337 



heater programs, and 30 percer\t through commercial programs. The remaining 30 

 percent of the energy savings will be acquired through industrial and irrigation 

 efficiency programs. 



The other major project of CARES is a wind energy project located near Goldendale, 

 Washington. CARES will finance and own the project and sell its output to 

 Bormeville under a capability contract. The 25 megawatt capacity project, consisting 

 of 91 advanced design wind turbines, will produce 7.4 average megawatts of 

 electricity. The project developer is FloWind Corporation. FloWind plans to use a 

 new prototype wind turbine designed by Advanced Wind Turbines, Inc. of 

 Redmond, Washington. Goldendale is located in Klickitat County PUD's service 

 area. 



CARES hopes to have successfully completed contract negotiations for these projects 

 by October of this year. 



Conclusions 



We believe CARES is a significant model for future resource development by 

 Bonneville's public customers, consistent with the priorities given to conservation 

 and renewables in the Northwest Power Planning and Conservation Act. As 

 Bonneville moves away from operating conservation and other resource programs 

 itself, and begins promoting conservation and resource acquisition by customers 

 through tiered rates and other incentives, joint operating agencies like CARES will 

 become increasingly important. Financing of resource acquisition by CARES will 

 reduce both the need for treasury borrowing and the costs of new resources, while 

 allowing small and medium size utilities to participate in their development and 

 ownership. To the extent CARES and similar organizations promote resource 

 development in rural, timber-impacted and economically depressed areas, they can 

 play a significant role in distributing the costs and benefits of regional resource 

 development mor. equitably across the region. As Bonneville takes steps to become 

 a more efficient, business-like organization, it should continue to support the 

 establishment of orgaiuzations such as CARES that can bring tangible benefits to the 

 region. 



