that the Northwest region's economy be strengthened and diversified throug use of low-cost electricity, so that it would cease to be an economically dist area. As each region of the Nation has its own economic "ace in the hole does the Pacific Northwest have its hydro supply. We believe it may be tr said that the long history of Federal public works has been to allot Federal f to each region for the development of the resources for each region. We be the whole of the Nation's prosperity can only be the sum of its parts and that t Congress has always acted on this premise. Finally, we urge passage of this legislation to permit orderly marketing of natural resource. Times change. Unless old laws change with them. inequities and injustices develop. The old laws governing river developa were great in their time. They met the problems of that time well. But the was nearly 30 years ago-30 years of a dizzyingly rapid technical revolution. The political and physical laws stood us well then. But now, in the face of pen factors, old laws often have an effect just opposite to those which originally we intended. Passage of H.R. 4071 will provide some badly needed ground rules gover the disposal of Federal hydro which will enable us gradually to shift our devie mental power programs to meet ever changing conditions. Changes in poc to meet changes in circumstance are inevitable; but, to be effective, they s be gradual and orderly and undertaken with the conscious realization of the ultimate meaning. The well-tried method for this is the public amendment a policy and enabling legislation. Because this is a public process all interests ent be alerted to change and can cooperate intelligently in transition-a transition z this case brought upon us by the irreversible march of technical progress. We believe H.R. 4071 can do what is required. We don't object to intellige amendment. We agree that there may be other ways of accomplishing the same result. But, since no one thus far, to our knowledge, has seen fit to produce a alternative proposal, and since the need for something workable is immediate we urge passage of H.R. 4071 at this session of this Congress. Mr. ROGERS. The next statement is of Oregon Rural Electri Cooperative Association, which statement will be included in the record without objection. Hearing no objection, it is so ordered. (The matter referred to is as follows:) STATEMENT BY ERIC REUTERCRONA, PRESIDENT, OREGON RURAL ELECTER COOPERATIVE ASSOCIATION My name is Eric Reutercrona. I am a retired U.S. Coast Guard officer. I live on a small farm in Curry County on the Oregon seacoast. I am a member of Coos Curry Electric Cooperative and am currently president of the Orego Rural Electric Cooperative Association representing REA financed cooperatives with about 36,000 members. By resolution approved at its annual membership meeting in December of 1962 our association approved the principles of H.R. 4071 and its companion bills i the House. These bills relate to the marketing area of Columbia River power We feel strongly that a measure of this type is required for the orderly development of the Federal power program in both Northwest and Southwest States. We believe the Bonneville Project Act of 1937 has proved to be an extremely valuable law from the standpoint of the broadest public interest. We believe that its purposes will be greatly weakened if newly developed transmission methods are not controlled by legislation such as H.R. 4071. We believe experience has shown that many laws, formulated and passed by the Congress to fit economic and social needs of the Nation, in time become in some degree obsolete as a result of the march of technical progress in the field of production; and that such laws must be updated or their net effect will ultimately be contrary to the purposes for which they originally were established. The new discoveries in high electric voltage technics have made this true of the wester power programs. H.R. 4071, if passed, will make possible the continued developmental values of the Columbia River program. In our opinion, if such a law not passed soon, these values will be dissipated. In our opinion, H.R. 4071 will not work disadvantage to other regions since its language defines only the marketing area of the Pacific Northwest and any application of its principles to other areas would be subject to other definitioni of market. In our opinion also, passage of H.R. 4071 would carry forward the principles set forth by the Congress in the law authorizing marketing of power from Hungry Horse Dam-a precedent that was worked well in the Pacific Northwest and should work well elsewhere. Mr. ROGERS. The Chair has a letter from the American Public Power Association over the signature of Mr. Alex Radin. Is there objection? The Chair hears none and the letter will be included. (The matter referred to is