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fuel choice decisions. We are working with the natural gas industry and other 

 parties including state regulators and the Northwest Power Planning Council to 

 help develop better information and policies that will lead to fuel choices that are 

 consistent with least cost provision of energy services to all consumers. Finally we 

 are participating in three fuel choice pilot projects initiated by our customers that 

 will provide real world experience on fuel switching costs, savings, and legal and 

 institutional impediments. We w\\\ use what we learn here to identify appropriate 

 follow-on actions and policies that contribute to sound fuel choice decisions. 



We are not ruling out consideration of not offering incentives where gas is 

 available, but we do not think this is the best approach to promoting efficient new 

 home construction. We believe that by restructuring the program and reducing 

 incentive payments to builders, we can continue to promote highly efficient 

 electrically heated homes where electricity is chosen, can lower costs and improve 

 program cost effectiveness and can avoid unintended fuel choice effects. This 

 restructuring of incentives and other program revisions is under way now. We will 

 have a revised program in place beginning October 1, 1993. 



Question 6: Has the Northwest Power Planning Council adequately exercised its 



responsibilities under the Act in the resource acquisition field? Please describe the 

 strengths and weaknesses of the Council's activities related to resource acquisition. 



Answer: The Northwest Power Act provides limited responsibility to the Northwest Power 



Planning Council in the field of resource acquisition: section 6(c)(2) gives 

 authority to the Council to review Bonneville's major resource acquisition 

 proposals to determine if a proposal is consistent with the Council's Power Plan. 



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