100 



Do current market conditions create a sufficient incentive for fuel switching? Not 

 wholly. We believe barriers to achieving all cost-effective fuel-switching remain. These 

 include: that lack of household information on energy bill-saving opportunities; lack of 

 household funds to convert space water and heating systems; and, electricity conservation 

 program features that promote electricity use over natural gas use. 



To that end, we endorse Boimeville's proposed measures to encourage cost-effective 

 fuel-switching. These include: 



1. Lower Super Good Cents incentives to homebuilders. A Bonneville study 

 foimd that 11 percent of Super Good Cents homebuyers would have 

 chosen natural gas for space and water beating if not for the current 

 prograoL 



2. Eliminate Super Good Cents incentive payments for heat pumps. 



3. Assess the effect of all other conservation programs on consumer fuel 

 choice. Based on that review, eliminate features that promote electricity 

 use over natural gas use. (For example, we recommend that efGcient 

 natural gas appUances be an option for all Super Good Cents homebuyers.) 



4. Fund four pilot fuel-switching programs to tell consumers what they might 

 save by switching to natural gas and to pay for conversions. 



At the same time, we recommend that Bonneville and the Power Council, in concert 

 with electric and natural gas utilities and others, should craft a long-run strategy and 

 identify other actions warranted to achieve cost-effective fuel-switching. Because we 

 believe that acquiring this resource is not the sole responsibilify of Bonneville and 

 electric utilities, the strategy should include actions by natural gas utilities. 



5b. Should EPA prohibit the expenditure of Super Good Cents incentives in areas 

 where natural gas service is currently available? 



No. The better approach is to eliminate the promotional features of the Super Good 

 Cents program, not the program itsell As discussed in the answer to the last question, 

 this means lowering incentive payments, e liminating heat pump payments, and allowing 

 Super Good Cents homebuyers to choose natural gas appliances. 



