351 



have been able to determine, there is no measured data that would provide any 

 reasonable basis for this assumption of 2800 annual Kwh in savings and no basis for 

 assuming such savings do not deteriorate over time. But that is how BRA cost- 

 justifies its current program. 



The Impact of Avoiding a Free Market Approach 



The testimony of Richard Esteves in the BPA 1993 Rate Case demonstrated 

 that refusal to use private sector ESCOs in the residential sector alone will cost BPA 

 up to $469 million (1993 dollars) more than needed to achieve the desired level of 

 savings. These results were determined using data taken exclusively from ORNL and 

 BPA evaluations and from BPA's written records of the negotiating sessions. No 

 party believed it necessary to cross-examination his testimony 



Instead, BPA continues its solitary reliance upon its increasingly less effective 

 centrally designed conservation programs. Among the reasons for this are: 



1 . The BPA residential weatherization program continues to target only single- 

 family homes occupied by owners with sufficient interest and money to pay a 

 substantial share (around 30-40%) of the cost. The number of these homes that 

 can substantially cut energy use is dwindling, as the BPA program has already 

 treated many of the region's least efficient houses in this category. The average 

 pre-treatment electricity consumption of houses in the BPA program started at 

 29,350 kWh/year in the 1980-82 program and has declined to 23,130 kWh/year 

 in the 1989 program, as there are fewer and fewer houses that do not already 

 have some efficiency measures already installed. We have learned from 

 experience that a large fraction of residential dwelling owners will not pay even 

 $49 for comprehensive residential conservation, because: 



A. They do not immediately perceive the benefits. 



B. They fear that the contractor will seek additional payment later or will seek 

 to do additional work for pay. 



C. They are landlords, but the tenants pay the electricity bill. 



2. The BPA program overlooks the enormous potential in: 



A. multifamily buildings and mobile homes 



B. rental dwellings of all types 



C. homes where the owners are not willing to pay a lot of money (or any at 

 all) 



TESTIMONY OF RICHARD ESTEVES Page 14 



