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As you know. Bonneville has Initiated the Conq)etitiveness Project to establish 

 a "reinvented" BPA. the aim of which we are advised is four-fold: 



• Develop a new marketing strategjr that will oflFer a wider array of power and 

 transmission products for Bonneville's customers. 



• Streamline, realign and downsize Bonneville's stafBng and internal systems to 

 reduce costs, increase resp>onsiveness to supp>ort the new msirketing s^jproach. 



• Change the organization cultxu-e to a business -oriented management style. 



• Change to a government corporation. 



Bonneville is proposing a transition to the new Bonneville through a six or 

 seven-step process. Tliis process includes a marketing plan, fiinction-by-function 

 review, ten-year plans, a business plan, and it is expected to bring fundamental 

 change to Bonneville, apart from the corporation idea. 



The cornerstone of this eflFort is that Bonneville must improve its eflBciency. The 

 Council supports greater administrative eflBciency and flexibility at Bonneville. We 

 believe that as Bonneville becomes leaner and more responsive to its customers, it 

 also will be better able to meet its obligations under the Northwest Power Act. 



Bonneville makes a very good argument that it needs greater flexibility and 

 accountability in the areas of personnel, contracting and prociu-ement. Bonneville 

 advises us that they have identified 250 administrative and procedural barriers 

 that stand in the way of their becoming more eflficient. We understand that they 

 have submitted this list of barriers to the Department of Energy and to Vice 

 President Gore's National Performance Review. We are advised that Secretary of 

 Energy O'Leary already has moved to eliminate serious barriers in personnel and 



