469 



Resource Acquisition^ jj 



Public Power and its customers want to stay competitive. The region's economic 

 vitality depends upon a stable and competitively priced supply of power. Haw can we 

 achieve these goals? 



Our resource mix needs to diversify in order to provide a stable base of power. If 



one resource's cost rise dramatically, then we can mitigate a sharp rise in electric rates 

 with the costs of other resources including conservation, gas-fired turbines, wind, 

 geothermal, and cogeneration. 



BPA is "out of direct control" in holding down the cost of power due to all the competing 

 users and uses of the Columbia and Snake Rivers, a pending endangered species recovery 

 plan, and mother nature's weather. We need to decrease our reliance on hydropower 

 which supplies 62 percent of the region's power. Endangered species listing for salmon 

 and drought conditions are not in the direct control of BPA and its customers. We need 

 more stable and less environmental and weather dependent resources. 



Assume BPA remains in the role of acquiring resources. Then. 



BPA must streamline its resource acquisition process and facilitate the development of 

 resources by utility and independent power producers. BPA must develop, within its own 

 structure, clear and flexible policies and procedures which pave the way for utilities, 

 energy service companies and IPPs to acquire resources. Currently, the process is 

 encumbered with internal contradictions and policies which appear to change overnight. 

 BPA needs to open the decision process to its customers and become a reliable and 

 consistent negotiator. 



When acquiring the 660 average megawatts of conservation, make acquisition decisions 

 based on the pace and rate of acquisition, who will benefit, and the cost. A conservation 

 acquisition policy that only directly benefits business and industry ignores the prime 

 directive of customer-owned utilities to define and fulfill the need of our residential 



Columbia River PUD, Sl Helens. Oregon 

 Comments to the DeFazio Task Force 

 07/02/93, 03 ;36PM 

 page 4 



