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EXHIBIT 1 



History of Irrisatioa Discount 



Between 1942 and 1979 BPA offered discounted rates to public utilities for their irrigation 

 loads. In the summer, when the availability of surplus power was large and its market small, 

 discounted rates built load and increased sales. Discounts for irrigation loads were phased out 

 over a five-year period starting in 1974 with the completion of storage projects in the upper 

 Columbia and development of markets for surplus power. Discounted rates have been in 

 effect again since 19SS due to the poor economic conditions in the farm sector. 



