31 



procedure that would allow review by a limited number of persons 

 or Council members or staff, but would still protect the proprietary 

 nature of the agreement. 



Mr. BOTTIGER. Bonneville, they are very cooperative. We both 

 want to fix this. 



Mr. DeFazio. I just felt a little burnt because we had the settle- 

 ment with GE, was it, and I at the time was a bit concerned about 

 that settlement and the secret nature of the settlement, and was 

 promised by the Administrator that there would be no more secret 

 agreements. Then along comes Tenasca. Oops, we have another se- 

 cret agreement, and believe us, it is a good deal. It may be, but 

 with these gas projects sprouting up around the Northwest, I have 

 some concerns. 



And then I read of a proposal, I haven't had an opportunity to 

 ask the Administrator about some sort of contingent agreement 

 with gas-fired generation at Tenasca? 



Mr. BOTTIGER. The Council asked the Administrator to get op- 

 tions on future generation. He has, I believe, three projects that are 

 in the option process, an old lawyer device called an option. We are 

 using that to acquire the licensing permitting process of a new gen- 

 erator with a decision as to whether to buy it or build it held until 

 later. 



Seventy-five percent of the time to build the new generator is in 

 licensing and siting. And it is not the expensive part. It is the con- 

 struction that is the expensive part. So if you could get these 

 things set up, that is if you needed them, you could build them. 

 That is what he is doing now, and that project you mention is one 

 of those option projects. 



Mr. DeFazio. So the Council is closely monitoring these option 

 activities that comply with the other portions of the Act regarding 

 least-cost acquisition. 



Mr. BOTTIGER. That is right. That is a Council program, and Mr. 

 Kreidler is aware of an energy site evaluation council in Washing- 

 ton. They are in the process of doing all of the permitting and li- 

 censing of that plant. But there has been no decision to build it or 

 for Bonneville to buy it yet. 



Mr. DeFazio. I don't believe anyone else has further questions. 

 I don't have any further questions of the panel. I thank you for 

 your testimony. I appreciate your being here today. 



Thank you. 



We will move on to the next panel, which will be a rather large 

 panel. We will proceed in the order which you appear on the wit- 

 ness list, unless you have some reason to deviate from that, like 

 an airplane or something. Hearing none, we will begin. 



Mr. Drummond. 



