108 



34 



by the overall economics of a resource proposal such that the net benefits are 

 greater to BPA than borrowing fi-om the Treasury. Priority is given to tax- 

 exempt third-party sources. Implementation of third-party financing will 

 reduce pressure on BPA's Treasury borrowing cap and, to the extent that tax- 

 exempt sources are used, help minimize interest costs. It is important to note 

 that implementing third-party financing is complex due to stnicturing, legal, 

 and tax considerations. Tax-exempt third-party financing is particularly 

 complicated due to IRS regulations. 



Question 4: Please provide projections of net borrowing authority use fi-om FY 94 to FY 



2000. When will your current borrowing authority for transmission and 

 conservation be fiilly utilized? 



Answer: The following table outlines the status of BPA's borrowing authority usage 



from FY 1994 to FY 2000. 



According to current projections, the borrowing authority for the transmission 

 system and fish & wildlife investments will be fiilly obligated in FY 1996. The 

 borrowing authority for conservation and renewable resources will be fiilly 

 obligated in FY 1999. It is likely these borrowing trends will change 

 measurably as a resuh of present cost reduction efforts. 



FY 1994 FY 1995 FY 199« FY 1997 FY 1998 FY 1999 FY 2000 



Question 5 : Please provide the bill and report language that authorized the three separate 



increments of borrowing authority totaling $3.75 billion. Also provide any 

 BPA documents that clarify what type of capital investments each increment of 

 borrowing authority can be used for. 



