81 



Bonneville and its customers, however, maintained that such an allocation would be 

 subjected to protracted litigation. They alleged that Congress could avoid the 

 uncertainties accompanying administrative allocation by devising a legislative 

 allocation scheme amd equipping Bonneville with the authority to purchase power 

 from non-federal sources on a long term basis. Supplying Bonneville with purchase 

 authority was. they claimed, the key to implementing any legislative allocation 

 scheme. Congress apparentiy agreed. The Senate passed the regional legislation on 

 August 3. 1979, the House passed an amended bill on November 17. 1980. which 

 the Senate agreed to two days later. On December 5. 1980. President Carter signed 

 the Pacific Northwest Electric Power Planning and Conservation Act into law as 

 Public Law 96-501. 



Northwest Power Act - Major Provisions 



After four years of deliberation. Congress devised methods for protecting the 

 preference that existing Federal law gives pubUcly owned utilities while at the same 

 time providing the benefits of Federal hydropower to residenticil and smedl farm 

 customers of private utilities. It should be noted that the Act passed largely because 

 it seemed to benefit all the interest groups that lobbied for it. 



Here are some highlights of the Act: 



First, rate disparities between consumers served by private utilities emd those 

 served by public utilities were minimized by providing investor-owned utilities access 

 to Bonneville lower-cost power. Second, the costs of this increased access were paid 

 for by increased rates charged to industrial customers. Third, in return for paying 

 increased rates, existing industrial customers were promised new long term 

 contracts. Fourth, preference customers were guaranteed that their rates would not 

 increase more than they would have without the Act, 



Fifth. Bonneville was given purchase authority to expjmd the system in order to 

 meet the requirements of its customers, but only pursuant to a number of provisions 

 designed to guard eigainst any abuse of that authority. In particular, in response to 

 state claims of a lack of involvement in major region£il energy issues, the Act created 

 a unique interstate planning entity, the Pacific Northwest Electric Power and 

 Conservation Plemning Council, to govern Bonneville's acquisition of major resources 

 and promote conservation and renewable resources pro^Euns through a regional 

 energy plan. This was the key provision from the perspective of the Northwest states 

 - Bonneville got new authority to acquire resources in return for a Council 

 appointed by the governors. This Council would develop a regional plan and oversee 

 its implementation. 



Sixth, in an effort to minimize rate increases, the Act requires that all 

 acquisitions be "cost-effective." including consideration of environmental costs, and 

 establishes a resource priority scheme favoring conservation and renewable 



