02/23/05 B.P.A. rate structure change?, Part one

The Bush Administration's proposed fiscal year 2006 budget had a little item contained in it that was the equivalent of a warning shot fired across the bow of the Northwest congressional delegation. It was a proposal to change the way Bonneville Power Administration charges for power purchases, going from the current wholesale rate system to one that is market based. Summing up the reaction of our region's Senators and Representatives is Congressman Greg Walden of Oregon. WALDEN: We range from the most liberal in the Congress to probably the most conservative and so there are few things that really unite us but this proposal to jack up power rates has certainly done that. There is no air between us, no light between our shoulders we're all together on this one. And why this particular issue has brought Walden and other Northwest lawmakers together in a way rarely seen is the dramatic economic impact the proposed rate structure change would have for our region. WALDEN: This could result in power increases of no more than twenty per cent per year, but that's certainly enough to upend our economy, especially in the irrigating world, and the ranching world, and the small business world. Walden is the co-chair of the Northwest Energy Caucus, along with Oregon seatmate Peter DeFazio and Representative Doc Hastings of Washington State. The goal of the bi-partisan organization is to retain the benefits of the Columbia River hydroelectric system within the region, and that includes the economic benefits of affordable power rates. Hastings says the Northwest Energy Caucus is already taking action to show the Bush Administration its displeasure of B.P.A.'s proposed rate structure change. HASTINGS: We sent a letter to the Office of Management and Budget that was signed on a bi-partisan basis by every Congressman in Washington, Oregon, Idaho, and Montana expressing their concern about our approach. That letter calls for O.B.M.'s withdrawl of its proposals to require B.P.A. and other federal power marketing administrations to sell power at market based rates, and to change the account treatment of B.P.A. financial transactions by counting them against the utilities' borrowing authority. There is the determination, serious words and deeds, from Northwest lawmakers against a Bush administration proposal that realistically may not even go anywhere. And the reason is that the Administration's proposal is one our lawmakers have dealt with in the past. More on that in our next program.