196 



For that to occur, we, as utilities, must not only receive the prop- 

 er price sign^, but also the burdensome overhead of Bonneville 

 must be reduced or eliminated. 



In our dynamic world, characterized by rapid change and intro- 

 duction of market forces, necessary change and reform at Bonne- 

 ville cannot be achieved by directives, oversight or statutes. 



We believe that Bonneville must fundamentally change how it 

 and its customers conduct business and we've proposed some of the 

 following. We should focus Bonneville on activities it does best — 

 running the river and operating the regional transmission system. 

 Expose BPA to market forces by allocating to the existing cus- 

 tomers the current power supply at cost and supply load growth at 

 the actual cost of those new resources; in other words, unmeld the 

 cost of BPA power. 



Reduce BPA's role in areas where it has been unsuccessful, such 

 as resource development and acquisition. Stimulate the resource 

 development that's necessary— have it be done by the customers by 

 providing them, as proposed above, the allocation and exposing 

 them to the marginally priced resources for load growth. 



Require that BPA provide generation services at a competitive 

 rate. Provide some degree of cost certainty by inserting an inde- 

 pendent decision-maker into the Bonneville rate-setting process. Fi- 

 nally, provide a menu of services and future power sales contracts. 



BPA could also reduce their administrative costs and unneces- 

 sary programs, like the irrigation discounts, research and develop- 

 ment and the low density discount. 



If and when implemented, we beheve these changes would result 

 in a more efficient market-driven and responsive BPA that would 

 act in an economically rational manner to the benefit of the people 

 of the northwest. 



Thank you again for this opportunity to share our thoughts and 

 comments. 



[Prepared statement of Ms. Van Dyke follows:] 



