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STATEMENT OF 

 STEPHEN F. JOHNSON, EXECUTIVE DIRECTOR 

 WASHINGTON PUBLIC UTILITY DISTRICTS ASSOCIATION 

 SEATTLE, WASHINGTON 



before the 



U.S. HOUSE OF REPRESENTATIVES 

 COMMITTEE ON NATURAL RESOURCES 

 BONNEVILLE POWER ADMINISTRATION TASK FORCE 



Washington, D.C. 

 October 28, 1993 



Mr. Chairman, members of the subcommittee, I am 

 Stephen F. Johnson, executive director of the Washington 

 Pxiblic Utility Districts Association. The Association 

 appreciates this opportunity to present the perspective 

 of Washington PUDs on the sxibjects being discussed 

 today. 



Our perspective is unique: The Washington PUDs 

 are the largest customer group of the Bonneville Power 

 Administration (BPA) , accounting for nearly 30% of BPA's 

 sales. Just as the PUDs are important to Bonneville, so 

 is Bonneville important to PUDs: Of the 22 Washington 

 PUDs that provide electric service, seven rely on BPA 

 for a majority of their power, and 12 purchase all of 

 their power from Bonneville. 



Department of Energy policies toward BPA have a 

 significant impact on public utility districts, and in 

 turn on the 1.5 million people served by PUDs in service 

 areas covering 60% of the state of Washington. 

 Consequently, we are keenly interested in proposals that 

 could affect BPA's rates and its way of doing business. 



The following are our responses to the questions 

 you posed in your letter inviting us to testify at this 

 hearing: 



1. What alternatives can you suggest to Bonneville's 

 current repayment formula for its appropriated 

 Treasury debt that would provide a long-term 

 solution to the perennial attempts to accelerate 

 BPA's debt repayment schedule, have a neutral or 

 beneficial effect on Bonneville's rates, amd 

 provide the maximum deficit reduction? Please 



