PacifiCorp 2007 Integrated Resource Plan (May 30, 2007)

More documents

Recommendations

Info

PacifiCorp – 2007 IRPChapter 8 – Action Plantions included in the preferred portfolio due to specific siting, permitting and construction issuesassociated with a given project.OTHER ISSUESGlobal Climate ChangeAs discussed elsewhere in this IRP, one of the most challenging resource planning issues facingthe company is how to address risk associated with the regulation of greenhouse gas emissions.As new climate policies and laws are adopted by state legislatures, utility commissions or thefederal government to limit the utilization of higher carbon-emitting resources, PacifiCorp willadjust its capacity expansion model to account for those new policies.To address this challenge, PacifiCorp has formed a Global Climate Change Working Group toanalyze and discuss utility best practices in managing emissions of greenhouse gases and identifycost-effective opportunities to reduce greenhouse gas emissions within the respective states’regulatory framework. The company expects to have filed, with all six commissions, a preliminaryGlobal Climate Change Action Plan by the fourth quarter 2007.PacifiCorp employees will continue to have dialogue with stakeholders on this issue, explainingthe various efforts already underway, and with stakeholder partners offering guidance and feedbackon how the company might improve upon the efforts identified within the Global ClimateChange Action Plan.Separately, PacifiCorp is engaged in several partnerships, such as the Big Sky Carbon SequestrationPartnership and the Electric Power Research Institute, to explore energy, climate change,economic growth and carbon sequestration opportunities. The company also continues to participatein groups organized at state government levels that are designed to develop global climatechange policy such as Oregon Docket UM 1302 that is investigating the treatment of carbon dioxiderisk in integrated resource planning.Carbon Reducing TechnologiesSince the second quarter of 2006, the company has sponsored a workgroup to specifically investigateintegrated gasification combined cycle technology and carbon dioxide sequestration. Asthe company moves forward, it will expand its view to all feasible technologies that can potentiallyreduce carbon dioxide emissions in a cost-effective manner, including nuclear power. Forexample, the Wyoming Infrastructure Authority and PacifiCorp are pursuing joint project developmentactivities for an IGCC facility in Wyoming.Modeling ImprovementsWhile the 2007 integrated resource plan addresses renewable portfolio standards and carbon risk,it is becoming increasingly important to refine the modeling capabilities in this area. The companywill pursue enhancements to the integrated resource planning models to potentially incorporatemore sophisticated methods to address new resource portfolio standards and carbon regulations.232
PacifiCorp – 2007 IRPChapter 8 – Action PlanCost Assignment and RecoveryThe preferred portfolio is based on the premise of a single integrated system with rolled-in costsfor new resources as prescribed under the Revised Protocol allocation methodology. Acknowledgementor acceptance of a single plan is a prerequisite for use of the Revised Protocol whenthe company is acquiring new resources. To the extent states acknowledge or accept differentplans, the company will work with the states to find ways to deliver different plans to differentstates, while maintaining the highest possible level of system integration benefits and assuringfull cost recovery of prudently incurred costs required to serve retail customers.ASSESSMENT OF OWNING ASSETS VERSUS PURCHASING POWERAs the company acquires new resources, it will need to determine whether it is better to own aresource or purchase power from another party. While the ultimate decision will be made at thetime resources are acquired, and will primarily be based on cost, there are other considerationsthat may be relevant.With owned resources, the company would be in a better position to control costs, make life extensionimprovements, use the site for additional resources in the future, change fueling strategiesor sources, efficiently address plant modifications that may be required as a result ofchanges in environmental or other laws and regulations, and utilize the plant at cost as long asthe it remains economic. In addition, by owning a plant, the company can hedge itself from theuncertainty of relying on purchasing power from others. On the negative side, owning a facilitysubjects the company and customers to the risk that the cost of ownership and operation exceedsexpectations, the cost of poor performance or early termination, fuel price risk, and the liabilityof reclamation at the end of the facilities life.Purchasing power from another party can help mitigate the risk of cost overruns during constructionand operation of the plant, can provide certainty of cost and performance, and can avoid anyliabilities associated with closure of the plant. Short-term purchased power contracts could allowthe company to forgo a long term decision for a period of time if it was deemed appropriate to doso. On the negative side, a purchase power contract could terminate prior to the end of the term,requiring the company to replace the output of the contract at then current market prices. In addition,the company and customers do not receive any of the savings that result from managementof the asset, nor do they receive any of the value that arise from the plant after the contract hasexpired.RESOURCE ACQUISITION PLAN PATH ANALYSISThe Utah Public Service Commission’s IRP standards and guidelines require that PacifiCorp’sIRP contain a “plan of different resource acquisition paths for different economic circumstanceswith a decision mechanism to select among and modify these paths as the future unfolds.”PacifiCorp’s resource acquisition path analysis plan for this IRP consists of the use of the IRPmodels for the Base Load Request For Proposals issued on April 5, 2007. The modeling planentails evaluating bid resources on a portfolio basis similar to how portfolios were evaluated inthe 2007 IRP. The timing of the RFP, with a consequent refreshing of analysis inputs and inclu-233
Page 1 and 2:
Assuring abrightfuturefor our custo
Page 3 and 4:
PacifiCorp - 2007 IRPTable Of Conte
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
PacifiCorp - 2007 IRPIndex of Table
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
PacifiCorp - 2007 IRPChapter 1 - Ex
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
PacifiCorp - 2007 IRPChapter 2 - IR
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
PacifiCorp - 2007 IRPChapter 3 - Th
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73:
Page 76 and 77:
PacifiCorp - 2007 IRPChapter 4 - Re
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90 and 91:
Page 92 and 93:
Page 94 and 95:
Page 96 and 97:
Page 98 and 99:
Page 100 and 101:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
PacifiCorp - 2007 IRP Chapter 5 - R
Page 109 and 110:
PacifiCorp - 2007 IRP Chapter 5 - R
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
PacifiCorp - 2007 IRPChapter 6 - Mo
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196: PacifiCorp - 2007 IRPChapter 7 - Mo
Page 229 and 230: PacifiCorp - 2007 IRP Chapter 7 - M
Page 233: PacifiCorp - 2007 IRPChapter 7 - Mo
Page 236 and 237: PacifiCorp - 2007 IRPChapter 8 - Ac
Page 238 and 239: PacifiCorp - 2007 IRP Chapter 8 - A
Page 240 and 241: PacifiCorp - 2007 IRP Chapter 8 - A
Page 243 and 244: PacifiCorp - 2007 IRPChapter 8 - Ac
Page 245: PacifiCorp - 2007 IRPChapter 8 - Ac
show all

PacifiCorp 2007 Integrated Resource Plan (May 30, 2007)

Create successful ePaper yourself

Delete template?

Save as template?