Budget Panel Chair Says Bpa Still Up For Grabs

Republicans from Washington state failed Thursday to convince the chairman of the House Budget Committee not to sell the Bonneville Power Administration.

“BPA is still on the table,” Rep. Jennifer Dunn, R-Wash., said after the meeting with Ohio Republican Rep. John Kasich. As chairman of the budget committee, Kasich will draw up the House GOP’s plan to eliminate the federal deficit and balance the budget.

Dunn said additional meetings might still be scheduled, and that Kasich wants additional questions answered.

“The door is still open, but I don’t want to raise any false expectations,” she said.

Rep. Linda Smith, R-Wash., said after the meeting that “the jury is still out, but at least it hasn’t come in.” Kasich has previously proposed selling the federal power-marketing agency, which supplies roughly half of the electricity in the Northwest. Last year, Dunn was able to convince Kasich to drop a proposal to privatize Bonneville. But this year it may be even tougher as Republicans look everywhere to reduce federal spending.

Kasich was non-committal after the meeting.

“They always make a good case,” he said. “But I have no comment.”

Kasich has a reputation as a relentless budget-cutter who believes, according to Dunn, that “nine times out of 10 privatization is the way to go.”

Dunn said she and the other lawmakers tried to explain to Kasich a plan that would allow BPA to refinance its debt on the bond market, thus eliminating its obligations to the federal Treasury for the region’s hydroelectric dams and transmission grid. Northwest lawmakers have even agreed to sweeten the deal by paying the Treasury an extra $100 million in order to end the debate over BPA financing.

The region’s lawmakers, along with the Clinton administration, have also suggested turning Bonneville into a government corporation, which would give it more management flexibility.