2006 Integrated Resource Plan

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2006 Integrated Resource Plan 2006 Integrated Resource Plan Revised October 12, 2006 Acknowledgement Resource planning is a continuous process that Idaho Power Company constantly works to improve. Idaho Power prepares and publishes a resource plan every two years and expects the experience gained over the next few years will lead to modifications in the 20-year resource plan presented in this document. Idaho Power invited outside participation to help develop both the 2004 and 2006 Integrated Resource Plans. Idaho Power values the knowledgeable input, comments, and discussion provided by the Integrated Resource Plan Advisory Council and the comments provided by other concerned citizens and customers. Idaho Power looks forward to continuing the resource planning process with its customers and other interested parties. You can learn more about Idaho Power’s resource planning process at www.idahopower.com. Safe Harbor Statement This document may contain forward-looking statements, and it is important to note that the future results could differ materially from those discussed. A full discussion of the factors that could cause future results to differ materially can be found in our filings with the Securities and Exchange Commission. Printed on recycled paper Idaho Power Company Table of Contents TABLE OF CONTENTS List of Tables ............................................................................................................................................. vi List of Figures........................................................................................................................................... vii List of Appendices ................................................................................................................................... viii Glossary of Terms...................................................................................................................................... ix 1. 2006 Integrated Resource Plan Summary..............................................................................................1 Introduction............................................................................................................................................1 Potential Resource Portfolios.................................................................................................................2 Risk Management ..................................................................................................................................2 Near-Term Action Plan..........................................................................................................................3 Renewable Resource Education, Research and Development...............................................................4 Portfolio Composition............................................................................................................................5 IRP Methodology...................................................................................................................................5 Public Policy Issues ...............................................................................................................................6 Environmental Attributes or Green Tags.........................................................................................6 Emission Offsets ..............................................................................................................................8 Financial Disincentives for DSM Programs ....................................................................................8 IGCC Technology Risk....................................................................................................................8 Asset Ownership ..............................................................................................................................9 2. Idaho Power Company Today .............................................................................................................11 Customer and Load Growth.................................................................................................................11 Supply-Side Resources ........................................................................................................................13 Hydro Resources............................................................................................................................14 General Hells Canyon Complex Operations..................................................................................14 Brownlee Reservoir Seasonal Operations......................................................................................15 Federal Energy Regulatory Commission Relicensing Process......................................................16 Environmental Analysis.................................................................................................................16 Hydroelectric Relicensing Uncertainties .......................................................................................17 Baseload Thermal Resources.........................................................................................................17 Jim Bridger...............................................................................................................................17 Valmy.......................................................................................................................................17 Boardman.................................................................................................................................17 Peaking Thermal Resources...........................................................................................................17 2006 Integrated Resource Plan Page i Table of Contents Idaho Power Company Danskin ....................................................................................................................................17 Bennett Mountain.....................................................................................................................18 Salmon Diesel ..........................................................................................................................18 Public Utility Regulatory Policies Act...........................................................................................18 Idaho Projects...........................................................................................................................18 Oregon Projects........................................................................................................................19 Cogeneration and Small Power Producers (CSPP)..................................................................19 Purchased Power............................................................................................................................19 Transmission Interconnections ............................................................................................................20 Description.....................................................................................................................................20 Capacity and Constraints ...............................................................................................................20 Brownlee–East Path.................................................................................................................20 Oxbow–North Path ..................................................................................................................22 Northwest Path.........................................................................................................................22 Borah–West Path .....................................................................................................................23 Midpoint–West Path ................................................................................................................23 Regional Transmission Organizations ...........................................................................................23 Off-System Purchases, Sales, and Load-Following Agreements ........................................................23 Demand-Side Management..................................................................................................................24 Overview of Program Performance ...............................................................................................25 3. Planning Period Forecasts....................................................................................................................27 Load Forecast.......................................................................................................................................27 Expected Load Forecast–Economic Impacts.................................................................................28 Expected Load Forecast–Weather Impacts....................................................................................28 Micron Technology........................................................................................................................29 Idaho National Laboratory.............................................................................................................30 Simplot Fertilizer ...........................................................................................................................30 Firm Sales Contracts......................................................................................................................30
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