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Additionally, we believe that any refinancing 

 plan developed for the Bonneville Power Administration 

 should be made available to other federal power 

 marketing administrations, subject, of course, to the 

 review of the customers of these PMAs. 



On October 25, Speaker Tom Foley announced that 

 the Clinton Administration intends to send Congress a 

 legislative proposal which would allow BPA to refinance 

 the federal investment in the Northwest hydroelectric 

 system at net present value of the debt, plus $100 

 million "to settle all claims that the Federal 

 government has against our region's hydroelectric 

 system." The proposal would not impact Bonneville's 

 rates for at least 15 years, and thereafter any increase 

 "would be expected to be small," according to Speaker 

 Foley ' s announcement . 



The Administration's proposal is generally 

 consistent with the principles enunciated above. We 

 extend our gratitude to Speaker Foley, other members of 

 the Northwest Congressional delegation, and the Clinton 

 Administration for their efforts to resolve this 

 contentious issue in a manner satisfactory to the 

 Northwest. Over a period of about 10 years, the 

 Northwest Congressional delegation has consistently 

 opposed previous propobials which would have been 

 detrimental to the interests of Bonneville, its 

 customers and the people of the Northwest. We commend 

 the delegation for protecting the Northwest and for 

 working with the present Administration to develop a 

 concept which will not increase BPA rates for at least 

 15 years. 



We are, however, unclear as to the nature of the 

 $100 million payment for settlement of all "claims" of 

 the Federal government against the hydroelectric power 

 system. We are not aware of the nature of such claims, 

 and would not support their payment if there is no cost- 

 based justification. 



2. If Bonneville is given legislative authority to 

 refinzmce its Treasury debt, should that 

 authority be linited to Bonneville's appropriated 

 debt? Should Bonneville be given new borrowing 

 authority, either from Treasury or the private 

 financial markets? 



The new legislative authority should be limited 

 to Bonneville's appropriated debt. Interest on BPA's 



