PacifiCorp 2007 Integrated Resource Plan (May 30, 2007)

PacifiCorp – 2007 IRPChapter 4 – Resource Needs AssessmentPacifiCorp has added approximately 10 megawatts of additional capacity to its hydroelectricportfolio since the release of the 2004 IRP. This additional capacity is the result of turbine upgradesat its J.C. Boyle hydroelectric plant.Demand-side ManagementDemand-side management programs vary in their dispatchability, reliability of results, term ofload reduction benefit and persistence over time. Each has its value and place in effectively managingutility investments, resource costs and system operations. Those that have greater persistenceand firmness (can count on them to be delivered) can be relied upon as base resources forplanning purposes; those that do not are well-suited as system reliability tools only. Reliabilitytools are used to avoid outages or high resource costs as a result of weather conditions, plantoutages, market prices, and unanticipated system failures. These programs are divided into fourgeneral classes.● Class 1 DSM: Fully dispatchable or scheduled firm – Class 1 programs are those forwhich capacity savings occur as a result of active company control or advanced scheduling.Once customers agree to participate in Class 1 DSM programs, the timing and persistence ofthe load reduction is involuntary on their part within the agreed limits and parameters of theprogram. In most cases, loads are shifted rather than avoided. Examples include residentialand commercial central air conditioner load control programs (“Cool Keeper”) that are dispatchablein nature and irrigation load management and interruptible or curtailment programs(scheduled firm).● Class 2 DSM: Non-dispatchable, firm energy efficiency programs – Class 2 programs arethose for which energy and capacity savings are achieved through facilitation of technologicaladvancements in equipment, appliances, lighting and structures. These types of programsprovide an incentive to customers to replace existing customer owned facilities (or to upgradein new construction) to more efficient lighting, motors, air conditioners, insulation levels,windows, etc. Savings will endure over the life of the improvement (firm). Program examplesinclude air conditioning efficiency programs (“Cool Cash”), comprehensive commercialand industrial new and retrofit energy efficiency programs (“Energy FinAnswer”) and refrigeratorrecycling programs (“See ya later refrigerator”).● Class 3 DSM: Price responsive programs – Class 3 DSM programs seek to achieve shortduration(hour by hour) energy and capacity savings from actions taken by customers voluntarily,based on a financial incentive or penalty. Savings are measured at a customer-bycustomerlevel (via metering), and customers are compensated or charged in accordance witha program’s pricing parameters. As a result of their voluntary nature, savings are less predictable,making them less suitable to incorporate into resource planning exercises, at least untilsuch time that their size and customer behavior profile provide sufficient information to constructa diversity factor suitable for modeling purposes. Savings endure only for the durationof the incentive offering and loads tend to be shifted rather than avoided. Program examplesinclude large customer energy bid programs (“Energy Exchange”), time-of-use pricing plans,critical peak pricing plans, and inverted tariff designs.● Class 4 DSM: Energy efficiency education and non-incentive based voluntary curtailmentprograms – These programs represent energy and capacity reductions achieved71