PacifiCorp 2007 Integrated Resource Plan (May 30, 2007)

PacifiCorp – 2007 IRPChapter 3 – The Planning EnvironmentPlan. Group members were tasked by the Governor to develop a legislative proposal for a RPSthat would be 25 percent of retail sales by 2025. The Renewable Energy Working Group’s legislativeproposal was introduced during the 2007 legislative session and is currently under consideration.The proposal would establish an RPS with the schedule of at least 5% of load by January1, 2011, at least 15% by January 1, 2015, at least 20 percent by January 1, 2020, and at least 25percent by January 1, 2025.In addition to its renewable energy focus, Oregon's proposed RPS also provides the frameworkfor the further expansion of cost-effective conservation activity in the state by electric utilities. Itallows the Commission to authorize an electric company to include in its rates the costs of fundingor implementing cost-effective energy conservation measures beyond those currently fundedthrough the state's public purpose charge—established under the state's restructuring legislationin 2002—and delivered by the Energy Trust of Oregon. If approved, Oregon's portfolio standardmay allow conservation investments up to the potential conservation opportunity within thestate, further adding to the demand-side resources available to address PacifiCorp’s demandgrowth in the state.WashingtonIn November 2006, Washington voters approved ballot initiative I-937 22 , which would establishan RPS with the schedule of at least 3% of load by January 1, 2012, at least 9% by January 1,2016, and at least 15% by January 1, 2020. The annual targets are based on the average of theutility’s load for the previous two years. The Washington Utilities and Transportation Commissionundertook rulemaking UE-061895 to effectuate the referendum.Federal Renewable Portfolio StandardCongress is expected to take up federal energy policy legislation, including the possibility of afederal RPS, as early as summer 2007. On the House side, Rep. Tom Udall (D-N.M.) has introducedlegislation creating a 20% standard by 2020. Senate Energy and Natural Resources CommitteeChairman Jeff Bingaman (D-N.M.) has indicated he is planning legislation with a level of15 percent by 2020.The Senate has approved an RPS several times, most recently as part of the 2005 energy bill, butit died in conference with the House. Even so, environmentalists see the Democratic Congress asan opportunity for a host of initiatives that have failed in recent years. But the fate and timing ofan RPS in the Energy and Commerce Committee, which has jurisdiction over the issue, is farfrom clear because a key committee leader and others have been skeptical of the need for anRPS.TRANSMISSION PLANNINGIntegrated Resource Planning PerspectiveTransmission constraints, and the ability to address them in a timely manner, represent importantplanning considerations for ensuring that peak load obligations are met on a reliable basis. With22 See, http://www.secstate.wa.gov/elections/initiatives/text/i937.pdf44