PacifiCorp 2007 Integrated Resource Plan (May 30, 2007)

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PacifiCorp – 2007 IRPChapter 3 – The Planning Environment• “Time-of-use pricing” – Prices for specific periods and typically changed twice a year• “Critical peak pricing” – Prices for peak days, discounts for reducing peak period consumption• “Real-time pricing” – Prices may change hourly• “Credits” – Large load customers who reduce a utility’s planned capacity obligationsPacifiCorp has actively participated in all requested state commission investigations and/or technicalconferences. These meetings must be completed by February 2007 with the commissionrecommendations provided by August 2007.Section 110, “Daylight Savings”, amends the Uniform Time Act of 1966 by extending DaylightSavings Time (DST) by four weeks beginning in 2007. DST will begin the second Sunday ofMarch and end the first Sunday of November. This section also requires the Department of Energyto file a report to Congress nine months after enactment on the impact of this section onenergy consumption in the U.S. Congress retains the right to revert DST back to the 2005 timeonce the report is complete.To meet the requirements of Section 110, all of PacifiCorp’s time-of-use and interval meterswould be required to be replaced and/or reprogrammed to align the internal calendars with thenew dates. With the possibility of Congress reverting to 2005 time, the exposure for cost to reprogramthe meters is significant.To mitigate the costs of meter replacement and programming until such time as a formal decisionis made, PacifiCorp has filed, or will be filing, interim tariff modifications in all states. If accepted,the modifications will keep the existing 2005 DST dates within the applicable tariffs untilsuch time that a formal decision is made. PacifiCorp will comply with the requirements of thedecision at that time.Fuel Source DiversitySection 111(d)(12), “Fuel Sources”, requires electric utilities to develop “a plan to minimize dependenceon 1 fuel source and to ensure that the electric energy it sells to consumers is generatedusing a diverse range of fuels and technologies, including renewable technologies.” Within threeyears of enactment, state regulatory authorities must decide whether to enact this standard ordetermine that a comparable standard meets this objective.During 2006, PacifiCorp reviewed this amendment with states and other interested partiesthrough technical conferences sponsored by the state commissions. PacifiCorp believes that thestate IRP standards and guidelines reflect a comparable standard that fulfills the requirement fora fuel source diversity plan. The Public Service Commission of Utah concurred with this view,issuing a determination that the current Utah IRP guidelines constitute a comparable standard. 23During the October 17, 2006 technical conference, the company agreed to include a section inthe IRP that discusses how fuel diversity is addressed in the planning process. This section isincluded in Chapter 8, “Action Plan.”23 Public Service Commission of Utah, “Determination Concerning the PURPA Fuel Sources Standard” (Docket No.06-999-03), issued March 13, 2007.52
PacifiCorp – 2007 IRPChapter 3 – The Planning EnvironmentFossil Fuel Generation Efficiency StandardThe PURPA amendments include a requirement that each electric utility develop and implementa 10-year plan to increase the efficiency of its fossil fuel generation plants. States must determinewhether to adopt this standard by August 8, 2008. States do not have to comply if the statehas already adopted or considered a comparable provision. 24 PacifiCorp has been reviewing thisamendment with states and other interested parties through technical conferences sponsored bythe state commissions. PacifiCorp believes that the IRP currently serves as a comparable provisionwith respect to fleet efficiency improvements arising from new generation and retirement ofold, less efficient fossil units.In discussions with Utah Public Service Commission staff, PacifiCorp agreed to report in thisIRP the 20-year forecasted average heat rate trend for the company’s fossil fuel generator fleet.This forecasted average heat rate represents the individual generator heat rates weighted by theirannual generation, accounting for new IRP resources and current planned retirements of existingfossil fuel generators. For existing fossil fuel resources, four-year average historical heat ratecurves are used, whereas new resources use expected heat rates accounting for degradation overtime. This fleet-wide heat rate trend information is provided in Figure 7.34 in Chapter 7, “Results.”In PacifiCorp’s subsequent integrated resource plans, the company will summarize its efficiencyimprovement plans, as well as report heat rate trends using forward-looking heat rates that accountfor these plans.Transmission and Electric Reliability ProvisionsThis portion of the EPAct is intended to:• Help ensure that consumers receive electricity over a dependable, modern infrastructure;• Remove outdated obstacles to investment in electricity transmission lines;• Make electric reliability standards mandatory instead of optional; and• Give Federal officials the authority to site new power lines in DOE-designated nationalcorridors in certain limited circumstances.Two sections of this legislation pertain specifically to the development of major new transmissionlines: Section 368a, which defines “energy corridors”, and Section 1221, which attempts toidentify and address transmission congestion.Section 368a, Energy CorridorsSection 368a directs the Secretaries of Agriculture, Commerce, Defense, Energy, and the Interior(the Agencies) to designate under their respective authorities corridors on Federal land in the 11Western States for oil, gas and hydrogen pipelines and electricity transmission and distributionfacilities (energy corridors). The legislation sets the timetable for corridor designation in theeleven Western States at no later than two (2) years after enactment, or August 2007.24 Edison Electric Institute, Energy Policy Act of 2005, Summary of Title XII – Electricity, Title XVIII – Studies, andRelated Provisions (August 3, 2005), page 10.53
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PacifiCorp 2007 Integrated Resource Plan (May 30, 2007)

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