as follows:) Representative WALTER ROGERS, AMERICAN PUBLIC POWER ASSOCIATION, Chairman, Subcommittee on Irrigation and Reclamation, Committee on Interior and Insular Affairs, House of Representatives, Washington, D.C. DEAR MR. CHAIRMAN: In connection with hearings on H.R. 994, H.R. 1160, H.R. 4071, H.R. 4485, and S. 1007, bills to define the Bonneville Power Administration primary marketing area and establish ground rules for transfer of federally generated hydroelectric energy between the Pacific Northwest and any interconnected regions, I wish to submit for the consideration of your subcommittee the enclosed resolution approved May 2, 1963, by delegates to the 20th Annual Convention of the American Public Power Association, a national trade organization representing 1,100 local publicly owned electric systems in 45 States and Puerto Rico. It would be appreciated if this letter and the accompanying resolution could be included in the printed hearing record on the above legislation. Sincerely, ALEX RADIN, General Manager. PACIFIC NORTHWEST-SOUTHWEST INTERTIE Whereas the development of the hydroelectric resources of the Pacific Northwest has necessarily resulted in availability of a large quantity of surplus nonfirm power due to seasonal and annual variations in streamflows; and Whereas, the lack of an ample market for Northwest surplus power has resulted and will continue to result in an undesirable waste of low-cost energy and a serious economic loss to the region; and Whereas the sale of such surplus power to other regions, under legislative and contractual safeguards which provide a continuing priority to the Pacific Northwest region for such power, could produce tremendous benefits to both regions; and Whereas investigation has established the economic and engineering feasibility of a large capacity, extra-high-voltage line from the Pacific Northwest to the Pacific Southwest; and Whereas major public power agencies in the Pacific Northwest and Pacific Southwest have agreed that the use of the line should be limited by legislative and contractual safeguards sc the interchange of exportable power for which there is no market in the region of origin during the period of export: Now, therefore, be it Resolved, That the American Public Power Association endorses the Federal or other public construction of an interconnection between the Federal power systems of the Northwest and the Southwest of sufficient capacity and voltage to insure obtaining the optimum benefits, and which will be operated in accordance with the agreement referred to in the last whereas. Mr. ROGERS. The Chair has a statement from the Washington Public Utility Districts' Association submitted by Ken Billington, executive secretary. Mr. Martin, we are receiving by unanimous consent some statements into the record. If you would care to see them, the Chair will see they are handed to you. Mr. MARTIN. Thank you, Mr. Chairman. Mr. ROGERS. Without objection, the Washington Public Utility Districts' Association statement will be included in the record. Hearing none, it is so ordered. (The matter referred to is as follows:) STATEMENT BEFORE THE IRRIGATION AND RECLAMATION SUBCOMMITTEE OF THE HOUSE INTERIOR AND INSULAR AFFAIRS COMMITTEE ON H.R. 994, 1160. 4071, AND 4485, AND S. 1007, SUBMITTED BY KEN BILLINGTON, EXECUTIVE SECRETARY OF THE WASHINGTON PUBLIC UTILITY DISTRICTS' ASSOCIATION, SEATTLE, WA-7. Mr. Chairman, members of the committee, I am Ken Billington, executive secretary of the Washington Public Utility Districts' Association, whose office is located in Seattle, Wash. This association is comprised of member public uticity districts serving in excess of 260,000 electric consumers throughout the State of Washington. Our utilities serve areas encompassing in excess of 50 percent of the land area of our State. Primary source of power sold by our districts is the Bonneville Power Administration. We are, therefore, directly concerned with this legislation which is now before the committee. We are in support of this legislation as we deem it essential for the orderly and proper construction of needed interregional transmission tielines which could be of great benefit to our Nation. This is authorized by resolution adopted at our annual membership meeting held last December 1962, in Seattle, Wash., as follows: "Whereas an interregional transmission tieline between the Pacific Northwest and the Pacific Southwest will be of great benefit to both regions; and "Whereas such tieline will provide markets for an energy resource now being wasted to the ocean and thus contribute to the financial solvency of the Bonneville Power Administration to aid in maintaining our present low electric rates: and "Whereas before any major tieline, Federal or non-Federal in ownership, is built there must be provided proper and fair safeguards so that any power needed in