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As competitive pressures mount, Bonneville conservation acquisitions face increasing 

 scrutiny. We have participated in several benchmaricing studies to obtain an understanding 

 of our comparative efficiency and effectiveness in acquiring conservation. One of these 

 studies has been widely quoted as finding Bonneville's FY 1992 cost of conservation to be 

 60 percent higher than another regional utility. Bonneville staff found that this study only 

 took into account the capacity value (kilowatts) of the conservation. When figures were 

 adjusted to account for the high energy value (kilowatthours) of Bonneville's conservation, 

 our costs in 1992 were about 10-15 percent higher than our counterpart. 



While our conclusion from these comparisons is that Bonneville is in "the middle of the 

 pack" in terms of our conservation competitiveness, we do not see this as cause for 

 celebration. Bonneville aims to be among the most competitive of all utilities and as such, 

 we are actively pursuing the many opportunities to work with customers to lower costs 

 and achieve savings. Consistent with our Competitiveness Project, we are examining new 

 delivery mechanisms such as tiered rates, energy service charges, and other innovative 

 concepts. 



Generation Projects are Actively Underway 



Every 2 years, Bonneville reviews its resource needs in a Resource Program, now entitled 

 the 10- Year Power and Resources Plan. At the heart of these Plans are our conservation 

 efforts. As the need for resources, in addition to conservation, became foreseeable at the 

 end of the 1980s, Bonneville began to pursue generation acquisition as well. 



In the 1990 Resource Program, we proposed to test several mechanisms for resource 

 acquisitions: billing credits, resource contingency options, competitive acquisitions, and 

 geothermal and wind demonstration programs. The Billing Credits Program is a 



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