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Ben Johnson Associates, Inc Ben Johnson Associates, Inc. 6070 West Hill Rd. 2252 Killearn Center Blvd Boise, Idaho 83703 Tallahassee, Florida 32309 Phone: (208) 342-1700 Phone: (850) 893-3600 Fax: (208) 384-1511 Fax: (850) 668-2731 RESPONSE TO REQUEST FOR INFORMATION: IDAHO LEGISLATIVE COUNCIL INTERIM COMMITTEE ON ENERGY, ENVIRONMENT AND TECHNOLOGY Re: INTEGRATED STATE ENERGY PLAN To: Paige Alan Parker Legislative Services Office P.O. Box 83720 Boise, ID 83720-0054 (208) 334-4857 (208) 334-2125 (fax) [email protected] • Introduction This is a response to the Request For Information (RFI) issued by The Idaho Legislative Council Interim Committee on Energy, Environment and Technology on April 4, 2006, for a consultant to aid in the creation of a integrated state energy plan. The following proposal will address electricity and natural gas issues including electric transmission and natural gas pipelines. Transportation issues are not part of this bid. This response is organized around the specific items outlined in the RFI. This proposal suggests a two-stage process for completing the integrated energy plan for Idaho. The first stage would be to complete a current profile of the state’s energy situation for natural gas and electricity. It would also include forecasts of energy needs along with estimates of the costs of various energy options. It would also include the transmission of electric power and the transportation of natural gas. The first stage would be completed in a three month period to give the Committee a base document to use in the development of energy polices produced during the second stage of the process. The energy profile and forecasts will be based on existing energy studies and plans available from utilities, regional and national organizations, and governments. On a parallel track during stage one we would assist the Committee in designing the planing process that will occur during stage two. This will include defining the goals, expectations, scope, and the process that will occur in stage two. It will be to ‘plan the plan’. This would also include robust stakeholder engagements and discussions with relevant agencies. By completing the basic data and planning process in tandem will allow the Committee the time and tools to grapple with the policy directions it will need to be clarified in stage two. Once the basic energy document is produced the Committee can use it as a basis to form policy recommendations. We will be available to work with the Committee – and subcommittees – in the formulation of recommendations for state energy policy. Our major function at this stage will to be to suggest various energy policy directions – such as tax incentives, portfolio standards, conservation options, etc. – along with estimated costs and benefits of each approach. At the end of the second stage an integrated energy plan can be produced that will include the base data and forecasts produced in stage one along with the policy recommendations developed in stage two. • An explanation of the There are a variety of approaches that could be undertaken by the Committee. alternative approaches These range from hiring a consultant to produce a ‘turn-key’ energy plan that that the Consultant feels would include recommendations and policy recommendation to be undertaken could be taken to frame a by the state. On the other end of the spectrum would be the Committee along state energy plan. with Legislative Staff actively producing its own energy plan while using a consultants to provide specific aspects necessary to complete the task outlined in House Concurrent Resolution No. 62. This proposal advocates a middle ground between these two approaches. This approach is described more fully below. • A description of the The first order of business should be the collection and synthesis of energy steps that the Interim studies and plans currently in existence as they relate to Idaho. The existence Committee should take of these other energy plans is a major difference between today and when the during the next eight (8) last state energy plan was produced in 1982. At that time the basic data needed months toward to produce the energy plan needed to be created. Currently, for example, each developing a state energy investor owned utility produces an Integrated Resource Plan (IRP). In addition, plan. there are numerous national and regional plans that can be melded to be state specific. An energy document will be produced at the end of this first stage that will form the basis of discussions of the Committee leading to the development of policies that will give the plan meaning. This is not a trivial undertaking. Each plan or study covers a unique geographical scope and encompass a variety of energy specifics (i.e. generation, transmission, conservation, etc.). Some of these plans contain forecasts of demographics and energy demand that vary and thus will need to be rationalized. The estimated costs of various generation resources vary among the plans because of both the scope of the study and the different assumptions used to develop the costs and benefit. The melding of the various studies and plans tailored to the state should be undertaken first and completed in the shortest time frame reasonable because the data will be the foundation of state plan and will be needed for policy development. It is proposed that this stage be completed within 3 months of the letting of the contract. Also during stage one we would assist the Committee in designing the planing process that will occur during stage two. This will include defining the goals, expectations, scope, and the formulation of policies process that will occur in stage two. In essence this would entail a ‘planning of the plan’. This would also include discussions with stakeholders and governmental and non- governmental agencies. Completing the basic data and planning the process in tandem will allow the Committee the time and the tools to grapple with a variety of the policy directions it will need to clarify during the remaining study period. • A detailed statement of In addition during this first stage the Committee can hear from energy stake the Consultant’s holders (utilities, government agencies, non-governmental organizations, etc.). approach to this specific The Committee would organize itself during this first stage. The Committee, project, including a for example, may want to form subcommittees focused on specific energy breakdown of specific aspects and form advisory groups. services the Consultant proposes to offer the With the basic data in hand the Committee can spend the remaining months Interim Committee. developing recommended policies. Too often state energy plans are produced then put on the shelf and ignored. This is what happened to the last state plan. In order to give the document meaning specific policies need to be implemented so that the Committee’s recommendations can be followed. These polices could include both specific legislation and the creation of mechanisms to monitor the plan on an ongoing basis. During the second stage we will assist the Committee in the development of specific policies. These policies can only be fully defined once the data is gathered. It is difficult at this point to define the number of hours needed (and thus the cost) for this stage. As outlined below the bid will be for a specific amount for stage one, and a not-to-exceed amount for stage two. The following studies and plans will be examined in detail in stage one and tailored to Idaho. This is no doubt not a complete list and an investigation will be undertaken during this stage to completed the list. 1. IOU Integrated Resource Plans A. Idaho Power Company B. Avista C. PacifiCorp 2. Public Power Loads, Forecasts, and Resources 3. Idaho Public Utilities Commission (IPUC) Annual Reports, utility filed documents, Commission Staff documents 4. Northwest Power and Conservation Council’s Fifth Power Plan (and related documents and updates) 5. Bonneville Power Administration (BPA) A. Annual Reports B. White Books (Loads and Resource Studies) C. Rate Case Publications (Power and Transmission) D. Strategic Direction Documents E. Miscellaneous Planning Documents 6. Pacific Northwest Utilities Conference Committee (PNUCC) Northwest Regional Forecast 7. Western Electric Coordinating Council (WECC) Reliability Center Strategic Planning Initiative Task Force Report (and related documents) 8. Western Governors’ Association’s Clean and Diversified Energy Advisory Committee (CDEAC) Task Force Reports 9. Northwest Energy Coalition Citizens Energy Plan 10. Idaho National Laboratory (INL) Idaho’s Energy Options 11. National Energy Policy Development Group, Reliable, Affordable and Environmentally Sound Energy for Americas Future 12. Western Resource Advocates, Balanced Energy Plan 13. U.S. Department of Energy (DOE) Annual Energy Outlook, Annual Energy Review, National Energy Policy Report 14. Federal Energy Regulatory Commission, Winter Energy Outlooks, State of the Markets Report, Summer Energy Market Assessments, Energy Policy Act (EPAct) documents 15. National Commission on Energy Policy, Ending The Energy Stalemate Stage One: • A cost estimate broken We estimate the following hours by position for the performance of tasks during down by each discrete Stage One: segments of proposals of the Consultant’s Collection of various energy studies and plans: proposed services. Don Reading 130 Bill Eastlake 20 Bob Anderson 20 Research Associates 60 Synthesis and melding of energy studies and plans: Don Reading
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