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characteristics. Two substantial values are dispatchability and displaceability - largely 

 because of increasing constraints on the hydro system Proposals for gas-fired combustion 

 turbines have demonstrated the greatest flexibility to displace and dispatch resource 

 operations, offering the best match with hydro. So in addition to offering competitive 

 prices, combustion turbines offer hydro-firming benefits. 



While much of our attention is focused on today's resources, such as conservation and gas 

 fired combustion-turbines, the agency remains committed to pursuing longer-term 

 alternatives as well 



Renewable resources such as wind and geothermal may play an important part in the 

 region's future energy portfolio. These resources are receiving a boost fi-om our regional 

 effort to expand the supply of reliable, cost-effective power. We are working jointly with 

 utilities and power agencies to help move promising technologies to market more quickly 



We are also working with our two federal agency partners, the Bureau of Reclamation and 

 the Army Corps of Engineers, to implement Section 2406 of the Energy Policy Act of 

 1992 which authorizes Bonneville to provide direct funding for additions, improvements 

 and replacements at Corps and Bureau projects. Bonneville has a Memorandum of 

 Agreement (MO A) with the Bureau on this subject and has completed, and plan to sign, 

 sub-agreements to cover specific funding requirements at Grand Coulee and Minidoka to 

 replace worn out and malfunctioning equipment. These investments will increase system 

 reliability and add cost-effective generation to the Federal Columbia River Power system. 



Bonneville has far more experience in acquiring conservation than in acquiring generating 

 resources. However, the last two or three years have provided invaluable experience. 

 While Bonneville is confident that the resources we have purchased are extremely 

 competitive and best meet our system needs, we also acknowledge that our processes 



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