16 April
2003
Media Contact:
Charles Hudson, CRITFC,
(503) 731-1257
Mary Verner, UCUT, (509) 838-1057
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BPA won't honor fish, wildlife
commitments despite rate increases
Portland, Oregon
- A Bonneville Power
Administration proposal to raise power rates still won't allow the
beleaguered federal energy wholesaler to honor its fish and wildlife
funding commitments, several Columbia Basin tribes say.
In fact, tribes fear the agency may use the proposal as an excuse
to further slash its already meager budget for fish and wildlife protection,
mitigation and enhancement efforts.
Blaming poor water conditions and lower-than-expected secondary or
surplus power revenues, Bonneville announced Feb. 7 there is a greater-than-50
percent probability it will miss its next payment to the U.S. Treasury.
This triggered the Safety Net Cost Recovery Adjustment Clause, which
allows the agency to adjust wholesale rates "midstream"
or during an existing rate period. That same day, Bonneville said
it would raise wholesale power rates for utilities and large industrial
customers by about 15 percent. Bonneville released its rate proposal
March 31.
However, tribes believe the proposed rate hike will put the agency
in double trouble by not raising enough money for Treasury payments
or fish and wildlife pledges.
"Bonneville hasn't honored its commitments to the tribes, its
rates don't appear sufficient to provide adequate funding for fish
and wildlife recovery, and the proposal doesn't allow for a high enough
chance of repaying the Treasury," said Don Sampson, executive
director of the Columbia River Inter-Tribal Fish Commission. "That
will put more pressure on the agency to cut its fish and wildlife
budget."
Harold Blackwolf Sr., a CRITFC commissioner and chairman of the Warm
Springs Tribe's fish and wildlife committee, said Bonneville's proposal
doesn't position the agency to be financially healthy.
"We think Bonneville can address the funding needs of fish and
wildlife with less than $1.80 a month from the average residential
customer," he said.
A more robust rate increase will not only improve Bonneville's financial
health, but it "will certainly improve the tribal economies and
provide important economic activities in rural communities,"
Blackwolf added.
CRITFC Commissioner Jay Minthorn, chairman of the Umatilla Tribe's
fish and wildlife committee, agreed, noting that rural communities
along the Federal Columbia River Power System are yardsticks for the
rest of the region's economic health, even urban areas.
"It will provide economic benefit, especially in rural areas,"
he said. "We're for the economy, we're for the environment, we're
for a financially healthy Bonneville."
Warren Seyler, a Spokane tribal councilman and chairman of the Upper
Columbia United Tribes, said that while BPA still has room to reduce
its internal operating costs, it can't eliminate its responsibilities
to tribes just to keep rates low.
"BPA's failure to set adequate rates has already resulted in
BPA's breach of its fish and wildlife contracts and its trust obligations
to the basin's Indian Tribes," he said. "These other commitments
are legally binding, no less than BPA's legal obligations under power
sales contracts. BPA cannot continue to keep its rates artificially
low and fail to meet its responsibilities to the tribes."
Seyler added: "Contracts for power purchases were entered into
with full knowledge that BPA's rates would be adjusted if certain
trigger points were reached. We are now at one of those trigger points
and it is appropriate for BPA to square up with all its obligations."
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About CRITFC
The Portland-based Columbia River Inter-Tribal Fish Commission is
the technical support and coordinating agency for fishery management
policies of the Columbia River Basin's four treaty tribes: the Confederated
Tribes of the Umatilla Indian Reservation, the Confederated Tribes
of the Warm Springs Reservation of Oregon, the Confederated Tribes
and Bands of the Yakama Nation and the Nez Perce Tribe.
CRITFC, formed in 1977, employs biologists, other scientists, public
information specialists, policy analysts and administrators who work
in fisheries research and analyses, advocacy, planning and coordination,
harvest control and law enforcement. |
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