97 



COMMEI^S BY PAUL LORENZINI 



PRESIDENTT, PACIFIC POWER 



TO THE CONGRESSIONAL TASK FORCE 



ON THE BONNEVILLE POWER ADMINISTRATION 



SEPT. 25, 1993 



Thank you, Mr. Chairman and members of the task force, for the 

 opportunity to present PacifiCorp's views about the future of the 

 Bonneville Power Administration. 



I am Paul Lorenzini, president of Pacific Power, an operating 

 division of PacifiCorp. Through Pacific Power and Utah Power, PacifiCorp 

 serves 1.3 million retail customers In seven western states, including the 

 four Northwest states that comprise the BPA region. We also offer power 

 on a wholesale basis to other utilities -- public and private -- both in the 

 Northwest and elsewhere in the West. So, as you can see, our area of 

 operation overlaps substantially with BPA's. 



I would like to offer you some comments on the future of Bonneville 

 from three perspectives: First, as a utility dealing with the same 

 competitive issues Bonneville now faces; second, as a major BPA 

 customer that is responsible for roughly one-tenth of Bonneville's 

 revenues; and, third, as a supplier of certain power and transmission 

 services to BPA. In so doing, I hope to address most of the questions you 

 raised in your invitation to testify at this hearing. 



Our view is that Bonneville's role must evolve to respond to the 

 competitive marketplace we all face. We are talking about a different 

 role for BPA, not a diminished one. 



I. The energy market of the present and the future does not and 

 will not resemble that of the past. 



About a decade ago, PacifiCorp realized the electric industry was 

 undergoing a fundamental and pemnanent change. New, non-utility 

 suppliers were emerging on the landscape, and were encouraged by 

 enactment of the Public Utilities Regulatory Policy Act of 1978 (PURPA). 

 These new entities presented utilities, regulators and customers with 



