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RCED-92-229R 1 (1992-06-30)

handle is hein.gao/gaobackdx0001 and id is 1 raw text is: 

GAO          United States
             General Accounting Office
             Washington, D.C. 20548

             Resources, Community, and
             Economic Development Division


             B-249056


             June 30, 1992l 1111111111 HI


             The Honorable Pat Williams                      147882
             House of Representatives

             Dear Mr. Williams:

             You requested that we provide information on two contracts
             between the Confederated Salish and Kootenai Tribes and the
             Department of the Interior's Bureau of Indian Affairs (BIA)
             for the operation and management of the Mission Valley Power
             utility, which provides electricity to the residents of the
             Flathead Reservation in Montana. As agreed with your
             office, we obtained descriptive information responding to
             eight questions regarding such things as the contracts'
             terms and differences, the utility's performance, and BIA's
             oversight. We agreed not to provide you with conclusions
             and recommendations.

             BACKGROUND

             In 1986, under provisions of the Indian Self-Determination
             and Education Assistance Act of 1975, as amended (25 U.S.C.
             450 et seg.), the Tribes contracted with BIA to operate and
             manage Mission Valley Power for a term of 3 years. However,
             a legal challenge precluded the implementation of the
             contract. It was updated with a contract modification and
             thus became effective on October 8, 1988. The 1988 contract
             was subsequently modified nine times. The contract was to
             expire on October 8, 1991. On October 1, 1991, however, a
             new contract became effective, for an indefinite period of
             time. According to the terms of the preliminary 1986
             contract, the 1988 contract, and the 1991 contract, BIA and
             the Tribes can modify the contracts at any time.

             Mission Valley Power was formerly known as the Flathead
             Indian Irrigation Project power division, operated and
             managed by BIA. Mission Valley Power provides service to
             the entire 1.25-million-acre reservation, and about
             88 percent of the reservation's 30,000 residents are not
             tribal members. Mission Valley Power has an annual budget
             of about $11 million; all of the utility's revenues are

                         GAO/RCED-92-229R Tribal Operation of Mission Valley Power




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