286 



And peaking is a very complex thing because not only do you 

 have to have the machine capacity to meet the actual peak load at 

 the instant it hits there, you have to have enough energy to go with 

 it to cover the whole shape of the peak, however broad it is. And 

 we are really losing that flexibility on our hydro system very rap- 

 idly. It's going to be a much bigger problem much sooner than we 

 had ever imagined. 



Mr. DeFazio. Okay. Thank you very much. We'll let you go so 

 you can go get your plane. Appreciate your time. So back to Panel 

 IV and we'll first go to Jack Wright. 



STATEMENT OF JACK WRIGHT 



Mr. Wright. Mr. Chairman, thank you for inviting Proven Alter- 

 natives to be with this session. My name is Jack Wright. I'm the 

 Area Manager for the Northwest Office of Proven Alternatives. 

 We're a nationwide firm that has an established record in success- 

 ful energy conservation and load management projects, with the ac- 

 quisition of Puget Energy Services last year. 



We expanded our base of experience as a partner in conservation 

 in this region since the mid-1980s. We have worked with over a 

 dozen utilities to implement demand side management programs. 

 Our projects are located throughout the United States and include 

 the continuous operation of projects under Bonneville Power Ad- 

 ministration's energy savings program. 



We have provided a broad spectrum of energy management serv- 

 ices to both investor-owned utilities and municipal utilities and 

 have been involved in a wide variety of projects in the commercial, 

 industrial and institutional sectors. The company operates nation- 

 ally with a small headquarters staff, six area offices, and a project 

 financing arm. Proven Alternatives Capital Corporation. 



I appreciate the opportiuiity to provide you with a perspective 

 from the service provider's vantage of these region's status in ac- 

 quiring conservation, as well as the potential for partnerships that 

 can effectively move the region closer to its conservation acquisition 

 target. 



In responding to the various questions. Question 1, regarding 

 BPA's strengths and weaknesses, and, in particular, is the BPA 

 conservation program acquiring all cost-effective efficiency, we 

 think that Bonneville should be commended for its leadership in 

 laying a solid foundation and a fi*amework for the development and 

 acquisition of conservation. 



Bonneville has set an example for electric utihties across the 

 country. We need only look at what Bonneville has accomplished 

 in the way of promoting conservation. In the last decade, Bonne- 

 ville has out-spent some of the most aggressive utilities in the na- 

 tion by two-to-one. The fact that the agency has spent a total of 

 $1.2 biUion on conservation and has acquired 330 average 

 megawatts of conservation in the last decade is a strong reminder 

 of this agencj^s ability to make a long-term commitment to re- 

 sources recognized as the region's resource of first choice; at least 

 we think it should be. 



While BPA has concentrated a majority of its efforts in acquiring 

 conservation in the residential sector, we believe that the oppor- 

 tunity for the greatest savings exists in the commercial, institu- 



