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Responses to Congressman DeFazio's Questions by Letter of May 25, 1993 

 Bonneville Power Administration (BPA) Task Force 



QUESTIONS FROM CONGRESSMAN DEFAZIO 



Question 1 During the hearing, we discussed the reasons you chose not to call for 

 voluntary curtailment earlier this year. You stated that a contractual 

 agreement between BPA and its customers would require BPA to reimburse its 

 customers for any revenues lost during a period of voluntary curtailment. 

 Please provide the Task Force with copies of the contract provisions requiring 

 such reimbursement and the statutory basis for those provisions. In particular, 

 I would like to know how such a contractual agreement is consistent with the 

 Northwest Power Act's mandate to promote conservation and the efficient use 

 of energy. 



"Conservation" and "curtailment" measures attempt to balance loads and 

 resources by cutting loads rather than building new resources. They do so, 

 however, in very different ways. 



"Conservation" is defined in the Northwest Power Act as "any reduction in 

 electric power consumption as a result of increases in the efficiency of energy- 

 use, production, or distribution" (Section 3.(3), P.L. 96-501, emphasis added). 

 Conservation is intended to be long-term and dependable, making resources 

 available for service to other customers. It assumes the same jobs can be done, 

 or the same comforts enjoyed, but with a reduced use of electricity. 



In the Regional Curtailment Plan for Electric Energy (Portland; Northwest 

 Power Pool, 1992), the term "curtailment," as defined in accordance with 

 standard utility practice during a protracted electric energy shortage is: "load 

 reduction, irrespective of the means by which that reduction is achieved." 

 (Section III.D). Curtailment is brought on by unexpected near-term or mid- 

 term loss of a major resource, or loss of a major transmission facility which 



