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The impact column shows the range of final adjustments that would 

 be made to the annual DSI credit (discount). The larger the 

 number, the more the credit would be reduced. 



The adjustments would therefore produce a range of likely impacts 

 between $15 (Scenario la) and $41 million (Scenario 5b) in higher 

 DSI revenue and commensurate decreases in priority firm customer 

 revenues . 



The hearing officer in the Bonneville case disallowed the NCAC 

 testimony on the grounds that the IP-PF Rate Link precluded 

 reconsideration of the components of the Link until 1996, and 

 that Bonneville had given no notice to the parties (including the 

 DSIs) that the IP-PF Rate Link would be reexamined in the 1993 

 proceeding. 



Thus, the issue was dismissed on procedural, legal grounds. As a 

 result, there was no substantive revaluation of DSI reserves in 

 the 1993 rate case. 



We raise it here — in the context of Congressional testimony — 

 because we want to call your attention to the large amounts of 

 money at stake and the specific legal requirements in Section 

 7(c)(3) of the Northwest Power Act that state that the 

 Administrator "shall adjust" the value of DSI reserves in its 

 rates. 



We submit that freezing these variables is fundamentally at odds 

 with the notion of adjusting the values and keeping them up to 

 date. 



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