24 



How 0MB scores this — ^this is the critical thing — is by looking at 

 the present value of the debt that is owed to government. So the 

 present value of the debt is something in the neighborhood of $4 

 billion, and the total effect of this calculation would be to increase 

 the present value of the debt to something like $4.1 billion. 



Mr. Smith. You are content that this is a mathematical process, 

 not a payoff? 



Mr. White. Not a — I am sorry. 



Mr. Smith. Not a premium for doing business this way, let's say. 

 Scratch that payoff business. A premium for the deal. 



Mr. White. Well, it is a premium for the deal. I mean, we would 

 like to do a deal which accomplished several objectives. 



One is to make the Treasury score as much positive gain on the 

 income statement of the Federal Government as we can without 

 raising rates. And if you take the "don't raise rates" as a con- 

 straint, and you say, "Now, how can you restructure debt in a way 

 that creates the highest present value but does not result in a rate 

 restructuring," the most premium we can get is that $100 million. 

 If we could get a higher premium, we would want to do it. 



Mr. Smith. I don't want to argue with you. I would just like you 

 to send me the computations of how we arrive there. 



Mr. White. That is fair enough. 



Mr. Smith. Thank you. 



[The information follows:] 



Following is Bonneville Power Administration summary information on the cal- 

 culation of the net present value of their unpaid appropriated Federal debt, and the 

 $100 miUion premium which Congressman Bob Smith of Oregon requested. The ac- 

 tual detailed calculations were made by computer using the Bonneville repayment 

 model. The response indicates the Department will provide the Congressman the 

 base case repayment numbers used to make the calculations. These numbers are al- 

 ready publicly available as a Federal Energy Regulatory Commission electric rate 

 filing made by Bonneville. 



