PacifiCorp 2007 Integrated Resource Plan (May 30, 2007)

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PacifiCorp – 2007 IRPIndex of Tables and Figuresxii
PacifiCorp – 2007 IRPChapter 1 – Executive Summary1. EXECUTIVE SUMMARYINTRODUCTIONPacifiCorp’s 2007 Integrated Resource Plan (IRP) presents a framework of future actions to ensurePacifiCorp continues to provide reliable, least-cost service with manageable and reasonablerisk to its customers. Active public involvement from customer interest groups, regulatory staff,regulators and other stakeholders provided considerable guidance in the development of this IRP.The analytical approach used conforms to all State Standards and Guidelines, and resulted in apreferred portfolio that represents a balance of resource additions that meet future customerneeds while minimizing cost, balancing diverse stakeholder interests and addressing environmentalconcerns. This IRP builds on PacifiCorp’s prior resource planning efforts and reflectssignificant advancements in portfolio modeling and risk analysis.PLANNING PRINCIPLES AND OBJECTIVESThe mandate for an IRP is to assure, on a long-term basis, an adequate and reliable electricitysupply at the lowest reasonable cost and in a manner “consistent with the long-run public interest.”The main role of the IRP is to serve as a roadmap for determining and implementing thecompany’s long-term resource strategy according to this IRP mandate. In doing so, it accountsfor state commission IRP requirements, the current view of the planning environment, corporatebusiness goals, and MidAmerican Energy Holdings Company (MEHC) transaction commitmentsthat related to IRP activities.As a business planning tool, it supports informed decision-making on resource procurement byproviding an analytical framework for assessing resource investment tradeoffs. As an externalcommunications tool, the IRP engages numerous stakeholders in the planning process and guidesthem through the key decision points leading to PacifiCorp’s preferred portfolio of generation,demand-side, and transmission resources.The emphasis of the IRP is to determine the most robust resource plan under a reasonably widerange of potential futures as opposed to the optimal plan for some expected view of the future.The modeling is intended to support rather than overshadow the expert judgment of PacifiCorp’sdecision-makers. The preferred portfolio is not meant to be a static planning product, but ratheris expected to evolve as part of the ongoing planning process. As a multi-objective planning effort,the IRP must reach a balanced position upon considering several priorities and accountingfor diverse and sometimes conflicting stakeholder views. In short, the IRP cannot be all things toall people. As the owner of the IRP, PacifiCorp is uniquely positioned to determine the resourceplan that best accomplishes IRP objectives on a system-wide basis, thereby meeting customer,community, and investor obligations collectively.THE PLANNING ENVIRONMENTThere are many significant external influences that impact PacifiCorp’s long-term resource planning,as well as recent procurement activities driven by the company’s past IRPs. External influencesare comprised of events and trends in the power industry marketplace, along with govern-1
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PacifiCorp 2007 Integrated Resource Plan (May 30, 2007)

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