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3. Retention of broad-based public support for Bormeville; 



4. Retention of renewable generating resources for the Bonneville 

 system; and 



5. Diversification of types, size, and geographic location of resources. 



Boimeville's Role in Promoting Third Party Resource Development and Financing 

 Mechanisms Like CARES 



Bormeville assisted in the establishment of CARES and is assisting in the 

 development of the Oregon municipal joint conservation financing organization. 

 Boimeville's support for these projects pays off in several ways: 



Because CARES at this time is developing resources for sale only to Bonneville, the 

 risk of resource development — and the benefits — are regionalized. 



CARES and similar JOAs can overcome some of the weaknesses in Boimeville's 

 conservation acquisition efforts, which the Public Power Council has described. 

 According to PPC, Bonneville efforts suffer from impredictable and changing 

 requirements and budget levels, and from burdensome oversight and review 

 requirements. Utilities frequently have difficulty reaching agreements with 

 Bonneville, and innovative approaches to conservation and renewable resources 

 are discouraged. Most 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 development, financing and 

 acquisition efforts to JOAs such as CARES. Bonneville's support for CARES is 

 indicative that it recognizes these weaknesses and the role such JOAs can play in 

 overcoming them. 



CARES Current Activities 



Currently, CARES is negotiating two major projects that will provide energy 

 resources to Bonneville. Bonneville will be purchasing resource capability and 

 backing the CARES financing for the projects. One is a 27 average megawatt 

 conservation acquisition project. About 40 percent of the conservation will be 

 acquired through residential weatherization, energy efficient shower head and water 