the region of origin may be preserved for such region; and "Whereas legislation to permit such contractual and legislative safeguards was introduced in the last session of Congress but failed in passage: Now, therefore, be it "Resolved, That the Washington Public Utility Districts' Association urges early reintroduction and adoption by Congress of regional protective legislation governing the sale of power between the Pacific Northwest and Pacific Southwest. and that with passage of such legislation we support the immediate construction of adequate tielines by either Federal or non-Federal interests which permit the proper exchange of power between these two regions." Actually while this legislation has been referred to as providing first right to the Pacific Northwest on power generated in this region, we would emphasize that, in effect, the purpose of this legislation is to limit or define the area in which the Bonneville Power Administration can serve as a marketing agency. This is proper and in keeping with established Federal power marketing policy. To do otherwise would see the extension of such service throughout the Pacific coast region. The Bonneville Power Administration was established by an act which did not foresee the development of transmission technology which would permit the broad extension of this Federal power marketing agency. Defining the borders of a power marketing agency is not a new concept. This was done in the case of the Tennessee Valley Authority. This concept is practiced on the home front by our public utility districts which are limited to countywide borders. The legislation will provide greater surveillance and control of power marketing policy. This legislation is essential to meet a situation which was not foreseen under the original marketing act. The legislation does not affect the basic preference and priority provisions of the Federal power marketing policy. Within the established marketing area, this essential policy to prevent monopoly control or domination will still prevail. This legislation is essential to permit the wise use of a natural energy resource which would otherwise go wasted to the sea. This legislation is essential to allow a greater dollar return to the U.S. Treasury to repay the funds invested in the Pacific Northwest Federal power system. It is proper legislation under the circumstances involved. We urge favorable committee action on this legislation. Mr. ROGERS. I have the statement of the Washington Rural Electric Cooperative Association for inclusion in the record. If there is no objection, it will be included in the record at this point. Mr. Burton, the Chair is receiving some statements which he desires to insert in the record at this point, and if you care to see them just indicate your desire and they will be handed to you. Without objection, the statement of the Washington Rural Electric Cooperative Association will be included. Hearing no objection, it is so ordered. (The matter referred to is as follows:) STATEMENT OF THE WASHINGTON RURAL ELECTRIC COOPERATIVE ASSOCIATION IN SUPPORT OF H.R. 994, S. 1007, AND OTHER IDENTICAL BILLS ESTABLISHING GROUND RULES GOVERNING THE SALE AND EXCHANGE OF ELECTRICITY BETWEEN THE PACIFIC NORTHWEST AND OTHER AREAS The Washington Rural Electric Cooperative Association is a service organization of the rural electric cooperatives in our State, representing approximately 28,000 consumers. We strongly favor and urge the passage of this legislation, and endorse the testimony given by Charles Luce and Gus Norwood before the committee. The legislation is essential before orderly and equitable provisions for the sale and exchange of electric power between the Northwest and other regions can be realized through long-distance transmission lines. It sets forth the basic rules for such sales and interchanges to insure that one region cannot be hurt by another, and that both will benefit. Once the ground rules are established, then transmission lines can be built with assurance that the maximum good for all will be accomplished. Our people are anxious to see the legislation passed because it will greatly affect the ability of the Bonneville Power Administration to make its most useful contribution to the Northwest and the Nation. Interregional transmission lines will put substantial sums of money into the U.S. Treasury through the sale of power now going to waste, and help to repay the Federal investment in dams and transmission lines. A strong financial position will aid Bonneville in meeting the future load requirements of its customers and providing them with power at rates that are conducive to growth. The systems in our organization are among those who rely on Bonneville to supply all our power requirements, consequently, we are vitally concerned. By defining the power marketing area of the Bonneville Power Administration, and