277 



We also note that the GAO report, cited above, called on 

 Bonneville to conduct a thorough analysis of the alternative ways 

 of providing reserves . 



To the best of our knowledge, Bonneville never did the study. We 

 believe such a study would still be valuable, and we encourage 

 the Task Force to see that it is done. 



RECOMMENDATIONS 



To deal with the variety of issues described above, we offer the 

 following recommendations: 



1. The BPA Task Force should request that Bonneville 

 discontinue the variable industrial rate when it 

 expires in 1996. The Task Force should take steps to 

 require that Bonneville adjust the value of DSI 

 reserves to accurately reflect current conditions. 



2. The BPA Task Force should assess Bonneville's legal 

 obligation to the DSIs for future firm power contracts 

 and should request that Bonneville consider a broad 

 range of alternatives, including shorter term contracts 

 and greater interruptibility. 



3 . The BPA Task Force should request a General Accounting 

 Office audit to examine Bonneville's relationship with 

 the DSIs. 



Each of these points is discussed in more detail in the 

 supplemental text on the following pages. We have not attempted 

 to answer all of your questions to us, but instead have tried to 

 focus on those questions that deal with DSI issues and their 

 impacts on the region's public utilities. 



