The BonneviHe Power Administration· (BPA) has proposed a ten year program to encourage the weatherization of electrically heated homes in the Pacific Northwes:t,The purpose of this program is to reduce residential electrical energy demand for space heating. If al.r infiltration rates are reduced by employing house tight;ening me'asures, indoor al.r qua li ty mitigation me,a~ures may be required in resid.ences with significant sources of indoor air contaminants.The use of residential air-to-a,ir heat exchangers has been proposed as a possible s.tra.tegy to assure that indoor air quality is not substantially degraded by house tightening.We examine the energy impact and cos.t effectiveness of heat exchanger utilization in tightened homes in the BPA region. Significant energy savings are predicted i.f homes are tightened and heat exchangers are utilized.From the homeowner's perspective, the results of our economic analysis indicate that, at the relatively low residential electric rates l.n the BPA region, the use of heat exchangers in existing I homes that are tightened is not economically viable. On the other hand, from the utility perspective, it may be cost effective to use heat exchangers in the weatherization program if the marginal cost to the utility is compared with the cost of conserved energy.