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Bonneville continues to lose eJx)ut $32 million a quarter from the 

 VI rate, compared to what it would have received from the 

 companies under the standard industrial firm power rate. 



And that's where things stand now. 



Fortunately, the Administrator has indicated he does not wish to 

 extend the variable industrial rate when it expires in 1996, but 

 it is not clear from his public comments whether he means to 

 discontinue any type of special treatment for the smelters or 

 whether some other form of subsidy will take the place of the 

 variable rate. 



As for the value of the reserves — the second form of subsidy — 

 he has said nothing, and that is a pity, because the way that 

 Bonneville compensates the DSIs for reserves is flawed. 



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