25 



• Cutting ofTice supply purchases; 



• Limiting use of support service contracts; and 



• Reducing temporary and on-site contractor employment 



Second, we are examining reductions in our programs in fiscal years 1994 and 

 1995 ranging from 5 to 25 percent. The principal program areas affected would 

 be transmission system development, operations and maintenance, energy 

 resources (both conservation and generation), and fish and wildlife. 



While we have not made any final decision, I have given Bonneville staff two 

 guidelines. First, seek to reduce levels of program increases or flatten out these 

 programs, but do not look for absolute reductions from fiscal year 1992 program 

 levels. In a word, "cut, but do not gut" our principal programs. Second, try to 

 achieve rough equity among our four major program areas. 



Finally, we have already initiated efforts to terminate Washington Public Power 

 Supply System Nuclear Plants 1 and 3. These plants are currently mothballed at 

 an annual cost of roughly $10 million. Savings from their termination can 

 probably start to be realized in fiscal year 1995. in addition to preservation cost 

 savings, it is prudent to terminate these plants because their 40 mill cost to 

 complete is substantially above the acquisition cost of plentiful conservation and 

 gas-fired resources in the Northwest. 



