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We understand that a future hearing will focus entirely on Bonneville's competitiveness 

 However, the 10- Year Power and Resources Plan, that is now being developed, must be 

 understood in the context of the competitive environment Our plan is to become more 

 market -driven, customer-focused, cost-conscious, and results-oriented While recognizing 

 our unique social responsibilities as a Federal agency, we will apply sound business 

 principles to good government. 



To achieve this, we are first looking at ways to become more efficient. We will seek out 

 greater efficiencies in existing processes and programs. We will look for added value from 

 new products and services. And, we are eliminating activities no longer needed 



We've heard our customers and seen the changes needed, so we are serious about moving 

 to a more businesslike posture. It is in this context that I would like to address our most 

 recent accomplishments and challenges in resource acquisition. 



Bonneville's Priority Firm Rate is Competitive 



I wish to take this opportunity to clarify the costs of acquiring new energy resources. 



Recently, there has been much debate about the costs of new resources. After having 

 reviewed over 15,000 megawatts of resource proposals in the last 2 years, we understand 

 the market and are purchasing the resources that represent best value for our customers. 

 When comparing the 20-year projection of the costs of the most competitive new 

 generation resource - a generic gas-fired combustion turbine - with our 20-year rate 

 projections, it's clear that Bonneville rates have a substantial advantage 



