PacifiCorp 2007 Integrated Resource Plan (May 30, 2007)

PacifiCorp – 2007 IRPChapter 5 – Resource Optionschines have higher heating value heat rates of less than 9,500 Btu/kWh and similar starting capabilitiesas the LM6000 with significant load following capability (up to 50 megawatt per minute).Frame simple cycle machines are represented by the “F” class technology. These machines areabout 150 megawatts at western elevations, and can deliver good simple cycle efficiencies.Other natural gas-fired generation options include internal combustion engines and fuel cells.Internal combustion engines are represented by a large power plant consisting of 14 machines at10.9 megawatts. These machines are spark-ignited and have the advantages of a relatively attractiveheat rate, a low emissions profile, and a high level of availability and reliability due to thelarge number of machines. At present, fuel cells hold less promise due to high capital cost, partlyattributable to the lack of production capability and continued development. Fuel cells are notready for large scale deployment and are not considered available as a supply-side option untilafter 2012.Combined cycle power plants options have been limited to 1x1 and 2x1 applications of “F” stylecombustion turbines and a “G” 1x1 facility. The “F” style machine options would allow an expansionof the Lake Side facility. Both the 1x1 and 2x1 configurations are included to give someflexibility to the portfolio planning. Similarly, the “G” machine has been added to take advantageof the improved heat rate available from these more advanced gas turbines. The “G” machine isonly presented as a 1x1 option to keep the size of the facility reasonable for selection as a portfoliooption. These natural gas technologies are considered mature and installation lead times andcapital costs are well known. The capital cost pressure currently being observed with constructinglarge coal-based generation plants is also being experienced with natural gas-fired plants.The increased cost of natural gas has slowed the building of natural gas power plants in recentyears. Over the past year, natural-gas-based resources have not seen the same level of cost increasesas coal-based generation resources. However, this is expected to change; the same marketforces that are affecting the cost of large coal-based projects also impacts the demand formajor equipment, commodities, specialty steels, shop space, and craft labor needed for the constructionof natural gas based resources.WindWind power has experienced rapid development in the U.S., as well as the Northwest. The renewalof the investment tax credit with the Energy Policy Act of 2005 has made the availabilityof wind turbines an increasingly critical issue. The cost for wind turbines has increased significantlyin recent months due to the demand for these machines.The overall strategy for wind project representation was to develop a set of proxy wind sitescomposed of 100 nameplate megawatt blocks that could be selected as distinct resource optionsin the Capacity Expansion Module. (Note that the 100-megawatt size reflects a suitable averagesize for modeling purposes, and does not imply that acquisitions are of this size.) Figure 5.1shows the general regions in which wind resources were assumed to be available and the quantitylimits available to CEM for selection.100