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sponsors, and believe that the role of renewable resources will continue to grow in 

 Bonneville's resource mix. 



Our efforts to meet regional load growth also include some recent generating resource 

 acquisitions. Through a competitive process, we received many high quality proposals of 

 which we were only able to accept a few at the top of the evaluations. In May, Bonneville 

 determined that the proposal to acquire the output of up to 240 average megawatts of firm 

 energy fi-om Tenaska Washington n, a combined cycle combustion turbine located near 

 Tacoma, Washington, was consistent with the Power Plan of the Northwest Power 

 Planning Council (Council). This is significant because it is the first major resource 

 proposed to be acquired under the Pacific Northwest Electric Power Planning and 

 Conservation Act (Northwest Power Act) since the industrial Conservation/Modernization 

 proposal in 1986, and it is the first time Bonneville has applied its policy on environmental 

 costs when acquiring a new resource. After taking into account all the system integration 

 costs and benefits, I am convinced that our decision will bring a valuable resource to the 

 region, and one which is consistent with the Council's 1991 Power Plan objectives. The 

 Council will make its consistency determination by the end of July. 



Fuel choice is another area we are pursuing. As discussed in our 1992 Resource Program, 

 we are reviewing existing programs and policies for unintended or undesirable fiiel choice 

 effects, and are working with customers to revise our programs where such effects are 

 found. We also agreed to provide financial assistance for customer-initiated projects that 

 would demonstrate potential benefits from fuel switching and provide information to guide 

 future fuel choice policies. We are also working with regional natural gas utilities, 

 manufacturers, and others to develop a natural gas option in our Manufactured Housing 

 Acquisition Program. 



