206 



proper price signal, but the burdensome overhead of the Bonneville Power 

 Administration must be reduced or eliminated from the process. Merely identifying the 

 resources that must be acquired by a noncompetitive BPA will not be of service to the 

 region. 



Question 7: 



Has BPA adequately accounted for the environmental externalities associated with various 

 energy sources in its resource acquisition process? If not, what specific issues should 

 BPA revisit? 



Answer 7: 



BPA has struggled with the difficult question of determining an appropriate cost for 

 environmental externalities. However, the most recent decision in the Tenaska project 

 of one mill to account for environmental costs is not accurate and certainly not 

 reasonable. 



Question 8: 



C.'<t>IUl£SP\DErAZK)JLS 



10 



