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Bonneville must move from a program- and beneficiary-oriented government agency to a 

 customer-focused, cost-conscious, results-oriented, market-driven organization. 



In the past few months, we have fleshed-out this simple description of the new Bonneville, 

 in the form of the draft set of Strategic Business Objectives. These Strategic Business 

 Objectives are intended to be the drivers of all of Bonneville's work. Although they are 

 still in draft, a few of the Objectives deserve highlighting. A copy of the Strategic 

 Business Objectives is attached to this testimony. 



Objective 2 focuses on the opportunity we see for Bonneville to continue to expand the 

 benefits it provides the region. We can expand benefits by cutting costs, unbundling 

 products and services, and providing new products and services. 



The current regional debate seems to be focusing on how to divide a pie of fixed size 

 among competing interests. Through this expansion of benefits, we have an opportunity 

 to change the terms of the debate, by turning it into a discussion and collaboration on how 

 best to expand the size of the pie. 



Objective 3 represents an extremely important element if Bonneville is to be successfiil. 

 We believe the current system does not create incentives, particularly in the short term, for 

 non-customer stakeholders to seek and support activities that enhance Bonneville's 

 competitive position. Yet in the long run, if Bonneville becomes uncompetitive, it will 

 become increasingly difBcult to generate fiinds for environmental mitigation. Treasury 

 repayment, and normal operating expenses. -We intend to work with our customers and 

 other stakeholders to develop a system which creates short-term financial rewards for 

 customers and for statutorily mandated, non-revenue producing programs as Bonneville's 

 revenue producing programs become more successfiil. 



