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TESTIMONY 



OF 



CIATSKANIE PEOPLE'S UTILITY DISTRICT 



BEFORE THE HONORABLE PETER DEFAZIO 



BY 



IVAN JONES, PRESIDENT OF THE CLATSKANIE BOARD OF DIRECTORS 



July 12, 1993 



My name is Ivan Jones. I am the President of the Clatskanie 

 People's Utility District Board of Directors. Thank you for the 

 opportunity to testify. The PUD offices are located in 

 Clatskanie, Oregon. The PUD was organized in 1940. It is the 

 seventh largest purchaser of Bonneville power in the Region. The 

 PUD provides electric service to the Northwest portions of 

 Columbia County and the Northeast portions of Clatsop County, and 

 is currently debt free. 



I will address my remarks to two subject areas: first, 

 general comments concerning the critical issues that will 

 confront Bonneville and the Region over the next few years; and, 

 second, the Bonneville new resource acquisition policies and 

 procedures. 



General Comments 



My general comments have been developed by consultation with 

 our entire Board of Directors and our staff. I have also drawn 

 on my background as a professional engineer for the Corps of 

 Engineers. I am a retired Corps of Engineer employee who actively 

 planned multi-purpose activities of the Corps operation of the 

 dams on the Columbia River. 



Bonneville was established in the 1930 's for the purpose of 

 marketing power from the dams built and operated by the Corps and 

 the Bureau of Reclamation. As time passed, Bonneville was given 

 new authority in legislation such as the regional transmission 

 act passed in the mid-1970 's. This legislation made Bonneville a 

 self-funded agency and allowed Bonneville greater flexibility in 

 financing extensions and betterments to the regional transmission 

 system. 



In 1980, the regional power act was enacted by Congress. In 

 many respects, the regional act was a compromise among competing 

 interests, including the different types of customers of 

 Bonneville, the states in the region and other political 

 entities. 



I believe that the passage of the act has resulted in 

 significantly higher Bonneville rates. The cost of Bonneville 

 power has risen dramatically since 1980. These cost increases 

 have contributed to some of the economic hardships which are 

 being experienced in the Clatskanie area and the Region. 



