75 



c. It should not diminish in any way the present 

 level of input of customers or the public at large in 

 Bonneville's operations. 



d. It should not diminish Bonneville's 

 accountability. 



e. It should not diminish in any way the 

 preference rights to federal power of local public 

 agencies and rural electric cooperatives. 



The concept for a government corporation 

 described in a paper issued by Bonneville is relatively 

 modest. It does not give BPA additional borrowing 

 authority; it does not alter BPA's responsibilities 

 under current law; it does not change BPA's 

 relationships with the Northwest Power Planning Council, 

 and it does not make a radical change in the agency's 

 governance . 



4. What advantages or disadvantages would there be 

 to Bonneville and the Pacific Northwest's 

 electric ratepayers in restructuring Bonneville 

 into a government corporation? 



The principal advantages of the government 

 corporation would be greater flexibility for BPA in 

 procurement, contracting and budgeting, more latitude in 

 managing personnel, and elimination of overlapping 

 responsibilities between government agencies. These 

 benefits should result in reductions in operating costs, 

 the ability to plan and budget with greater certainty 

 and timeliness, and the capability to respond more 

 quickly to the needs of its customers and to changing 

 conditions in the electric utility industry. Under 

 current conditions, BPA estimates that at least 200 

 federal and contract employees are rec[uired to comply 

 with a wide array of Department of Energy, Office of 

 Personnel Management and Office of Management and Budget 

 requirements . 



The principal disadvantage in proceeding with 

 this proposal would be its potential use as a vehicle 

 for attempting to make undesiraible alterations in the 

 organic statutes under which BPA operates. There is 

 also a danger that BPA would become less accountable, 

 especially to the general pxiblic amd to its customers. 



5. Would a govemsent corporation structxire either 

 enhemce or diminish Bonneville's ability to 

 comply with its statutory mandates to meet social 



