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If we stray, it will be in the execution of planning - a failure to achieve, at a minim ii m , 

 the conservation identified in Bonneville, utility, and regional least-cost plans. 



Frankly, I believe that's where we're headed. 



My concerns for acquiring least cost conservation mirror my concerns about our long-run 

 course for acquiring all cost-effective renewable resources and for protecting our 

 fisheries. Due to time limits, I will not address these issues. I will focus on what we see 

 as four key elements of an "electricity efficiency" strategy for Bonneville and the region. 

 These elements will help us achieve the realistic goals set forth in our plans. 



This efficiency strategy is grounded in Bonneville's new competitive thrust - an effort I 

 strongly commend. It is built on the marketing approach used by successful businesses. 

 Unless Bonneville adopts market- and end-user customer-driven strategies and provides a 

 sustained commitment to these strategies, I believe we will not meet our long-term 

 targets. 



We begin by asking "What is required to achieve all cost-effective conservation at the 

 lowest cost?" But we don't ask that question just of Bonneville. We ask that question of 

 all partners in the region who deliver or have the potential to deliver cost-effective 

 conservation. This question causes us to look beyond our individual missions and outside 

 of our current responsibilities to leverage partners' strengths and make the most of our 

 collective potential 



Our electricity efficiency strategy builds on a cooperative effort necessary to reach our 

 goals. It recognizes the many potential partners in the energy industry. It recognizes the 

 needs of end-user customers. It addresses the strengths and weaknesses of product 

 delivery systems and the effects of pricing strategies. And the strategy recommends some 

 critical changes that, if implemented, will help us achieve our conservation goals. 



These are the four elements we see as essential to meeting our long-term targets: 



1. Establish wholesale tiered power rates and create other incentives for local 

 utilities to pursue conservatioiL 



2. Target the markets with the greatest conservation potential 



