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development, then it must facilitate others taking a more active stance. Bonneville should 

 not simultaneously withdraw from the field of resource development and create obstacles for 

 others. The marketing plan must be consistent with the provisions in the new power sales 

 contracts in order to allow maximum flexibility and efficiency. 



Over the long term, PPC believes that if tiered rates become a reality, resource 

 development incentives for utilities may be clearer. We are working to ensure that under 

 any possible tiered rate option, our members will have appropriate price incentives to 

 develop reliable and cost-effective resources, and will have the appropriate policy and 

 contract provisions to allow this to happen. 



13. Please provide any other suggestions regarding actions that would make BPA 

 more competitive or cost-effective. 



There are three concepts contained in the National Performance Review that have 

 sparked our interest. The fu^t is a section contained in the repon which calls for unspecified 

 changes in PMA repayment policy in order to generate an additional S3. 6 billion in revenues. 

 This proposal would lead to a substantial Bonneville rate increase, a result which would 

 make Bonneville uncompetitive when added to the recent 16 percent increase in preference 

 utility wholesale rates. Perhaps more ominous is the fact that the Administration is 

 attempting to accomplish this restructuring of debt payment administratively and not through 

 a legislative process. This is in contrast to previous efforts where at least we had the 

 assurance that a change of this magnitude would be fully considered and debated by 

 Congress. 



Also contained in the report is an alternate proposal to allow Bonneville to refinance 

 its outstanding appropriated debt through the issuance of long-term bonds. This is an idea 

 we would be interested in exploring with Congress and the Administration. Implementation 

 of this proposal would have to pass two tests from our perspective. First, it must have a 

 Deutral rate impaa on wholesale rates, and second, any solution must be long-term. 



Another proposal would have Boimeville change to government corporation status 

 much like Amtrak and the Tennessee Valley Authority. This could serve to eliminate many 

 of the barriers identified as restraining Bonneville in its efforts to become more efficient. 

 Such a change could be beneficial to the region as long as the cunem level of influence aitd 

 cooperation between Bonneville and its customers is preserved. It is contenq>lated that 

 legislation including the debt buyout and govemmem corporation status proposals will be 

 forthcoming. We are interested in exploring the possibilities as long as the legislation is 

 narrowly focussed on these two elements. 



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