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Wyden Gets White House on Record:
“No interest” in privatizing BPA

Senator looks to future of Oregon power issues in Budget hearing

February 5, 2003

 
     
 

Washington, DC – U.S. Senator Ron Wyden (D-Ore.) today sought clear answers from White House Office of Management and Budget (OMB) Director Mitch Daniels on the Bush Administration's intentions with regard to the future of the Bonneville Power Administration (BPA). Wyden has worked for years to protect Oregonians' access to the cost-based power rates BPA provides, and stated that the budget proposal the Administration released yesterday seemed to indicate a possible White House move toward privatization. Following is a partial transcript of their exchange.

Wyden: "[A] regional matter that has my part of the country up in arms [is] your proposal with Bonneville Power. The [Administration's budget] proposal … seems to indicate that OMB is looking and trying to privatize major functions of the Bonneville Power Administration. We just think that would be poison for our area, and I'd like to give you a chance to take that off the table if that's the position of the agency. This is something Democrats and Republicans, again, look at in a bipartisan kind of way. Tell us what your position is with respect to the agency's desire to privatize functions at Bonneville Power."

Daniels: "No such interest on our part, if you mean by that the privatization of the entire authority out there. Questions have been raised for a long time in this Administration, the last Administration and Presidencies before that about operations there and about the fairness of it to taxpayers nationwide. But no, improvements are in order but not what you call privatization."

Wyden replied that people in the region believe the Bush Administration intends to privatize BPA, noting that as recently as this week, Bonneville Power officials had stated that the White House wished to explore that option. Wyden expressed his appreciation to Daniels for clarifying the Administration's position and reiterated Oregonians' strong opposition to privatization and the economic blow it would deal to the already hard-hit state.

Privatization of BPA could range from the sale of the entire agency to the contracting out of work now done by BPA employees. By law, BPA charges customers a cost-based rate; the privatization of BPA to a for-profit utility or for-profit contractors could result in major price hikes for Northwest consumers, who would have to pay for the new owner's or contractors' profits as well as for the cost of power.

 
 
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