90 



That brings us back to the question of how much we cem 

 afford to pay for conservation to keep it competitive with 

 generation. If we conskler that the cost of new generation is 

 being offered in the 3&-40 mill range and the PF rate for 

 power ranges from 23-27 mills we find that we have 

 somewhere in the vicinity of 15 mills in that margin to work 

 with and still break even. (Kehoe, 9/14/93, p.7) 



The Coalition finds this sort of discussion (even if it is merely a "think piece*) chilling in 

 its implications. We believe that the lost revenue argument embodied in this thought is 

 cynical, incorrect and illegal in the context of the Northwest Conservation Act. tt 

 appears to trade away conservation's king term benefits to all northwest bill payers, 

 the local economies of the region and the natural environment for small, short term 

 rate impacts. No discussion of restructuring BPA will prove fruitful until BRA makes its 

 commitment to the Act's purposes unmistakably dear 



If and only if the government corporation proposal can t>e structured so as to 

 increase the efficiency and effectiveness with whid^ Bonneville delivers the vision of 

 the Northwest Conservation Act, we will strongly support that proposal. Any 

 restnjcturing, reinvention, or otherwise new Bonneville which de&vers conservation, 

 renew£tble resources, fish and wiMlife protection, and public partk:ipation and 

 partnership more quickly and cheaply than Bonneville does currently is highly 

 welcome. That sort of increased efficiency will will achieve true competitiveness for 

 Bonneville and the region based on a clean, healthy economy; a clean, healthy 

 environment, and strong public support. 



Regrettably, recent indications from BPA seem to suggest a sharp turn toward 

 short-term rate minimization as the Agency's fundamental purpose. We cannot 

 support any restructuring proposal that frees BPA to pursue goals that contravene the 

 regional Act more efficiently. We took forward to working with BPA to fashion a 

 restnjcturing proposal that fully embraces the Regional Act's purposes. This Task 

 Force's recommendations should help make that possible. 



Thank you . 



