156 



Now, the point here is that Bonneville markets about 45 percent 

 of the electric generation in the Northwest, but controls a near mo- 

 nopoly of 80 percent of the bulk transmission system. 



My second point is that any legislation proposing a cap on fish 

 costs should recognize that a cap for BPA raises complicated issues 

 of equity for non-Federal parties who are similarly impacted a 

 salmon recovery plan. Fish costs are a regional concern, and must 

 be addressed with a regional solution. 



I might just note quickly that all of the numbers you heard ban- 

 died about today only describe the affects on the BPA system, and 

 there are significant affects on non-Federal operators as well. 

 These are some of the unintended consequences. 



I might point out that there are many non-Federal hydro projects 

 in the Northwest located below Federal storage reservoirs. 



When the water stored in these projects is released, primarily in 

 the spring and summer to help migrating fish rather than through- 

 out the year, the impacts to our hydro projects is staggering. 



The situation, for example, in 1995 is that non-Federal hydro 

 projects located in eastern Washington and western Montana, 

 which are physically disconnected from the problems facing Snake 

 River chinook and sockeye salmon in Idaho, will have realized a 

 greater loss of seasonal hydro generation than all of the Federal 

 projects located on the Snake River. 



Mr. Chairman, we recognize the need to help Bonneville with its 

 short-term financial problems, and, at the same time, assure that 

 Federal and non-Federal electric customers benefit from falling 

 electric prices. 



Meeting our obligation to restore the Northwest's most important 

 cultural heritage, healthy populations of wild salmon, is everyone's 

 goal, but I also believe that nurturing the emerging competitive in- 

 dustry in electricity markets is a benefit to the whole region as 

 well. 



PREPARED STATEMENT 



I am confident that in the end an appropriate balance can be 

 achieved, and our utilities are committed to work with you to find 

 that balance. Thank you. 



Senator Hatfield. Thank you very much, Mr. Dyer. 



[The statement follows:] 



Prepared Statement of Richard E. Dyer 



Mr. Chairman, Portland General Electric is Oregon's largest electric utility, pro- 

 viding service to a population base of over 1.3 million people and many of Oregon's 

 largest employers. We own and operate a diverse set of generating resources, but 

 also have the largest non-federal ownership of the Pacific Northwest Intertie, which 

 allows us to exchange significant quantities of electricity at the wholesale level with 

 entities in California. 



The reality of meeting a large payroll, servicing debt obligations, keeping cus- 

 tomers satisfied, and meeting regulatory and environmental requirements is not 

 unique to Bonneville. We are also dealing with the challenges of a competitive elec- 

 tric industry. The investor-owned utilities of the Pacific Northwest are positioning 

 to compete in an environment of open transmission access and retail wheeling. So, 

 we know what Randy Hardy is facing. 



