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Potential Budget Savings 



Representative DeFazio, the Chair of the Task Force, has 

 submitted a series of questions regarding the proposed FY 1994 

 Budget for BPA's response prior to the hearing. The purpose of 

 these questions (copy attached) is to identify potential areas 

 where BPA can produce budget savings and efficiencies. BPA's 

 responses will be provided to your office as soon as they are 

 received. 



What follows is a summary of the major budget issues raised 

 in the questions submitted by Representative DeFazio: 



Personnel : 



Some BPA customers have suggested that BPA could operate 

 more efficiently, and at a lower cost, with fewer personnel. 

 The proposed FY 1994 Budget allocates 3,483 FTE positions to 

 BPA. This FTE number does not include contractor or 

 temporary FTE, overtime, holiday and seasonal workers. 



Contractor Expenses: 



Like most federal agencies, BPA spends a significant euBount 

 on outside contractors. 



Washington Public Power Supply System (WPPSS) ; 



BPA reimburses WPPSS for the expense of operating the WNP-2 

 nuclear power plant and the "mothballing" expenses for the 

 incomplete WNP-1 and WNP-3 plants. BPA recently announced 

 its intent to terminate mothballing of WNP 1-3. Critics of 

 WNP-2 operations claim that the plant's operating expenses 

 are considerably higher than the nuclear industry average 

 and that BPA should exercise stricter oversight over WNP-2 

 expenditures . 



Consttrvation ; 



According to the Northwest Power Planning Council, BPA has 

 not been aggressive in reducing the administrative costs of 

 its conservation programs. Many BPA . customers complain that 

 the BPA process for approving and implementing conservation 

 programs is cumbersome and bureaucratic and that local 

 utilities with independent programs are able to achieve 

 conservation savings cheaper than BPA. Finally, BPA's 

 conservation efforts have focused primarily on the 

 residential sector even though less expensive conservation 

 opportunities exist in the commercial and industrial 

 sectors . 



