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irrigation management. NIU has executed two contracts with BPA to 

 carry out these activities. * 



Another aspect of this effort is the BPA "Exhibit H" 

 contract with its irrigation utility customers. The Exhibit H 

 contract provides that irrigation utilities will provide irrigation 

 management services (water use efficiency) to their irrigation 

 customers. Under Exhibit H NIU has assumed the role of "joint 

 action contractor" to implement BPA's Irrigation Management Program 

 ("IMP") and Northwest Irrigation Network ("NIN") programs under 

 BPA's "Waterwise Exhibit H" contract with its utility customers. 

 Under this program, NIU delivers water management services to 

 irrigated farmers for NIU members. 



Finally, NIU proposed a "baseline study" to identify 

 additional opportunities for energy and water conservation 

 activities which NIU and other groups could undertake with 

 irrigators and other water user organizations. Implementation of 

 a "baseline study" was deferred by BPA because of a bid protest by 

 the Columbia Basin Institute, an environmental group. 



While these energy and water conservation efforts are in 

 their initial phase, NIU believes that irrigators can provide 

 significant value to BPA through these programs. This will provide 

 value and benefits to BPA and an additional cost justification for 

 retention of the irrigation discount or its equivalent. If BPA 

 desires, NIU will continue to be actively involved in expanding and 

 marketing agricultural energy and water programs. We are anxious 

 to continue to work with BPA to identify and implement energy and 

 water conservation opportunities. 



VI. Conclusion. Mr. Chairman, NIU appreciates your interest in 

 the future of BPA and many important issues confronting the agency 

 today. We especially appreciate the opportunity to express our 

 views to the Committee on the future of BPA and, in particular, of 

 the irrigation discount rate. 



This testimony is not intended to be a definitive discussion 

 on the irrigation discount. Given the uncertainty about the future 

 of BPA rate design and marketing programs, there will be many 

 additional discussions with BPA and other customers about the 

 irrigation discount and other features of BPA's rate design. 



We believe that the "Competitiveness Project" is a worthwhile 

 undertaking for BPA and the region, even though we may ultimately 

 disagree with specific proposals or actions which come out of it. 



BPA/NIU technical assistance contracts include: the Irrigation Conservation Technical Assistance 

 Prograa II ("ICTAP II") and the Irrigation Nanegeraent Inplenentation Assistance program ("IHIA"). 



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