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KEN PAYNE RI SENATE POLICY OFFICE. LEAST COST PROCUREMENT. CREATING OPPORTUNITY. LEAST COST PROCUREMENT. “ COMPREHENSIVE ENERGY CONSERVATION, EFFICIENCY AND AFFORDABILITY ACT OF 2006 ” Builds on URA of 1996 Reconfigures institutional architecture Respects diversity of interests
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KEN PAYNE RI SENATE POLICY OFFICE LEAST COST PROCUREMENT CREATING OPPORTUNITY
LEAST COST PROCUREMENT • “ COMPREHENSIVE ENERGY CONSERVATION, EFFICIENCY AND AFFORDABILITY ACT OF 2006 ” • Builds on URA of 1996 • Reconfigures institutional architecture • Respects diversity of interests • Treats efficiency economically • Facilitates development of renewables • Provides low-income energy assistance
LEAST COST PROCUREMENT • CREATING OPPORTUNITY • RESPECTING CONTEXT (REGIONAL AND NATIONAL) • VALUING DIVERSITY (ENERGY RESOURCES) • LEVELING PLAYING FIELD (GENERATION/EFFICIENCY) • EMBRACING FLEXIBILITY (CONDITIONS CHANGE)
LEAST COST PROCUREMENT D I V E R S I T Y F L E X I B I L I T Y C O N T E X T O P P O R T U N I T Y F A I R N E S S
LEAST COST PROCUREMENT • OPPORTUNITY = • EQUAL CONSIDERATION • EFFICIENCY PROCUREMENT • SUPPLY PROCUERMENT • RECURRING CONSIDERATION • TRIENNIAL REVIEW
LEAST COST PROCUREMENT • EQUAL CONSIDERATION • FROM SUBSIDY MODEL • URA: Demand Side Management surcharge • Fund cost effective investment • TO ECONOMIC MODEL • LCP: Efficiency and Conservation • Measures: 1) prudent, 2) reliable and • 3) lower cost than acquisition of supply
2013 DSM 2006 2020 2008 LEAST COST PROCUREMENT LEAST COST PROCUREMENT TRANSITION
LEAST COST PROCUREMENT BASIC PRINCIPLE: PRICE x USE = COST EFFICIENT USE SYSTEM BENEFITS USER BENEFITS
LEAST COST PROCUREMENT “ THE COMPREHENSIVE ENERGY CONSERVATION, EFFICIENCY AND AFFORDABILITY ACT OF 2006 ” Kenneth F. Payne, Director RI Senate Policy Office 145 State House Providence, RI 02903 (401) 276-5552 kpayne@rilin.state.ri.us