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4a. How can the region maintain the benefits of regional coordination and planning if 



resource acquisition and transmission become more decentralized as a result of tiered rates 

 and unbundling? 



The benefits of regional cooperation have been extremely significant. They have allowed us to 

 spread the risks and costs of investment among many users, and capture large economies of 

 scale. Through its ownership and maintenance of transmission and access to federal 

 hydropower, B?A is a central decision maker whose influence on the Northwest electricity 

 market is considerable, almost regardless of the way its services are priced. 



While it is not absolutely clear that new BPA prices and services will result in increased 

 decentralization, it is important to consider the consequences if they do. In such a case, we are 

 likely to face higher prices and lower reliability. The Power Act was designed to spread the 

 benefits of a coordinated system and costs of associated obligations throughout the region. If we 

 encourage competition, it should be based on real price differences caused by technology or 

 efficiency - not based on the ability to escape those regional obligations. One possible though 

 controversial model is to use power sales contracts to ensure that if you choose to have any of 

 the benefits of the BPA system, you must pay for costs and risks imposed on those least able to 

 escape reliance on the federal system. 



0-R24)2W 



