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support weatherization of homes that are switched to natiiral gas to the highest levels of 

 efficiency that are cost-effective for gas. By making these homes energy-efficient, 

 homeowners are protected in the event that gas prices rise rapidly. Additionally, the 

 local electric utility is protected against a tide of switching back to electricity in the 

 event gas prices rise rapidly. 



In keeping with its policy of not influencing the choice of specific fuels, the 

 Council, in its 1986 action plan, called for monitoring of regional efficiency programs 

 to ensure that they were not unduly influencing fuel choice. Bonneville has just 

 completed such an evaluation for its Long-Term Super Good Cents program and found 

 only a modest effect on fuel choice. However, even relatively small effects on fiiel 

 choice were found to have a significant effect on the cost effectiveness of the savings 

 acquired through the program. 



Bonneville is now considering how the program might be modified to further 

 reduce to possibility that the program might cause some builders to select electric space 

 and water heating where gas is available. It is not yet clear whether Long-Term Super 

 Good Cents incentives should be discontinued in areas where gas is available, or 

 whether some other program modification might better limit the effect on fuel choice 

 while still ensuring that electrically heated homes are built to efficiency levels 

 consistent with the Act and the Council's power plan. 



Environmental externalities 



The Northwest Power Act requires the Council to include "a methodology for 

 determining quantifiable environmental costs and benefits" in the power plan. This 

 methodology was included in the first power plan in 1983 for use by the administrator 

 to quantify all environmental costs and benefits directly attributable to a measure or 

 resource. 



Ten years later, there is not consensus on the most appropriate way to account 

 for environmental externalities in resource acquisition. This is not to say one method is 

 wrong and another is right, but that there are different ways to approach the problem. 



The Council's approach reflects a regionwide planning responsibility. We take a 

 broad view of environmental impacts. We concluded that in some instances, we would 

 not make resource acquisiton decisions on the basis of economics alone even though 

 the Northwest Power Act emphasizes cost-effective resources. For example, it may be 

 economical in terms of power costs to build a small dam on a pristine forest stream, but 



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