Mr. DeFazio. With that, I think we will just go on to the testi- 

 mony, and questions, and the order has been reversed. We have 

 first the Honorable William White, Deputy Secretary, U.S. Depart- 

 ment of Energy, and Ted Bottiger, Chairman, Northwest Power 

 Planning Council. 



Gentlemen, we will be happy to hear you summarize your re- 

 marks, or do as you wish with your five minutes. This task force 

 strictly enforces the five-minute rule. Gro right ahead. 



PANEL CONSISTING OF HON. WILLIAM H. WHITE, DEPUTY SEC- 

 RETARY, U.S. DEPARTMENT OF ENERGY; AND TED 

 BOTTIGER, CHAIRMAN, NORTHWEST POWER PLANNING 

 COUNCIL 



STATEMENT OF HON. WILLIAM H. WHITE 



Mr. White. Thank you, Mr. Chairman, and I assume my written 

 remarks can be inserted in the record. 



Mr. DeFazio. Without objection. 



Mr. White. With that, you are right that we have tried to craft 

 a proposal which is nonpunitive, that is to say, that specifically in- 

 volves no rate increase given the very substantial rate increase 

 that has just gone into effect. We are very mindful of the macro- 

 economic effect on the region of having a rating increase of that 

 magnitude. 



We do believe the proposal is a classic case of government re- 

 form, and we will be able to increase the liquidity of the Federal 

 Government, that is, increase the amount that is credited to cash 

 by a substantial amount, some $4 billion. The mechanics of that 

 are going to be worked out with underwriters through a competi- 

 tive process to select the actual underwriters if the authorizing leg- 

 islation is passed. 



We believe this would be an advantage to the ratepayer since it 

 would remove a source of uncertainty that we hear from the cus- 

 tomers around the biannual debate concerning the fate of BPA and 

 other ideas about how it might refinance its debt in a way that 

 would not be as benign to the various ratepayers. 



We think this deserves the serious consideration of Congress. We 

 have not detected any substantial disadvantages, and in fact, by re- 

 structuring the post- 1974 debt, we are going to create a benefit to 

 the Treasury of approximately $100 million as part of this overall 

 package. 



That summarizes our views on the matter, and we would be 

 available for any questions. 



[Prepared statement of Mr. White follows:] 



