352 



take place, and there will be more minds on the job. The coordina- 

 tion agreement, or some successor, will still be in place. Resources, 

 including both conservation £ind generation, that are cost effective 

 will be acquired more flexibly with decentralized decision-making 

 without the loss of coordination while BPA provides open-access 

 transmission. 



Integrated resource planning and least-cost planning must be- 

 come common utility practice. 



It is essential that transmission services, BPA's premier product, 

 continue to be offered at a regionally, cost-competitive level. It is 

 also critical to the success of the region for BPA to provide open 

 access to these transmission services with a sensitivity toward re- 

 gional preference. 



With regard to the DSIs, it is clear that they are not preference 

 customers. SUB believes that the DSIs should pay no less than a 

 comparable industrial customer of utilities. Any new contracts with 

 them should include significant notice requirements for load elimi- 

 nation or reduction and a market sensitive method for calculation 

 of the VOR. Our understanding of the current situation with re- 

 gard to the VOR is included in our written comments. 



In conclusion, the directors of the Springfield Utility Board be- 

 lieve that a competitive, cost-effective BPA providing open-access 

 transmission and load-shaping services is the next logical step in 

 Bonneville's development. We believe the following steps are need- 

 ed to accomplish that: 



Prompt reductions in staffing levels to achieve cost control. 



Immediate shift from the "command-and-control" model to a BPA 

 funded utility implemented conservation for transition period to 

 end no later than October 1, 1997. 



Implementation of tiered rates in the 1995 rate case. 



Undertake an immediate effort to establish a cost accounting sys- 

 tem as a prerequisite to unbundling products and services. 



And legislatively mandated least-cost planning and integrated re- 

 source planning. 



SUB believes that these first steps, supplemented with power 

 sales agreements that increase accountability, will effectively begin 

 the transition to the 21st century. 



Thank you. 



[Prepared statement of Mr. Kittredge follows:] 



