148 



to implement the regional policy in the public interest and they 

 certainly have no reason to think theyll be heros if they do get the 

 job done. 



It is entirely within our power to fix this problem and you've 

 taken a very important first step in that direction by convening 

 this task force. To your tremendous credit, you have identified the 

 extraordinary pressures that are mounting on the regional energy 

 system before they have mushroomed into a disaster, as they did 

 in the 1970s. 



We still have time to look at these pressures as an opportunity 

 to realize the energy policy goals that we set forth in 1980. You've 

 put this effort firmly on the right track by asking questions, both 

 in your written questions and today, that go straight to the heart 

 of the pertinent issues, and I want to respond briefly now to those 

 questions. 



You asked for an assessment of Bonneville and the Council's per- 

 formance in their respective energy resource acquisition roles. 

 Frankly, as Ralph said, I think it will be surprising if you hear any 

 absolutely glowing appraisals today. 



In response, you might conclude that we need a radically dif- 

 ferent approach and I'd urge you to remain open to that conclusion, 

 but not to leap to it too quickly. No one is more deeply finistrated 

 with the pace of conservation efforts today than we are. But as 

 we've suggested, flaws in the mechanism may not be the big prob- 

 lem. 



The more formidable obstacle, I think, is the lack of determina- 

 tion to deliver results. Frankly, we don't know yet how well these 

 mechanisms can work, because in a very real sense, they have not 

 yet been tried. 



We are acutely aware of the problems with the existing mecha- 

 nisms and we're ready and eager to discuss new approaches. But 

 while we're having that discussion, I w£int to send out a note of 

 caution. Some of those who challenge the existing model are focus- 

 ing exclusively on short-term rates. 



We submit that competitiveness, and I know well get to this in 

 the next hearing, does not mean minimizing todays rates if doing 

 so dramatically increases tomorrow's costs. Any reform proposal 

 worthy of your serious consideration must have as its primary goal 

 the long-nui economic and environmental well-being of the region. 



With that as background, I want to briefly address your ques- 

 tions about Bonneville's current resource acquisition efforts. First, 

 you asked whether Bonneville is on track to meet the Council's 

 goals. We've already had a good deal of discussion about what, in 

 fact, the Council's goals are and it's clear that you're keeping your 

 eye on the Council's goals, not Bonneville's interpretation of those 

 goals. 



The 10-year Council target of 1,500 megawatts of conservation 

 amounts to about 8 percent of regional electric consumption over 

 the next decade, and as Ralph indicated, we're not on that pace yet. 

 We've presented evidence to the Council suggesting that twice that 

 much conservation is cost-effective and available with today^s tech- 

 nology. 



The utility's own research arm estimates that about a third of 

 our electric consumption or 4 times the Coimcil's target could be 



