205 

 Responses to DeFazio's Questions 



OPERATIONS 



(p.2,Q6) 



Has an independent entity conducted a top to bottom review of the efficiency 



of BPA operations? If not, does BPA intend to initiate such an independent 



review? 



• The customers welcome the op portunity for an objective and 

 independent review of BPA operations . 



• The Programs in Perspective (PIP) process was initiall v designed 

 to provide increased involvement in BPA*s decisi on making. Its 



incremental review is, however, imlikely to produce the coherent 

 agency-wide review that mechanisms like the Customer Review Group 

 (CRG) can. 



(p.2,Q7) 



BPA has announced that cuts will occur in the administrative budget, 

 including employee training, travel, supplies and support services. What 

 level of reductions will you take from current levels in these and other 

 administrative areas? What cuts will be taken in FY 94 and FY 95 from 

 budgeted levels? 



• PPC believes that cuts in BPA*s administra tive costs, a s well as its 

 other costs, are necessary for BPA t o rpmain a competitive power 

 su pplier . 



• We believe that BPA*s utilitv and industry customers can help 

 BPA to deal with its current financial situation . BPA's customers 

 have faced similar financial difficulties in managing their own 

 operations and have reduced their costs to remain competitive. 

 Because they have faced these difficult issues themselves, the 

 customers are uniquely positioned to assist BPA in making decisions 

 about the kinds and amounts of any cuts. 



- 1- 



