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Third, Bonneville needs to unbundle its resource integration 

 services and provide those to any customer that wants to bring in 

 their own resource. And the important thing here to make the mar- 

 ket competitive, is Bonneville should not be allowed to offer those 

 services to a customer for integrating a resource that a customer 

 wants to bring in, at a higher price than they would if they were 

 trying to peddle their own resource. That has to be the principle. 

 In some ways, an analogy is that the resource side or conservation 

 program side of Bonneville, for new resources, would become al- 

 most a wholly owned subsidiary that had to compete on an 

 armslength basis or offer these resource integration wheeling serv- 

 ices on a fair and equitable basis with any other customer out 

 there. That way, to go back to an earlier example I think some of 

 the witnesses brought up, I do not want to see a 35 mill resource 

 brought in by Bonneville to sell to customers for 32 mills — ^when a 

 customer could have got a resource for 30 mills — just because Bon- 

 neville uses its wheeling power or its resource integration services 

 in a way that basically got in the way of that utility bringing 

 aboard for industry the 32 mill resource. The reason is obvious. If 

 you get a bunch of 35 mill resources brought on instead of 30 mill 

 resources, the region is going to face higher costs in the long run. 



The fourth thing that needs to happen is more efficiency in terms 

 of Bonneville. Bonneville is moving to become more efficient, mar- 

 ket-driven, and I think one of the things that needs to occur is 

 probably something along the lines of the government corporation 

 status. We will support that; maybe the debt swap we have been 

 talking about. I know you are going to have another hearing so I 

 will not spend much time on that today, but given the principles 

 the publics have laid out, we support both of those efforts as a way 

 to reduce risk on Bonneville's rates, and in the long run, I think 

 makes Bonneville more efficient. 



Now let me make a comment about the Power Council. I think 

 the Power Counsel has an important role to play over the next sev- 

 eral years as we go through these fundamental changes. And it is 

 not a msmaging role — I think that is the word that was used ear- 

 lier. It is a leadership role. It is looking toward the future and 

 helping us get through this transition so that we get to a free mar- 

 ket or much freer market without a lot of additional costs being 

 spent. 



I would also like to take this opportunity to really give a lot of 

 credit to Randy Hardy and his chief administrators. They have 

 taken the bull by the horns here. They are moving forward; to be 

 frank, they are not moving anywhere as fast as I think you would 

 see a private industry move, but they are making significant 

 moves. They are opening the door to customers and others, and I 

 think that is very positive. 



In closing, I would like to make a couple of recommendations for 

 the task force. I realize I am getting a little bit ahead of the next 

 hearing, but one thing is that Randy Hardy and the folks at Bonne- 

 ville are going to face a lot of struggles as they go through this 

 Competitiveness Project. I think we are just touching the tip of the 

 iceberg. There are going to be many more issues on the table over 

 the next couple of years and Randy is going to need a lot of sup- 

 port. And I think strong support for the effort and the direction 



