general, we will seek to identify BPA's strengths and weaknesses 

 as a direct purchaser of energy resources. 



The task force's next hearing will consider ways to make BPA 

 more competitive and responsive, while retaining the benefits of re- 

 gional coordination and planning. 



Included among the subjects the task force will review during its 

 upcoming hearing are the potential benefits of tiered wholesale 

 electric rates, the effect that unbundling services may have on Bon- 

 neville's different customer groups, and the merits of the variable 

 and discounted rates enjoyed by certain of BPA's customers. 



In effect, today we're looking at BPA as it is; in the next hearing 

 we'll look at a range of significant changes BPA might make to bet- 

 ter provide for the region's energy needs. We'll also consider wheth- 

 er any authorizing changes or other action is required by Congress 

 to get us to that future for BPA; the term is overused a bit today, 

 but the reinvented BPA. Taken together, I really am hopeful that 

 the task force will help chart a new course for BPA as it seeks to 

 meet the challenge of its next 50 years. 



With that, I'd turn to my colleague. Bob Smith, and recognize 

 him for any opening statement he might have. 



STATEMENT OF HON. ROBERT F. SMITH 



Mr. Smith of Oregon. Thank you, Mr. Chairman. I want to thank 

 you for holding these hearings I think at a very pernicious time in 

 the future of the Pacific Northwest and, of coxirse, BPA and the 

 many industries and jobs that are dependent upon the success of 

 the Bonneville Power Administration. 



You know it's been a bad week when the best news you've had 

 is that Bonneville Power Administration rates will only go up 15 

 percent, that on top of the President's new forest plan which will 

 reduce the harvest of timber in the Northwest by 75 percent, prob- 

 ably cost us 70,000 jobs; then, of course, the undisclosed health 

 care plan right around the comer that may cost $80-$ 100 bilhon; 

 the unknown tax plan that is surely coming that may hopefully 

 move away fi-om the btu tax, which would have been disastrous for 

 us, to another gasoline tax; then take into consideration that there 

 will be an Oregon sales tax on the ballot this fall; in addition to 

 that, another gasoline tax for the State of Oregon. I sometimes 

 wonder what the people in the Northwest think. 



I know what the^re thinking. The/re thinking we're getting, 

 maybe for the first time, more government than we seem to be pay- 

 ing for. 



But it's important that we do discuss Bonneville Power 

 Adminstration, so important to us in the Northwest. I'm delighted 

 by the action of Randy Hardy and his group because we knew that 

 these rates could have gone up 24 or 25 percent. Although no one 

 likes increases, I think he's done a great job in holding this in- 

 crease to 15 percent. 



The question is, What are the needs for our future by the year 

 2000 and the turn of the century? What are we going to be inter- 

 ested in discussing? It occurs to me, however, from my point of 

 view and where I live in the State, that we might want to take a 

 look at Saltka/s hydroelectric project. That's 10 percent of the 

 need right there of the thousand. 



