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about SI SO million in 1993. This increase is largely associated with increases in river 

 flows for fish migration within the Columbia River Basin. 



Annual investments increased by almost $150 million between FY 1991 and FY 1993. We 

 do not expea costs to continue to escalate as they have over the past 10 years, rising from 

 an expense of about $40 million a year in FY 1983 to an expense of over $300 million a 

 year in FY 1993. However, if costs continue to escalate, the necessary rate increases 

 could jeopardize the agency's ability to continue to fiind this critical program. Additional 

 rate increases could also result in a loss of Bonneville customers and subsequent revenues. 

 This, in turn, could threaten Bonneville's financial well being, including our annual 

 Treasury payment. Should these events occur, it could well lead to reduced funding for 

 fish and wildlife. 



Bonneville's Competitiveness Project, an effort through which we are striving to become 

 more results-oriented, cost-conscious, customer-focused, and market-driven, is moving us 

 to rethink how we accomplish our fish and wildlife responsibilities. Increasing our cost 

 effectiveness in meeting these responsibilities will help sustain our business advantage and 

 our financial viability. We see the results of the Competitiveness Project as helping 

 Bonneville achieve both long-term rate stability, and long-term stability in fish and wildlife 

 program fimding. 



Our customers as well as the State and Federal fish and wildlife agencies and Tribes, the 

 Council, and other interested parties, need to be invested in both Bonneville's financial and 

 biological success. We want to create a system that provides incentives to help guide the 

 Bonneville investment toward measurable results targeted at weak stocks and increasing 

 the number of adult salmon returning back to the Columbia River. Moreover, Bonneville 

 is interested in examining budgeting options, including financial incentives, which reward 



