105 



Statement of Randall W. Hardy, Administrator 



Bonneville Power Administration 



October 28, 1993 



Chairman DeFaao, it is again my pleasure to appear before the Bonneville Power Administration 

 Task Force. 



Today, my testimony will focus on proposals for debt restructuring and government corporation 

 status. Specifically, I come prepared to discuss the "buy-out" option proposed by the 

 Administration for Bonneville's appropriations debt—this proposal involves refinancing through 

 the open market. I will then discuss government corporation concepts. 



As was discussed at the Task Force hearing in Eugene, Bonneville is seeking to maintain and 

 improve the agency's competitiveness in a utility environment which is rapidly evolving. End-use 

 consumers have more economic energy choices. In addition, new technologies are rapidly 

 entering the marketplace, creating greater awareness of energy alternatives such as cogeneration 

 and self-generation, increasing choices available to Bonneville's utility and industrial customers, 

 and increasing their ability to control their energy usage. 



Most importantly, regulations regarding transmission are being changed dramatically. This is 

 giving utilities greater access to alternative power suppliers, as well as allowing utilities to 

 compete against Bonneville by buying and selling in the same markets. Bonneville must make 

 changes in response to events that are sweeping the indu3try, or risk becoming increasingly 

 irrelevant to our customers' needs, and therefore jeopardizing our long-term financial health and 

 ability to play the key historical role of Northwest power provider of choice. 



