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Department of Energy 93 08 0174 



Bonn«vill« Power Administration 



RO. Box 3621 

 Portland, Oregon 97206 - 3621 



August 19. 1993 of fia o<= thj AOMuwisnuTon 



ln(»p(»re(«rto: AR DA- 



Mr. Stan Grace, Chainnan <, /» 



Northwest Power Planning Council ai 



85 1 SW Sixth Avenue, Suite 1 100 j» i- 



Portland, OR 97204 X!*} 



DearMr. Grace: ^J^ 



H 



This letter responds to issues raised by the Northwest Power Planning Council (Council) in August CJ^ 



12. 1993, letters to Bonneville Power Adtninistration (BPA) and to Pacific Northwest members of ^ 



the Senate's and House of Representative's appropriations committees. The letters question the W[^ 



adequacy of BPA's funding of tite Coundl's Fish and Wildlife Program (Program). ^^ 



As a reminder, the event that led to the reduction in the fish and wildlife budget was a dramatic 

 decrease in BPA's financial heahh as a resuh primarily of the drought and increased fish Sows 

 required by the Endangered Spcdes Act (ESA). It is important to keq) in mind as we discuss this 

 SIS million cut, that BPA's costs for fish and wildlife have increased firom approximately SI SO 

 million in 1991 to over $300 miSon in 1993. The BPA program may be critidzed on the maipns, 

 but the overall trend certainly reflects the region's iiKreadng commitment to protect and enhance 

 fish and wildlife. Enclosed is a chart, which was developed last April The diait is presently being 

 updated to reflect our final rate proposal, however it displays our overall trend. I recognize that 

 some Coundl members have st^ed that BPA should have incurred a iai^er rate increase. I simply 

 do not agree. I believe BPA's co mp e titi ve positioa and intact on the economic health of the 

 region dictated strong actions. The relatively small cuts in the fish and wildlife expesdhures 

 encourage efiSciency and the establishment of priorities. I ask you to join with me, as we have 

 done in all other program areas, to find ways to delivo- the de^red resuhs in the least costly 

 manner. 



We have consistently stated that, as a matter of policy, Bonneville is committed to fiill 

 implementation of the Council's Fish and WildHfe Program as a comprehensve guide for mitigating 

 fish and wildlife impacts of Federal hydroelectric projects in the Cohnnbia River Basin. However, 

 in response to Bonneville's extreme financial stress, we must carefiilly schedule and sequence 

 measures described in the Program, and balance their pace of implementation with Bonneville's 

 other responsibilities. In making those decisions, we called on the Coundl and others to help us to 

 assure that no vital, time-urgent measure was delayed. 



Bonneville's funding for Fiscal Years 1994-1995, incorporated in the 1993 Rate Case, should be 

 sufildent to carry out the CouikO's Program, induding all of the io^rartant demems of the 



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