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combined cycle turbine, that the direct use of natural gas for 

 heating is far more efficient than the indirect use of natural 

 gas to generate power for heating. 



The first question asks, "What is the potential for cost- 

 effective electricity savings in the Northwest region from fuel 

 switching to natural gas?" For many years, our region has been 

 dominated by low-cost hydroelectric power. Because of that low 

 cost, electric energy is used far more extensively in the 

 Northwest for heating and water heating than in other parts of 

 the country. Because electricity has dominated the energy scene 

 here for so long, the market saturation of natural gas in the 

 region is surprisingly low — something on the order of 3 5 

 percent. This means that there is a large amount of electric 

 space heating and water heating in the region. Much of that 

 electric space and water heating is located in homes and 

 businesses that are near or already being served by natural gas. 

 The potential for shifting these existing electric customers to 



natural gas represents a very large electric generating savings 



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