90 



16 



resolution in rate hearings conducted pursuant to section 7(i) of the Northwest 

 Power Act. Please refer to the explanation (Enclosure 1) at the end of this 

 document. 



Question 3 ; It is my understanding that certain BP A customer utilities have advanced a 



proposal to increase BPA's short-term cash flows by paying their BPA 

 obligations earlier than they presently do. Please describe the benefits that 

 might accrue to BPA if this approach was adopted Does BPA plan to 

 implement this proposal? 



Answer: BPA regrets that it must refrain from addressing this question due to the 



prohibition on ex parte communications that applies to issues pending 

 resolution in rate hearings conducted pursuant to section 7(i) of the Northwest 

 Power Act. Please refer to the explanation (Enclosure 1) at the end of this 

 document 



While ex parte restrictions prevent BPA from discussing this specific proposal, 

 the agency has lowered its level of working capital (which this proposal was 

 designed to address) from $100 million to SSO million in its initial rate case 

 proposal. It is possible that this level may be lowered further, with associated 

 rate savings, as the rate case progresses This lower level of working capital 

 might result from adopting a form of the customer prompt payment suggestion, 

 or from other financial approaches. 



Question 4; An estimate of the effect on revenues in FY 1994 and annually thereafter if 



BPA sold 1350 megawatts of Third AC capacity to participants instead of 

 the 725 megawatts of capacity BPA currently plans to sell. 



Answer: BPA regrets that it must refi'ain fi'om addressing this question due to the 



prohibition on ex parte communications that applies to issues pending 



