16S 



Question 2 In fiscal year 1993, what projected costs will have the greatest impact on 

 BPA's revenue situation in percentage terms: 1) the lower world price of 

 aluminum, 2) decreased snowpack and drought, 3) closing the Trojan nuclear 

 plant, or 4) increased flows for fish. 



^swer: 



Of the four impact areas identified, decreased snowpack and drought have had 

 the greatest impact on net revenues in fiscal year 1993. 



The drought impact will exceed $200 million while the impact of low 

 worldwide aluminum prices will exceed $60 million. The impact of increased 

 flows for fish will affect Bonneville in the $120 million to $140 million range 

 Closure of the Trojan Nuclear Plant had a positive impact of about $20 million 

 on BPA's revenues This is a result of budget savings for Trojan operators and 

 maintenance, plus reduced residential exchange costs which offset additional 

 purchase pouer purchase costs 



Assuming net revenues of approximately $2 billion, the drought would result in 

 a decrease of about 7 percent, aluminum price impacts are about 2 percent, 

 increased flows for fish reflecting about 4 to 4.5 percent, and closure of Trojan 

 Nuclear Plant offsetting these decreases by about 5 percent 



