Electricity Management in the Pacific Northwest

Two bills have been proposed to assure efficient and adequate power supplies for the Pacific Northwest by authorizing Bonneville to purchase power or generating capacity from conventional powerplants if conservation and renewable energy sources are insufficient to meet regional demand growth. GAO believes it is appropriate for Bonneville to help finance and provide technical and administrative support for conservation programs and for nonconventional energy projects. However, GAO does not see a comparable need for Bonneville financial participation in conventional thermal powerplants unless it is clearly shown that: (1) conventional thermal plants are the region's most cost-effective alternative; (2) the region needs more conventional plants than those already approved for construction; and (3) regional utilities are incapable of meeting this need without Bonneville sponsorship. Other aspects of the proposed legislation are discussed, such as the pricing of Federal hydropower, and power planning and policymaking.