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RCED-92-282R 1 (1992-09-18)

handle is hein.gao/gaobaclcm0001 and id is 1 raw text is: United States General Accounting Office Washington, D.C. 20548 Resources, Community, and Economic Development Division B-249056 September 18, 1992 The Honorable Ron Marlenee House of Representatives Dear Mr. Marlenee: You requested that we provide information on the 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 Mission Valley Power. This utility 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 role of the consumer council during the 1991 rate-setting process, and the events leading up to the resignation of the former chairman of the utility's board of directors. 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 seq.), the Tribes contracted with BIA to operate and manage Mission Valley Power for 3 years. However, a legal challenge precluded the implementation of the contract. It was updated with a contract modification and 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. The utility provides service to the entire 1.25-million-acre reservation. About 88 percent of the GAO/RCED-92-282R, Tribal Management of Mission Valley Power

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