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TABLE OF CONTENTS 



Testimony of Kermit W. Scarborough 



TESTIMONY 1 



Introduction: Why Canby Believes DSI Issues Are Important .. 1 



Issue 1 : Competitiveness 2 



Issue 2: Power Sales Contract Renegotiation 5 



Issue 3: Need for GAG Audit of BPA-DSI Relationship 7 



Recommendations 9 



Supplemental Testimony (Answers to Specific Questions) 11 



Question 1 : Competitiveness 11 



Question 5 (First Part): Variable Industrial Rate 12 



Question 5 (Second Part): Value of DSI Reserves Analysis.. 17 

 Question 10 : Power Sales Contracts 25 



TABLE 1 : Revenues Generated by the VI Rate 14 



TABLE 2: Adjusting the Value of DSI Forced Outage Reserves. .. .23 



ATTACHMENT A: The 1985 Value of Reserve Analysis A-1 



ATTACHMENT B: Correspondence between Canby and BPA 



Regarding New DSI Contracts B-1 



