In frying pan cook bacon until crisp. Remove and drain. Reserve 3 tablespoons bacon drippings.
Cook raw rice, onion and bell pepper in drippings until onion is tender. Add the remaining ingredients, except bacon pieces. Cover and simmer until rice is tender and has absorbed all the liquid. Fluff and add bacon.
I sometimes add diced ham to make this a main dish casserole. I also have used rotel tomatoes to add a bit of spice to the dish.