34 



STATEMENT OF HON. MIKE KREIDLER 



Mr. Kreidler. Thank you very much, Mr. Chairman. 



I do have an opening statement. What I would like to do is per- 

 haps enter it into the record so that we might proceed with ques- 

 tions that are probably most germane to this committee's activities. 



Thank you very much for allowing me to attend. 



[Prepared statement of Mr. Kreidler follows:] 



Statement of Congressman Mike Kreidler 



I'd like to thank Rep. DeFazio for allowing me the opportunity to sit in on this 

 task force meeting. Obviously, the deliberations of this task force are important not 

 only to the Natural Resource Committee members, but to all the memoers of the 

 Pacific Northwest delegation. I appreciate Rep. DeFazio's acknowledgment of that 

 fact, and look forward to attending and perhaps participating in future meetings of 

 the task force. 



I am pleased to be able to comment on Bonneville's current financial situation. 

 I understand that the original intention of the task force was to address long-term 

 issues affecting Bonneville's operations at the end of this century and beyond. How- 

 ever, if we do not mitigate this short-term crisis there may be no "long-term" issues 

 for the task force to confront. 



I, like others in the delegation, am very concerned about the combined impact of 

 drought conditions, fish mitigation measures, lower aluminum prices, debt repay- 

 ment, and possible energy taxes on Bonneville and its consumers. We have already 

 seen some of the impacts reflected in Bonneville's need to increase its initial 1993 

 rate proposal. 



I understand that Mr. Hardy is making efforts to keep the total rate increase 

 below 20%, including cutting administrative costs in half, shutting down two 

 "mothballed" nuclear plants, and reviewing all programs for an unprecedented sec- 

 ond time. I support these general objectives, but am concerned about what this 

 means when it comes down to specific numbers. 



My main concern is that as part of this review, important programs in the Fish 

 and Wildlife and Conservation sectors will be significantly cut. I understand that 

 since there are not many discretionary programs from which Bonneville can make 

 cuts this a very difficult issue to resolve. However, it makes little sense to make 

 short-term cuts in programs that will cost us more in the long-run. In fact, making 

 cuts in these programs now may incur additional costs in the future which would 

 not have occurred had these programs been preserved. 



I would like to explore methods by which Bonneville can lessen this additional 

 rate increase request without damaging significantly its ability to meet its obliga- 

 tions to the Federal Government and others. At the appropriate time, I'd like to ask 

 Mr. Hardy for his thoughts on alternative approaches to resolving this problem, in- 

 cluding: drought surcharges; cutting back or eliminating irrigation assistance; allow- 

 ing a rate increase of slightly more than 20%; turning more conservation respon- 

 sibilities over to BPA's customers; reviewing and changing contracts that are not 

 cost-effective; and cutting all acquisition and development of new, traditional power 

 generation for a few years while focusing more on conservation and renewables. 



In addition, I'd like your thoughts on whether a viable long-term solution to Bon- 

 neville's fiscal problems could include granting more financial oversight authority to 

 the Northwest Power Planning Council to ensure that Bonneville's financial condi- 

 tion does not deteriorate further. 



Again Mr. Chairman, I'd like to thank you for holding this hearing and I look for- 

 ward to talking further with this witness. 



Mr. DeFazio. Thank you. 



We have been joined by another Northwest Member, Mr. Wil- 

 liams. 



Mr. Williams, do you have opening remarks you would like to 

 make at this time? 



STATEMENT OF HON. PAT WILLIAMS 



Mr. Williams. I, too, would like to get to questions, Mr. Chair- 

 man, but I can't help but visit with Randy just a little bit being 

 as I have a minute. 



