309 



BPA has taken the position for at least a dozen years that it can- 

 not use fuel switching as a conservation resource and it maintains 

 that it doesn't have the statutory authority to do so, because fiiel 

 switching doesn't meet either the definition of a resource or con- 

 servation in the power planning act, and they cite legal opinions 

 to back up the position. So they don't, in fact, evaluate fuel switch- 

 ing on an equal term with other resources. 



Let me conclude by saying it appears to me that the planning 

 processes of Bonneville and the Power Council haven't been par- 

 ticularly open to considering natural gas in planning for current or 

 future demands and energy resource requirements of the Pacific 

 Northwest. 



I think that the individual utilities, gas and electric, can do a 

 better job of planning for their own future demands than require- 

 ments if these perverse electric consumption incentives were elimi- 

 nated and if natural gas is given a level playing field under the 

 BPA incentives system. 



We, fi-ankly, have made more progress working together with in- 

 dividual utilities, Bonneville's customers, than we have in convinc- 

 ing Bonneville that we deserve and the consumers of the region de- 

 serve a level playing field. 



We owe it to the consumers of the Pacific Northwest to work to 

 use all forms of energy wisely, to work together as utilities to re- 

 duce the wastefiil use of energy wherever possible, and to keep all 



.^^ ®^®^gy supplies available and economic in the marketplace. 



Thank you very much. 



[Prepared statement of Mr. Hathaway follows:] 



