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4. What advantages or disadvantages would there be to Bonneville and the Padflc 

 Northwest's electric ratepayers in restructuring Bonneville into a government 

 corporation? 



We expect that significant advantages will come as a result of moving BPA to 

 government corporation status. By attaining government corporation status, BPA would be 

 able to act more like a business and be given the freedom to move more quickly in a 

 business environment. BPA has launched a major effort to become customer-driven and 

 results oriented. While we expect BPA to achieve this goal regardless of whether 

 government corporation status is attained, this status will help in this effort. 



The greatest benefits of corporation status are the near- and long-term reductions of 

 positions at BPA that are now devoted to fulfilling inter-governmental reporting requirements 

 that add no value to BPA's operations. Most of these staffing reductions would come in the 

 areas of personnel, contracts and property management, and materials and procurement. 

 Also, BPA managers would be given the ability to downsize without complying with arcane 

 and outdated Civil Service requirements. As a government corporation, BPA would have the 

 ability to sue and be sued, and to represent itself in court. Corporation status should also 

 bring greater responsiveness to its customers, due to reductions in paperwork and red tape. 



There are, however, a few unresolved issues. We are concerned that judgements 

 against BPA would come directly out of the BPA fund, and not the federal judgement fund as 

 is now the case. There is also a potential for legislative add-ons. These could lead to the 

 loss of our support for this proposal. 



5. Would a government corporation structure either enhance or diminish 

 Bonneville's ability to comply with its statutory mandates to meet social and 

 environmental goals, including the protection of fish and vtildlife? 



We believe that government corporation status would enhance BPA's ability to 

 comply with stamtory mandates to meet environmental requirements. Since BPA's reporting 

 and paperwork requirements will be reduced, BPA will be able to fulfill these requirements 

 on a more timely basis. An example of this is the time it takes for DOE to review BPA's 

 environmental impact statements. If BPA were able to move through the EIS process more 

 readily it could fulfill these requirements more quickly and get programs and contracts on the 

 ground. Also, giving BPA the ability to act more like a business will allow it to succeed as 

 a business. The achievement of the goals of any of BPA's programs is linked to this 

 success. This includes BPA's stamtory mandates to meet social and environmental goals. 



6. Would changes in Bonneville's governing statutes be necessary or desirable if 

 Bonneville is made into a government corporation? 



Government corporation stams for BPA will not change preference or any of the 

 orgaiuc statutes that govern BPA. These sunitory requirements are laid out in the Bonneville 

 Project Act, the Transmission System Act, the Northwest Power Act, and other statutes. 

 Our support for the change in BPA staftis is based on this critical assumption. PPC will 

 oppose any legislation that changes BPA's statutory requirements. 



- 3 - PUBLIC POWER COUNCIL 



500 N E Mullnomafi. Sofle 729 Portland, OR S7?32 

 (5031 232-2427 



