35 



I know that this is a very difficult time for BPA and that you 

 have an extraordinary set of circumstances within which to operate 

 the power system this year between the drought and efforts to 

 maintain Northwest fisheries and the need to purchase additional 

 power. I think you and Bonneville are between a rock and a hard 

 place. 



I want to commend the task force for having this hearing and 

 commend you, Mr. Hardy, for accepting our invitation to be with 

 us and would ask that an opening statement be put in the record 

 and would conclude, Mr. Hardy, by just making this point. You and 

 I have visited about this personally, and you have always been very 

 generous with your time with me. 



When it rains, those of us in the headwaters are expected to keep 

 the water, when it rains a lot, in flood time. When there is a 

 drought, we are expected to give it up. We have vital fisheries. 

 When the fish downstream are in trouble, our fisheries, for the 

 most part, are expected to suffer. I don't know that that is BPA's 

 intention, I think it isn't, but our scientists tell us that is the result 

 of what would happen given certain proposals if they were carried 

 out. 



We took the dams. I guess back then we were glad to have them. 

 We gave up the land. We ruined a lot of the great and wonderful 

 scenic waterways. We ended forever the scenic beauty of many of 

 the canyons. We would like to know that in heavy drought years 

 we can keep some of the water in payment for those things given 

 up. We would like to. know that the bull trout of Montana are on 

 a par with the salmon downstream, and we are hopeful that this 

 can be worked out by you, who, again, I know you are between a 

 rock and a hard place. But from my part in Montana I make you 

 this deal. If you will work out these problems and others that I will 

 have in my opening statement — and I will send it to you. Randy — 

 if you will work out those problems in Montana, we promise to 

 make it rain. [Laughter.] 



Thanks, Mr. Chairman. 



Mr. DeFazio. I thank the gentleman. 



Now, Mr. Sharp. 



Mr. Sharp. Thank you very much. 



Mr. Hardy, you indicated that while this is a hearing on the im- 

 mediate financial situation that you are struggling to deal with, 

 that you are open to discuss some of the longer-term problems, and 

 I wonder if you would take a couple of minutes just to identify for 

 us, those of us especially who are not recently very familiar with 

 what has been happening, what you see over the next 5, 10, 20 

 years as the sort of key issues that you have to deal with. 



Mr. Hardy. I would be delighted to, Mr. Sharp. Let me try to 

 sketch this out. This has implications not just for Bonneville, but 

 I think the picture I will sketch is pretty similar for the electric 

 utility industry nationally. 



I see us facing three factors that fundamentally affect our long- 

 term competitiveness. Factor number one is what is going on here 

 in Washington, DC. We are going to reinvent government, in the 

 phrase of the day, and the conclusion that I have reached is, Bon- 

 neville had better reinvent itself in a way that is consistent with 

 the objectives of the Clinton Administration to be a leaner, more 



