317 



Ms. Jo Ann Scott 

 March 10, 1993 

 Page 3 



BonncNille's position, in the opinion of the Canby Utility Board, ignores the mandate of section 

 7(c)(3) of the Pacific Northwest Electric Planning and Conservation Act, which stales: "The 

 Administrator shall adjust such rates to take into account the value of power system reserves 

 made available to the Administrator through his rights to interrupt or curtail service to such direct 

 ser\'ice industrial customers." 



We interpret this language strictly, as we believe a coun would do: Bonneville needs to adjust 

 the value of reserves to match the current conditions. The changes that we seek are significant, 

 as the two tables in Appendix A of this letter show. (The tables were submitted by the 

 Northwest Conser\'ation Act Coalition as part of its testimony on Bonneville reserve issues.) 



We do not ask that the Bonneville open up the entire IP-PF Rate Link for review; we are not 

 asking that you revise all the assumptions and formulas, but rather that you adjust the existing 

 values to account for the changes listed above. 



The savings to preference customers, including the Canby Utility Board, will be substantial. We 

 therefore urge Bonneville to undertake this evaluation as soon as possible. 



Sincerely, 



CANBY UTILITY BOARD 



Dirk Borges, ^ 



Manager 



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