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For More Information Contact:
Kathi VanderZanden, PNGC Power, 503-288-1234
PNGC Power Expresses Support for BPA Settlement Proposal
Portland, Oregon - 01/08/2004 - PNGC Power's Board of Directors voted to express its support for a proposal that would settle outstanding legal challenges regarding the level of benefits from the Northwest federal power system given to investor-owned utilities. PNGC Power is a wholesale electric power cooperative and one of the Bonneville Power Administration's largest customers.
"This settlement would achieve a near-term reduction in wholesale rates of over seven percent for the utility customers of Bonneville -- good news after some difficult times for electricity consumers in our region. No party received everything it wanted in these negotiations. But, the business case for the proposal is superior to pursuing continued litigation and regional division," said Patrick Reiten, PNGC Power president and CEO.
The PNGC Power Board of Directors continues to express concerns about BPA's cost structure, as well as the agency's use of cost-recovery adjustment mechanisms to increase customers' rates. An important part of the settlement proposal is a commitment from BPA to work with customers to find an additional $100 million in savings in order to help avoid future rate increases.
"There are discussions ongoing regarding some legal ramifications of particular language within the settlement documents," explained Reiten. "But, in general, there is a sense that we want to get this settled and move on with discussing the longer-term issues about how BPA and its customers are going to meet their energy resource needs into the future."
PNGC Power is a Portland-based electric power services cooperative owned by 15 Northwest electric distribution cooperative utilities. In 1996, the company became the first electric cooperative in the country to receive a power marketing license from the Federal Energy Regulatory Commission. PNGC Power creates value for its member systems by providing sophisticated power management, technical innovation and cutting edge customer services and products. More information about PNGC Power can be found at www.pngcpower.com.
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