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unwilling to pay this value-based amount for conservation and other demand-side acquisitions 

 even through the competitive bidding process or billing credits for demand-side resources. 

 The first and only round of competitive bids closed in June of 1991 . BPA received 

 over 1,500 MW of proposals for a 300 MW request. Although BPA has signed for a natural 

 gas turbine for over 200 MW, EWEB hasn't bad one contract negotiation session for our 

 under 1 MW residential conservation bid, mr have we received a contract offer for our 

 under 1 MW industrial conservation bid. 



Rilling Credit-; 



BPA's first billing credit solicitation was a test for about SO MW. A few small 

 conservation projects made it to the contract signing stage, however the majority of the 

 contracts were awarded for generation projects. EWEB withdrew five conservation proposals 

 due to low alternative costs, negative billing credits, and the high cost of verification 

 requirements. These three factors have proved to be substantial obstacles to establishing 

 viable conservation acquisition programs. 



BPA's second billing credit solicitation is for 200 MW. Revisions were made to the 

 billing credit guidelines, however they were focused toward generation acquisition. This may 

 e;q)lain why, of the 14 proposals submitted for about 250 aMW, only two are for 

 conservation and they account for under 1 MW. 



In practice, Bonneville is spending an inordinate amount of time developing and 

 administering acquisition contracts. Bonneville does not differentiate the amount of oversight 

 involved with a 1 MW demand-side residential bid or a 220 MW combined cycle combustion 



