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laws, including the 1980 Northwest Power Act, the 1974 Federal Columbia River Transmission 

 System Act, the 1964 Regional Preference Act, the 1944 Flood Control Act, and the 1937 

 Bonneville Project Act. Bonneville expects that legislation creating such a government 

 corporation would expressly state that the current authority of the Bonneville Administrator under 

 these organic statutes would be transferred to and vested in the Bonneville corporation, and that 

 the corporation would be the successor in interest to the old Bonneville Power Administration and 

 for all existing agreements and proceedings. 



Government corporation status would allow Bonneville to act more like a business in an 

 increasingly competitive market environment. This status would primarily affect Bonneville's 

 organizational, budgetary, personnel, contracting, procurement, property management, litigation, 

 and claims settlement systems. Bonneville's existing organic statutes would be amended to make 

 them consistent with the exercise of these corporate powers. 



Government corporation status would make a significant contribution in the changes we are 

 initiating aimed at efiBciency and competitiveness. We expect that in four to five years, 

 Bonneville's work force, including contractors and federal employees will be reduced by some 600 

 to 800 FTEs. We believe reductions, plus additional operating cost savings, will cut our annual 

 expenses by $75 million to $100 million by 1997. 



As a separate and distinct federal entity operating under the Government Corporation Control 

 Act, Bonneville would be fi-ee of the tangle of red tape that binds it up in bureaucratic 

 contradictions - a ratepayer funded regional utility treated as if it were a taxpayer funded 

 instrument working off annual appropriations. 



