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Presently, we do not know how much specific areas will be cut, especially from 

 our fish and wildlife, resource acquisition, and transmission programs. However, 

 I can assure you that across the board, we are taking a very close look and will 

 be taking immediate actions. We will deliver final program decisions in June. 



There are, however, limits to our ability to make significant cost reductions. 

 Approximately 85 percent of our budget is either fixed costs or is controlled by 

 entities other than Bonneville, or purely weather driven. 



In identifying potential cost-cutting opportunities, we will continue to work closely 

 with our customers, the Northwest Power Planning Council, and other regional 

 parties. We would welcome the Task Force's input into establishing priorities for 

 our cost-cutting activities. 



PROGRAMS IN PERSPECTIVE 



I want to take this opportunity to point out that Bonneville goes to great lengths 

 to assure that its programs, which are ratepayer funded, serve Northwest 

 interests. In 1987, we established Programs in Perspective to involve 

 Bonneville's stakeholders in the agency's strategic directions and specific 

 program planning. This annual process creates a forum for determining the 

 priorities for spending regional ratepayer dollars. 



