PacifiCorp 2007 Integrated Resource Plan (May 30, 2007)

PacifiCorp – 2007 IRPChapter 5 – Resource Options5. RESOURCE OPTIONSChapter Highlights For use in portfolio modeling, PacifiCorp developed cost and performance profiles forsupply-side resources, demand-side management programs, transmission expansionprojects, and market purchases (front office transactions). PacifiCorp used the Electric Power Research Institute’s Technical Assessment Guide(TAG®), along with recent project experience and consultant studies, to develop itssupply-side resource options. The use of TAG information is new to PacifiCorp’s integratedresource planning process. Also new to the company’s integrated planning process is the estimation and use ofcapital cost ranges for each supply-side option. These cost ranges reflect cost uncertainty,and their use in this plan acknowledges the significant construction cost increasestaking place. The company commissioned Quantec LLC to construct proxy supply curves for Class 1(fully dispatchable or scheduled firm) and Class 3 (price-responsive) demand-sidemanagement programs. The company developed transmission resources to support new generation options, toenhance transfer capability and reliability across PacifiCorp’s system, and to boost import/exportcapability with respect to external markets. These transmission resourceswere entered as options in PacifiCorp’s capacity expansion optimization tool, and werethus allowed to compete directly with other resources for inclusion in portfolios.INTRODUCTIONThis chapter provides background information on the various resources considered in the IRP formeeting future capacity and energy needs. Organized by major category, these resources consistof supply-side generation, demand-side management programs, transmission expansion projects,and market purchases. For each resource category, the chapter discusses the criteria for resourceselection, presents the options and associated attributes, and describes the technologies. In addition,for supply-side resources, the chapter describes how PacifiCorp addressed long-term costtrends and uncertainty in deriving cost figures. The chapter concludes with a discussion on theuse and impact of physical and financial hedging strategies.89