Implementation of the Pacific Northwest Electric Power Planning and Conservation Act by DOE's Bonneville Power Administration

GAO reported on the manner in which the Bonneville Power Administration (BPA) is implementing the Pacific Northwest Electric Power Planning and Conservation Act, which made BPA responsible for meeting the power needs of its customers in the least costly manner, establishing programs to conserve electricity, developing renewable energies, protecting fish and wildlife, and encouraging public participation in the formulation of regional power policies. The Act mandated giving priority to cost-effective resources with first priority to conservation; second, to renewable resources; third, to generating resources of high fuel conversion efficiency; and fourth, to all other resources. The BPA actions to acquire resources must be consistent with the criteria for resource planning specified in the Act. GAO has found that BPA has been inconsistent in implementing the Act, and its organization does not yet reflect the purposes and priorities of the Act. BPA contracting to sell Federal power has been hurried and poorly planned, and the BPA approach to conserving electricity and developing renewable energies has been cautious. Because of these inconsistencies and an ineffective public involvement program, uncertainty exists as to whether BPA will be responsive to its new charter under the Act. The Department of Energy should study and update the BPA organization. Twenty-year contracts were used that were traditional but inappropriate, and BPA sold Federal power without assuring customer compliance with the Act. Under the Act, the BPA resource acquisition programs must give top priority to cost-effective conservation and renewable energies, and BPA is proceeding cautiously to acquire these priority resources. Restoration of anadromous fisheries on the Columbia River and its tributaries awaits the development of a plan.