104 



30 



participation in Washington Natural Gas' Least Cost Plan update. BPA has 

 established an internal "Fuel Choice" team to oversee and coordinate all BPA 

 fuel choice/fuel switching activities. 



Question 8: Please provide an estimate of the amount of energy that would be saved per 



year if the two-tiered rates and low density discount adjustment recommended 

 by the Northwest Conservation Act Coalition were implemented (growth 

 adjustment and no-growth adjustment model). What is the earliest possible 

 date that BPA can implement tiered rates? Has BPA initiated an EIS on tiered 

 rates? 



Answer: BPA has initiated an Environmental Impact Statement (EIS) on tiered rates. 



The Federal Register notice of intent for the rate design EIS is scheduled for 

 publication late this spring. 



BPA regrets that it must refrain from addressing the Northwest Conservation 

 Act Coalition's proposal due to the prohibition on ex parte communications 

 that applies to issues pending resolution in rate hearings conducted pursuant to 

 section 7(i) of the Northwest Power Act. Please see Enclosure 1 at the end of 

 this document. 



However, status reports and communications related to matters of procedure are 

 excluded from the prohibition on ex parte communications As such, BPA is 

 able to report that on April 18-the last day of settlement negotiations in BPA's 

 1993 rate case-it responded favorably to the settlement proposal of the 

 Northwest Conservation Act Coalition (NCAC) to consider tiered rates in a 

 separate public process and 7(i) rate case. This proposal, made for settlement 

 purposes only, recognized that there is a need to (a) synchronize tiered rates with 

 customers' ability to capture conservation savings, (b) initially give full 

 consideration to many variables and viewpoints outside the adversarial 7(i) 



