56 



There is a plan to reduce the impact of the cost of compliance on 

 Bonneville Power. We just do not think it is fair. Thank you. 



Ms. RiVLiN. We will 



Senator Hatfield. Thank you, Senator. 



Ms. RiVLlN. We will note that and certainly think about it. 



Senator Hatfield. Senator Murray. 



Senator Murray. Thank you, Mr. Chairman. 



First, I want to thank you. Director Rivlin, and the Chief of Staff 

 of the President for recognizing the seriousness of the situation 

 with BPA in committing to help our region solve these very dif- 

 ficult problems. I do have an opening statement. 



I will save it, Mr. Chairman 



Senator Hatfield. Yes. 



Senator Murray [continuingl. For your time constraints. 



I just have one question, basically, for you. I want to clarify the 

 terms of the agreement that we reached yesterday. Specifically, I 

 am interested in section 4(h)(10)(c) of the Power Act. 



You have offered to approve BPA's use of 4(h)(10) for direct fish 

 costs in perpetuity. Under your interpretation, that amounts to 

 over $30 million annually, and you also agreed to permit use of the 

 provision for lost power revenues and power purchases for 2 years. 



At the end of those 2 years, we are going to have to revisit this 

 issue, which means there is the possibility that — does this mean to 

 you that there is a possibility that that 2-year period will be ex- 

 tended if the circumstances warrant? 



Ms. Rivlin. It would be hard to say at this time. Senator. We 

 thought the current situation was urgent, and that it warranted 

 taking action for 2 years. 



Our proposal to allow BPA to use section 4(hX10)(c) to cover lost 

 power revenues and power purchases is not permanent. It was de- 

 signed to meet the immediate cost situation and allow Bonneville 

 to adjust and put in place the cost savings, which they believe are 

 very real, to help pay for these costs. It is possible that this issue 

 would have to be revisited at the end of 2 years. 



Senator Murray. OK. I appreciate that. And, again, thank you 

 for working with us on this very difficult problem. 



Ms. Rivlin. Thank you. 



Senator Hatfield. Thank you. Senator. 



Senator Burns. 



Senator Burns. Mr. Chairman, I would just put my statement in 

 the record, and I have no questions for the Director. We can just 

 move right along. 



Senator Hatfield. Thank you. 



Senator Craig. 



Senator Craig. Mr. Chairman, thank you very much. 



And, Ms. Rivlin, thank you for being with us this afternoon. One 

 brief question: I, too, want to reflect my appreciation for the admin- 

 istration's responsiveness to this very imminent problem we face in 

 the Pacific Northwest. 



In doing that, I do not want my comment and/or question to you 

 to leave you thinking that I am treating lightly your action, be- 

 cause I am not. 



But what I am suggesting to you is that it does not help a lot 

 in the overall context of Bonneville's viability long term. Bonneville 



