A. Historically, the needs of the Pacific Northwest area publicly-owned utilities for electric energy and capacity have been supplied primarily from the resources of the Federal Columbia River Power System. During the past 37 years, the system has provided for the publicly-owned needs at low cost. However, this system is almost developed, thus future power demands in the region require development of additional generating resources.

B. A coordinated regional program for new generating resources was developed for the period 1969 to 1982. Publicly-owned and private utilities and the Bonneville Power administration are now implementing this program, commonly known as the Hydro-Thermal Accord. Under the initial program, and because of the joint planning efforts of the various participants, about 10 million kilowatts of generating resources, to cost $3.4 billion are either operating, under construction, or committed for operation by 1982.

C. In late 1973, the Northwest utilities agreed to an additional generating resource schedule through 1986, providing an estimated 10,400 million kilowatts of new generating resources for the benefit of the region.

D. However, unlike the original Hydro-Thermal Program, each publicly-owned electric system’s load growth will not automatically be met by the Bonneville Power administration, therefore requiring increased coordination among the publicly-owned utility systems for the economic benefit of their consumers.

E. Furthermore, due to the economies of scale and the many advantages of large efficiently constructed and managed projects and the long time periods necessary to construct such projects, it is desirable that the utilities of the area jointly plan, construct and operate such projects.

F. Joint agencies in other areas have proven beneficial to publicly-owned utilities. For example, public utility systems in the state of Washington have participated in a joint operating agency known as the Washington Public Power Supply System. This entity has provided the means for those utilities to work jointly for their common interest and to meet the power needs of their consumers.

G. This proven benefit is a sound basis for establishment of a joint operating agency for the publicly-owned utilities and their consumers in the state.

H. Past forecasts for the demands of electric power in the region have been extremely accurate. All present studies indicate an increasing rate of power consumption throughout the next 10-year and 20-year projections, despite comprehensive energy conservation programs.

I. The nation and this region are entering into an era requiring reevaluation of the user of nonrenewable resources such as oil and natural gas. Present shortages and potential must be adopted on a comprehensive scale in order to be effective, but is will also be important that the voices of all the various interest be heard in arrival at a sensible policy.

K. A joint operating agency will permit the publicly-owned utilities to develop a program for the wise and sensible use of electric energy resources, which will fairly measure and reflect the needs of their consumers. A joint operating agency will enable the publicly-owned utilities of Oregon to speak with a common voice, so their needs and wishes can be heard and respected in the larger regional councils and on a national basis.

L. A joint operating agency organized under Chapter 722 will have the authority to participate in the construction of generation and transmission facilities. The immediate need for a joint operating agency is to implement the program for meeting the post-1982 requirements of the publicly-owned utilities in Oregon. Participation by the city in an Oregon joint operating agency will permit the needs of our citizens to be fully represented and adequately protected in this process. Additionally, work must commence in the near future to develop the longer range comprehensive planning for the late 1980s and 1990s.

M. A joint operating agency organized under Chapter 722 will have the power to issue revenue bonds. Such revenue bonds will be payable solely from the revenues of the joint operating agency. The revenues, if any, of a joint operating agency, will be derived from the charges made by the agency for furnishing energy, capacity or services to utilities. The city may enter into contracts to purchase energy, capacity or services from the joint operating agency, but membership of the city in the joint operating agency does not require that the city enter into such contracts.

N. The revenue bonds which may be issued by a joint operating agency will not be an obligation of the city or of our taxpayers. The joint operating agency will not have the power to levy taxes or to require the city to make any financial contribution to the operation of the agency or the payment of revenue bonds.

O. A joint operating agency will have Oregon publicly-owned utilities the ability to plan together, and to build together if necessary, and this authority is necessary and desirable for the interests of the consumers of these utilities to be adequately represented, and for those utilities to accept their fair share of the responsibility for future resource planning and construction. (See Ord. 3717 §4, 1974). (Ord. 4987, 2015).