Energy Prices

ENERGY PRICES -- (Senate - February 17, 2005)

Mr. WYDEN. Mr. President, last week, the Treasury Secretary, Mr. Snow, testified before the Senate Budget Committee that high energy prices act like a tax on consumers. Given that, what the Bush administration has called for is a huge tax on consumers throughout the Pacific Northwest. I am talking specifically about their proposal to require that people in our region pay $2.5 billion more for energy in the days ahead because this administration wants to extract money from the Bonneville Power Administration's ratepayers above and beyond their costs.

I am very troubled about this proposal, particularly because when Energy Secretary Bodman came to my office, I asked specifically about the administration's plan for Bonneville, and not just in the office, but when he came to the Senate Energy Committee for his confirmation hearing. Both times I was assured by Secretary-designate Bodman that he opposed proposals to privatize Bonneville. The assurances were provided just a couple of weeks before the Bush administration's budget was released with the plans that do, in fact, privatize Bonneville, for all practical purposes, by going to a different rate structure that seeks to extract money from Bonneville beyond its costs.

When I met with Dr. Bodman in my office, he was accompanied by Clay Sell, the White House energy adviser. I learned last night that Mr. Sell was well aware of the discussions within the administration that led to the Bonneville privatization proposal at the time Dr. Bodman was assuring me that he opposed privatization. In that meeting, and at his hearing, Dr. Bodman assured me that as far as he knew, the administration also opposed privatization. Clearly, that was not the case. Mr. Sell has since been nominated to be Deputy Secretary of Energy.

I have come to the floor today because the White House and the administration need to get the message. They cannot impose these devastating electricity rate increases on our region, first, without changing the law and, second, without an understanding that I and other Members from our region, Democrats and Republicans, will do everything we possibly can to prevent this misguided proposal to take huge amounts of dollars from our ratepayers and taxpayers. We are going to do everything we can to keep that proposal from passing in the Senate.

Now, I am not, this morning, going to announce a hold on the appointment of Mr. Sell as Deputy Secretary of Energy. In accord with the policy that I and Senator Grassley have led the Senate on over the years, I do announce my holds publicly; and unless something changes, unless the administration drops this misguided concept--a concept that would be so punitive on our region at a time when we have very high unemployment and a world of economic hurt throughout our region--unless the administration drops their proposal, I will be forced to come back to this floor and have a public hold placed on the Sell nomination.

I remain very troubled by Mr. Sell's role in the discussions that took place in my office and Dr. Bodman's testimony before the Energy Committee when I was assured in both instances that there was opposition to privatization. I and other Members of the northwest congressional delegation are simply not going to let a sign be put up on the Pacific Northwest saying: Closed for business and energy tax hikes headed through the roof. This is too important to our area.

I am very hopeful that, working with colleagues--and I am particularly interested in working with my good friend, the chairman of the committee, Senator Domenici--we can resolve this matter out so our region will not be devastated economically.

Senator Domenici, to his credit, has raised concerns about this misguided proposal to raise our energy prices in the Northwest. I intend to work closely with him, and I am very hopeful I will not have to come back to this floor and put a public hold on Mr. Sell's nomination to be Deputy Secretary of Energy. But if this is not worked out and it is not worked out quickly, I will have no other option because the ratepayers of our part of the world, at a time when they have experienced enormous economic pain, deserve to know there is not going to be a huge additional rate hike imposed on them and one that would do so much to cripple their hopes and aspirations.

Mr. President, I yield the floor.

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