12.05.01

Letter sent to Senator Cantwell from Energy Chairman Jeff Bingaman

Senator Jeff Bingaman, Chairman of the Senate Energy and Natural Resources Committee, sent Senator Cantwell a letter on December 4, 2001 in response to concerns she raised about how draft provisions in comprehensive energy legislation affected Washington state and the Pacific Northwest.

The concerns were addressed, and Cantwell joined Senate leaders on December 5, 2001 at a press conference unveiling a comprehensive and balanced energy plan for the 21st century.

Senator Bingaman's letter follows:

Dear Senator Cantwell:

Earlier this month, I transmitted comprehensive energy policy legislation to the Majority Leader for consideration by the full Senate. This legislation represents real reform of our nation's energy policy and includes a number of provisions I know are important to you and your constituents. Based upon concerns you expressed about the expansion of Federal Energy Regulatory Commission (FERC) authority, the legislation has been significantly modified from previous drafts. I want to take this opportunity to share with you an update on the status of our work on these provisions.

In particular, you voiced concerns that language included in previous legislative drafts that affected the rate structure of the Bonneville Power Administration (BPA) and other public power entities. I want to assure you that I understand the unique and prominent role these entities have played in the history and economy of the Northwest. I believe the compromise we have reached will preserve the traditional standard for both BPA's power and transmission rates.

In addition, you expressed reservations about a proposal to clarify FERC authority to order participation of transmitting utilities, which would include BPA and other non?jurisdictional utilities, in regional transmission organizations (RTO). While I continue to believe that RTOs are a key element of ensuring a seamless and competitive wholesale electricity market, the language clarifying FERC authority to order RTO participation is not included in the legislation submitted to Sen. Daschle.

Lastly, I understand that one of your top priorities is securing a $2 billion increase in the amount BPA may borrow from the U.S. Treasury to finance critical investments in the Northwest regional transmission system, federal generating projects, and energy efficiency programs over the next ten years. As we have discussed, the fiscal year 2002 budget and Congressional Budget Act render it impossible to include direct spending in this year's comprehensive energy package. However, I do believe the proposal represents a sound investment in our nation's energy infrastructure and would support the inclusion of the new borrowing authority in the FY 2003 budget. I look forward to working with you on this important matter.

Sincerely,

[Original signed]

Jeff Bingaman