93 



this way continue to put all of us at risk whether or not you suc- 

 ceed in executing this deal. 



So I hope we can work this out in the region without invoking 

 a regulatory remedy, but I will agree with you there may be some, 

 and I hope it doesn't come to that. 



Mr. DeFazio. This is a fairly smsill utility, and I would agree 

 that perhaps some moral persuasion will be helpful. 



The Administrator has reiterated his commitment at least twice 

 before this committee to move forward with a tiered-rate structure. 

 That would send a strong signal to other utilities. If they want to 

 get a tiered rate from BPA and try to reverse that tier and some- 

 how make money, they will be engaging in a wonderful "catch 22" 

 exchange here, bujdng things for a dollar and selling them for 60 

 cents, making money. So perhaps there is a market-based way of 

 dealing with it. 



And then the third thing I would put to you — and it is a question 

 that Mr. Drummond and I seemed to have a little disagreement 

 over at the last hearing — I have a feeling that there should be 

 some individual responsibility or people should be more bound 

 under the plan. 



And I would like to see some way that people get a stronger mes- 

 sage, whether it is through a tiered rate or a preferential rate for 

 those who follow the least-cost path. 



Any ideas you have on that, I would be happy to entertain, and 

 you could provide them in the future. 



Mr. Cavanagh. We will do it, Mr. Chairman. 



The power sailes contracts are clearly such an opportunity. The 

 tiered-rate structure design itself is such an opportunity. It may 

 well be that clarifying Mr. Bottiger's relationship with Bonneville 

 in the new corporation bill will be such an opportunity. 



[Editor's note. — ^The information was not received at the time 

 of printing.] 



Mr. DeFazio. Czars are real popular. Maybe we will get our- 

 selves a power czar. 



Mike, do you have some questions? 



Mr. Kreidler. Thank you, Mr. Chairman. 



First off, I would like to also reciprocate by saying I appreciate 

 having Mr. Johnson and Mr. Sherrill here to testify. I think it is 

 very appropriate we have their representation here before this task 

 force. 



I would like to go to a follow-up with Mr. Sherrill, a comment 

 he made relative to replacing some institutional constraints on pur- 

 chasing power from Bonneville to allow customers the opportunity 

 to purchase from outside of BPA. I would like to have him elabo- 

 rate on that point he made in his testimony. 



Mr. Sherrill. Our concern is that Bonneville, being monopolistic 

 as far as we are concerned, being a relatively small utility, the risk 

 level for us to go out and acquire resources can be significant. Our 

 concern is, if Bonneville is intending to become market driven and 

 efficient, that the customers' utilities have to be able to go to other 

 suppliers of power in a reasonable manner in order to force Bonne- 

 ville to have that efficiency. 



If Bonneville creates artificial barriers by unbundling their serv- 

 ices in a way that one service subsidizes another, and therefore ere- 



