M. O. Hesse

, being duly sworn, hereby states that he/she has read and signed the foregoing Statement for Completion by Presidential Nominees including the Financial Statement and that the information provided therein is, to the best of his/her knowledge and belief, current, accurate, and complete.

During the December 1, 1982 hearing of the Committee upon my nomination by the President to be Secretary of Energy, certain questions were asked of me by Senators Bumpers, Domenici, Matsunaga and Melcher which required my further response. Enclosed are inserts for the transcript of the hearing in regard to such questions.

Following completion of the hearing, I have received a large volume of written questions from several Committee members, as well as from three other Senators. I am pleased to enclose responses for the record to the questions received from Senators Baucus, Bumpers, Domenici, Jackson, Matsunaga, Mathias, Proxmire, Tsongas and Weicker. Additional copies of these materials are enclosed for your distribution to the entire Committee membership and to the non-Committee Senators.

A good many of the questions called not only for my personal views on various issues, but, also, for detailed factual information and/or analysis concerning national energy data, Department of Energy programs and activities, and other matters as to which it has not been possible for me to develop personal knowledge in the four brief weeks I have been serving as Secretary. Particularly in view of the short period available for my responses for the record, it has been necessary for me, insofar as those types of questions are concerned, to seek information and analysis from Department of Energy personnel.

Such information and analysis as has been furnished me by the Department has been incorporated into the responses for the record upon the representations to me that such materials constitute a fair and appropriate response to the question or portions of a question to which such materials pertain. No such factual or analytical material presently is believed by me to be inappropriate for inclusion in the responses for the record, but the Committee must understand I am not representing that such material reflects my personal knowledge.

I believe the responses for the record fairly reflect my personal views on the numerous subjects where I have formulated my own opinion. As I have the opportunity to become more thoroughly familiar with factual and analytical detail pertinent to the Department and national energy issues, I shall look forward to sharing my views with the Committee from time to time.

2

Meanwhile, I should like to express to you and to the Committee my appreciation for the courtesies you have extended to me both during my informal visits with the Committee members and during the confirmation proceedings. Please cause this letter to accompany the responses for the record which you will be distributing.

Sincerely yours,

Wonned Paul Hodel

DONALD PAUL HODEL

Enclosures: Inserts for transcript

Responses for the record

By Messenger

RESPONSES FOR THE RECORD

TO QUESTIONS FROM SENATORS

Baucus

Bumpers

Jackson

Mathias

Matsunaga

Proxmire

Tsongas

Weicker

RESPONSE TO QUESTIONS FROM

SENATOR MAX BAUCUS

1.

What was your role in the five WPPSS nuclear plants? Did you promote their construction? Did you urge utilities and cooperatives to participate in them? Did you issue notices of insufficiency that may have encouraged participation in the plants? Please provide appropriate documentation for your answers.

Answer: In addressing my role in the five Washington Public

Power Supply System (WPPSS) nuclear plants, we first must distinguish between the projects themselves. The WPPSS Projects Nos. 1, 2 and 3

were intended to be directly related to the Bonneville Power Administration (BPA) in both financial and power supply relationships in accordance with the Congressional mandates included in the 1970 and 1971 Public Works Appropriation Acts. In essence, BPA was not intended to have a direct relationship with WPPSS Projects Nos. 4 and 5 other than providing some transmissions system and reserve support services. My answers, therefore, are divided into the two categories Projects Nos. WPPSS 1, 2 and 3 and separately Projects Nos. WPPSS 4 and 5.

WPPSS Projects Nos. 1, 2, and 3

In November 1966 (three years before I became Deputy Administrator

at BPA), 108 public and private electric utilities in the Pacific Northwest and BPA formed the Joint Power Planning Council (JPPC) to develop a program to meet the region's estimated power needs over the next 20 years. After two years of consultation, in October 1968 the JPPC announced the Hydro-Thermal Power Program-Phase 1 (HTPP-1), which, among other things, provided for the construction of one nuclear plant essentially by investor-owned utilities (shared 70 percent investor-owned and 30 percent publicly-owned utilities) and of three nuclear power plants by the Washington Public Power Supply System (one plant shared 70 percent public and 30 percent investor-owned, two plants 100 percent public). The WPPSS is a corporate consortium of 23 State of Washington municipal and public utility district systems formed