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compatible with the regional electric system. BPA must spread the benefits 

 and the costs of resources zunong all of its customers through its rates. 



The supply preference amd resulting price advantage to co-ops 8md 

 publicly- owned utilities by Federal law was protected and enhanced. BPA 

 was given the responsibility of meeting the full future requirements of 

 preference customers - something BPA was not previously authorized to 

 do. 



Residential and farm customers of investor- owned utilities received rate 

 relief. The utilities sell to Bonneville, at the average cost of their power, an 

 amount of electric energy equEil to their residential and farm loads. 

 Bonneville sells to them, in return, enough energy at BPA standard rates to 

 cover these residential and farm loads. The rate advantsiges cannot 

 enhance company profits, but must be passed on directly to the customers. 



Direct service industries received new 20-year contracts for power from 

 BPA but at a higher price than they paid under previous contracts. In 

 effect, they pay the cost of rate relief to residential and small farm 

 customers of investor-ownaed utilities during the first four years, and a 

 substantial portion thereeifter. which they agreed to do in exchemge for 

 assurances of long-term supplies. 



BPA sells electricity at a rate that reflects the melded cost of Federal 

 hydropower and more expensive thermal resources, conservation, and 

 renewable sources of energy. The Act contains incentives, as well, to 

 encourage conservation and renewables. BPA may credit utilities for their 

 individual actions to implement conservation and renewables. 



The Council established a program to protect and enhemce the fisheries 

 resources of the Colvunbia River amd to mitigate damage adready done to 

 anadromous fish. Funding for the program is to come from BPA rate 

 revenue. 



All planning for electric resources and fish protection must involve the 

 public. State and local control of land use and water rights is protected 

 under the Act and the decision to allow construction of new resources is 

 left with utilities and state siting authorities. 



The Council must provide a method for balancing environmental protection 

 and the energy needs of the region. For each new energy resource, tlie 

 provisions of the National Environmented Policy Act must be complied with. 



'VBREBOOKVHISIDRYJXX; 



