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hand, I want to be sure that Bonneville's mandates to encourage conservation and 

 support fish and wildlife are not changed or lessened in any way. 



I am also interested in the governing structure of such a proposed corporation. 

 I want to see if there is a way to enhance the role of Bonneville's customers and 

 other regional interests in the rate making process and budget decisions. I'll have 

 some questions about that issue, and the government corporation concept in general, 

 at the appropriate time. 



Again, my thanks to Mr. DeFazio for allowing me to be included in this important 

 hearing. I appreciate his consideration, and look forward to hearing from the wit- 

 nesses. 



Mr. DeFazio. Thank you. 



We will proceed to questions for the first two witnesses. I guess 

 I would start first with the Deputy Secretary. 



The hierarchy is sometimes beyond me, how it works. Deputies 

 I assume are — well, who knows. 



Mr. White. Sometimes it is beyond me. 



Mr. DeFazio. It is easier when we deal with the military; they 

 have little stars. 



Mr. White. You can count the stars. 



Mr. DeFazio. We have seen a draft, as Mr. Bottiger referenced, 

 of the incorporated status of BPA, but that is nothing ofBcial. I 

 know the RIGO proposal sent up this week primarily deals with 

 things that gamer a savings for the Federal Government. 



Can we expect that we will see a government corporation pro- 

 posal formally from the administration at some time in the not too 

 distant future? 



Mr. White. Probably, but there are a number of policy decisions 

 which have yet to be made that address some of the issues that Mr. 

 Bottiger referred to such as: make sure there is accountability; 

 make sure that we absolutely have not changed some of the organic 

 legislation that BPA must operate under; and make sure we have 

 accommodated the concerns of everybody that we are not going to 

 create some kind of rogue that is administratively accountable to 

 no one; maintain the oversight of BPA while getting some of the 

 advantages you would have in personnel compensation policy, and 

 in the ability to sue and be sued that a corporation would entail. 



So I can't give you a deadline because we, neither at the Depart- 

 ment of Energy nor the people at 0MB, have made some final pol- 

 icy calls concerning what might be in such a bill. 



Mr. DeFazio. Would the administration in developing such legis- 

 lation seek to directly confer with some of the interested parties, 

 that is, the customers of the Bonneville Power Administration? We 

 have particular concerns about public power preference customers. 

 We have a diversity of customers; we have lOUs, DSIs. We have 

 strong advocacy for the environment, fish and wildlife, and the con- 

 cerns regarding the implementation of the Act for conservation re- 

 newables. 



BPA is a little more complex than your average power marketing 

 authority. But we expect the administration would enter into some 

 dialogue with the groups directly. 



Mr. White. Direct dialogue. As a matter of fact, Mr. Hardy and 

 I discussed this morning the desirability not only of informal con- 

 sultations, but of some kind of formal hearings that involve the in- 

 terests in the regions. I am sure we don't have any particular for- 

 mat, but that is something we told them that we wanted to do. 



