126 



Northwest Power Act is, adsittedly, not as explicit ae this. 

 Nevertheless, recognizing that BPA is primarily reBpoJisible for 

 interpreting the extent and nature of Its authority under the 

 Act, BPA'3 reading of the statute is reasonable, linited as it is 

 to allocation of purchase power costs incurred for flow/spill 

 seasures iDplesent^d by Reclamation or the Corps that are 

 consistent vitb the NFPC fish and wildlife progran. 



Please contact our office if you vould LiJce to discuss this issue 

 further. 



MEMORANDUM FROM HARVARD P. SPIGAL 



June 6. 1994 



Harvard P. Splgal, General Counsel - AP // 



Memorandum 



suBjea Interpretation of Section 4(h)(10)(C) of the Northwest Power Act* 



Randall H. Hardy 



Administrator and Chief Executive Officer - A 



IHTROOOCTION 



The Corps of Engineers (Corps) and the Bureau of Reclamation (Reclamation) 

 have agreed to Increase spin and augment flow In the Columbia and Snake 

 Rivers. This spill exceeds levels proposed by the National Marine Fisheries 

 Service (NMFS) in Its 1994-1998 Biological Opinion.!' Spill was Increased as 

 an experiment to determine whether It would assist survival of threatened and 

 endangered salmon populations. 



The Bonneville Power Administration (BPA) estimates the additional net power 

 cost of spin to BPA In Fiscal Year 1994 will be up to $20 million through 

 June 20, up to an additional $2^ million through July 31, and an additional 

 J22 million through August 30, for a total of up to $73 million. Further 

 measures proposed to meet the Biological Opinion flow targets could cost BPA 

 an additional $90 million. These expenditures exceed the $351 million already 

 budgeted for BPA's Fish and midlife Program Implementation, the Biological 

 Opinion actions, and annual Treasury payments for hydroelectric project 

 operation and maintenance associated with fish mitigation, as discussed below. 



This unanticipated and unprecedented increase In BPA's fish and wildlife 

 mitigation spending threatens to force BPA to defer a portion of Its annual 

 Treasury payment or to trigger an Increase In electric power rates, or 

 possibly both. 



BPA proposes to administratively reduce Its financial burden for this 

 additional spill and flow. Authority supporting such action Is expressly set 

 forth In section 4(h)(10)(C) of the Pacific Northwest Electric Power Planning 

 and Conservation Act, 16 U.S.C. § 839b(h)(10)(C) (Northwest Power Act). 



-' NMFS prepared Its Biological Opinion under section 7 of the Endangered 

 Species Act. 16 U.S.C. §§ 1531-1544 (ESA). It addresses operation of the 

 Federal Columbia River Power System through January 31, 1999. 



