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The conservation programs now employ about 400 FTE and consume 

 as much as 30% of the program budgets. Beginning the transition to 

 utility-funded conservation envisioned under SUB's tiered rates 

 proposal immediately would increase conservation acquisition and 

 reduce costs. SUB estimates that 40 FTE could remain at EPA to 

 audit the use of the Federal funds, insuring compliance during the 

 transition. 



Elimination of the Area Offices is another major step BPA 

 should take immediately. These offices are generally redundant and 

 retard progress. PacifiCorp, an lOU serving 7 states, including 

 Oregon, has no analogous administrative level and, as a result, is 

 moving far ahead of BPA in its conservation programs. 



We know from our own experience that the process is neither 

 pleasant nor painless but it is taking place, of necessity, at 

 businesses across the nation. General Motors, IBM and, our own 

 success regional story, Nike are making substantial staff 

 reductions in order to be more competitive and cost effective. 



If its customers are to be competitive in the world 

 marketplace of today, the same must take place at BPA. 



If BPA is to remain a competitive service provider, it must 

 move quickly to reduce its cost of doing business. 



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