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and reducing advertising costs In addition, we are all working together to reduce 

 the administrative costs of verification and increase the efficiency in record keeping 

 and reporting of savings. Utilities and Bonneville alike are looking for ways to 

 reduce staffing expenses to lower the overhead cost of designing and managing 

 programs. These emergency short-term cuts will be overtaken by the steady 

 ramping up of programs. 



Question 2: Should BPA proceed with the proposed contract for the output of the Tenaska 



natural gas combustion turbine? If so, why? If not, why not? BPA has agreed to 

 maintain the confidentiality of certain escalator clauses in the proposed Tenaska 

 contract. Was this confidentiality agreement appropriate'' Does BPA have the 

 authority as a federal agency to comply with such an agreement? If so, please cite 

 the relevant statutory authority. 



Because of the confidentiality of certain escalator clauses, there is disagreement 

 regarding the long-term costs of the power fi-om the Tenaska project. Please give 

 your assessment of these long-term costs. 



Answer: Bonneville is proceeding with an evaluation of the proposed contract for acquiring 



the output of Tenaska Washington II. That evaluation includes Bonneville's 

 completion of its review pursuant to section 6(c) of the Northwest Power Act and 

 completion of the Environmental Impact Statement (EIS). On May 28, 1993, 

 Bonneville issued a record of decision containing Bonneville's determinations 

 required under section 6(c) of the Northwest Power Act. In that decision, 

 Bonneville found that the proposed acquisition of up to 240 average megawatts 

 from Tenaska Washington II is consistent with the Council's Power Plan because it 

 substantially achieves the goals of the Council's 1991 Power Plan. We found that 

 the resource will be needed, is cost-effective, reliable, risk-resistant, and 

 environmentally sound. These criteria are consistent with the criteria set forth on 

 August 17, 1992, by the Northwest Power Planning Council for a resource not 



