203 



that cost twice the market price of alternative resources? Additionally, BPA refuses to 

 disapprove the WPPSS Plant 1 / 3 budgets to force a decision to terminate these plants. 

 They continue to study the legal and economic conditions, despite clear inability to 

 complete the plants. 



Question 4: 



Is BPA an effective indirect purchaser of regional resources through third-party 

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



Answer 4: 



BPA's efforts to indirectly acquire resources through third-party financing have been 

 even less successful. BPA has taken the area of third-party financing where initiative and 

 creativity are the keys, and crushed it with an overburden of bureaucratic detail. 



A classic example is the Financing Agreement proposed by BPA for all conservation 

 projects with third-party financing. In this agreement, BPA demanded unilateral approval 

 of the customers bond issues, financial adviser, bond counsel and refinancing activities. 

 Such intrusion into the business of the customers has stymied third-party financing of 

 conservation. The results of this approach are: 



CiCORJlESNlEFAZIOJLS 



