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Please describe the experiences your utility has had with the BPA resource acquisition 

 process. What type of projects or acquisitions have gone best/worst? 



Answer 8: 



Our experience over the past 10 years clearly indicates a problem exists. A solution to 

 this problem is not another overiay of statutes and regulations. In a dynamic 

 environment characterized by rapid change and the introduction of market forces, reform 

 cannot be achieved by directives or statutes. The solution is reforming how BPA and 

 their customers conduct business. 



The following changes are recommended: 



• Focus BPA on activities it does best, running the river to optimize existing Federal 

 resources and operating the regional transmission system. 



• Expose BPA to market forces by allocating to existing customers the current power 

 supply at cost and supplying load growth at the actual cost of new resources. 



• Reduce BPA's role in areas where it has been unsuccessful: resource development and 

 acquisition. 



• Stimulate resource development by customers by providing them an allocation of 

 existing Federal power at cost and exposing them to marginal costs for load growth. 

 Also require BPA to provide generation services at a competitive rate. 



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