II

103D CONGRESS

2D SESSION S. 2473

To provide for the reconstitution of outstanding repayment obligations of

the Administrator of the Bonneville Power Administration for the appropriated capital investments in the Federal Columbia River Power System.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 29 (legislative day, SEPTEMBER 12), 1994

Mr. HATFIELD introduced the following bill; which was read twice and

referred to the Committee on Energy and Natural Resources

A BILL

To provide for the reconstitution of outstanding repayment

obligations of the Administrator of the Bonneville Power

Administration for the appropriated capital investments

in the Federal Columbia River Power System.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Bonneville Power Ad5 ministration Appropriations Refinancing Act’’.

6 SEC. 2. DEFINITIONS.

7 For the purposes of this Act—
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1 (1) ‘‘Administrator’’ means the Administrator

2 of the Bonneville Power Administration;

3 (2) ‘‘capital investment’’ means a capitalized

4 cost funded by Federal appropriations that—

5 (A) is for a project, facility, or separable

6 unit or feature of a project or facility;

7 (B) is a cost for which the Administrator

8 is required by law to establish rates to repay to

9 the United States Treasury through the sale of

10 electric power, transmission, or other services;

11 (C) excludes a Federal irrigation invest12 ment; and

13 (D) excludes an investment financed by the

14 current revenues of the Administrator or by

15 bonds issued and sold, or authorized to be is16 sued and sold, by the Administrator under sec17 tion 13 of the Federal Columbia River Trans18 mission System Act (16 U.S.C. 838(k));

19 (3) ‘‘new capital investment’’ means a capital

20 investment for a project, facility, or separable unit

21 or feature of a project or facility, placed in service

22 after September 30, 1995;

23 (4) ‘‘old capital investment’’ means a capital in24 vestment whose capitalized cost—
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1 (A) was incurred, but not repaid, before

2 October 1, 1995, and

3 (B) was for a project, facility, or separable

4 unit or feature of a project or facility, placed in

5 service before October 1, 1995;

6 (5) ‘‘repayment date’’ means the end of the pe7 riod within which the Administrator’s rates are to

8 assure the repayment of the principal amount of a

9 capital investment; and

10 (6) ‘‘Treasury rate’’ means—

11 (A) for an old capital investment, a rate

12 determined by the Secretary of the Treasury,

13 taking into consideration prevailing market

14 yields, during the month preceding October 1,

15 1995, on outstanding interest-bearing obliga16 tions of the United States with periods to matu17 rity comparable to the period between October

18 1, 1995, and the repayment date for the old

19 capital investment; and

20 (B) for a new capital investment, a rate

21 determined by the Secretary of the Treasury,

22 taking into consideration prevailing market

23 yields, during the month preceding the begin24 ning of the fiscal year in which the related

25 project, facility, or separable unit or feature is
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1 placed in service, on outstanding interest-bear2 ing obligations of the United States with peri3 ods to maturity comparable to the period be4 tween the beginning of the fiscal year and the

5 repayment date for the new capital investment.

6 SEC. 3. NEW PRINCIPAL AMOUNTS.

7 (a) Effective October 1, 1995, an old capital invest8 ment has a new principal amount that is the sum of—

9 (1) the present value of the old payment

10 amounts for the old capital investment, calculated

11 using a discount rate equal to the Treasury rate for

12 the old capital investment; and

13 (2) an amount equal to $100,000,000 multi14 plied by a fraction whose numerator is the principal

15 amount of the old payment amounts for the old cap16 ital investment and whose denominator is the sum of

17 the principal amounts of the old payment amounts

18 for all old capital investments.

19 (b) With the approval of the Secretary of the Treas20 ury based solely on consistency with this Act, the Adminis21 trator shall determine the new principal amounts under

22 section 3 and the assignment of interest rates to the new

23 principal amounts under section 4.

