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different payment mechanisms - such as lost-revenue recovery payments - to 

 acquire end-use customer conservation in slow- or no-growth service areas. 



The second element of our strategy says to target programs and activities on markets with 

 the greatest conservation potential. The regional Conservatio n Monitor calls it "probing for 

 strategic efSciencies." We call it making the most of limited conservation resources. 



Today, that market is the commercial and industrial sector, particularly in high-growth 

 areas. 



Targeting markets with the greatest potential does not just mean capturing short term 

 energy savings. We also need to design and run programs in those markets where we 

 can leam more about conservation costs and savings; those markets where we can apply 

 promising technologies and test workable financing and delivery schemes. These markets 

 will help us find promising new niches and identify successful strategies. 



It is also important to emphasize that targeting markets is a dynamic process: market 

 opportunities and niches change. Right now, we have a great deal to leam about 

 acquiring conservation in business and industry. 



I don't believe the cookie-cutter i^iproach weVe used for residential programs will apply 

 here. We need custom-designed incentives for large commercial and industrial 

 customers and targeted industry programs. We need to look for technologies that save 

 energy and minimize waste at the same time. We could try new incentives for 

 equipment replacement And we should continue efforts to upgrade commercial building 

 codes. 



Our third element encourages Bonneville to build on a well-known and highly valued 

 strength: the ability to be a catalyst for common, coordinated, regional actions. 



No other entity in the region has the capability of transforming markets like Boimeville. 

 With Bonneville support, what was once "high tech" energy efficiency has become 

 commoi^lace. Transformed markets mean users install the most efficient measures on 

 their own and special programs and incentives are no longer needed. 



Without Bonneville, we would not be building the most energy efficient manufactured 

 homes in the nation. Nor do I think Oregon and Washington building energy codes 



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