104 



The way that at least we have conceived it, it would not change 

 any of those. Our objective is to try to get free of the administrative 

 encumbrances that we suffer from right now, and we believe do not 

 provide any value added to the Bonneville business operation, so 

 that we can execute all of our missions — whether that is the fish 

 and wildlife program or a basic maintenance program — more effec- 

 tively and more efficiently. 



That is how we have tried to design the legislation. Since the leg- 

 islation may well be changed substantially, and probably will as it 

 winds its way through the executive branch, I would like to use the 

 Tennessee Valley Authority as an example of the kinds of benefits 

 that we would see associated with corporate status. 



First of all, exemption from the federal civil service system. TVA 

 is exempt from the federal civil service system. You have much 

 greater hire and fire flexibility. You have the ability to set your 

 own personnel ceilings in accordance with whatever is most cost- 

 effective. 



Right now 0MB controls our staffing levels of Bonneville employ- 

 ees but not our contract employees. Sometimes you end up having 

 to use more expensive contractors rather than using federal em- 

 ployees to do that job. 



There are a whole panoply of other kind of personnel restrictions. 

 For example, today given the processing times that are inherent in 

 the federal personnel system, it takes us an average of 90 days to 

 hire a temporary employee. So if I were to hire a temporary line 

 worker or a secretary, I have an average 90-day waiting period be- 

 fore we can do that. With the corporation legislation, like TVA, we 

 could go to the union hall tomorrow and hire that temporary line 

 worker or hire the temporary secretary. And those are just a couple 

 of the m3rriad of examples that would be associated with that kind 

 of savings. 



Some of this can be done administratively, but the bulk of it, par- 

 ticularly all the personnel changes and exemption from the civil 

 service system, can only come by virtue of legislation. 



The balance that we are trying to strike with the corporation sta- 

 tus is to gain this administrative flexibility and these administra- 

 tive efficiencies while leaving our policy relationships unchanged in 

 terms of how we relate to major institutional actors and constitu- 

 ents and customers in the region, as well as how we relate to you 

 and other members of the Northwest delegation, Mr. Chairman, 

 and to the appropriations committees in particular, and still have 

 policy guidance by virtue of Secretary of Energy oversight within 

 the executive branch. 



Whether that is the form that the ultimate legislation will take 

 or not, I don't know. But the goal, again, is to try and focus on giv- 

 ing us the tools to execute our existing missions more effectively 

 and more efficiently. 



With that, I would be happy to answer any questions. 



[Prepared statement of Mr. Hardy follows:] 



