206 



• PPC is supporting the "conceptual" agreement that occurred 

 during recent rate settlement discussions . Through that decision 

 PPC agreed to work with BPA staff to reduce administrative costs. 

 BPA customers recommend that, in light of the current financial 

 crisis, BPA hold its costs to 1992 actual levels. 



• Expenditure levels may need to be reduced much further, but it is 

 most important that BPA's expenditures should support the BPA 

 mission . 



This mission includes: 



firm electric power and capacity; 

 transmission services; 



exchange coordination and backup services; 

 economy and replacement energy; and 

 fulfill its fish and wildlife responsibilities. 



REVENUES 



(p.2,Q3) 



It is my understanding that certain BPA customer utilities have advanced a 

 proposal to increase BPA's short-term cash flows by paying their BPA 

 obligations earlier than they presently do. Please describe the benefits that 

 might accrue to BPA if this approach was adopted. Does BPA plan to 

 implement this proposal? 



BPA's customers have proposed a voluntary prompt bill payment 

 program whereby, upon notification by BPA. the utilities would pay 

 their power bills upon receipt of the bill from BPA. instead of at the end 

 of the period during which the bill may be paid . Also, some investor- 

 owned utilities participating in the Residential Exchange Program would 

 agree to receive their Exchange payments at the end of the period in which 

 they may receive these payments. This cash flow modification would assist 

 BPA in meeting its U.S. Treasury payments and other payments in years 

 when BPA's working capital declines below levels needed to make these 

 payments while maintaining adequate cash balances. 



