PacifiCorp 2007 Integrated Resource Plan (May 30, 2007)

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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
PacifiCorp – 2007 IRPChapter 3 – The Planning Environmentthis in mind, PacifiCorp’s IRP team has increased its coordination with transmission planningpersonnel to more closely align long-term generation and transmission planning activities. Theresult for this IRP is a set of transmission resources for portfolio modeling that addresses Pacifi-Corp’s control area needs as well as enables a first-cut evaluation of the impacts of a large multistatetransmission project. As discussed in the next section, PacifiCorp is engaged in a number ofregional transmission planning initiatives intended to address transmission issues and projectopportunities. Future IRP analysis efforts will be informed by these transmission planning initiatives.Interconnection-Wide Regional PlanningVarious regional planning processes have developed over the last several years in the WesternInterconnection. It is expected that, in the future, these processes will be the primary forumswhere major transmission projects are developed and coordinated. In the Western Interconnection,regional planning has evolved into a two tiered approach where an interconnection-wideentity, Western Electricity Coordinating Council (WECC) conducts regional planning at a veryhigh level and several sub-regional planning groups focus with greater depth on their specificareas.Last year, WECC took on the responsibility for interconnection-wide transmission expansionplanning. WECC’s role in meeting the region’s need for regional economic transmission planningand analyses is to provide impartial and reliable data, public process leadership, and analyticaltools and services. The activities of WECC in this area are guided and overseen by aboard-level committee, the Transmission Expansion Planning Policy Committee (TEPPC).TEPPC’s three main functions include: (1) overseeing database management, (2) providing policyand management of the planning process, and (3) guiding the analyses and modeling forWestern Interconnection economic transmission expansion planning. These functions complimentbut do not replace the responsibilities of WECC members and stakeholders to develop andimplement specific expansion projects.TEPPC organizes and steers WECC regional economic transmission planning activities. Specificresponsibilities include:• steering decisions on key assumptions and the process by which economic transmissionexpansion planning data are collected, coordinated and validated;• approving study plans, including study scope, objectives, priorities, overall methods/approach,deliverables, and schedules;• steering decisions on analytical methods and on selecting and implementing productioncost and other models found necessary;• ensuring the economic transmission expansion planning process is impartial, transparent,properly executed and well communicated;• ensuring that regional experts and stakeholders participate, including state/provincial energyoffices, regulators, resource and transmission developers, load serving entities, environmentaland consumer advocate stakeholders through a stakeholder advisory group;• steering report writing and other communications that include communications betweenthe TEPPC and the sub-regional planning groups;• advising the WECC Board on policy issues affecting economic transmission expansionplanning;45
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PacifiCorp 2007 Integrated Resource Plan (May 30, 2007)

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