Seventh Power Plan Begins to Take Shape

At its August meeting, Council members reviewed the major elements of the draft resource strategy for its regional power plan. 

The strategy, which aims to ensure an economical and reliable power supply, centers on low-cost energy efficiency and demand response to meet future energy and capacity needs.

The scenario analysis modeling used to inform the strategy included these key findings:

• Least-cost resource strategies consistently rely on energy efficiency and demand response to meet future energy and capacity needs
• Demand response (incentives to reduce demand at peak times) or purchasing power from outside the region are potential options for providing winter capacity to meet adequacy requirements
• In combination with energy efficiency and demand response, developing a modest amount of new natural gas generation and increasing existing gas generation can replace the generation from retiring coal plants
• Using in-region power instead of exporting it reduces the need to develop resources to meet adequacy requirements
• As a region, we're able to meet the EPA's emissions limit 

The draft resource strategy specifies the following actions:

• Develop energy efficiency: 1,400 average megawatts by 2021; 3,100 aMW by 2026; and 4,500 aMW by 2035
• Expand demand response and be prepared to deploy a significant amount before 2021; review resource adequacy assessment assumptions
• Satisfy existing renewable portfolio standards
• Option gas-fired generation for capacity and other ancillary services based on local need
• Reduce exports in order to serve in-region energy and capacity needs
• Expand use of clean resources like energy efficiency and emerging technology
• Monitor and prepare to adapt to changing conditions

The strategy is not considered final and could be changed before the draft plan is released for public comment in October. In a following webinar, the power committee reviewed the draft action plan items to implement the resource strategy. Discussion focused on the energy efficiency acquisition schedule, how to handle underachieving the recommended amounts, and how to describe the schedule so utilities have a clear idea of what is expected of them. Committee members discussed, but have not yet agreed, that the two-year increment amounts could be thought of as milestones, while the mid-term assessment of the power plan would be the means to track progress.

Actions to help build the infrastructure to implement demand response programs and lower its cost were also discussed. Regarding the action to comply with existing carbon emission limits, staff confirmed that the region will have various options to consider. These include retiring heavy-emitting plants, redispatching lower-emitting plants, or a combination of the two approaches. However, these actions would not necessarily put all states in the region in compliance with their specific targets. But the new Environmental Protection Agency rule gives the states the option of joining together and complying as a region. 

The next webinar, which will focus on the resource strategy draft chapters, is scheduled for August 28.