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utilities should be able to purchase 'Conservation Services' 

 from BPA for a fully allocated price (average millage per 

 sector program) . The utility would pay a nominal millage 

 either a) in the first year only (reflecting the estimated 

 conservation value over the life of the resource) , or b) 

 annually, over the length of conservation resource life. In 

 exchange for this fee, BPA would deliver conservation 

 services via an ESCO to the utility. The utility (or other 

 utilities) could bid on a competitive basis to provide ESCO 

 services . 



a) Existing BPA Conservation Contracts should be included 

 in Tifer 1 expenses. All new commitments should be 

 resource acquisition purchases under competitive bids on 

 par with generation resources, in accordance with 

 priorities of the Act (10% selection priority) . 

 Utilities would sell conservation to the Region, as firm 

 commitments for new load are placed on BPA. 



b) No further regionalization of conservation acquisitions. 

 If utilities wish for BPA to fund conservation, at the 

 region's expense, they must be willing to surrender an 

 equivalent portion of their Tier 1 allocation (BPA is 

 then free to market this allocation to the highest 

 bidder for the life of the conservation to cover the 

 costs of conservation offered - no negative impact to 

 other Tier 1 purchasers) . 



Major NW utilities are requesting a Transition Funding 

 Period (current through complete implementation of 

 Tiered Rates - FY97) that would allow BPA to continue 

 current funding for Conservation so that these utilities 

 who have staffed up can bridge the gap from regionalized 

 to individual conservation funding. 



c) BPA should allow an active conservation market; 

 encourage regional stability in conservation efforts and 

 markets; enable utilities to have the ability to control 

 conservation programs, their costs and risks; honor 

 contracts as firm commitments. 



SPRINGFIELD UTILITY BOARD PAGE 7 SEPT. 25, 1993 



