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The Honorable Peter DeFazio 

 July 16, 1993 

 Page three 



On this point, I bring to your attention a recent guest editorial 

 by Maura O'Neill which appeared in the May 1993 issue of The 

 Electricity Journal in which Ms. O'Neill compares the cents per kWh 

 saved of various utility-sponsored DSM programs, including four 

 utilities in the West. (Copy enclosed) The cost varied between 12 

 cents/kWh and 56 cents/kwh for first year costs. Obviously, the 

 amortized costs would be smaller depending on the lifetime of the 

 efficiency measure. There was almost no relationship to the total 

 dollars invested in DSM programs and the unit cost of those 

 savings. (See Table 1) 



Our experience at PGE suggests it is possible to acquire DSM 

 savings at the low end of the range identified in this study. Ms. 

 O'Neill appropriately acknowledges that there is no "right" level 

 of investment for each utility, but she sums up my general thinking 

 when she says, "Utilities today exist in a world unlike any they 

 have ever known. Succeeding in the still-new DSM arena may prove 

 to be the very thing that gives tomorrow's utility a competitive 

 edge ..." 



Thank you for the opportunity to comment on BPA's planned resource 

 acquisition strategy. 



Ken L. Harrison 

 Chairman and CEO 



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