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Question 6: Should the irrigation discount be eliminated or modified? Please provide 

 an estimate of the cost and/or benefit to regional ratepayers of continuing 

 to provide this discount. 



Answer; The Irrigation Discount was implemented in 1985 to help irrigated 



agriculture in a period of economic distress. Whether BPA should 

 eliminate the Irrigation Discount was an issue in the recently concluded 

 1993 rate case. The outcome of the rate case was to continue the irrigation 

 discount for the next rate period (FY 1994 to FY 1995). The 1993 Record 

 of Decision states the reason behind this decision. 



Elimination or modification of the Irrigation Discount at this time 

 could result in undue impacts on irrigation end-users that could be 

 offset or avoided if changes were made within the context of a 

 more comprehensive examination of BPA's rates. BPA will 

 undertake a review of rate design issues, including the Irrigation 

 Discount, prior to the 1995 rate case. 



Any changes to the Irrigation Discount would not likely occur until the 

 next general rate case. The issues surrounding the Discount will be largely 

 influenced by the direction provided by the Marketing Plan, and by the 

 outcome of other rate design issues such as tiered rates. 



The amount of the discount (and thus the amount redistributed among the 

 PF customers because of this discount) for the next rate period (FY 1994 - 

 1995) is estimated to be approximately $26 million. 



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