128 



C. BPA Should Seelc to Be Efficient and Cost-Eff active 



Rather than compete with its constituencies, BPA should 

 seek to perforin its role in an efficient and cost-effective 

 manner. BPA has recognized the need to be more cost-effective 

 and is undertaking the Function-by-Function Review discussed 

 above. Other aspects of BPA ' s effort to become more cost- 

 effective are the "unbundling" of various BPA services and 

 tiered rates, which are discussed below. 



In order to be most efficient and cost effective, BPA 

 must have a clearly defined, appropriate role. In other 

 words, BPA should do what it does at least cost and not do 

 what others can do as well or better. For example, the risks 

 of investing in conservation and the small generating projects 

 envisioned for the region can be assumed by individual 

 utilities or groups of utilities. BPA need not acquire those 

 resources in order to make their financing possible. ^ BPA's 

 administrative costs can be reduced accordingly. 



The utilities of the Pacific Northwest have relied and 

 continue to rely on that transmission. . . . 



Conference Report to Accompany H.R. 776, 102nd Congress, 2nd Session, H. 

 Rep. 102-1018 (October 5, 1992), p. 389. BPA's key role in providing 

 transmission for Northwest utilities is reflected in Section 722 of the Act 

 which amends Section 212 of the Federal Power Act to include 

 subsection (i), "Laws Applicable to Federal Columbia River Transmission 

 System. " 



^When the Northwest Power Act was adopted in 1980, common wisdom 

 among resource planners contemplated a major role for large, centrally 

 located generating stations in which multiple participants would each share 

 a small percentage of the output. The ability to offer these shares to BPA 



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