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revival of the partnership of the early 1980's, in combination with the financing capability of 

 its utility customers, could make Bonneville an effective conservation purchaser again. 



Rilling Credits 



BPA has been effective in purchasing generation resources through billing credits. 

 They have given their customers an avenue to develop resources, enabling them to offset 

 BPA purchases. 



Administratively, the process has become more refined. For instance, BPA has 

 waived detailed scrutinizing of costs for very small projects. Alternative costs have been 

 revised and the public process is taken into consideration. 



As a result, EWEB has successfully secured billing credit contracts for a baclq>ressure 

 turbine at our steam plant, the Smith Creek hydroelectric facility, and the Newberry 

 geothennal project. 



BPA could fiirther simplify its billing credit process by accepting a "standard offer" 

 format for small resources and by assuring its customers of their billing credit eligibility at 

 the front end of the process so the utility has confidence there is a market for its resource. 



Negative billing credits remain an issue. When the wholesale power rate (which 

 continues to go up) exceeds the alternative cost of the resource, the utility must pay 

 Bonneville the difference imtil the end of the contract period. A utility can find itself in the 

 position of paying for the negative credit so far into the future that the benefits of developing 

 the resource are negated. BPA should take additional steps to eliminate this disincentive for 

 resource development. 



74-346 0-93-8 



