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However, any costs incurred because of such expectations should be applied equitably to all 

 the players: Bonneville, the public and private utilities, and independent power developers. 

 Otherwise, utilities and others meeting those expectations could be at a price disadvantage 

 compared with developers that can avoid those requirements. The net effect would be that 

 responsible developers would be less competitive and environmental goals would not be 

 achieved. 



Virtually all utilities are contending with these forces. Bonneville, however, has 

 additional challenges that have led some of its customers to question the agency's ability to 

 compete with other power suppliers. These challenges include: potential rate impacts from 

 repayment reform; additional costs attributable to fish and wildlife recovery measures; and 

 the very size of its own bureaucracy — a particular burden in a time when it is necessary to 

 be fast on one's feet. Whether Bonneville's customers are correct in their concerns matters 

 less than whether they are acting on them. 



Im plications for the Goals (tf the Power Act 



How Bonneville, its public utility customers, the investor-owned utUities and 

 consumers of electricity react to the forces that appear to be driving the restructuring of the 

 industry will have much to say about how successful the region will be in meeting the goals 

 of the Power Act. These goals include: 



♦ conservation and efficiency in the use of electric power; 



♦ the development of renewable resources; 



♦ assurance to the Northwest of an adequate, efficient, economical and reliable power 

 supply; 



♦ protection, mitigation and enhancement of the fish and wildlife of the Columbia and 

 its tributaries; and 



♦ a publicly accountable state role in planning the future of the Northwest's power 

 system. 



In a Pacific Northwest that may be quite different from the one envisioned in the 

 Power Act, we are still seeking the best and most efficient means of achieving those goals. 

 We believe we must look at all elements of the electric power industry — power producers, 

 marketers and users - to better understand and help shape that industry's future, guiding it 

 toward the goals of the Power Act. 



The lesson from most other industries that have undergone restructuring is that 

 competition generally leads to lower prices. That is cleariy a benefit for consumers. But 

 competition does not always lead to better value, reliability, equity, or fulfillment of broader 

 societal responsibilities. In the airline industry, for example, fares have declined on average. 



