261 



5. It is my understanding that at the most recent "Programs 

 In Perspective" BPA engineers agreed that in certain cases 

 local utilities can design and construct power lines below 

 500 .kv more cost-effectively than BPA. Is this an accurate 

 statement? If so, how much money could be saved from FY 

 1994 to FY 1998 if BPA turned this responsibility over to 

 the local utilities? Are there other areas relating to 

 transmission that BPA could transfer work to local utilities 

 to achieve more cost-effective results? 



6. 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? 



7. BPA has announced that cuts will occur in the 

 administrative budget, including employee training, travel, 

 supplies and support services. VRiat 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? 



Revenues 



1. An estimate of the amount of revenues foregone per fiscal 

 year since the irrigation discount was implemented in 1984, 

 and an estimate of the revenue increase per year from FY 

 1994 to FY 1998 if it is eliminated. Is there any statutory 

 basis for the irrigation discount? 



2. An estimate of the amount of revenues foregone per fiscal 

 year since the low-density discount was implemented, the 

 revenue increase per year from FY 1994 to FY 1998 if the 

 discount is eliminated, and an estimate of the revenue 

 increase, if any. If the discount is modified in accordance 

 with the proposal submitted by the Northwest Conservation 

 Act Coalition. 



3. 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? 



4. An estimate of the effect on revenues in FY 1994 and 

 annually thereafter if BPA sold 1350 megawatts of Third AC 

 capacity to participants instead of the 725 megawatts of 

 capacity BPA currently plans to sell. 



