15 



rate period. Bonneville wants to maintain sufficient financial reserves to achieve a 

 95 percent probability of meeting U.S. TVeasmy payments. "Riese reserves are the 

 cornerstone to ensure Bonneville's £ibility to repay the TVeasury and protect 

 program stability. We support Bonneville's intent to £ulhere to the 10-year 

 financial plan and maintain adequate financial reserves to ensiu'e repayment of 

 outstanding debt. If revenues fail to sustain adequate reserves and maintain 

 program levels. Bonneville's current proposal for an interim rate adjustment is a 

 prudent response. Bonneville and the region should continue to e^lore other 

 alternatives for handling inadequate revenues. 



Although Bonneville's capital spending program does not impact rates as much 

 as current operating expenses, it is a key to long-term con5)etitiveness. BonneviUe 

 must make cost-effective investments in coital programs today to provide for a 

 least-cost future. It is critical to maintain adequate long-term investments in three 

 principal areas: transmission, conservation resources, and fish and wildlife. 



Bonneville currently plans to finance most of its c£ipital program in the next 

 few years through bonds issued to the U.S. TVeasiuy. i.e. borrowing authority. 

 Based on capital investment projections made earlier this year, Bonneville will 

 invest $5.2 billion between 1992 and 2001: 



* $3.75 billion in transmission construction, 



* $1.12 biUion in conservation, £md 



* $312 million in fish and wildlife improvements. 



Based on these ezirlier asstmqjtions, the $2.5 billion transmission borrowing 

 cap would be reached at the end of Fiscal Year 1997. Conservation borrowing cap 

 of $1.25 billion was projected to be reached during the year 2002. 



