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The agency's major objective is the acquisition of energy resources which are "least 

 cost" economically and envirorunentally for the Northwest. CARES' mission to 

 develop conservation, renewable and high-efficiency energy projects is consistent 

 with the mandates of the Pacific Northwest Electric Power Planning and 

 Conservation Act. Another CARES gocil is to spread the economic benefits of energy 

 resource development across the state by funding projects in rural counties. One of 

 the most significant benefits CARES provides to Bonneville and the region is its 

 function as a third party fincmdng mechanism. CARES will be able to finance 

 projects at a lower cost through use of tJix exempt bonds, helping reduce BPA 

 resource acquisition costs and treasury borrowing. 



In Oregon, an effort is underway to organize an agency similar to CARES. Oregon 

 Municipal Electric Utilities (OMEU) has received financial assistance from BPA to 

 create a joint conservation financing organization. The municipal utilities involved 

 would use their joint revenue bonding authority to develop conservation resources 

 for acquisition by BPA. The joint financing approach will enable small municipal 

 utilities in Oregon to work with BPA to acquire conservation at a lower cost to the 

 region and to insure the stable level of funding necessary to meet local and regional 

 conservation target... Utilities currently exploring this approach include the 

 Springfield Utility Board, City of Ashland, City of Milton-Freewater, City of Forest 

 Grove, City of Bandon, City of Monmouth, and the Canby Utility Board. 



Barriers to PUD Resource Acquisition 



The need for CARES grew out of the recognition that significant barriers were 

 preventing PUDs from participating in Boimeville conservation and resource 

 acquisition programs, and from developing their own energy resources. 



During the 1980's, with the exception of the Super Good Cents program, only a 

 handful of the Washington PUDs were participating in Bonneville-designed 

 conservation programs. For the most part, utilities failed to participate because of 

 constraints they faced, not because of lack of interest. 



These barriers to participation were, and are, many. They stem from weaknesses in 

 Bonneville conservation programs, but also in a large measure from the nature of 

 PUDs and other public utilities. These utilit)' barriers include the following: 



