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substantial share of this resource, we are particularly concerned that the agency give 

 high priority to conservation acquisition. 



Botmeville has several significant strengths regarding resource acquisition. With 

 respect to efficiency resources, Bonneville represents a significant market for efficiency 

 products and services. This market potential should be large enough to allow 

 Bonneville to bring about market transformations that reduce the cost of efficiency 

 materials and services, particularly if it acts in concert with the region's investor-owned 

 utilities. TTie outstanding example of success in this regard is the Manufactiired 

 Housing Acquisition Program. By concentrating the market power of the region's 

 utilities and dealing directly with the manufactiirers, Bonneville was able to secure 

 cost-effective improvements in the efficiency of manufactured housing at a significantly 

 lower price than would otherwise have been the case. 



Unfortunately, Bonneville has not made as much progress in pursuing similar 

 opportunities. For example, the Council's plan calls on Bonneville to secure energy 

 savings from retail chains and franchises that have existing or are building new facilities 

 throughout the region. Only one pilot acquisition project of this nature has been 

 authorized for this year. 



Another strength is Bonneville's ability to integrate resources with the regional 

 power system. For example, power storage, shaping, transmission and other services 

 that Bonneville provides can make it possible to more effectively utilize intermittent 

 resources such as wind. 



A third strength is Bonneville's ability to spread the cost and risk of resource 

 development relatively broadly across the region. This ability will be particularly 

 important if we are successful in developing even modest amounts of new renewable 

 resources that are perceived as somewhat riskier than more conventional resources. 



But we have two specific concerns about Bonneville's ability to acquire cost- 

 effective resources in a timely manner. 



First, Bonneville is a large, bureaucratic organization. Its processes are 

 cumbersome; decision-making is relatively slow. As an organization, Bonneville 

 avoids risk. Bonneville's procurement procedures cause delays and additional costs in 

 delivering conservation. The size of Bonneville's staff adds considerable overhead to 

 conservation programs. 



