148 



I am here to outline a simple and nondisruptive response to this problem. Our 

 proposal is respectful of the region's strong tradition of public preference, and of 

 BPA's existing obligations to all its Northwest customers. We also recognize that all 

 who care about the Regional Act's environmental goals have a stake in BPA's capac- 

 ity to meet or exceed its revenue targets. And we acknowledge the inexorable trend 

 toward increased competition in regional power markets. There is no inconsistency 

 between the Regional Act and greater competition — unless EPA is denied a reason- 

 able opportunity to compete. 



I also emphasize that this proposal is not intended to preempt discussion of other 

 options for replacing lost revenues from departing BPA customers, some of which 

 almost certainly will surface at today's hearing. All these alternatives need a full 

 airing, and the best solution may well involve elements of more than one. This hear- 

 ing begins a process of negotiation among all affected interests, which should result 

 in more open and productive power markets. 



We offer for your consideration, and those of our regional colleagues, the following 

 provisions of a new Northwest Power Act to Promote Wholesale Competition: 



1. BPA would continue to provide first call on all available federal power from 

 whatever source to public-preference customers in the Pacific Northwest to meet 

 their firm power load requirements as defined by section 5(b) of the Regional Act 

 and the Bonneville Project Act. BPA would also meet its obligations, if any, to pro- 

 vide requirements service to investor-owned utilities under section 5(b), and any 

 service obligation to existing DSI customers up to their contract demand under sec- 

 tion 5(d). 



2. If BPA were left with surplus federal firm power because of abandonment of 

 that service by a public-preference customer, it would offer first to sell the surplus 

 firm power on a one-time basis through additional long-term sales to Northwest 

 public preference customers. Any such customer who wished could make additional 

 purchases up to the limit of the firm surplus, provided that it were willing to pay 

 the price established for comparable BPA transactions with other public preference 

 customers. 



3. Any surplus federal firm power remaining could be sold without restrictions to 

 any customer, subject to its ability to take delivery of and pay for the power. BPA 

 would be authorized to negotiate flexible pricing and terms. Items 1 and 2 above 

 would be deemed to satisfy the current statutory tests to determine whether power 

 is needed to meet the "energy requirements" and "firm power load requirements" 

 of Northwest customers, and deemed also to satisfy the current tests for "surplus 

 power" under Regional Act §9(c) and Public Law 88-552. 



I reemphasize again that this is an initial proposal, offered in a constructive spirit 

 for discussion with other participants. A remarkably wide range of otherwise dispar- 

 ate interests have a stake in a healthy and productive BPA. No one can or should 

 guarantee competitive success for the agency, but we hope that its management and 

 others can unite around creating a more open marketplace for BPA products and 

 services. 



Spokane Tribe of Indians 

 statement of warren seyler, chairman 



Senator Hatfield. Mr. Seyler. 



Mr. Seyler. Thank you, Mr. Chairman, and members of the sub- 

 committee. It is an honor for me to appear before you today. My 

 name is Warren Seyler, and I am chairman of the Spokane Tribe. 

 I am also chairman of the Upper Columbia United Tribes. 



The Spokane Tribe is historically a fishing tribe, and while we 

 now rely primarily on timber for revenue, for tribal revenue, fish- 

 ing is a primary concern, for both its cultural and economic value. 



The Spokane Tribe is one of four tribes located on the head- 

 waters of the Columbia River above Lake Roosevelt in the States 

 of Washington and Idaho. Funding provided by Bonneville Power 

 Administration has been helpful to the UCUT Tribes in establish- 

 ing mitigation programs. 



The BPA, as part of the Federal Government, has a trust respon- 

 sibility to the Indian nations to preserve our natural resources, 

 particularly the fisheries. 



