21 



Statement of Randall W. Hardy, Administrator, 



Bonneville Power Administration 



April 28. 1993 



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

 Administration Task Force. In upcoming months, we look fooA^ard to a series of 

 productive discussions on the challenges facing Bonneville today, and how we 

 can work together towards meeting the Northwest's energy and environmental 

 futures. 



We face immediate and critical challenges. Our region is in the middle of one of 

 the most critically dry water conditions in Its history-a situation which will likely 

 impact the Northwest for several years to come. 



My testimony will focus on how this year's unprecedented events seriously 

 eroded Bonneville's financial condition. I will also present the actions we are 

 taking to restore Bonneville's fiscal health. 



FiNANCiAL SITUATION 



Mr. Chainnan, it has been an extraordinary year. When we put our 1992-93 

 rates in place, we anticipated having nearty $1 billion in reserves at the end of 

 Fiscal Year 1993. At the present time, we are projecting a reserve level of about 

 $90 million by the end of the fiscal year. 



Recent developments are particularly troubling. In three months, our projected 

 reserves eroded by over $250 million. 



