184 



Finally, BPA is currently conducting negotiations with several utilities for "third 

 party financing' arrangements. Under this concept, the utility would issue bonds to 

 finance the conservation activity in their utility service territory. This would allow 

 BPA to avoid having to borrow from the U.S. Treasury for that activity, and it 

 would provide lower-cost financing since public utilities would be able to utilize 

 their tax-exempt status. Since these arrangements would provide funding for at 

 least two years of conservation activity, for the utility it would provide a degree of 

 budget certainly and stability that does not currently exist through BPA's 

 traditional budgeting process. 



Answer e: BPA's 1 993 Resource Program calls for aggressive acquisition of both 



generation and conservation resources over the next 10 years in order to meet 

 the needs of our customers Our analysis show that over the next 10 years, 

 available cost-effective conservation will be inadequate to meet these needs, and 

 will require development of generation resources. Generation resources take a 

 substantive time to develop and by planning now, we can meet these needs 

 Generation resource acquisition projects now under way will have no significant 

 impact on FY 1993 through 1995 rates 