providing for the sale and exchange of power outside the area, the legislation establishes clearly the framework within which Bonneville can conduct its future marketing activities. This will lend strength and stability to BPA in carrying out the purposes for which Congress created it. We are convinced this legislation is necessary, and urge a favorable report from your committee. Mr. ROGERS. The letter from the Inland Empire Waterways Association, Walla Walla, Wash., over the signature of Herbert G. West, submitting a resolution. a resolution. Without objection, it will be included in the record. Mr. HALEY. Mr. Chairman, reserving the right to object. Mr. ROGERS. The gentleman from Florida reserves the right to object. Mr. HALEY. The Inland Empire Waterways Association, what does it represent? Mr. WHITE. Will the gentleman yield to me? Mr. HALEY. Yes; I yield. Mr. WHITE. Mr. Haley, the Inland Empire Waterways Association is interested in slack water navigation on the Columbia River and its tributaries, and it is proposed, and is almost a reality now, that we will have slack water navigation to Lewiston, Idaho, through the construction of certain dams downstream on the Snake River, and they do have an interest in this and the dam construction that is being contemplated in this particular reach of the Snake River. Mr. HALEY. I note that the board of directors are from the States of Washington, Idaho, and Oregon. How are these gentlemen selected? Mr. WHITE. I believe they are appointed. Mr. HALEY. By whom? Mr. WHITE. I will have to plead ignorance. I have been instrmental in seeing advisory committees appointed by this Commission, but as to the Commission itself I am not aware just how they are appointed. I believe the Governors of the respective States appoint them. Mr. HALEY. I have no objection. Mr. ROGERS. The statement will be included in the record at this point. (The matter referred to is as follows:) INLAND EMPIRE WATERWAYS ASSOCIATION, Congressman WAYNE N. ASPINALL, Chairman, Interior and Insular Affairs Committee, DEAR CONGRESSMAN ASPINALL: The Inland Empire Waterways Association is a regional organization dedicated to the comprehensive development of all the water resources in the North Pacific area, comprising the States of Oregon, Washington, Idaho, and Alaska. As such, we are extremely interested in legislation now before your committee, entitled-H.R. 994-"A bill to guarantee electric consumers in the Pacific Northwest first call on electric energy generated at Federal hydroelectric plants in that region and to guarantee electric consumers in other regions reciprocal priority, and for other purposes." At the 29th annual convention of the association held in Seattle, Wash., October 21 to 23, 1962, the membership then endorsed S. 3153, 87th Congress, 2d session. You will find attached a full copy of that resolution and will note that the board of directors of the Inland Empire Waterways Association was authorized to urge enactment of this or similar legislation by the Congress of the United States. In that regard, we strongly urge and support enactment of H.R. 994 by the 88th Congress of the United States. We respectfully request that this letter and a copy of resolution be made part of the official record of hearings on this legislation. With kindest regards. Sincerely, RESOLUTION No. 34 HERBERT G. WEST, Whereas the board of directors of the Inland Empire Waterways Association was authorized during the 28th annual meeting to study the proposed legislation and contractual provisions needed to provide safeguards of first priority and use of power generated in the Pacific Northwest for power users in the Pacific Northwest; and Whereas such safeguards are not now present under Federal law or existing power purchase contracts; and Whereas technical and economic considerations make it inevitable that interties between the Pacific Northwest and adjoining areas will be constructed; and Whereas Bonneville Power Administration has large amounts of surplus energy due to wide variations in streamflows on the Columbia River; and Whereas the sale of such surplus energy outside the region would contribute substantially to the maintenance of low power rates in the Pacific Northwest; and Whereas legislation is required for the protection of the Northwest prior to the construction of either public or private interties; and Whereas power users in California, which is the largest market for such surplus. have stated that they recognize the prior right of Northwest users to the use of power generated by Federal agencies in the Northwest; and Whereas the board of directors has reviewed and approved the proposed portective legislation entitled, "Senate bill No. 3153," introduced in the second session of the 87th Congress, which would provide the necessary safeguards for the consumers in the Pacific Northwest; and |