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The basic question that your task force needs to address is: 

 How to structure a regional power system that: 



1. develops efScient, timely, cost-effective and environmentally sound resources, 



2. provides safe and reliable transmission and distribution services, and 



3. meets its obligations for fish and wildlife management. 



BPA, Public Power, and the federal dams in the Columbia River Basin began the industrial 

 and agricultural development of the Pacific Northwest in the 1930s. Public Power 

 accepted the responsibility of rural electrification in order to provide electricity for the 

 production of food, jobs, products, and services to the nation and the global market. 



BPA was formed to distribute the dams' electric resource into the Northwest's 

 undeveloped rural regions and areas investor owned utilities (lOU) did not find it cost 

 effective to build electric systems. 



Our local and regional growth and competitiveness depends on BPA 's ability to 

 effectively and competitively manage the equitable distribution of the Columbia River 

 Basin system electric resource and the acquisition ofne^v resources. 



Rural electrification worked. With abundant cost-effective hydropower, the Northwest 

 developed a diverse base of manufacturing, agricultural, and service businesses and 

 provided power to our homes. In many areas of the rural Northwest and in our service 

 area, electricity remains the only energy source for our homes and businesses. It is for 

 these people and businesses that customer-owned public power utilities continue to serve 

 and represent. 



The proposed BPA wholesale rate places Public Power utilities dependent on BPA in 

 competitive jeopardy with lOUs and independent power producers (IPP). Moreover, the 

 manner in which BPA has managed and paid for resource acquisition places Public Power 

 customers firom chemical to pulp and paper plants to farms at risk of remaining 

 competitive in the global market. 



dlumbia River PUD, Sl Helens, Oregon 

 Comments to the DeFazio Task Force 

 07/02/93, 03:36 PM 

 page 2 



