32 



Some selection criteria are applied to all resources under consideration. For 

 example, all resources must meet a cost-effectiveness test, and all resources are 

 required to represent a mature technology and to be reliable and available. Other 

 criteria are applied consistently within generating and conservation resource types, 

 but vary between resource types. For example, conservation receives a 10 percent 

 price preference as required by the Northwest Power Act; the environmental costs 

 of conservation are presumed to be zero; and conservation projects are required to 

 propose verification plans to assure reliability of savings. 



Our most recent pilot eflFort, the Resource Contingency Program, was open only to 

 generating resource proposals. This program, initiated in 1992 and currently in 

 negotiations, solicited 800 megawatts of option resources. By agreeing to pay 

 preconstruction and investigation costs, Bonneville is securing options to acquire 

 generating resources in the future. Through the Resource Contingency Program, 

 we are testing the viability of the options concept proposed by the Northwest 

 Power Planning Council. All of the successful bidders offered gas-fired combined 

 cycle combustion turbines or gas-fired cogeneration. The program will be 

 evaluated both in terms of cost — whether options can be a part of a least-cost 

 strategy ~ and effectiveness ~ whether an option can be secured, held, and 

 exercised successfully. 



Through these pilot projects we are refining and streamlining our acquisition 

 approaches. We are making revisions both to apply selection criteria more 

 consistently across resources and to tailor processes to meet specific resource 

 acquisition objectives. 



