184 



a viable and predictable business partner. We believe that it 

 also leads to extra program overhead costs. BPA must focus on 

 conservation programs that are simple to understand and operate 

 and that acquire the greatest amounts of conservation for the 

 funds spent. In many cases, this may mean concentrating on a 

 limited number of highly productive and cost effective programs. 



We are encouraged by such an effort in the industrial 

 sector. For a number of years, BPA has had a industrial 

 conservation program known as the Energy Savings Plan (ESP) . ESP 

 was a good start as an industrial conservation program, but it 

 was a one-size-fits-all program. Several years ago, BPA's Lower 

 Columbia Area office developed the Major Plants Program. The 

 area office determined that the vast majority of the industrial 

 conservation opportunity existed in thirteen large plants. The 

 Major Plants Program allowed BPA personnel the flexibility to 

 take a long-term, comprehensive view of industrial conservation 

 with these thirteen plants. This differed from the project by 

 project approach taken under ESP. Today, BPA has negotiated one 

 Major Plants contract with an industry on the south Oregon coast. 

 A one megawatt efficiency project is now underway, and three 

 other projects are under consideration. The one megawatt project 

 consists of 11 different energy conservation measures. The cost 

 is 15-16 mills/kWh (real levelized) . 



The advantages of such a program are readily apparent. It 

 is focused - which reduces both BPA's and the industry's 

 administrative overhead. All efficiencies are measured before 

 and after the project to ensure that BPA's funds are acquiring 

 real savings. It has been a very positive experience for the 

 industry. This has led to the desire to find additional 

 efficiency opportunities at this plant site. It is also a low 

 cost resource for BPA. 



Unfortunately, BPA's funds for this type of program in the 

 1994/1995 time frame are limited due to BPA's commitment of 

 conservation funding to other higher-cost conservation programs. 



TENASKA 



While we would prefer to see gas-fired thermal generation 

 come in the form of industrial cogeneration, we recognize the 

 advantages to BPA of having a low capital cost/ high operating 

 cost resource that can be operated in conjunction with hydro 

 system. This is part of the resource diversity that is important 

 to the region. 



We also recognize the desire of the resource developer to 

 keep certain competitive aspects of the acquisition contract 

 confidential. BPA should disclose as much information as 

 possible, without interfering with the justified competitive 



