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fonnat, (c) assure tiered rates will not be put off in the future because of the 

 complexity of the 1995 rate case, and (d) perform necessary Environmental 

 Impact Statement work. NCAC specifically proposed for settlement purposes 

 only that (a) a formal study group be formed to consider tiered rate proposals, 

 (b) a final report be issued in early 1994, (c) the tiered rates proposals inform and 

 affect rate principles in the power sales contract negotiations, and (d) BPA hold 

 a separate 7(i) on tiered rates, possibly in 1994. Additional time will be spent by 

 the rate case parties prior to commencement of cross-examination (May 10) to 

 determine if a workable settlement can be fashioned along the lines suggested by 

 NCAC. BPA staff is currently evaluating what a realistic timetable is for a 

 separate tiered rates process, including formal study groups and a tiered rates 

 7(i) hearing. The Administrator is desirous that a separate 7(i) on tiered rates be 

 commenced and concluded in FY 1994. 



