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SESCO ANSWERS TO TASK FORCE QUESTIONS 



The very size of Bonneville provides both Its strength and its weakness in 

 the resource acquisition field. Its size means that it tends to rely on overall 

 "global" central planning and designs lowest denominator programs that it 

 believes will most often work, if properly implemented. The central 

 planners do not require long-term accountability of contractors or of the 

 central planning system itself Instead, BPA proffers myriad regulations for 

 the most minute of matters, such as DSM installations and resists changes 

 or improvements. And it recoils in horror at the apostasy of a free market 

 making evaluations and decisions in the place of the central planning staff. 

 BPA reflects an assembly line control mentality instead of quality circles 

 making local decisions and individualized efforts empowered and held 

 accountable for the final results. 



But BRA'S size can also work for it. It has the size and resources to allow 

 parallel development tracks, allowing for a combination of centrally 

 designed programs and for the use of performance-based DSM efforts. 

 There are dozens of host utilities that may have little desire to participate 

 in anything but BPA-designed programs. There are many others that 

 would like very much to avail themselves of the free market alternative, if 

 given the chance and support by Bonneville. 



BPA is far from acquiring all cost-effective conservation, particularly in the 

 residential sector. According to BPA numbers, it has reached only about 

 35% of the single family electric heat target group, which comprises only 

 about 40% of the housing stock. BPA has missed the massive 

 opportunities in residential lighting and in comprehensive electric water 

 heating improvements for those homes without electric heat. In fact, BPA 

 programs have missed about 85% of its retail residential customers. And it 

 is getting poorer and poorer results in the small sub-segment of electric 

 heat residences it does treat. We see no way that BPA can come close to 

 reaching its NPPC goals without significant changes in its way of 

 operation. We believe that a key to reaching those goals is to allow 

 private sector conservation companies use their own resources to deliver 

 the needed conservation resources as a supplement to BPA's own efforts. 



Near-term budget cuts are no excuse for missing any targets or from not 

 increasing the realization of conservation even beyond the goals set. 

 Conservation, properly designed and implemented, can be very cost- 

 effectively pursued. Private capital is ready to put up hundreds of millions 

 of dollars to invest in cost-effective conservation in the Region. This can 

 readily offset any reductions in conservation budgets. BPA would 

 purchase the resultant metered energy savings over the life of the savings, 



TESTIMONY OF RICHARD ESTEVES Page "l^ 



