326 



DE-mS79-S1BP9D343 



Department of Energy 



Bonneville Power Administration office of the ai>umistratdr 



P.O. Box 3621 

 Portland, Oregon 97208 



PCI 



Mr\ B. D. Cocknell 

 Aluflvlnum Company of America 

 150l\lcoa Building 

 PittsbVgh, PA 15219 



Mr. B. D.^ocknell 

 Northwest Alloys, Inc. 

 Aluminum Company of America 

 1501 Alcoa Building 

 Pittsburgh, PA \5219 



1r.\c 



Dear Mr. ^cknell: 



In response to your request to be offered the power sales contract under the 

 Pacific Northwest Electric Power Planning and Conservation Act, this written 

 offer is sent to you for your consideration. 



The enclosed four copies of the initial long-term power sales contracts are 

 the result of the negotiation process just completed. Please note that the 

 Bonneville Power Administrator has already signed this contract. The signed 

 contract constitutes a firm offer as required by the Regional Act. Your 

 Company has one year from the date it receives this offer to accept it by 

 signing and returning the contract to Bonneville. 



Bonneville is aware that the Industrial Purchasers do not necessarily agree 

 with Bonneville on the existence or the extent of Bonneville's right to 

 displace all or any of its available resources in a manner that would reduce 

 the availability of power for service to the first quartile of the Industrial 

 Purchasers' load. It is not Bonneville's intent to resolve this disagreement 

 in the attached contract. Rather, as indicated in section 7(c) of the 

 attached contract, Bonneville's displacement actions are to be undertaken only 

 subject to Boiuieville's legal rights, legal obligations, and policies 

 concerning displacement. When such policies are developed, the Industrial 

 Purchasers will have the opportunity to participate in the policy development 

 and, if dissatisfied by the result, to contest it. By executing the attached 

 contract, no Industrial Purchaser will waive any right or claim with respect 

 to this issue. 



This contract is the initial contract that Bonneville is required to offer 

 each Industrial Purchaser pursuant to sections 5(d)(1)(B) and 5(g) of the 

 Regional Act. As you know, the Act contemplates in section 5(d)(1)(B) 

 additional, future contracts with each existing Industrial Purchaser, but 



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