Power plan for Northwest delayed, not canceled

Friday, February 10, 2006

Power plan for Northwest delayed, not canceled
Senators criticize energy chief over proposal for BPA

By CHARLES POPE
P-I WASHINGTON CORRESPONDENT

WASHINGTON -- Energy Secretary Samuel Bodman said Thursday that he would briefly delay -- but not cancel -- a controversial White House proposal that could lead to slightly higher electric rates in the Northwest.

Bodman told the Senate Energy and Natural Resources Committee that a notice the department planned to publish in the Federal Register as early as today would be delayed to allow time for him to hear concerns about the proposal from Northwest senators.

The decision came in the face of fierce resistance from lawmakers, who said the change would drive power rates higher.

Once the notice is published, the timetable for enacting the proposal begins.

Bodman got a taste of what he's likely to hear from both Republicans and Democrats on the Senate panel.

"We're not going to slow down our opposition," said Sen. Maria Cantwell, D-Wash. "I will do everything I can to make sure this ill-considered plan doesn't move forward. This is nothing more than a billion-dollar tax hike for the Northwest and an end run on Congress."

Sen. Ron Wyden, D-Ore., likened the proposal to "loan sharking" and promised to introduce legislation to block it.

The comments came a day after six senators -- three of them Republicans -- sent a letter to the White House Office of Management and Budget complaining about the proposal.

The change was part of the President Bush's $2.77 trillion budget, which was released Monday.

That budget calls on the Bonneville Power Administration to redirect revenue from the sale of all surplus power in excess of $500 million to the U.S. Treasury rather than keeping it in the region as is currently done. Among other things, the money is used to improve the system and keep rates low.

An analysis produced by the Northwest Power and Conservation Council predicts that the average residential electric bill would increase $26.13 a year if the change occurs.

The Power Council analysis also estimates that it would reduce personal income in the regional by $109 million and lead to a loss of 1,120 jobs.

Critics say the hit would be far larger. It would drive power bills for industrial users much higher, affecting jobs, and it would upset the "delicate balance" that the BPA uses to balance revenue and costs.

White House budget officials dismiss those suggestions, however, and say the change would allow the nation to attack the deficit and would benefit the BPA in the long run by allowing it to pay down its debt at a faster rate.

P-I Washington correspondent Charles Pope can be reached at 202-263-6461 or charliepope@seattlepi.com.

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