245 



The second point deals with regional diversity. The member utilities of the public 

 power community represent a diverse set of business viewpoints and operating environ- 

 ments. Some utilities are located where natural gas is not even available. Others are in 

 direct competition with natural gas or dual-fuel utilities. Many find themselves in ex- 

 tremely competitive environments with no access to bulk power suppliers other than 

 BPA. Despite this diversity, public power has spoken with a united voice regarding the 

 regional fuel choice policy. We continue to believe that fuel choice issues are best ad- 

 dressed at the local level. The limited availability of natural gas on a regional basis it- 

 self speaks for a policy that is local in its focus and implementation. 



In my opinion the continued use of Super Good Cents incentives in arezis where natural 

 gas is available can be viewed as a marketing tool, but frankly if any program requires 

 an monetary incentive it is apparently not meeting the cost effectiveness of the competi- 

 tion. In summary, there are many unanswered questions regarding the use of natural 

 gas. We believe that the most effective solutions will arise as a result of local rather 

 than regional initiatives, this is another area where tiered rates will allow for a local 

 decision without BPA incentives. 



Question #6 relates to the role of the Council in resource acquisition and goes to 

 whether the council has adequately exercised its responsibilities under the Act. The 

 question goes on to ask about the strengths and weaknesses of the Council's activities. 



The question evokes two responses. First, the Councils ultimate value to the region in 

 power planning is that it calculates the cost of planning and operating as a Region ver- 

 sus on an individual, utility-by-utility basis. The world envisioned by the Act, with 

 Bonneville acquiring resources for everyone, including the investor-owned utilities, is 

 very different from the worid we now have. Although it is unlikely that we will ex- 

 perience "single utility" planning and operation any time soon, it is still valuable to es- 

 timate the costs of pursuing that course. In addition, the Council brings an element of 

 public involvement that helps to make all utility resource decisions more acceptable. 

 Finally, the resource cost estimates done by the Council help to provide a benchmark 

 against which all resource decision can be judged. 



