2017 INTEGRATED RESOURCE PLAN Volume I April 4, 2017
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2017 INTEGRATED RESOURCE PLAN Volume I April 4, 2017 This 2017 Integrated Resource Plan Report is based upon the best available information at the time of preparation. The IRP action plan will be implemented as described herein, but is subject to change as new information becomes available or as circumstances change. It is PacifiCorp’s intention to revisit and refresh the IRP action plan no less frequently than annually. Any refreshed IRP action plan will be submitted to the State Commissions for their information. For more information, contact: PacifiCorp IRP Resource Planning 825 N.E. Multnomah, Suite 600 Portland, Oregon 97232 (503) 813-5245 [email protected] http://www.pacificorp.com This report is printed on recycled paper Cover Photos (Top to Bottom): Wind Turbine: Marengo Wind Project Solar: Pavant Solar Plant Transmission: Sigurd to Red Butte Transmission Line Demand-Side Management: Smart thermostat Pacific Power wattsmart Business Customer Meeting Thermal-Gas: Blundell Geothermal Plant PACIFICORP – 2017 IRP TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF CONTENTS …………………………………………………….………….……..….. i INDEX OF TABLES ………..…………..……………………………………………..……..….. viii INDEX OF FIGURES ….………………………………………………….….……..………..….. xi CHAPTER 1 – EXECUTIVE SUMMARY ………………………………….………………..…. 1 PREFERRED PORTFOLIO HIGHLIGHTS ............................................................................................... 2 NEW RENEWABLE RESOURCES AND TRANSMISSION ..........................................................................2 WIND REPOWERING .......................................................................................................................3 DEMAND SIDE MANAGEMENT .........................................................................................................3 WHOLESALE POWER MARKET PURCHASES ......................................................................................5 EXISTING COAL RESOURCES ...........................................................................................................6 NATURAL GAS RESOURCES .............................................................................................................7 RENEWABLE PORTFOLIO STANDARDS ..............................................................................................7 CARBON DIOXIDE EMISSIONS .........................................................................................................9 LOAD AND RESOURCE BALANCE ................................................................................................... 10 CAPACITY BALANCE .....................................................................................................................10 ENERGY BALANCE ........................................................................................................................11 2017 IRP ADVANCEMENTS AND SUPPLEMENTAL STUDIES ............................................................ 13 IRP ADVANCEMENTS ....................................................................................................................13 SUPPLEMENTAL STUDIES ..............................................................................................................14 ACTION PLAN ................................................................................................................................ 16 CHAPTER 2 – INTRODUCTION ………………………………….………………………...…. 21 2017 INTEGRATED RESOURCE PLAN COMPONENTS ....................................................................... 22 THE ROLE OF PACIFICORP’S INTEGRATED RESOURCE PLANNING .................................................. 23 PUBLIC INPUT PROCESS ................................................................................................................. 23 CHAPTER 3 – THE PLANNING ENVIRONMENT ………………….…………………....…. 25 INTRODUCTION .............................................................................................................................. 25 WHOLESALE ELECTRICITY MARKETS ............................................................................................ 26 NATURAL GAS UNCERTAINTY ....................................................................................................... 28 THE FUTURE OF FEDERAL ENVIRONMENTAL REGULATION AND LEGISLATION .............................. 32 FEDERAL CLIMATE CHANGE LEGISLATION ................................................................................... 32 FEDERAL RENEWABLE PORTFOLIO STANDARDS ............................................................................ 33 FEDERAL POLICY UPDATE ............................................................................................................. 33 NEW SOURCE PERFORMANCE STANDARDS FOR CARBON EMISSIONS – CLEAN AIR ACT § 111(B) .... 33 CARBON EMISSION GUIDELINES FOR EXISTING SOURCES – CLEAN AIR ACT § 111(D) .................... 33 CLEAN AIR ACT CRITERIA POLLUTANTS – NATIONAL AMBIENT AIR QUALITY STANDARDS .............. 34 REGIONAL HAZE ......................................................................................................................... 35 MERCURY AND HAZARDOUS AIR POLLUTANTS .............................................................................. 37 i PACIFICORP – 2017 IRP TABLE OF CONTENTS COAL COMBUSTION RESIDUALS ................................................................................................... 37 WATER QUALITY STANDARDS ....................................................................................................... 38 2015 TAX EXTENDER LEGISLATION .............................................................................................. 38 STATE POLICY UPDATE .................................................................................................................. 39 CALIFORNIA ................................................................................................................................ 39 OREGON ..................................................................................................................................... 40 WASHINGTON .............................................................................................................................. 41 UTAH .......................................................................................................................................... 41 GREENHOUSE GAS EMISSION PERFORMANCE STANDARDS ............................................................ 41 RENEWABLE PORTFOLIO STANDARDS ........................................................................................... 42 CALIFORNIA ................................................................................................................................ 42 OREGON ..................................................................................................................................... 44 UTAH .......................................................................................................................................... 46 WASHINGTON .............................................................................................................................. 47 TRANSPORTATION ELECTRIFICATION ............................................................................................. 47 HYDROELECTRIC RELICENSING ..................................................................................................... 48 POTENTIAL IMPACT ..................................................................................................................... 49 TREATMENT IN THE IRP ............................................................................................................... 49 PACIFICORP’S APPROACH TO HYDROELECTRIC RELICENSING ...................................................... 49 UTAH RATE DESIGN INFORMATION ............................................................................................... 50 RESIDENTIAL RATE DESIGN ......................................................................................................... 50 COMMERCIAL AND INDUSTRIAL RATE DESIGN .............................................................................. 51 IRRIGATION RATE DESIGN ........................................................................................................... 51 ENERGY IMBALANCE MARKET ...................................................................................................... 51 RECENT RESOURCE PROCUREMENT ACTIVITIES ............................................................................ 53 DEMAND SIDE MANAGEMENT (DSM) RESOURCES ....................................................................... 53 2017 TRANSFER FREQUENCY RESPONSE REQUEST FOR PROPOSALS ............................................. 54 NATURAL GAS ASSET MANAGEMENT AND SUPPLY REQUEST FOR PROPOSALS ................................ 54 RENEWABLE RESOURCE AND REC REQUEST FOR PROPOSALS ....................................................... 54 2015 MARKET RESOURCE REQUEST FOR PROPOSALS ................................................................... 54 RENEWABLE ENERGY CREDITS (SALE) REQUEST FOR PROPOSALS ................................................. 54 SHORT-TERM MARKET POWER REQUEST FOR PROPOSALS ............................................................ 55 CHAPTER 4 – TRANSMISSION PLANNING ……....……………….……………………..…. 57 INTRODUCTION .............................................................................................................................. 57 REGULATORY