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2. What is the likelihood that the DSIs will remain in the 

 region, and what are the likely rate impacts to 

 preference customers if Bonneville acquires resources 

 for the DSIs only to find that they close their 

 operations because of economic conditions beyond the 

 control of Bonneville? 



3. What are the benefits that the DSIs provide to 

 Bonneville? What is the total value of the subsidies 

 that Bonneville provides for the DSIs? What is the 

 balance between these two ecjuations? How is this 

 relationship likely to change in the next 20 years? 



4. Why do the DSIs now pay substantially less for power 

 tham preference customers? 



Section 7(c)(2) of the Northwest Power Act requires the 

 Administrator to set rates for the DSIs based on the wholesale 

 rates to public entities and the margins that the public entities 

 include in their industrial rates. 



We note that the last GAO report which examined Bonneville's 

 relationship with the DSIs, " The Impacts and Implication of the 

 Pacific Northwest Power Bill (EMD-79-105, dated September 4, 

 1979), predicted that DSI rates would be significantly higher 

 than preference rates. Yet the exact opposite has occurred. 

 Why? 



5. The Northwest Power Act re(iuires the Administrator to 

 "adjust" the value of DSI reserves. Why, then, did 

 Bonneville "freeze" critical con^onents of the reserve 

 methodology for a period of years? How should 

 Bonneville evaluate DSI reserves in coming years, and 

 what alternative mechanisms would protect the 

 ratepayers? 



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