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13. BPA's resource acquisitions shall be based upon reasonable notice from the 

 customers. 



BPA's level of resource acquisition activity will be changed by a tiered rate structure, and 

 should be based upon reasonable notice provisions since the customers and EPA will be changing 

 their relative levels of activity with regard to resource development if tiered rates are adopted. 

 BPA's customers wUl be developing more resources, and BPA will be developing less, if the price 

 signals ^m tiered rates are effective. 



14. BPA's net revenue volatility shall be minimized. 



The adoption of tiered rates should not lead to wide swings in BPA's net revenues. If this 

 happens BPA will be likely to respond by increasing its collection of revenues for risk mitigation. 

 The principle refers to osi revenues, to emphasize the point that BPA's costs should be tailored to 

 the agency's load obligations. 



15. Unbundled services must be available at cost, concurrent with the 

 implementation of tiered rates, subject to public preference. 



Customers seeking to develop their own resources, including conservation will require, in 

 some instances, unbundled services. This principle calls for unbundling to occur at the same time 

 as tiered rates are adopted in order to allow customers more flexibility in addressing the customers' 



(changing power supply relationship with BPA. (The PPC legal committee is examining the 

 application of pubhc preference to unbundled services.) 



16. Access to federal transmission must be available at cost, concurrent with 

 Implementation of tiered rates, subject public preference. 



In order to allow customers to respond in the most cost-effective manner to tiered rates, 

 transmission access is critical. BPA's customers can be expected to develop resources from 

 outside their load centers and to purchase power from other utilities and power providers. These 

 require that federal transmission access at cost be available. At the same time, we expect that 

 FERC will work to ensure access to all regional transmission capacity, federal and non-federal, 



I with equitable and reasonable terms and conditions. (The PPC legal committee is examining the 

 Fcde of public preference with respect to the federal transmission system.) 



17. Utilities should be allowed to combine their allocations of power by 

 assignment to a pool consisting of Northwest preference customers. 



For a number of reasons it may be advantageous for utilities to group together and man^e 

 dieir allocations as a pool instead of as individual inilities. Exan^les include the benefiu of load 

 diversity within the pool and the reduction of administrative costs. The pool then would manage 

 the allocati(»accordfflg to die nature of the pooling agreement. Questions that arise under this 

 approach include: if as a result of diversity the sum of the allocations is greater than the total needs 

 of the pool, can the excess power be sold or used within the pool, or does it automatically revert to 

 BPA? If the excess power can be sold, to whom can it be sold: other preference customers. 

 lOUs. DSIs. outside the region? 



ATTACHMENT 1 

 PPC Testimony before the 

 Committee on Natural Reaoune 

 BPA Task Force (Page 5 of 5) 



