Ill 



We are currently reviewing what hampers Bonneville's eflBciency and eflfectiveness. Our 

 corporate status review, which is currently under way, will determine what barriers might be 

 permanently removed through any incorporation proposal. 



Bonneville identified specific barriers in three primary areas that impede our becoming a leaner, 

 faster, lower-cost and more customer responsive organization. I believe a significant obstacle 

 pertains to Bonneville's ability to manage our human resources more eflBciently. An example of 

 the barriers in this area is FTE control that is imposed on Bonneville as if we were funded by 

 annual appropriations of taxpayer dollars. We are not allowed to manage our organization to an 

 efificient mix of federal and contractor staffing needed to get the job done in the most cost- 

 eflfective manner. Bonneville also does not have the flexibility to hire directly out of union halls 

 for maintenance and construction craftsmen, to pay competitive salaries in many job categories, to 

 fire nonproductive employees, and to establish incentives specifically designed to support 

 Bonneville's mission. 



Another area of barriers that Bonneville has identified relates to Bonneville's financial systems 

 including budgeting and accounting fianctions. Bonneville is "self-financed" under the Federal 

 Columbia River Transmission System Act. This act provides for the direct use by Bonneville of 

 operating revenues and the ability to sell revenue bonds to the Treasury to finance its capital 

 investments. However, Bonneville is currently subject to the rules and regulations of federal 

 agencies that receive annual appropriations I believe eliminating these barriers could save 

 Bonneville's rate payers significant FTEs and dollars each year. Also, Bonneville is subject to the 

 reporting requirements designed for federal agencies receiving annual appropriations, while 

 simultaneously maintaining its records in a conventional utility fashion using generally accepted 

 accounting principles. I believe removing this duality—literally the keeping of two sets of books- 

 could save much time and money, and eliminate much confiasion. 



