98 



Our biggest concern, however, is that administrative procedures, requirements, and 

 demands are too similar for the different resources. Again, use what works. We seek 

 acquisition policies of proven effectiveness for the gamut of resources, from conservation, 

 to small renewables power plants, to 400-megawatt natural gas-fired combustion turbines. 

 That means different procedures, requirements, and demands. High transaction costs — 

 extensive paperwork, protracted negotiations, lengthy decision-making, and detailed 

 reporting, among others — can break many worthy conservation and renewable resource 

 projects. 



4. Is BPA an effective indirect purchaser of regional resources tliroug^ third-party 

 financing, billing credits, conservation power plants, and other indirect means? 



In some instances it has been. Examples include: 1) Billing credits, although not perfect, 

 spur the development of some innovative projects. For example, the Emerald People's 

 Utility District just completed a biogas plant and plans to expand it soon. The plant 

 bums methane from the Short Mountain landfill near Eugene. 2) Partnerships extend 

 Bonneville's limited resources. For example, Bonneville and the Eugene Water and 

 Electric Board plan in build a 30-megawatt power plant on the Newbeny Volcano in 

 central Oregon. 3) Bonneville can serve as a regional catalyst For example, Bonneville 

 worked with the Power Council, Northwest utilities, the manufactured home industry, 

 state energy offices, and others to design the manufactured home acquisition program. 

 Now the Northwest builds the most energy-efficient manufactured homes in the nation. 



On balance, however, we see more opportunities for indirect Bonneville purchases of 

 regional resources through a variety of means: establishing pricing mechanisms that 

 encourage customer conservation; underwriting "conservation power plants" and utility 

 resource development consortiums; supporting utility resource financing, particularly by 

 larger utilities; seeking joint utility, private, and government funding of projects; 

 encouraging unsolicited proposals by any service provider; and seeking out all 

 opportunities to work with others to transform markets. 



