365 



Mr. Johnson. It's not operating yet, no. 



Mr. DeFazio. So these are projections. 



Mr. Johnson. Yes. 



Mr. DeFazio. These are projections on efficiency and what it's 

 going to come in at. 



Mr. Johnson. Yes, that's right. But there are performance guar- 

 antees in the contract with the developer. 



Mr. DeFazio. Okay. So the developer is going to agree to deliver 

 at this price. 



Mr. Johnson. That's correct, 



Mr. DeFazio. All right. I just wanted to be sure of that. I think 

 that that pretty much covers my questions. If anyone feels there's 

 something they really need to add, the/re welcome to do it and 

 take a brief moment. 



[No response.] 



Mr. DeFazio. Thank you very much. I appreciate, again, your pa- 

 tience and waiting all day for the panel. At this point, I'm going 

 to call up the — I had asked the Administrator if he would wait 

 around because I think it's instructive. I know that he's been a 

 very open door person, but to hear these sorts of concerns ex- 

 pressed by the customers, he does have his limits and he has to 

 get to a meeting. He's already late. 



So I'm going to bring him up now instead of after the last panel 

 and ask him perhaps to just discuss some of the concerns, criti- 

 cisms and the few and far between plaudits that the Administrator 

 heard today and take credit for all of them. 



Mr. Hardy. Thank you, Mr. Chairman. I guess I'd just like to 

 make kind of three policy level observations. There's been a lot of 

 information, some of which we very much agree with and some of 

 it which we don't. But rather than get into the details of that, I 

 think we can follow up in written questions and answers after- 

 wards or perhaps at the next hearing. 



Three observations that I have on a policy level after having lis- 

 tened to a lot of what's been said today, much of which we've heard 

 before, some of which is new. First, we are absolutely committed 

 to acquiring all cost-effective conservation in the region over the 

 next ten years or whatever the planning horizon happens to be. 



We and the Power Council have settled on a target of 660 

 megawatts and I couldn't tell you whether, when we get there, it 

 will be 660 or 600 or 800 or some other number. But whatever 

 number it is, we are committed to acquiring that amount of con- 

 servation and we believe, even with the budget cuts that we are 

 on track to doing that. I want to make that an absolutely unequivo- 

 cal statement. 



Secondly, you have heard a lot of criticisms today of our resource 

 acquisition process, both on the conservation side and on the gener- 

 ating resource side. Sue, on the first panel, described some of the 

 changes we've made, at least in the billing credits side, to try to 

 streamline that acquisition process, and you will see more of those. 



I think the challenge that we both have, the challenge that cer- 

 tainly I have and the challenge that you have in conducting these 

 oversight hearings, is to separate legitimate criticisms about ineffi- 

 ciencies that we have, or processes that we can change, fi*om people 

 who simply want a bigger straw in the punch bowl. 



