87 



LOOKING TOWARD A HEALTHY FUTURE 



Bonneville's response to market pressure will be a critical issue as we move forward We are not 

 idle-rather we are taking aggressive actions to remain competitive. Of paramount concern will 

 be finding ways to stabilize costs to keep the agency financially viable. To the extent our 

 competitiveness is threatened, we will need to join with others to find innovative ways to achieve 

 this goal. 



If the uncertainties Bonneville faces seem large, they are definitely not insurmountable 

 Bonneville started two years ago to change direction. Today, we are well down the path to 

 meeting the challenges posed by competition. 



Thanks to an excellent and dedicated work force, support fi-om the Department of Energy, as well 

 as usefijl advice fi^om customers and others, Bonneville is moving toward its fijture aggressively. 

 The Draft Business Plan, corporate reorganization, downsizing, cost cutting, the potential for 

 becoming a government corporation, and program reinvention are all concrete moves to ensure 

 Bonneville remains a viable and valuable contributor to the Pacific Northwest well into the 2 1 st 

 century. 



The actions we have taken in the last two years and will complete in 1995 are major steps toward 

 a new Bonneville-one that is leaner, faster, more flexible, and more service oriented-both toward 

 customers and our social obligations. 



The facts are that our costs are going down and our work force is being reduced We are 

 responding quickly to customer needs. We are committed to becoming a cost-conscious, results- 

 oriented and market-driven organization. And, we are committed to effectively meeting our 

 environmental obligations. 



I am confident that the Bonneville that will emerge ft^om our current competitiveness and 

 reinvention activities will be a stronger, healthier agency that will be well positioned to deal with 

 the challenges of the future. I look forward to our continued good relationship with this 

 Subcommittee as we experience this change process together. 



In the final analysis, we must do whatever it takes to meet the market, including even more 

 aggressive cost cutting, development of new markets, and securing assistance with costs fi-om the 

 Administration. These are major steps in what will be a long and difficult transition, but steps that 

 we must take to succeed in today's new, intensely competitive utility marketplace 



Thank you for the opportunity to testify today. 



