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PacifiCorp Informational Update

PacifiCorp Informational Update. Presented to the Utah Geothermal Power Generation Workshop by Ernie Wessman PacifiCorp VP, Resource Development & Construction August 2005. IRP Implementation Update Utah SB-26 Overview. Utah Senate Bill 26. Background

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PacifiCorp Informational Update

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  1. PacifiCorp Informational Update Presented to the Utah Geothermal Power Generation Workshop by Ernie Wessman PacifiCorp VP, Resource Development & ConstructionAugust 2005

  2. IRP Implementation Update Utah SB-26 Overview

  3. Utah Senate Bill 26 • Background • High growth, transmission constraints • Need for significant new resources • Multiple potential suppliers • PacifiCorp procurement decisions • Currant Creek and Lake Side: best cost/risk balance • Perception of self-build/own bias • Debt imputation not well understood • Concerns raised with legislators

  4. Utah SB 26 Legislative History • Grew out of concerted effort during legislative interim • Enacted 2/25/05 after unanimous House and Senate approval • Immediate effective date • Passed after bills stalled in 2003 and 2004 • Broad range of collaborators

  5. Utah SB 26 Content • Defines “significant energy resource” • 10 year/100 MW minimums • Any resource transaction with an affiliate • Requires significant energy resources to be procured through PSC-approved solicitation process • Exemptions limited to: • Emergencies • Valuable time-limited commercial or technical opportunity • Other public-interest reasons

  6. Utah SB 26 Content • PSC to establish rules to frame solicitations: • Criteria for screening potential bidders • Methodology for evaluating competing bids • Level of information to be disclosed to bidders • Participation and role of independent evaluator • Multi-state issues

  7. Utah SB 26 Content 10-phase Process • Utility completes IRP/Action plan • Utility submits proposed RFP solicitation process a. Utility may seek exemption • PSC approves/modifies RFP solicitation process • Utility conducts solicitation • PSC hires independent evaluator • Utility submits resource selection and cost to PSC for review • PSC reviews resource selection and approves/rejects • Utility proceeds with procurement a. Utility may seek mid-course review of decision by PSC • Resource becomes part of utility portfolio • PSC orders recovery of actual costs up to pre-approved level a. Costs above authorization w/o mid-course review are subject to PSC review b.Costs above authorization w/mid course review are fully recoverable

  8. Utah SB 26 Expected Outcomes • Up front agreement on conduct of solicitations • Transparent bidding process • Independent review of process compliance • Transparent basis for evaluation/selection of resources • More stakeholder confidence in utility decisions • Greater certainty of cost recovery • Potential to improve rating agency confidence

  9. Thank You

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