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The challenges that we have identified reflect the need to address fisheries management as 

 a holistic, ecosystem program. The Council's Strategy for Salmon is a first step in 

 achieving this objective. The second step is integrating the Fisheries Service Recovery 

 Plan. Resolution of weak stock problems in the Columbia River Basin will depend on 

 decisions made in four key areas: hydropower operation, hatchery reform, habitat 

 protection, and harvest regulations. How well the region manages these areas will, in 

 large part, determine our success in removing stocks fi'om endangered and threatened lists 

 and avoiding further listings. 



Conclusion 



In closing, I wish to reiterate a few points. 



We are making a substantial annual investment toward enhancing Northwest salmon runs. 

 Increases beyond the $300 million current annual investment will soon affect our ability to 

 compete with other power markets. We must address how we can become more efficient 

 and more effective with the $300 million we're already investing. Examining a results- 

 oriented approach to implementation with budget options that tie funding levels to 

 Bonneville's competitiveness is an example of an approach we would suggest to ensure 

 greater biological success fi'om our annual investments. 



If Bonneville is to be successful, it is necessary for our non-customer stakeholders to seek 

 and support activities that enhance Bonneville's competitive position. In the long run, if 

 Bonneville becomes uncompetitive, it will become increasingly difBcult to generate funds 

 to meet our obligations including fish and wildlife mitigation and Treasury repayment. We 

 intend to work with our customers and other stakeholders to develop a system which 



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