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122041 1 (1983-08-03)

handle is hein.gao/gaobactcw0001 and id is 1 raw text is:         pm
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                UNITED STATES GENERAL ACCOUNTING OFFICE

                                            FOR RELEASE ON DELIVERY
                                            EXPECTED AT 2:00 P.M.
                                            AUGUST 3, 1983
122041

                STATEMENT OF J. DEXTER PEACH, DIRECTOR
            RESOURCES, COMMUNITY, AND ECONOMIC DEVELOPMENT
                               DIVISION

                               BEFORE THE
               COMMITTEE ON ENERGY AND NATURAL RESOURCES
                         UNITED STATES SENATE


 Mr. Chairman:

      You have asked  us to testify today on a GAO draft report

 concerning the  status of the Bonneville Power Administration's

 (Bonneville) repayment  to the Treasury of the Federal investment

 in the Columbia River Power  System. A  draft report on the results

 of our work was provided to  the Department of Energy (DOE) for

 comment and to congressional committee  chairmen who requested a

 copy.  We have received DOE's comments  and are currently incor-

 porating them as well as making other  appropriate adjustments to

 the draft report.  My statement  today will highlight the current

 status of Bonneville's repayment of  the Federal investment.

      The Federal investment  in the Columbia River Power System

 exceeds $7 billion.  Federal law requires Bonneville  to repay this

 investment over a period of years.  The Bonneville  Project Act of

 1937 (16 U.S.C. 832f) requires that power rates  be drawn to

 include the amortization of the capital  investment over a

 reasonable period of years.  Subsequent  legislation, including

 the 1974 Federal Columbia River Transmission System Act

 (16 U.S.C. 838g) and the  1980 Pacific Northwest Electric Power

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