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Objective S indicates that the core basis for Bonneville competitiveness in the future will 

 be the same as it has been in the past ~ being the low-cost provider. 



Objective 7 describes the environmental approach we envision. We plan to continue our 

 commitment to fish and wildlife and other environmental goals. In fact, by expanding the 

 benefits of our system, we will be better positioned to accomplish these goals. 

 Conversely, if we do not succeed in our effort to maintain our competitive edge, 

 Bonneville's financial ability to support these goals may be severely impaired. The 

 Objective also expresses the necessity of ensuring that our investments in non-power goals 

 produce measurable results. 



Progress on a Marketing Plan 



It is becoming increasingly clear that the old regulatory approach to the electric industry 

 does not work well, and that a market-driven, customer-focused approach is essential for 

 Bonneville's survival. Costs are being driven down by competition and new technology, 

 giving customers more choices. Trying to dictate choices to customers is swimming 

 against the tide. Identifying customer needs, and giving customers attractive choices 

 about how to meet them, is the core purpose of the Marketing Plan currently under 

 development. 



Unbundling Bonneville's current products and services is the primary way we can provide 

 these choices. Menus of unbundled products and services are being actively developed in 

 the Marketing Plan. 



Unbundling is not enough, though. Maintaining our low-cost provider position is also 

 cmcial. In past years we prided ourselves on keeping rate increases below the rate of 

 inflation. But that is not good enough anymore. Keeping rate increases below half the 



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