How should the new power sales contracts differ from the current 

 ones? 



The new power sales contracts with the DSIs should look radically 

 different from the old ones, but that is not likely to happen 

 without Congressional prodding. 



The reason is that Bonneville is currently negotiating with the 

 DSIs as if they were long-term, firm power customers of 

 Bonneville. The Northwest Act does not grant them such a 

 preferred status. 



Bonneville needs to put other options on the table for 

 examination in the power sales contract process. 



Canby has corresponded with Bonneville about this subject, and 

 those letters are contained in Attachment B. 



Please note that Bonneville seems to believe that Section 12 of 

 the existing contracts and a 1981 cover letter — transmittal 

 correspondence — obligate them to write firm power, follow-on 

 contracts with the DSIs. 



We invite your review of these documents and request that legal 

 counsel for the Committee on Natural Resources assess these 

 documents and determine whether Bonneville is indeed obligated by 

 the existing contracts and a 1981 cover letter to offer long- 

 term, firm power agreements in perpetuity to the DSIs. 



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