181 



They have a contract. It extends through 2001 when all the con- 

 tracts expire, and it sets up essentially a framework where Inter- 

 nationcd Paper can bring in individual projects and shorten tre- 

 mendously the administrative time of getting those accepted and 

 adopted. 



Right now they are busily installing their first one megawatt effi- 

 ciency project. That one megawatt project is made up of 11 dif- 

 ferent energy conservation measures. The whole process, compared 

 to other conservation resources, is very inexpensive. It's in the 12- 

 to-15 mill per kilowatt range, real leveUzed, and there's a tremen- 

 dous administrative savings, as well. 



Once you have this framework contract set up, then we're deal- 

 ing with the area office. We're dealing essentially with one or two 

 people that have a long-term relationship with this mill and under- 

 stand it. So you don't go through the process of retraining, getting 

 people up to speed. It certainly shortens and reduces the adminis- 

 trative cost of acquiring this type of industrial conservation. So 

 we're very enthusiastic about that. 



We hear Bonneville saying we're going to make this shift from 

 the spending on residential weatherization, specifically, to more 

 spending on commercial and industrial. 



That's slow in coming. I follow the budgets very closely, espe- 

 cially in the Lower Columbia Area Office, and it's still a 4-to-l, 5- 

 to-1 type of ratio. Nothing wrong with residential weatherization at 

 all. It's a matter of trying to manage the money most efficiently. 

 To us, that means you go for the stuff that is cheap. You go for the 

 least expensive. 



A lot of residential weatherization has been funded because it is 

 politically probably the correct thing to do. Those people vote. In- 

 dustries don't vote. We are well awsire of that. We funded through 

 our rates, obviously, a tremendous amount of residential weather- 

 ization. 



But if you're going to treat it like a resource, then let's get on 

 with it and treat it like a resource. You would think that you would 

 definitely acquire a large box. The/re fairly easy to administer and 

 fairly inexpensive, first. 



Thank you. 



[Prepared statement of Mr. Canon follows:] 



