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developed by utilities that are not customers of Bonneville, those 

 sites and the value of those sites goes elsewhere and are not made 

 available to the Bonneville system. 



CARES helps address that by engaging PUDs in the development 

 of those resources. And you get a diversity of type, size and geo- 

 graphic location of resources. 



Bonneville's role in promoting third-party resource development 

 and financing mechanisms, like CARES, has been significant. 

 CARES and similar JOAs can overcome some of the weaknesses in 

 Bonneville's conservation acquisitions efforts, which the pubUc 

 Power Council has described. According to PPC, Bonneville efforts 

 suffer from, and this won't be new to this panel, as you've already 

 heard many of these things earlier, impredictable and changing re- 

 quirements, changing budget levels, burdensome oversight and re- 

 view requirements. 



Utilities fi-equently have difficultly reaching agreements with 

 Bonneville and innovative approaches to conservation and renew- 

 able resources can often be discouraged. In fairness, many of these 

 weaknesses stem from the fact that Bonneville is a Federal agency 

 with cumbersome reporting and accountability requirements. 



Some of these requirements can be avoided by shifting develop- 

 ment, financing and acquisition efforts to JOAs, such as CARES. 

 Bonneville's support for CARES is indicative that it recognizes 

 these weaknesses and the role which JOAs can play in overcoming 

 them. 



Here's what CARES is doing currently. CARES is currently nego- 

 tiating two major projects with Bonneville and we expect to have 

 these contracts finalized in October. One is a 27 average megawatt 

 conservation acquisition project. About 40 percent of the conserva- 

 tion will be acquired through residential weatherization, energy ef- 

 ficient showerhead and water heater programs, and 30 percent 

 through commercial programs. The remaining 30 percent of the en- 

 ergy savings will be acquired through industrial and irrigation effi- 

 ciency programs. 



The other major project of CARES is a wind energy project lo- 

 cated near Goldendale, Washington. CARES will finance and own 

 the project and sell its output to Bonneville under a capacity con- 

 tract. The 25-megawatt capacity project consists of 91 advanced de- 

 sign wind turbines and will produce 7.4 average megawatts of elec- 

 tricity. 



With some trepidation, I'd add that I've got some figures on the 

 cost of that resource that may be of interest, since it came up ear- 

 lier. That's a 43 mill resource and with the 15 mill incentive pay- 

 ment, which we hope that Congress will fiind, it makes that a 23 

 mill average levelized resource. So it's a very valuable and competi- 

 tive resource. 



In conclusion, we believe CARES is a significant model for future 

 resource development by Bonneville's public customers, consistent 

 with the priorities given to conservation £ind renewables in the 

 Northwest Power Planning and Conservation Act. 



As Bonneville moves away from operating conservation £uid other 

 resource programs itself and begins promoting conservation and re- 

 source acquisition by customers through tiered rates and other in- 



