In a saucepan, cook bacon until crisp; remove and crumble. Set aside.
Pour off all but 2 tablespoons of the drippings. Cook onion and green pepper in drippings until tender. Add tomato soup, water, rice, chili powder, and salt. Bring to a boil; cover and cook over low heat for 25 minutes, until rice is tender. Stir occasionally. Remove bay leaf and stir in bacon.
Makes about 4 side dish servings.
Calories per serving: 383