Jon L. Christensen: “I rise today to denounce one of the most outrageous and arrogant abuses of government power that I have witnessed since…”

“I rise today to denounce one of the most outrageous and arrogant abuses of government power that I have witnessed since coming to Washington. Sadly, it involves a U.S. Government agency, the Bonneville Power Administration, or better known as BPA, which unilaterally has refused to honor an electric power contract with a Nebraska company, Tenaska Washington Partners II. This decision, if not reversed immediately, could wind up costing the American taxpayer over $1 billion. To give you a little background on this situation, back in 1991, Bonneville Power issued a request for proposals. They were needing to build some more power into their unit and so they were looking to expand and they sent out a request for proposals. Over 102 bidders responded. Of those 102 bidders, Tenaska won the bid. Well, they went ahead and constructed the facility and are almost 70 percent complete by now. Just last month they went over the 70 percent completion. In April 1995, Bonneville Power informed Tenaska that the power administration no longer intended to honor the power contract, claiming recent dramatic reductions in projected demand for Bonneville Power. In subsequent correspondence and meetings, Bonneville Power repeatedly has stated that it will not perform its obligations under the power purchase agreement. Bonneville's action here constitutes a willful repudiation of a valid, binding contract.”