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BPA's strengths in resource acquisition center on its ability to "regionalize" the cost 

 of new resources. This is especially impoitant in the areas of regionwide conservation 

 (commercial buildings, etc.), acquisition of major resources (greater than 50 MW), and in the 

 research, development and demonstration arena. 



BPA's greatest weaknesses are a product of its bureaucratic structure. For instance, 

 the agency's recent program efforts in the area of conservation have been laden with an 

 arduous administrative process. Lines of authority over who makes decisions are unclear, 

 thus confusing and discouraging the applicant. This has resulted in an unacceptably slow 

 pace for acquiring conservation. 



There also seems to be the mistaken belief by the agency that it assiunes program 

 risks and costs when, in fact, the risks and attendant costs for those risks are allocated 

 throughout the region. Consequently, EPA treats conservation as a "program" which they 

 administer, rather than a resource for acquisition by the region's utilities. The implications 

 of this have been that EPA is excessively cautious in its conservation acquisition practices as 

 compared to acquiring generation resources. 



Conservation 



Eonneville has a history of performing well in acquiring conservation resources. 

 Starting in 1982, with their regionwide conservation programs operated through their 

 customer utilities, Bonneville accomplished an impressive startup of conservation acquisition. 

 Over the last 10 years they have acquired over 300 MW through their customers. However, 

 in recent years something has changed. Bonneville is much more risk-adverse than ever 

 before. This preoccupation with identifying the possible risks and assigning them to others. 



