490 



Portland General Electric Company 



one world trade center 



KEN L. HARRISON 1 21 S W SALMON STREET 



^.S'^hITe^x^cJ^e'S^BC^ER PORTLAND. OREGON 97204 



(503) 464-8825 



The Honorable Peter DeFazio 



Chair, Bonneville Power Administration 



Task Force 

 Committee on Natural Resources 

 U. S. House of Representatives 

 Washington, D.C. 20515-6201 



Dear Chairman DeFazio: 



July 16, 1993 



Thank you for the opportunity to submit this written statement to 

 be part of the record for your July 12, 1993 hearing in Portland, 

 Oregon on the Bonneville Power Administration's (BPA) new resource 

 acquisition strategy. 



The Northwest Power Planning Council (NPPC) is charged statutorily 

 with overseeing BPA's resource acquisition plans. As well, 

 regional interest groups are intensely involved in this process 

 through BPA's public hearing process. Since Portland General 

 Electric Company (PGE) is one of the few entities in the region 

 also actively acquiring new energy sources, we have a keen interest 

 in BPA's new resource activities. A brief statement on my part 

 might shed some light on the issues BPA is facing in implementing 

 its own resource acquisition strategy. 



By way of background, you are well aware that in January 199 3, PGE 

 accelerated its decision to permanently close the Trojan nuclear 

 power plant. PGE made this decision after determining that closing 

 Trojan and replacing the power with other resources was the least- 

 cost alternative for our customers. As a result, we have 

 accelerated our own new resource acquisition activities. 



As an aside, one benefit of our new supply portfolio will be the 

 diversity we gain from utilizing multiple smaller resources rather 

 than one large single-shaft turbine resource. While I believe 

 nuclear power is a clean energy producer, PGE's future energy mix 

 will be generally more consistent with the energy and environmental 

 values of our customers. The enclosed "pie chart" visually 

 illustrates the 20-year Integrated Resource Plan we have submitted 

 to the Oregon Public Utilities Commission. 



Impacts to the federal hydro system from the prolonged drought and 



endangered species mitigation efforts have presented BPA and its 



customers with many of the same questions PGE faced during our 

 deliberations on Trojan replacement resources. 



