PacifiCorp 2007 Integrated Resource Plan (May 30, 2007)

PacifiCorp – 2007 IRPChapter 3 – The Planning Environmentbased in part on those created by the World Business Council on Sustainable Developmentand the World Resources Institute, to the electric sector.The current strategy is focused on meaningful results, including installed renewables capacityand effective demand-side management programs that directly benefit customers. While theseefforts provide multiple benefits of which lower GHG emissions are a part, they are clearly attractivewithin an effective climate strategy and will continue to play a key role in future procurementefforts. As part of PacifiCorp’s Global Climate Change Working Group effort, a PreliminaryGlobal Climate Change Action Plan will be completed by the company in 2007 andfiled with the six state utility commissions. Within the Plan, PacifiCorp expects to propose significantchanges to its corporate greenhouse gas mitigation strategy.RENEWABLE PORTFOLIO STANDARDSA renewable portfolio standard (RPS) is a policy that obligates each retail seller of electricity toinclude in its resource portfolio (the resources procured by the retail seller to supply its retailcustomers) a certain amount of electricity from renewable energy resources, such as wind andsolar energy. The retailer can satisfy this obligation by either (1) owning a renewable energyfacility and producing its own power, or (2) purchasing renewable electricity from someoneelse's facility.Some RPS statutes or rules allow retailers to trade their obligation as a way of easing compliancewith the RPS. Under this trading approach, the retailer, rather than maintaining renewable energyin its own energy portfolio, instead purchases tradable credits that demonstrate that someone elsehas generated the required amount of renewable energy.RPS policies are currently implemented at the state level 18 , and vary considerably in their requirementswith respect to time frame, resource eligibility, treatment of existing plants, arrangementsfor enforcement and penalties, and whether they allow trading of renewable energy credits.19 As of late 2006, 23 states and the District of Columbia had adopted RPS regulations. Themost recent adoption occurred in Washington, which passed a ballot measure in November 2006.Two states in PacifiCorp’s service territory—California and Washington—now have an RPS inplace. Recent RPS legislative and regulatory activities in California, Washington, and Oregonare summarized below.CaliforniaIn 2006, the California legislature approved, and Governor Schwarzenegger signed into law, abill that codifies an earlier deadline for reaching the state’s renewable energy goals. Existing lawhad established the RPS program and a goal of 20% of retail electric sales from renewable resourcesby 2017. The new legislation, Senate Bill 107 20 , accelerates the target date to December18 Interest in a federal RPS policy is expanding. For example, a bipartisan group of Senators and Representativeshave re-introduced the 25x'25 House and Senate Concurrent Resolutions in January 2007 calling for a new nationalrenewable energy supply goal of 25% by 2025.19 See, http://www.eere.energy.gov/states/maps/renewable_portfolio_states.cfm20 SB 107 as enacted and chaptered is posted on the legislature’s web site at:42