280 



DRAFT 



ALTERNATIVE WAYS TO TREAT CONSERVATION 

 AND RELATED RATE IMPACTS 



Base Situarion (Assumptions) 







-> 



LOAD 



Load- 10.000 kWh 



Utility Power Supply Cost (including BPA transmission, etc.) - 23 mills/kWh 



Generating AbUity - 10.000 kWh 



Time Period Is Not Relevant. 



Further Assumptions 



Gen. (^ 



Load 



—N I 10% Load] 



Z ^ Cons. ^ 



Assume that 10% load growth occurs. 



Conservation is available to BPA at a cost of 30 mills/kWh. 



Generation is available to BPA at a cost of 40 mills/kWh. 



ALTERNATIVE #1 



(Current Practice) 



Minimize Dollars Spent And Serve All Loads 



Acquire 1000 kWh of conservation at 30 mills/kWh or cost of $30.00. Total load remains same 

 as for base case at 10.0(X) kWh. Serve load with existing power supply at 23 mills/kWh or 

 $230.00. 



Total Cost - 230 + 30 - $260 



Unit Cost - 260/10.000. or 26 mills/kWh 



NOTErlndividuals who have not increased usage and who have previously installed energy 

 efficiency measures see their costs increase from 23 to 26 mills, or 13%. 



ALTERNATIVE #2 



(Consistent with Billing Credit Requirements of Northwest Power Act) 



Minimize Cost of Serving Load Growth 



