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The transaction would be financed through the public bond markets. Bond market financing 

 would provide Bonneville, national taxpayers and regional ratepayers benefits. Bond re-financing 

 would fix the repayment issue by ending the annual uncertainty over the terms and conditions of 

 the appropriated debt. The taxpayers would receive a fair payment of the outstanding investments 

 under stable and certain conditions. The ratepayers will benefit fi-om the removal of the annually 

 recurring cloud of uncertainty over repayment acceleration proposals, and will benefit fi"om the 

 stable and certain terms of the new loan. 



The bond market buyout would provide about a $4 billion net cash inflow to the Treasury. This 

 direct cash inflow would reduce the Treasury's need to finance current activities by about $4 

 billion. 



In summary, a buyout, financed through the bond markets, would result in significant benefits to 

 both the taxpayer and the region. It would significantly enhance Bonneville's fijture 

 competitiveness by removing the risk of fiature repayment reform threats that have overshadowed 

 customer and constituent uncertainty about the fijture stability of Bonneville's revenue 

 requirements and its continued ability to remain competitive. Customers' need for a stable 

 revenue requirement and a more cost-conscious and competitive Bonneville would be met without 

 raising Bonneville rates. It would result in the taxpayer receiving a fair payment of their 

 outstanding appropriated investment in Bonneville, reflective of current market interest rates, and 

 would result in a removal of low-interest appropriations fi-om the Treasury's books. 



Government Corporation Status 



As part of its competitive reinvention effort, Bonneville is exploring the potential of becoming a 

 government corporation. Government corporation status, as we envision it, would not change the 

 agency's existing power, transmission, conservation, and fish and wildlife duties under its organic 



