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the negotiation process took longer than either party expected and, at this point, 

 we are uncertain about what type of or how many similar power plants are likely to 

 be proposed. 



Through the Targeted Acquisition Program, Bonneville recently signed a 

 contract with Tacoma City Light to purchase up to S average megawatts of 

 verified energy savings at Ft. Lewis, at a Bonneville cost of 34 mills (real 

 levelized, SI 993) that meets the program cost limits established in Bonneville's 

 Energy Conservation Policies. In addition, Bonneville has contracted with 

 Snohomish People's Utility District for a cost-effective commercial retrofit 

 program to acquire about L2 average megawatts. 



Question 5 : What is the potential for cost-effective electricity savings in the Northwest region 

 from fuel switching to natural gas? Do current market conditions create a 

 sufficient incentive for fuel switching? If not, what measures should BPA 

 undertake to encourage fuel switching? 



Should BPA prohibit the expenditure of Super Good Cents incentives in areas 

 where natural gas service is currently available? 



Answer: Our current analyses indicate that in the region there are about 400 average megawatts 



of cost effective residential fuel switching achievable by 2010 that will not be delivered 

 by current market forces. About half of this potential is in Bonneville's service 

 territory. 



Several other entities have developed estimates of the amount of residential fuel 

 switching indicating a greater potential. This is due to a number of reasons: 

 because their estimates generally include switching that we believe will occur from 



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