The following is a written statement by Autumn Hanna, Senior Policy Analyst at Taxpayers for Common Sense, a national budget watchdog organization on the importance of increased scrutiny of the Bonneville Power Administration's (BPA) financial management:

Washington, D.C. – Despite inaccurate assertions by a few outspoken lawmakers, it needs to be emphasized that Bonneville Power's billion-dollar financial crisis is largely a result of their own poor planning and overly optimistic forecasts. The fiscally responsible solution to the current situation is not another bailout, but to charge market rates and to eliminate sweetheart energy deals for industry.

Instead of finding a sustainable solution to their growing financial problems, Bonneville Power is poised to make marginal spending cuts, including slashing $40 million in fish and wildlife spending. This decision would put taxpayers at risk by undercutting struggling federal salmon recovery efforts. Bonneville Power should not sacrifice the billions of dollars invested in salmon recovery to avoid cleaning up their own financial mess.

Federal taxpayers have a long history of subsidizing Bonneville Power. Until 1996, Bonneville Power was provided debt repayment interest rates at well below market value. When Congress adjusted the interest rates, they forgave $2 billion of the loan principal – at a loss to taxpayers.

Earlier this week, the administration released a Performance and Management Assessment of Bonneville Power Administration. This independent analysis was long overdue – it is high time that Bonneville Power be held accountable to taxpayers.

The administration should be commended for the assessment, which concluded that Bonneville Power should explore other fiscal management options to reduce their financial burden on federal taxpayers. Bonneville's preference-based power sales to special customers and their development of below-market-rate power were described as “inefficient and burdensome.” The assessment also criticized BPA for failing to develop short-term or long-term performance measures and called for new, more fiscally accountable performance measures.

We support the administration's call to reform Bonneville Power. Further review should look at Bonneville Power's federal fish and wildlife obligations. Bonneville's response to their financial troubles is to slash salmon restoration funds, when they should be cleaning up their own financial mess. Shortsighted cuts won't fix BPA's long-term fiscal troubles.