Presented to:

1
Comprehensive Electricity Resource PlanPursuant
to PA 07-242 51 Connecticut 2009 IRP Overview

• Presented to
• The Connecticut Power and Energy Society
• April 8, 2009

2
Purpose and Scope

• Statutory Requirement for Comprehensive Resource
  Plan
• Pursuant to Section 51 of Public Act No. 07-242
• Annually, EDCs must submit a 3-5-10-year plan to
  CEAB
• Connecticut EDCs 2009 Plan Overview
• A continuation of the effort started in the 2008
  report
• Consists of ten whitepapers addressing issues
  collaboratively identified by the EDCs and the
  CEAB
• Resource Adequacy
• Demand-Side Management
• Renewable Energy
• Transmission
• Nuclear Fact-Finding
• Combined Heat and Power (CHP)
• Environmental Regulation
• Energy Security
• Resource Development Finance
• Emerging Technologies
• The findings and recommendations provide a
  foundation for the 2010 IRP effort

3

• Primary Findings

4
Finding 1 Connecticut has sufficient resources
installed or under contract to meet
reliability-based capacity requirements for the
next 10 years
Resources are sufficient to meet the Connecticut
Local Sourcing Requirement (LSR) LSR is the
minimum amount of capacity that must be
physically located in Connecticut, as determined
by ISO-NE, to meet reliability targets.
Source 2009IRP, Table 1.9, Page 1-19
5
Finding 1 (cont.) Connecticut resources are
sufficient even with 1,267 MW retirements, based
on environmental and economic analysis
Source Adapted from 2009IRP, Table 7.3, Page 7-5
6
Finding 1 (cont.) New England also has no
incremental capacity needs
Resources are sufficient to meet the ISO-NE
Installed Capacity Requirement (ICR) The ICR is
the minimum amount of capacity that must be
installed throughout New England, as determined
by ISO-NE, to meet reliability targets.
Source 2009IRP, Table 1.11, Page 1-20
7
Finding 2 Although there is no need from a
resource adequacy perspective, there are other
policy-related needs that will drive new resource
development

• Key Policy Issues
• Energy efficiency
• Environmental performance
• Renewable development
• Diversity of supply

8
Energy efficiency can achieve a net reduction in
consumption
Source 2009IRP, Figure 2.6, Page 2-42
9
Energy efficiency can also reduce peak loads
Source 2009IRP, Figure 2.5, Page 2-41
10
Pending environmental legislation/regulation
could induce retirements and/or costly
investments in control equipment
Source 2009IRP, Page 7-2
11
Renewable Portfolio Standards are increasing
Annual Demand for Class I Renewable Generation
(GWh)
Source 2009IRP, Figure 3.1, Page 3-7
12
Diversity of supply affects the energy price
New England Energy Shares by Fuel Type
Connecticut Energy Shares by Fuel Type
Coal
18
Oil
5
Gas
42
Source Adapted from 2009IRP, Figure 8.1, Page 8-4
13
Finding 3 Connecticut has very limited in-state
renewable resource potential other than fuel
cells, although outside resources can help meet
RPS
Existing, Planned, and Potential Projects at
Feasible Sites in New England
Source Adapted from 2009IRP, Table 3.6, Page 3-13
14
Finding 3 Connecticut has very limited in-state
renewable resource potential other than fuel
cells, although outside resources can help meet
RPS (cont.)
Source 2009 IRP, Table 3.7, Page 3-17
15
Finding 3 (cont.) there is substantial
uncertainty whether there will be sufficient
resources developed to meet region-wide demand
for renewables
New England Class I Renewable Supply and Demand
Balance
Range of Supply Uncertainty
Source 2009IRP, Figure 3.2, Page 3-15
16
Finding 3 (cont.) new transmission could enable
the development and integration of out-of-state
resources
Hydro, Wind, Nuclear
Wind, Hydro
Midwestern Wind
Offshore Wind
17
Finding 4 Connecticut is a national leader in
energy efficiency programs
The 2008 Energy Efficiency Scorecard by The
American Council for an Energy Efficient Economy
Source 2009IRP, Adapted from Table 2.10, Page
2-16
18
Finding 4 (cont.) additional EE is a
cost-effective and environmentally responsible
way to meet Connecticuts increasing energy needs
Summary of Electric System Costs and Benefits of
Expanded Energy Efficiency Programs Implemented
2010-2019
Source Adapted from 2009IRP, Table 2.18, Page
2-28
19
Finding 5 Current and proposed transmission
projects will mitigate reliability deficiencies,
further integrate CT into the regional grid,
reduce congestion, and provide improved access to
diverse generation
Source 2009IRP, Figure 4.3, Page 4-7
20
Finding 6 Transmission planning involves
multiple regional and state processes which offer
numerous opportunities for state participation
and influence
Opportunities for increased State influence

• State Processes
• CSC
• Transmission siting approval
• Consider alternatives
• DPUC
• Review, approve IRP
• Solicit capacity
• Funding for DSM
• Implementation of state policy objectives
• CEAB
• Review, modify IRP
• Solicit alternatives (RFPs)
• Identify long-term energy needs

• Regional Processes Committees
• ISO need-specific planning process
• ISO Regional System Plan
• ISO Planning Advisory Committee
• NEPOOL Reliability Committee

21

• Recommendations

22
Recommendations

• Recommendation 1 EDCs CEAB to reach consensus
  on the structure and assumptions for the 2010
  IRP, using the 2009 IRP as a starting point.
• Recommendation 2 EDCs will submit supplemental
  information in the following areas in conjunction
  with the development of the 2010 IRP
• Nuclear Power
• Energy Efficiency
• Emerging Technologies
• Canadian Imports
• Energy Security
• Recommendation 3 The EDCs, DEP and CEAB should
  collaborate to anticipate state, regional, and
  federal energy and environmental policy direction
  to inform 2010 IRP

23
Recommendations (cont.)

• Recommendation 4 Commit to funding expanded
  energy efficiency in Connecticut with focus on
  balancing expanded funding and rate impacts.
• Recommendation 5 Enhance transmission-related
  processes and outcomes by
• increasing state participation in the regional
  planning process,
• establishing a collaborative dialog between the
  EDCs and multiple state agencies to develop
  state-wide perspectives on transmission issues,
• using Proactive Requests for Proposals as the
  basis for the alternative analysis process, and
• incorporating the projects in the ISO-NE Regional
  System Plan as a starting point for the
  transmission topology in future IRPs.

24
Recommendations

• Recommendation 6 Bilateral contracting
  solicitations by the EDCs should include
  renewable generation and renewable energy
  certificates (RECs).
• Recommendation 7 The CTDEP, CEAB, and EDCs
  should collaborate on using the 2008 and 2009 IRP
  analyses to inform decision making regarding
  environmental regulations and on relevant inputs
  for the 2010 IRP.