24 (c) For the purposes of this section, ‘‘old payment

25 amounts’’ means, for an old capital investment, the annual
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1 interest and principal that the Administrator would have

2 paid to the United States Treasury from October 1, 1995,

3 if this Act were not enacted, assuming that—

4 (1) the principal were repaid—

5 (A) on the repayment date the Adminis6 trator assigned before October 1, 1993, to the

7 old capital investment, or

8 (B) with respect to an old capital invest9 ment for which the Administrator has not as10 signed a repayment date before October 1,

11 1993, on a repayment date the Administrator

12 shall assign to the old capital investment in ac13 cordance with paragraph 10(d)(1) of the ver14 sion of Department of Energy Order RA

15 6120.2 in effect on October 1, 1993; and

16 (2) interest were paid—

17 (A) at the interest rate the Administrator

18 assigned before October 1, 1993, to the old cap19 ital investment, or

20 (B) with respect to an old capital invest21 ment for which the Administrator has not as22 signed an interest rate before October 1, 1993,

23 at a rate determined by the Secretary of the

24 Treasury, taking into consideration prevailing

25 market yields, during the month preceding the
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1 beginning of the fiscal year in which the related

2 project, facility, or separable unit or feature is

3 placed in service, on outstanding interest-bear4 ing obligations of the United States with peri5 ods to maturity comparable to the period be6 tween the beginning of the fiscal year and the

7 repayment date for the old capital investment.

8 SEC. 4. INTEREST RATE FOR NEW PRINCIPAL AMOUNTS.

9 As of October 1, 1995, the unpaid balance on the

10 new principal amount established for an old capital invest11 ment under section 3 bears interest annually at the Treas12 ury rate for the old capital investment until the earlier

13 of the date that the new principal amount is repaid or

14 the repayment date for the new principal amount.

15 SEC. 5. REPAYMENT DATES.

16 As of October 1, 1995, the repayment date for the

17 new principal amount established for an old capital invest18 ment under section 3 is no earlier than the repayment date

19 for the old capital investment assumed in section 3(c)(1).

20 SEC. 6. PREPAYMENT LIMITATIONS.

21 During the period October 1, 1995, through Septem22 ber 30, 2000, the total new principal amounts of old cap23 ital investments, as established under section 3, that the

24 Administrator may pay before their respective repayment

25 dates shall not exceed $100,000,000.
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1 SEC. 7. INTEREST RATES FOR NEW CAPITAL INVESTMENTS

2 DURING CONSTRUCTION.

3 (a) The principal amount of a new capital investment

4 includes interest in each fiscal year of construction of the

5 related project, facility, or separable unit or feature at a

6 rate equal to the one-year rate for the fiscal year on the

7 sum of—

8 (1) construction expenditures that were made

9 from the date construction commenced through the

10 end of the fiscal year, and

11 (2) accrued interest during construction.

12 (b) The Administrator is not required to pay, during

13 construction of the project, facility, or separable unit or

14 feature, the interest calculated, accrued, and capitalized

15 under subsection (a).

16 (c) For the purposes of this section, ‘‘one-year rate’’

17 for a fiscal year means a rate determined by the Secretary

18 of the Treasury, taking into consideration prevailing mar19 ket yields, during the month preceding the beginning of

20 the fiscal year, on outstanding interest-bearing obligations

21 of the United States with periods to maturity of approxi22 mately one year.

23 SEC. 8. INTEREST RATES FOR NEW CAPITAL INVESTMENTS.

24 The unpaid balance on the principal amount of a new

25 capital investment bears interest at the Treasury rate for

26 the new capital investment from the date the related
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1 project, facility, or separable unit or feature is placed in

2 service until the earlier of the date the new capital invest3 ment is repaid or the repayment date for the new capital

4 investment.

