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for heating and water heating. Society benefits because less 



natural gas is used in direct applications than in indirect 



applications where natural gas generates electricity, which is 



then used for heating. Thus, the natural gas resource is used 



more efficiently. Society also benefits because less natural gas 



is burned when fuel switching occurs, thus less carbon dioxide is 



emitted into the atmosphere. Natural gas consumers benefit 



because a reduced use of natural gas by virtue of fuel switching 



means that there is a lesser requirement for expensive, new 



pipeline facilities. Thus, encouraging the use of natural gas 



where it is most efficient benefits everyone. 



Question two asks, "In practice, are there significant 



differences in the processes BPA uses to acquire and evaluate 



fossil conservation and renewable resources and the processes it 



applies to the fuel switching resource? Are procedures, 



requirements and administrative demands essentially equivalent 



for equivalent resources? Are resource acquisition costs and 



benefits appropriately shared?" There are great differences in 



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