2006 IRP Chamber of Commerce Meeting

1
2006 Integrated Resource Plan Seattle City
Light
NWPPA Annual Power Supply Workshop
2
Key IRP Findings

• Near Term (2007-2009)
• No immediate need to acquire new generating
  resources
• Acquire cost-effective conservation throughout
  the plan
• Focus on improving seasonal balance of existing
  resources
• Intermediate Term (2010-2015)
• Preparing to meet Initiative 937 requirements
• Cost-effective resource acquisitions
• Long Term (2016-2026)
• Renewables to meet I-937 and resource adequacy
  needs

3
Analyzing Variability and Risk
Hydro Volatility in January, When Demand is
Highest, Creates Risk
GWh
Total City Light Hydro Resources (Skagit,
Boundary, BPA, and other Contracts)
4
Resource Additions for a 95 Confidence Level
Resources Needed to Cover Risk, Load Growth, and
Power Contract Expiration
aMW
5
Resource Additions by Round 1 Portfolio Total
in 2026
Capacity in Megawatts
These resources do not involve adding new
generation capacity, but are included in the
portfolios
6
Energy Scenarios for the U.S.Global Energy
Decisions
Resource Portfolios Stress-Tested With
Alternative Futures
7
Round 1 Portfolio PerformanceSummary
8
Draft Environmental Impact Statement
Environmental Impacts of Resources and Resource
Portfolios are Identified
9
Public Input

• Seven Stakeholder Meetings
• Stakeholders included representatives of
• Industrial, commercial, and residential customers
• Environmental groups and independent power
  producers
• BPA and the Northwest Power and Conservation
  Council
• Four Public Meetings
• Three IRP public meetings (broadcast on Seattle
  Channel)
• Open house for Draft Environmental Impact
  Statement
• Significant IRP Changes Made from Public Input
• Conservation non-energy benefits, production tax
  credits, wind capacity factor, carbon taxes

10
Resource Additions by Round 2 Portfolio Total
in 2026
Capacity in Megawatts
Portfolios
P6 I-937,
P2 I-937,
P7 I-937,
P8 I-937,
Geo-
Hydro,
P3 I-937,
P5
P4
Hydro,
Hydro,
thermal,
Wind,
Hydro,
Wind,
Geo-
Wind
Biomass
Wind
Geo-
thermal,
(Accel.
(Accel.
(Accel.
Resources
thermal
Wind
Cons.)
Cons.)
Cons.)
Conservation
142
142
142
142
142
142
142
Exchange
50
50
140
145
100
100
100
Seasonal Contracts
45
40
20
20
10
Hydro Contract
50
50
50
50
50
50
Wind
165
60
60
150
315
165
Geothermal
100
125
50
75
125
50
100
Landfill Gas
25
25
25
25
25
25
25
Biomass
15
15
15
SC Turbine
50
2026 Total New
Capacity
355
260
175
210
300
455
355
These resources do not involve adding new
generation capacity, but are included in the
portfolios
11
Portfolio 8 More Geothermal (Better Performing)
12
Proposed 2-Year Action Plan Summary

• Study the costs and benefits of accelerating
  conservation
• Work to ensure reliable transmission capacity for
  City Light
• Pursue City Council approval for seasonal
  capacity contracts
• Pursue summer for winter exchanges as needed
• Pursue landfill gas opportunities in 2007-2008
• Investigate geothermal resources, distributed
  generation, and new renewable technologies
• Investigate the impacts of climate change further
  in 2008 IRP
• Investigate renewable energy credits for I-937
  compliance
• Study cost-effectiveness of hydro efficiency
  projects
• Investigate costs and benefits of a hydro
  contract
• Begin 2008 IRP in 2007