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Attachment #1 



Major Statutes Relating to BPA 



Bonneville Project Act of 1937: 



Established BPA and directed it to build and operate 

 transmission lines to deliver power from federal dams and to 

 market the power at a rate that would recover the Federal 

 investment in a reasonable period of time. BPA was directed to 

 make this power available to publicly owned utilities in the 

 Northwest prior to any sales to investor-owned utilities. This is 

 known as the "preference" clause. 



Act Authorizing the Third PoweiT)lant at Grand Coulee Dam (enacted 

 June 14, 1966) : 



BPA's method of repayment of its obligations to the U.S. 

 Treasury was discussed in the legislative history of this Act. 

 BPA has interpreted this legislative history as follows: 



- repayment of capital investments within 50 years; 



- investments bearing higher interest rates are paid first; 

 and, 



- interest payments must be paid on schedule, BPA may adjust 

 the schedule for the repayment of principle. 



Federal Columbia River Transmission Act of 1974: 



Provided BPA with the authority to use revenues from 

 ratepayers to directly fund its programs and provided borrowing 

 authority for BPA to sell bonds to the U.S. Treasury to finance 

 transmission construction. A total of $1.25 billion in borrowing 

 authority was authorized. 



P.L. 95-91, Department of Energy Organization Act of 1977 



Transferred BPA from the Department of the Interior to the 

 Department of Energy. 



Pacific Northwest Electric Power Planning and Conservation Act of 

 1980: 



- Made BPA responsible for meeting the electricity loads of 

 its customers and authorized BPA to purchase new electricity 

 resources to meet these needs. 



