PacifiCorp 2007 Integrated Resource Plan (May 30, 2007)

PacifiCorp – 2007 IRPChapter 2 – IRP Components, Planning Principles,Objectives, and Approach2. IRP COMPONENTS, PLANNING PRINCIPLES, OBJECTIVES, ANDAPPROACHChapter Highlights PacifiCorp’s IRP mandate is to assure, on a long-term basis, an adequate and reliable electricitysupply at a reasonable cost and in a manner “consistent with the long-run public interest.” As a multi-objective planning effort, the IRP must reach a balanced position upon consideringseveral priorities and accounting for diverse and sometimes conflicting stakeholderviews. The IRP is a roadmap for PacifiCorp’s long-term resource strategy, developed accordingto seven planning principles. One of the principles is that it strategically aligns with businesspriorities and meets MEHC transaction commitments. Key analytical and modeling objectives were to (1) evaluate all resources on a comparablebasis using the company’s new resource expansion optimization tool, and (2) enhance uncertaintyand risk analysis. The outcome of PacifiCorp’s portfolio analysis is a preferred portfolio that represents thelowest-cost diversified resource plan that accounts for cost/risk trade-offs, system reliability,ratepayer impacts, and CO 2 emissions. The preferred portfolio is also the most robustresource plan under a reasonably wide range of potential futures. PacifiCorp continuously seeks to improve the IRP public process; a number of recent initiativesto enhance stakeholder engagement for this IRP are profiled. PacifiCorp summarizes the progress towards meeting 18 MEHC transaction commitmentsthat related to IRP activities.INTRODUCTIONThis chapter outlines the components of this Integrated Resource Plan (IRP), and describes thegroundwork for its development: the set of planning principles and analysis objectives that underpinthe IRP development effort, and the overall approach for building it.This IRP builds on PacifiCorp’s prior resource planning efforts and reflects significant advancementsin portfolio modeling and risk analysis. It was developed in a collaborative public processwith involvement from regulatory staff, advocacy groups, and other interested parties. PacifiCorpis filing this IRP with its state regulatory agencies, and requests that they acknowledge and supportits conclusions, including the Action Plan.11