239 



the local utilities is reduced in the case of conservation resource ac- 

 quisition. Thus, the local utility must raise its retail rates. 



Other conservation practiced from a federal level, such as the 

 CRP conservation reserve program in the rural farming commu- 

 nities has reduced those sales, those rates have gone up. 



I would suggest that Bonneville has only looked at one aspect of 

 conservation. To further gain my support, I believe that Bonneville 

 and the Council should clearly look at the load factor or the capac- 

 ity or demand side of the program and inducing or fostering more 

 efficient use of energy, and with the approach of the salmon and 

 the endangered species. As we see our capacity diminish, the value 

 of capacity could be worth more. 



Those kinds of efforts would cause me to be very supportive of 

 conservation programs where now I have certain reservations. 



In resting, part of the suggestion is that I can reduce the need 

 for future capacity acquisitions, either by BPA or the utilities. I ap- 

 preciate the time and thank you, Mr. Chairman. 



[Prepared statement of Mr. Tracy follows:] 



