166 



Attachment 2 to NCAC testimony: NCAC comments to Sutxxjmmtttee on Regulation, 

 Business Opportunities, and Technology Committee on Small Business regarding direct 

 application of natural gas: June 3, 1993 



Comments of Jim Lazar, Conralting Economist 

 On Bebalf of the ISortbwest Conservation Act Coalition 



Subcommittee on Regularion, Business Opportunities, and Technology 



Connnittee on Small Busisess 



Direct Application of Gas versus Electric Gcncraiion 



Portland, Oregon Jiine 3, 1993 



My name is Jim Lazar, and I am a consulting economist based in Olympia. 

 Washiogton. My practice focuses on energy effi c i ency and utility ratemaldsg. My fUtmt^ 

 mrinrfff public udHties, state and federal agendes, and industiial trade assodanons. For 

 much of the past twelve years, I have been involved, in one way or another, in regional 

 energy policy making. I was a founding board member of the Northwest Conservation 

 Art Coalition (NCAC). 



In 19S2, I prepared a report for the National Marine Fisheries Service which 

 recommenxied, arnrmg other things, that conversion of elearic healing loads to natural 

 gas would enhance the ability of regional hydroelectric system managers to provide 

 sufficient spring and sniomer flows to farflirntc fish migration. Since thai time, I bsvc 

 prepared at least ten separate studies or analyses relating to the fuel dioice issue. 

 Tbese indade; 



1987: Review of Padfic Power electric rate desiga for Washington Public 



Comisel; 

 1989: Review of Puget Power promotional water healer program for 



Washington Public Counsel; 

 1989: Analysis of fuel choice options for Snohnmish FUD; 



1990: Direct Application versus Hydrafrming smdy tor Assodalion of 



Northwest Gas Utilities; 

 1990: Quantification of fuel switching potential for Association of 



Northwest Gas Utilities; 

 1990: Development of cooperative waier heater swildiing program, with 



Washingtoii Natural Gas Company for Snohomish PUD 

 1991: Paiticipauon in EPA Puget Sound Electric Reliability Project for 



Northwest Conservation Act Coalition; 

 1992: Analysis of Washington Water Power Tuel Effidency* program for 



Washington Public Counsel; 

 1993: Eiaminason of Washington Natural Gas utiliiy line extension policy 



for Washington Public Counsel; 

 1993: pTHTTiinn rirm of rate design and connection charge alternatives to 



encourage gas foel choice on Puget Power for Washington Public 



Counsel 



My analyses have produced one common and consist CT i result. Where the 

 existing natural gas distribution system is near a residence, conversitm from electric 

 resistance space and water heat to natural gas is usually cost-effective. The ttrtal cost- 

 effective conversion poteariai in the region is as much as 1500 average megawatts of 

 energy savings, and up to six thousand megawatts of peak capadty savings. My finrlings 

 arc consistent with those from other sudies by other consultants, indudntg Delta Padfic, 

 Padfic Energy, ""rf the Washington State Enerjy OfBce. 



