398 



In a broadei- sense, there are many ofhex factors that could determine the nature of 

 Bonneville-Califomia utilities power exchange. These would include the following: 

 1) Whether Bonneville has the legal or institutional authority to base in-region, v^iolesale 

 power rates on inter-regional marginal cost prices, and 2) vtliether this rate-making approach 

 could be based on sound utility economics for resource planning aiui acquisition, or 3) 

 nlietber inter-sector equity is being acknowledged, given that the inigation load has not 

 required Bonneville to acquire new resources in over a decade and is anticipated to decline 

 further in the future. N.LU. has a fundamental interest in ttiese issues. However, the focus of 

 this letter is to respond to your inquiry, rather than providing position statements on expanded 

 topics. 



Rq>resQitative DePazio, thank you for the opportunity to testify on September 2Sth on behalf 

 of N.LU. and for considering these additional points. NJ.U. wiH be e]q>loring issues raised in 

 the hearing as well as share our observations and finding; as we work with Bonneville in the 



months ahoari 



As a special note, I am pleased to advise you that Northwest Irrigation Utilities has a new 

 Executive Director, John Saven, as of mid-October. John has an extensive background in 

 Northwest public power issues and will be representing the collective iiiterest of NJ.U. 



Sincerely, 



Don Clayhold 



N.LU. Board Representative 



DConl 



cc: Members of The House Natural Resources Committee Bonneville Task Force 

 Senator Mark Hatfield 

 Congressman Tom Foley 

 Congressman Robert F. Smith 

 Congressman Jay Inslee 

 Congressman Norman Dicks 



Bonneville Power Administration, Randal W. Hardy, Administrator 

 Northwest Irrigation Utilities Board of Directors 



