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and have recognized the difTiculties faced by small utilities operating in low-density 

 rural areas. 



The principle weaknesses as we see it are: 



1. There is too much emphasis on establishing elaborate processes and not enough 

 attention given to actions identifying consumers' needs and acquiring the necessary 

 resources. 



2. The BPA organization lacks experience in resource acquisition. It is a "leam-as-you- 

 go" program. An experienced utility manager with demonstrated resource acquisition 

 capabilities would be appropriate. 



3. The environmental externalities developed by BPA are unreasonable and not really 

 quantifiable. They drive the cost of conventional resources higher thus justifying 

 higher and higher cost conservation with its disproportionate rate impacts. Even 

 though coal provides roughly 65% of the electricity in this nation, and nuclear about 

 22%, such new resources are not allowed in the Northwest. 



The near term budget cuts being made by BPA are long overdue. They should not interfere 

 with BPA's acquisition of the conservation included in the Power Plan. BPA must be 

 assertive to recover from a "bad trip" during the last ten years. 



BPA should return to a management style w^iere individuals are responsible for results and 

 are willing to put their reputation on the line to make decisions. The work groups, 

 committees, task forces, etc., are nice from a social standpoint but they do not bring results in 

 a timely, efficient manner. An astute person once told me, "Never send two people to do the 

 job that one person can easily do." BPA should heed this advice. 



/B. The Council's strengths related to acquiring resources are: 



1. Its legal mandate to prepare a Regional Power Plan with full public involvement. 



The Council's weaknesses are: 



1. Losing sight of the goal set forth in the Act to achieve an adequate, economical 

 supply of power. 



2. Ability to represent the Northwest governors to control the economy to the extent 

 affected by power supply adequacy and costs. 



3. Lack of staff and members with a background of planning to meet loads of utilities. 



4. Certain members of the Council have been publicly cynical about the utilities' 

 concerns regarding rate impacts. This is disappointing. The Council gradually has 

 lost its credibility with most of BPA's customers or utility organizations. Virtually no 



