121 



ket will bear for one service in order to subsidize another service. 

 Bonneville, for example, should not use its monopoly power in 

 transmission or other markets to subsidize Bonneville's firm power 

 service. 



Finally, the purpose of the BPA residential exchange was to ex- 

 tend the benefits of the federal system to all residential customers 

 in the region. The residential exchange does not provide an incen- 

 tive for investor-owned utilities to operate less efficiently. The ben- 

 efits of the exchange are available to the residential and small 

 farm loads of any utility in the region, public or investor-owned, 

 and each utility has a strong incentive to keep its costs down be- 

 cause none of its commercial or industrial loads receive any bene- 

 fits from the residential exchange. 



Any suggestion that the residential exchange provides an incen- 

 tive for an investor-owned utility to operate less efficiently would 

 be erroneous and unsupported by the facts. In any event, investor- 

 owned utilities in the region do involve themselves in least-cost 

 planning and their costs, plans and actions are subject to extensive 

 review by state public service commissions. 



Thank you for the opportunity to appear before this task force. 



Mr. DeFazio. Thank you, Mr. Myers. 



Mr. Reiten. 



[Prepared statement of Mr. Myers follows:] 



