161 



From the early 1940's to the early 1980's, BPA was an economical supplier of 

 power to the aluminum industry. But today, BPA's rates are already one-third high- 

 er than the global average for our industry. The series of rate increases that began 

 in the 1980's has severely eroded BPA's competitive edge. 



BPA has been working harder to contain costs, but that constructive effort has 

 more lately been imperiled by major new cost burdens. BPA is being required under 

 the Endangered Species Act to provide fish protection measures that — if not in some 

 way controlled — will end BPA's historically competitive position. 



The aluminum industrv recognizes BPA's duty to be environmentally responsible, 

 and likewise recognizes that this duty creates legitimate ratepayer burdens. But our 

 fundamental concern is that these costs are now being incurred with little regard 

 for economics or science. We are deeply disappointed that the recommendations of 

 a two-year study by highly respected scientists, commissioned by the National Ma- 

 rine Fisheries Service (NMFS) and led by Professor Donald Bevan, have been mostly 

 cast aside. This Recovery Team's study was released last year and was to be the 

 basis of the agency's formal Recovery Plan for salmon. But instead, far more drastic 

 and costly measures that were rejected by the Recovery Team are largely being 

 adopted by NMFS. 



If the federal agencies mandating fish recovery followed a more scientifically 

 based salmon management plan, we could achieve the Northwest Power Act's vision 

 of recovering salmon runs while retaining the advantage of the region's great hydro- 

 power resource. We believe the plan developed by the Recovery team is both bal- 

 anced and effective. We urge you to support their plan as the platform for salmon 

 recovery. It will provide a long-term solution and can be achieved without endanger- 

 ing BPA and its customers. 



In addition to the direct economic problems facing BPA and the region, there is 

 a growing interest in shifting some of this economic burden to other revenue-gather- 

 ing mechanisms, such as transmission or exit fees. In no way will the DSI's support 

 any schemes to "shift" unjustified fish costs to transmission access charges or other 

 devices designed to pre-empt competition. 



In conclusion, we fear there are painful consequences ahead for the Northwest 

 economy if the ESA regulatory agencies continue to look to BPA as the endless deep 

 pocket for fish recovery — this despite the fact that many factors have contributed 

 to the salmon's decline. But the power marketing agency and its customers plainly 

 should not have to offset other factors — such as overfishing, poor hatchery practices, 

 spawning habitat destruction and uncontrollable ocean conditions — that have collec- 

 tively depressed Northwest salmon runs even in coastal rivers where there is no 

 Federal hydro system to blame. 



Senator, we appreciate the leadership you are providing and the understanding 

 you are bringing to finding a solution to this emotional issue. We pledge our support 

 to work with you toward a balanced and credible solution that serves both the envi- 

 ronment and the economy. 



Northwest Conservation Act Coalition 



statement of k.c. golden, policy director 



Senator Hatfield. The last person on this panel is Mr. K.C. 

 Golden, the Northwest Conservation Act Coalition. Welcome. 



Mr. Golden. Thank you, Mr. Chairman. My name is K.C. Gold- 

 en. I am the policy director for the Northwest Conservation Act Co- 

 alition. 



The coalition is a regional alliance of over 70 public interest 

 groups and public utilities, including among our membership both 

 some of BPA's customers and a broad cross-section of, to use Mr. 

 Dyer's analogy, BPA shareholders, as it were, the public of the 

 Northwest. 



We want to be clear from the outset that we testify today as be- 

 lievers in Bonneville's mission under the regional act and in Bonne- 

 ville's ability to accomplish that mission. 



I think that skeptics both within the region and here are begin- 

 ning to question whether Bonneville's mission is still appropriate, 

 and whether Bonneville is capable of implementing that mission. 

 We answer both those questions with an enthusiastic yes. 



