158 



for non-federal parties who are similarly impacted by the Salmon Recovery Plan. 

 Fish costs are a regional concern and must be addressed with a regional solution. 



My concern about equity is one of unintended consequences. 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 throughout the year, the impacts to our 

 hydroelectric projects is staggering. 



I am not a fisheries biologist, but think for a minute how you would deal with 

 the equitable resolution of a situation where in 1995, non-federal hydroelectric 

 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 the 

 federal hydro projects located on the Snake River? 



Our customers are going to ask, "Why does Congress consider compensation to off- 

 set BPA fish costs when we must bear the full brunt of those costs?" In pursuing 

 a cap on BPA fish costs, the Senate should also quantify precisely what these non- 

 federal impacts might be and develop a process whereby federal and non-federal 

 parties receive the same protection. I am certain that the impacted utilities will as- 

 sist you in this analysis. 



CONCLUDING REMARKS 



Mr. Chairman, we need to help Bonneville deal with its short-term financial prob- 

 lems and at the same time assure that federal and non-federal electric customers 

 benefit from the falling energy prices I described earlier. 



Meeting our obligation to restore the Northwest's most important cultural herit- 

 age — healthy populations of wild salmon — is everyone's goal, but I also believe that 

 nurturing — this emerging competitive electricity market benefits the whole region 

 as well. I am confident that in the end the appropriate balance can be achieved and 

 both of these goals realized. 



Mr. Chairman, you have never shied away from dealing with the region's most 

 difficult problems. I commend and thank you for tackling this one. I appreciate the 

 opportunity to share my views and would be happy to answer any questions. 



Reynolds Metals Co. 



statement of richard g. holder, chairman and chief execu- 

 tive officer 



Senator HATFIELD. Mr. Richard Holder, the president and CEO 

 of Reynolds Metals Co. 



Mr. Holder. Thank you, Chairman Hatfield. 



For the record, I am Richard Holder, chairman and chief execu- 

 tive officer of Reynolds Metals Co. I thank you for the opportunity 

 to discuss salmon protection, which, by the way, I support, and the 

 impact on BPA and its customers. 



Reynolds Metals Co. is one of 10 companies that produce alu- 

 minum, titanium, and other metals and chemicals in the North- 

 west. 



We are collectively known as the Direct Service Industries, DSI, 

 because we have historically been permitted to buy our power di- 

 rectly from BPA. As a group we contribute $2.3 billion to the re- 

 gion's economy, and employ 10,500 people. 



We have been an economic force in the Northwest for over 50 

 years and we hope to remain strong regional contributors into the 

 next century as well. 



At full production, the 10 Northwest aluminum plants produce 

 over 40 percent -of all aluminum made in the United States. Alu- 

 minum producers are leaders in the Northwest in balancing both 

 environmental and economic interests through recycling and en- 

 ergy conservation programs. 



