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generation. OfiFering such a service could provide such customers an 

 incentive to use their resources more efficiently than is economically 

 justifiable in the current bundled service environment. The customer could 

 very well prefer the unbundled service, even if it were priced in a way that 

 reflected its higher value and the incremental costs of providing the service. 

 The added revenues to BPA could be used to lower prices for other 

 services, to develop resources to support the service, to fund important fish 

 and wildlife programs, and to assure BPA would make its payments to the 

 Treasury, all of which would benefit the region. 



Drawbacks to the concept of unbundling lie in the complexity it may create 

 in BPA's service arrangements and the agency's ability to provide timely 

 administration of its service arrangements with its customers. BPA 

 customers' concerns include loss of access to low cost services, the 

 potential that BPA might charge an excess price for valuable services only 

 it can provide, and the ability for BPA to increase its revenue requirement 

 without providing additional service. 



BPA is currently developing a Marketing Plan that is examining what 

 services should be unbundled, how the cost of the unbundled services 

 would be calculated, and how the price should be determined. 



BPA does not yet have answers to the questions of which services to 

 unbundle or how these services should be priced. Some questions that 

 might be appropriate to address include: (1) Is this a high cost-high value 

 service? (e.g., increased loads of utilities during winter cold snaps); (2) Is 

 this a service that requires a discreet capital investment? (e.g., distribution 

 voltage substations); or (3) Is there a clear opportunity value for this 