5 SEC. 9. APPROPRIATED AMOUNTS.

6 (a) Notwithstanding any other law and without fiscal

7 year limitation, there are appropriated to the Adminis8 trator $15.25 million in fiscal year 1996, $15.86 million

9 in fiscal year 1997, $16.49 million in fiscal year 1998,

10 $17.15 million in fiscal year 1999, $17.84 million in fiscal

11 year 2000, and $4.10 million in each succeeding fiscal

12 year so long as the Administrator makes annual payments

13 to the Tribes under the settlement agreement.

14 (b) For the purposes of this section—

15 (1) ‘‘settlement agreement’’ means that settle16 ment agreement between the United States of Amer17 ica and the Confederated Tribes of the Colville Res18 ervation signed by the Tribes on April 16, 1994, and

19 by the United States of America on April 21, 1994,

20 which settlement agreement resolves claims of the

21 Tribes in Docket 181–D of the Indian Claims Com22 mission, which docket has been transferred to the

23 United States Court of Federal Claims; and
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1 (2) ‘‘Tribes’’ means the Confederated Tribes of

2 the Colville Reservation, a federally recognized In3 dian Tribe.

4 SEC. 10. CONTRACT PROVISIONS.

5 In each contract of the Administrator that provides

6 for the Administrator to sell electric power, transmission,

7 or related services, and that is in effect after September

8 30, 1995, the Administrator shall offer to include, or as

9 the case may be, shall offer to amend to include, provisions

10 specifying that after September 30, 1995—

11 (1) the Administrator shall establish rates and

12 charges on the basis that—

13 (A) the principal amount of an old capital

14 investment shall be no greater than the new

15 principal amount established under section 3 of

16 this Act;

17 (B) the interest rate applicable to the un18 paid balance of the new principal amount of an

19 old capital investment shall be no greater than

20 the interest rate established under section 4 of

21 this Act;

22 (C) any payment of principal of an old

23 capital investment shall reduce the outstanding

24 principal balance of the old capital investment
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1 in the amount of the payment at the time the

2 payment is tendered; and

3 (D) any payment of interest on the unpaid

4 balance of the new principal amount of an old

5 capital investment shall be a credit against the

6 appropriate interest account in the amount of

7 the payment at the time the payment is ten8 dered;

9 (2) apart from charges necessary to repay the

10 new principal amount of an old capital investment as

11 established under section 3 of this Act and to pay

12 the interest on the principal amount under section 4

13 of this Act, no amount may be charged for return

14 to the United States Treasury as repayment for or

15 return on an old capital investment, whether by way

16 of rate, rent, lease payment, assessment, user

17 charge, or any other fee;

18 (3) amounts provided under section 1304 of

19 title 31, United States Code, shall be available to

20 pay, and shall be the sole source for payment of, a

21 judgment against or settlement by the Administrator

22 or the United States on a claim for a breach of the

23 contract provisions required by this Act; and

24 (4) the contract provisions specified in this Act

25 do not—
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1 (A) preclude the Administrator from recov2 ering, through rates or other means, any tax

3 that is generally imposed on electric utilities in

4 the United States, or

5 (B) affect the Administrator’s authority

6 under applicable law, including section 7(g) of

7 the Pacific Northwest Electric Power Planning

8 and Conservation Act (16 U.S.C. 839e(g)), to—

9 (i) allocate costs and benefits, includ10 ing but not limited to fish and wildlife

11 costs, to rates or resources, or

12 (ii) design rates.

13 SEC. 11. SAVINGS PROVISIONS.

14 (a) This Act does not affect the obligation of the Ad15 ministrator to repay the principal associated with each

16 capital investment, and to pay interest on the principal,

17 only from the ‘‘Administrator’s net proceeds,’’ as defined

18 in section 13 of the Federal Columbia River Transmission

19 System Act (16 U.S.C. 838k(b)).

20 (b) Except as provided in section 6 of this Act, this

21 Act does not affect the authority of the Administrator to

22 pay all or a portion of the principal amount associated

23 with a capital investment before the repayment date for

24 the principal amount.

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