100 



the attributes were, what worked, what didn't, and one of the most 

 important questions we had was, how does the board of directors 

 work? 



And in fact the people from the Academy indicated — and they in- 

 dicate in their draft report — that for entities such as Bonneville, a 

 board of directors doesn't work very well. They pointed, for exam- 

 ple, to the Tennessee Valley Authority, where there have been sig- 

 nificant problems with having a board of directors and lack of a 

 professional manager early on, et cetera. I am not going to go into 

 great detail because I am in over my head. 



But, you know, I think that it does have a significant benefit re- 

 lying on a single professional manager, an administrator who is 

 held accountable, because one of the great problems with boards is 

 that they tend not to be accountable. 



Second, I would echo Mr. Bottiger's comments. I thought he pro- 

 vided some very good arguments as to why a single administrator 

 was the best form of governance for Bonneville, given the oversight 

 that currently exists. 



Mr. Kreidler. I certainly wasn't proposing you do anything dif- 

 ferently. I think on a day-to-day basis that is the only thing that 

 makes sense. 



The question I am raising is relative to perhaps the big picture 

 of rate setting and budgeting, and that approval process, which is 

 far different. It really works much more like a city manager form 

 of local government, where the city manager is in a strong position. 

 In this case, I am certainly not even suggesting that the appoint- 

 ment process of an administrator be different than what has been 

 recommended. 



Thank you, Mr. Chairman. 



Mr. DeFazio. Good discussion. As I said in my dialogue with Mr. 

 Ramseyer, I would certainly be happy to discuss with anybody how 

 we might move forward and try and help the administration. It is 

 a lot harder once they have given us a proposal that has some in- 

 herent problems, and they have invested some of their prestige in 

 it, shall we say, to make the changes as opposed to maybe get all 

 of those interests considered up front. I think Mr. White showed a 

 great willingness. When I listed all of the diverse interests I could 

 think of, I asked. What of those groups would you consult with, and 

 he said. All of them. I think that is a good start, and I am hoping 

 we can help them along that path. 



Let me find out what — is this the rule? 



Mr. Kreidler. Yes. 



Mr. DeFazio. We have a vote. Mr. Hardy is scheduled to be here 

 at 12:15. So this is very opportune that we have a vote right now. 

 So we will recess until 12:20. 



[Recess.] 



Mr. DeFazio. If Mr. Hardy will come forward, and whoever he 

 wishes to have accompany him. You are the clean-up witness here. 



STATEMENT OF RANDALL W. HARDY, ADMINISTRATOR, BON- 

 NEVILLE POWER ADMINISTRATION, U.S. DEPARTMENT OF 

 ENERGY 



Mr. Hardy. Thank you, Mr. Chairman. 



