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<br />01438 <br /> <br />Congress established the Department of Energy (Department) by legislation in 1977. <br />Congress transferred the Bureau of Reclamation power marketing functions to the <br />Department of Energy in 1978 and was placed by the Department under the Western <br />Area Power Administration (WAPA). WAPA's missions along with the other Department <br />functions were to consolidate all of the Nation's energy matters under one cabinet level <br />department. Congress also transferred the Bureau's Bonneville Power Administration <br />to the Department. From its inception WAPA's primary mission is to market power from <br />Federal Hydroelectric projects to preference customers within its 15-state area. Since <br />WAPA was a new agency, it had to build a completely new organization following the <br />Department's guidelines and policies. Unfortunately for the power customers this would <br />lead to an increase in power rates because of the new bureaucracy WAPA was <br />obligated to create. Many functions are now done twice by the two agencies because <br />of the separation. By way of an example, before WAPA USBR required only one <br />budget department, one payroll department, one accounting department, one personnel <br />department, etc., to accomplish all power marketing along with its other functions. <br />Another example is WAPA's senior manager ranks. If recombined with USBR <br />functions then one Agencies' (WAPA or USBR or combination of) managers would no <br />longer be needed. WAPA's ten senior managers earn over $100,000 per year plus <br />benefits!! <br /> <br />With the separation of functions came the inevitable loss of focus over time by WAPA <br />concerning the priorities of Reclamation Projects. Many longtime observers of <br />Reclamation would speak to USBR's commitment to water's priority over power <br />interests. This is still evident today. WAPA on the other hand has over the years <br />become closely aligned with power interests. The power interests, and particularly in <br />today's volatile utility industry, are vocal in their opposition to higher Reclamation costs <br />whatever the reason. This rift does not benefit the future of water use and development <br />in the West. Close partnerships and a wiliness of the power users to support water <br />development is paramount to future water development. <br /> <br />Many knowledgeable individuals are concerned about the future of Reclamation <br />Projects and the growing influence of power interests over WAPA. Some have privately <br />recommended that WAPA and the USBR be recombined under one agency with water <br />again as the Agency's priority. The Upper Basin states should also consider transferring <br />CRSP under their jurisdiction. Combining realizes many benefits. Benefits would <br />include: <br /> <br />. Costs savings by combining agencies <br />. Water and power policy under one agency <br />. Original intent of Reclamation laws now focused under one agency <br />. Influence of power interests over water is diminished <br />. Funding for water and power development under one agency. <br />. Energy crisis no longer a national issue <br /> <br />2 <br />