324 



Department of Energy 



Bonneville Pov/e' Aarmnistranoi' 



P.O Box 362- 



Portland. Oreyon 97206-362 



AP 



August 16, 1993 RECEIVED AUG 1 7 19S3 



Mr. Kermit Scaroorough, Chairman 

 Canby Utility Board 

 P.O. Box 1070 

 Canby, Oregon 97013 



Dear Mr. Scarborough: 



Randy Hardy has asked me to respond to 

 your letter, you asked that Bonneville 

 DSIs [Direct Service Industries] as a 

 understand, based on your position tha 

 2001, you believe it should be "the OS 

 should remain direct customers of Bonn 

 region." You also asked that we recon 

 12 of the DSI contract, which discusse 

 contracts for service following termin 

 contracts (these are commonly referred 



your letter dated July 23, 1993. In 

 Power Administration (BPA) "treat the 

 discretionary load after 2001". I 

 t the DSI load is discretionary after 

 Is' burden to demonstrate why they 

 eville and what they have to offer the 

 sider BPA's position regarding section 

 s BPA's obligations with respect to 

 atlon of their current power sales 

 to as the "follow-on" contracts). 



Section 12 provides that 

 the current power sales 

 specific date (this date 

 "Bonneville shall not be 

 contract because of any 

 acquire sufficient resou 

 contract provision oblig 

 making a reasonable and 

 view of this contractual 

 merely a "discretionary 



if a DSI wants service from BPA beyond the term of 

 contract, the DSI must request that service by a 



was recently extended by BPA). It also provides that 



obligated to offer the Purchaser a new power sales 

 request, but shall promptly proceed to attempt to 

 rces to enable it to grant such request." This 

 ates Bonneville to attempt to provide service, by 

 good faith effort to acquire sufficient resources. In 



obligation, it cannot be said that the DSIs are 

 load" after 2001. 



The original transmittal le 

 contract (copy attached) di 

 "[w]e hope you will find se 

 some of the concerns that h 

 of your need for future, as 

 also states that "BonnevlU 

 nonpreference customers, in 

 largely dependent upon Bonn 

 these Initial contracts are 

 that BPA has an obligation 

 DSIs. 



tter attached to the DSIs 

 scusses section 12, and I 

 ctlon 12 of the attached 

 ave been expressed as to 



well as Immediate, power 

 e's ability to offer any 

 eluding the Industrial Pu 

 eville achieving firm loa 



in effect." This letter 

 to attempt to provide fol 



' current power sales 

 ncludes the statement that 

 contract responsive to 

 Bonneville's recognition 



planning certainty." It 

 future contracts to its 

 rchasers. Is therefore 

 d/resource balance while 



corroborates the fact 

 low-on services to the 



