07/16/1980 Meeting - Laserfiche WebLink

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City Council. EWES is not disclosing its program. They may feel at this point that if they announce their plans, they would have this'subtracted from their allocation from SPA. They also are concerned about confidentiality. In regard to the enforcement impact, the proponents believe that the planning and e financing of new generation should be region-wide and the priority should be established. Each utility should comply with any conservation guidelines. Opponents fear that Federal guidelines for conservation would take a long time to establish, and there would be legal challenges which could delay construction of new power plants. They do not feel that further incentives are necessary. The bill passed the Senate in the spring, was referred and pa$sed by the House Commerce Committee, and is now in the Water/Power Subcommittee of the Interim Committee. This bill will be subject to many amendments before it gets to its final form. This will be decided before it goes to the House floor. There will be a joint meeting between the Senate and the House Conference Committee. Legislation that is referred to the Conference Committee generally passes. Any rewriting of this bill would be done under the strong influence of Senator Jackson, who is a proponent of the bill. Mr. Lieuallen asked, in regard to the proponents' feeling that power should be generated regionally, what would happen to local utilities who wish to build independently, and what would happen if EWES sells excess power? Mr. Page responded EWES does currently sell excess power generated by the Weyerhaeuser co-generator facility. If the legislation passes, EWES would have to justify that wind or co-generation was cost-effective regionally above other kinds of proposed new generation. Mr. Lieuallen asked if the regional bill has its greatest impact on financing abilities. Mr. Page responded that the benefits of the financing aspects of the bill do not affect municipal-utilities as much as privately owned utilities. EWES will have increased wholesale electrical rates e from SPA to compensate for sharing of the risks of investor-owned utilities. Mr. Delay stated that under the bill, utilities could build at no risk even if the new plants never operated or functioned properly. He also wanted to know if all the Jiability would go to the regional system, and yet those utilities constructing new generation plants would still get power at a lower cost. Mr. Page responded that was the intent of the bill. Mr. Delay asked if there was any mechanism to mandate safety. Mr. Page responded that there was not and cost overruns could be involved. He noted that proponents say that this financing system is risky, but risks must be taken in order to provide what is necessary. Opponents ask why anyone should be given special treatment. Mr. Delay indicated there was a record of the very poor construction management previously and feels it would be worse if the liability were removed. He also asked if the Regional Council has any authority beyond that of an advisory capac i ty. Mr. Page responded that they, would be in an advisory capacity to the administrator. They would have no pol ice powers but they would have financial authority. Mr. Delay asked what the impact on cost would be for power melding and Mr. Page responded that the costs would be higher. Mr. Delay expressed concern that this would not be cost-effective and asked if the bill would ensure that thermal generation would have more advantages that it does now. Mr. Page responded that it depends upon whether the new plants would work or not. Mr. Delay asked whether direct service industries would be taking advantage of power melding costs, particularly due to the high cost of aluminum e 7/16/80--8