170 



electricity at an economic price, these utilities would have lower 

 distribiifinn charges, bat blghcr energy charges, and fiirl conversoiu would 

 be more cost-efEcctive. 



5) RESTTRUCrURE CONSERVATION PROGRAMS: BPAs new 

 consmiction program. Super Good Ccms. provides rash incentives for 

 builders to choose superinsulated eiectrically heated >inm><; ovex gas heoL 

 Thai program should be tensinated, restricted to areas wbere gas is not 

 a[vailable, or the incentives should be fiiel-blind. BPA's castomer nrfiiii'-n 

 often require customers taldng advantage of retrofit weatherization 

 finanring to agree not to conven to gas. This makes no sense. NCAC 

 called to fuel-blind incentive program in 1982; to date, BPA has operated 

 conservatioD prograjBS as load-retemion mechanisms. If it is worth paying 

 a ccstomcr S2000 to reduce their beating load on the electric system try 

 30%, through weatherization, why discoiJiage that customer from reducing 

 their heating load by 100% to the same price? 



6) PHOVIDE FUNDING TO OFFSET CAPITAL COSTS OF FUEL 

 CONVERSIONS WHKRE IT IS COST-EFFECTIVE TO THE ELECTRIC 



SYSTEM: BPA pays fa conserraiion measures and geneiaong resources 

 out of rates, but does not contribute towards fiiel coiweraons of any HpH 

 BPA and its customer uttlirirs should provide fanrii-ng ^p to the level of 

 avoided transmission and distribution capacity costs to faniimtr- extension 

 of gas service. Subject to a stria Total Resource Cost test, BPA should 

 prcTvide funding for &iel conveisions in> to the level of net savings to the 

 region fmm fuel substitution. 



WHAT CAN THE NORTHWEST POWER PLANNING COUNCIL DO? 



The authority of the Northwest Power Planning Council (NPPC) is limited, but 

 several stepi could be taken to encourage efficiency in general, and fuel choice 

 efficiency in pardcular. 



1) RIJECr THE PROPOSED TENASKA H PROJECT: Ite proposed gas- 

 fir^ generating plant in the Tacoma area is less economic and less 

 tbcrmodynamicaUy f^ri^nt than direct appti ration of gas. The pxiiential 

 for cost-cSective foci conversions (even by BPA's assessment) is greater 

 than the potential output of Tenasira The ptojea. should be rejected. 



2) ADOPT RATE DESIGN MODEL CONSERVATION STANDARDS: A 



decade ago, NPPC agreed to delay impletneniadon of retail nuc design 

 model conservation standards, based on a promise by the public utilities 

 int he region to aggressively pursue energy conservation. The public 

 utilities have not delivered, iid the reasons for adopting rate design 

 Standards are stronger than ever today. 



Testimony of Ji= t ay^r Committee on Small Business 



June 3, 1993 Pase 5 



