Our View: Administration’s targeting of BPA misguided
The White House seems oblivious to the history and tradeoffs that produced 31 federal dams in Northwest. It sees only dollar signs.
Like its three predecessors, the Bush administration is still looking longingly at the Bonneville Power Administration as a cash register. The latest attempt to grab revenue generated by the hydropower system comes in the form of skimming surpluses to make up for profligate spending elsewhere.
Bush’s 2007 budget proposal includes a provision to siphon any BPA surpluses that exceed $500 million a year. The surpluses come from selling excess power to other parts of the country. Historically, those proceeds have been used to keep down power rates for BPA customers in the Northwest. Changing that arrangement would force BPA to raise rates by about 7 percent in 2008, causing the region to lose 1,200 jobs, according to an analysis by the Northwest Power and Conservation Council.
Naturally, the congressional delegations from Washington, Idaho, Oregon and Montana are united in their opposition. But the arguments against the plan go beyond parochialism.
First up is the tired misconception that the rest of the nation is subsidizing Northwest power rates. Wrong. The region is paying back the federal government – often ahead of schedule and with interest – for the initial investment in the dams. The feds need only look at the recently passed energy bill to see what real subsidies look like. There are billions of dollars stuffed into that package.
Second, the Northwest had to make sacrifices in the form of tamed rivers, depleted salmon runs and displaced communities for the mammoth concrete barriers.
Third, if this plan were enacted, it would be like firing squirt guns into the Columbia River to increase its flow. The projected federal deficit for this year alone is $423 billion. Bush’s plan calls for taking $1 billion from BPA between now and 2016. Draining that amount from the region would damage the economy without putting a dent in the deficit.
Finally, the complex BPA arrangement is grounded in 70 years of history. It’s insulting that the administration would try to undo all of that with a federal fiat that bypasses Congress.
After the initial pushback from the region’s congressional delegation, Energy Secretary Samuel Bodman said he would temporarily suspend matters while he listened to concerns. That, too, is insulting. This plan has been in the works since August; he should have consulted with the region’s leaders from the beginning.
This isn’t the first time the administration has made a power grab. Three years ago, it pushed a proposal that would have forced BPA to base its rates on market prices rather than the cost of production. That would have been even more devastating for the region, but the plan died in Congress.
This time, Congress is being avoided altogether, so the entire region needs to rise up and fight this latest incursion.