PacifiCorp 2007 Integrated Resource Plan (May 30, 2007)

PacifiCorp – 2007 IRPChapter 2 – IRP Components, Planning Principles,Objectives, and ApproachMEHCCommitmentNumber MEHC Commitment Descriptionand/or reinforce the link between the “WallaWalla bubble” and the Mid-Columbia (at Vantage).Either of these projects presents opportunitiesto enhance PacifiCorp’s ability to acceptthe output from wind generators and balancethe system cost effectively in a regionalenvironment. The target completion date forthis project is 2010. (Footnote): It is possiblethat upon further review, a particular investmentmight not be cost-effective, optimal forcustomers or able to be completed by the targetdate. If that should occur, MEHC pledgesto propose an alternative to the Commissionwith a comparable benefit.39 In Commitment 31, MEHC and Pacifi-Corp adopt a commitment to source futurePacifiCorp generation resources consistent withthe then-current rules and regulations of eachstate. In addition to that commitment, for thenext ten years, MEHC and PacifiCorp committhat they will submit as part of any commissionapproved RFPs for resources with a dependablelife greater than 10 years and greater than 100MW—including renewable energy RFPs—a 100MW or more utility “own/operate” alternativefor the particular resource. It is not the intent orobjective that such alternatives be favored overother options. Rather, the option for PacifiCorpto own and operate the resource which is thesubject of the RFP will enable comparison andevaluation of that option against other viable alternatives.In addition to providing regulatorsand interested parties with an additional viableoption for assessment, it can be expected thatthis commitment will enhance PacifiCorp’s abilityto increase the proportion of cost-effectiverenewable energy in its generation portfolio,based upon the actual experience of MEC andthe “Renewable Energy” commitment offeredbelow.40 MEHC reaffirms PacifiCorp’s commitment toacquire 1,400 MW of new cost-effective renewableresources, representing approximately 7%of PacifiCorp’s load.MEHC and PacifiCorp commit to work with developersand bidders to bring at least 100 MWof cost-effective wind resources in servicewithin one year of the close of the transaction.How the Commitment is Addressedin the 2007 IRPThis commitment is being addressedin the company’s requestfor proposals.This Integrated Resource Plan reflectsthe commitment to acquire1,400 megawatts of new costeffectiverenewable resources. The100 megawatt goal has been met,and the company is within 54megawatts of reaching the 400megawatt goal at the time of this21