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LETTER FROM HAZEL R. O'LEARY 



The Secretary of Energy 



Washington. DC 20585 

 December 5, 1994 



The Honorable George Miller 



Chairman 



Comnuttee on Natural Resources 



U S House of Representatives 



Washington, DC 20515 



Dear Chairman Miller: 



Thank you for your letter of July 11, 1994, questioning the Bonneville Power 

 Admmistration's interpretaljon of authonties under section 4(h)(10)(C) of the Pacific 

 Northwest Electric Power Planning and Conservation Aa (Art), 16 U S C { 

 839b{h)(10)(C) 



Bonne\nlie Adimnistialor Randall W Hard\' has provided the Dqjartment with a 

 memorandum that sets forth a detailed legal analysis in support of BonneMlle's 

 inicrprctaDon of section 4(h)(10)(C) The Department's OfBce of General Counsel has 

 conducted a careful examination of the legal analysis contained m the Administrator's 

 memorandum and agrees with Bonneville's interpretation of section 4(h)(10)(C) and that 

 the Administrator has statulor\ authority to allocate to non-power project purposes a share 

 of the replacement power costs Bonneville mcurs through implementation of flow and spill 

 mitigation measures However, the Office of General Counsel also agrees with the 

 enclosed views of the Office of the Solicitor, Department of the Intenor, that the Northwest 

 Power Act is a unique statute appl>'uig only to Bonneville and that Bonneville's 

 interpretation of 4(h)( 1 0)(C) ■■ should not, and Mill not, serve as a precedent on how 

 power purchase costs generally are allocated at federal water resource facilities that are 

 governed by different laws " Enclosed is the memorandum from the Bonneville 

 Admmistrator and answers to the specific questions posed at the end of your letter 



The legal analysis conducted b> Bonneville as expressed m the Administrator's 

 memorandum, as well as Bonneulle's June 6, 1994, legal opuuon, have also been 

 examined in the Office of the Solicitor of the Intenor, the Army General Counsel, and the 

 Army Corf« of Engineers' Office of Chief Counsel They defer to Bonneville's 

 inierpreialion of section 4(h)(10)(C) Enclosed are copies of the advice received from 

 these other agencies 



Thank you again for this opportunirv to respond to your concerns 



Sincerely, 



