321 



CANBY UTILITY BOARD 



154 N.W FIRST AVENUE • P.O. BOX 1070 • CANBV. OREGON 97013 



PHONE (503. 266-1 '55 



FAX (503) 263-8621 



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July 23. 1993 



Mr. Randall Hardy, Administrator 



Routing: A 



Bonneville Pov^-er Administration 



P. O. Box 3621 



Portland, OR 97208 



Dear Mr. Hardy: 



The Canby Utility Board was pleased to have participated in the June 23 meeting with Walt 

 Pollock and others at Bonneville to discuss DSI Second Quanile restriction rights and related 

 issues. 



According to our consultant, Dan Seligman, who participated in the meeting on our behalf, 

 Bonneville stated that Section 12 of the existing DSI power sales contracts requires it to offer 

 new agreements to all DSIs. 



Section 12 provides: "If the Purchaser (DSI) desires service from Bonneville beyond the term 

 of this contract, the Purchaser shall request a new power sales contract not later than the end of 

 the 12th Contract Year. Bonneville shall not be obligated to offer the Purchaser a new power 

 sales contract because of any request, but shall promptly proceed to attempt to acquire sufficient 

 resources to enable it to grant such requests." (Emphasis added). 



The next sentences go on to describe what happens if, as a result of this request, Bonneville 

 acquires sufficient resources. But the remaining ponion of Section 12 is conditional - it 

 describes what happens if the DSIs request that Bonneville expend funds on their behalf for new 

 resources. 



It is difficult for us to understand how a sentence that says Bonneville is not obligated to offer 

 new contracts to the DSIs could be construed to say that Bonneville is obligated. 



This is not a matter of legal quibbling on our part. If Bonneville assumes at the outset that it 

 is obligated to offer new agreements to the DSIs, Bonneville compromises its own bargaining 

 power. 



Put another way, the DSI load is discretionary after 2(X)1, and it is the DSIs' burden to 

 demonstrate why they should remain direct customers of Bonneville and what they have to offer 



B - 1 



