Governors Call For Overhaul Of Northwest Power System

The governors of Washington, Idaho, Montana and Oregon have called for an overhaul of the foundering Northwest power system.

In a letter sent to U.S. Sen. Mark Hatfield of Oregon earlier this week, the four say rapid restructuring of the energy industry is threatening the once pre-eminent position of the Bonneville Power Administration, seller of half the electricity consumed in the region.

“Declining revenues and rising costs of doing business have made it difficult for the agency to keep its customer base and fulfill some of its mandates under legislation such as the Northwest Power Act,” they wrote.

“We do not want to see the region’s power system or the public goals secured through that power system left at the mercy of market or political forces that are outside the Pacific Northwest.”

They suggest the Northwest Power Planning Council be allowed to launch a review of the power, conservation and fish and wildlife issues raised by uncertainties in the industry.

The goal, they say, is a legislative proposal that could be submitted to Congress in 1997.

“This mission is critical to our four states,” the letter concludes. “We are ready to support the council and this process in any way we can.”

The letter was not a surprise.

Council member Mike Kreidler said Tuesday an energy surplus, deregulation and stresses created by factors such as salmon preservation efforts slowly are overwhelming the ability of regional power managers to keep up.

A recent fracas over contracts between BPA and its major industrial customers finally brought some of the issues to a head, Kreidler said.

U.S. Department of Energy officials, who oversee BPA’s affairs, told regional representatives to go home and sort them out.

Last week, the council circulated its own letter and memo addressed to “Northwest Citizens” calling for suggestions about how a comprehensive review of the region’s energy system can be conducted.

The goal, the memo said, “is to achieve a regional consensus on ensuring competition, efficiency and fairness in the Northwest power market while recognizing and accounting for regional resources.”

The process could start with the formation of a steering committee comprised of as many as 20 representatives from groups spanning interests from fish to local governments, public power backers to Native American tribes.

The committee would produce a draft proposal for public comment, with a second version and possible alternatives to follow.

Kreidler said the power council or members could be involved in the process but should not be the leaders. Formation of the council was one of the major achievements of the 1980 legislation.

“The Power Act is definitely on the table,” he said. “I think there’s a general recognition that it’s broken.”

The 15-year-old law was written when regional energy planners feared there would be shortages, Kreidler said.

Instead, cheap natural gas is fueling turbines all over the West that are dumping kilowatts on the market at prices below those charged by BPA.

Kreidler said the committee’s review must be as comprehensive as possible without getting “high-centered” on issues that might prevent consensus.

With a congressional delegation considerably weaker than that of 1980, he said, “we need to have things lined up as best we can.”

, DataTimes