2008 Member Agenda

In 2008 PNUCC will focus on several key issues facing the Northwest electric utility industry. The following is a synopsis of the highest priority issues for the organization and spells out what PNUCC will be doing to address them.  Expected outcomes provide focus to the PNUCC effort and will guide us through 2008. This year PNUCC will emphasize communicating the critical facets of these topics to elected officials, policy makers and the general public.

Engaging on Council’s 6th Regional Power Plan

The Council is gearing up in 2008 to develop the 6th version of a Regional Power Plan.  The Council’s plan provides the opportunity to tee up many of the key resource planning and development issues facing the Northwest, and it provides a vehicle for articulating the uniqueness and value of the Northwest power system to local, state and federal decision makers.  PNUCC members will engage with Council members and staff to develop a comprehensive and useful regional plan.

Outcomes: 

1. PNUCC members and the Council share a common view on the basics of the current Northwest power system and the future challenges.
2. The 6th Regional Power Plan describes the state of the Northwest power system and the future we face.  

Assessing Policy on Climate Change

The pace continues to increase on the number of proposals being considered for addressing the issue of climate change.  At the national and state levels, legislative proposals are moving forward and new organizations and coalitions are forming.  In 2008, the PNUCC members will examine what is being proposed and assess the consequences to Northwest consumers and companies.

Outcomes:

1. Recognize the implications of state and federal proposals on climate change to the Northwest electric consumers.
2. Add to the PNUCC consensus view of key elements of national legislation.
3. PNUCC members will gain insights on utility approaches to addressing requirements of climate change policies.

 

Examining the Region’s Power Supply Picture

Each year we capture a snapshot of the region’s loads and resources in PNUCC’s Northwest Regional Forecast.  Looking out the next ten years, this document is used as an indicator of need for new generation and is a means for tracking the region’s load growth.  This year we are reintroducing a capacity-based estimate of need for power as well. 

Bonneville Power Administration produces their own view of the regional picture in their White Book.  They too are comparing loads to resources to evaluate the need for power on an energy and capacity basis.  And as a result of the work of the Regional Adequacy Forum led by the Council and BPA, the Council adopted an independent evaluation of the Northwest power system’s reliability.  In 2008 the Council will estimate the region’s resource energy and capacity adequacy based on their adopted regional adequacy standards and metrics.  

Outcomes:

1. Have a common and clear indicator of Northwest utilities’ need to acquire energy and capacity resources to meet loads during the next 10 years.
2. Have a common and clear indicator of the near-term reliability of the Northwest power system.
3. Provide an understanding of the similarities and differences of these analyses.

Building and Integrating Wind Power

The region’s interest in wind-powered generation has reached new heights and has raised legitimate questions about potential availability, the costs and challenges associated with integrating wind energy.  Almost 2,500 MW of wind turbines have been installed by the end of 2007.  In 2008 PNUCC members will build on the work by BPA and the Council in an effort to identify cost-effective ways to manage the challenges associated with integrating substantial amounts of wind energy..

Outcomes:

1. Gain insights on the potential amounts and costs of wind power in the Northwest.  Spotlight utility experiences in building and operating wind projects.
2. Know what it takes to integrate significant amounts of wind capacity into our power system.

     

Staying up on Integrated Resource Plans

As individual utilities continue to update or complete their integrated resource plans PNUCC members will be exposed to the insights of these plans and examine how they contribute to the regional resource picture.  In 2008 BPA will also be developing an assessment of their future resources needs and making plans to fulfill them.  PNUCC members will engage with BPA to understand BPA’s analysis as well as provide their expertise and ideas in BPA’s process.

Outcomes:

1. PNUCC members will gain insights into the analysis and results of individual utility resource acquisition plans, including the role of new technologies.
2. BPA’s Resource Program provides a clear view of their future resource acquisitions and meets the needs of its customers.

Ensuring Science-Based, Cost-Effective Salmon Recovery

A key element of PNUCC’s ongoing salmon effort will be to keep the pressure on state, regional and federal agencies to use best science and cost-effective practices to implement their fish and wildlife plans.  On the topic of river operations we will engage with the federal agencies to promote moving away from operations with questionable salmon benefits and substantial cost to Northwest customers.

Outcomes:

1. Effective use of ratepayer and taxpayer dollars for salmon recovery.
2. Certainty on river operations for salmon.

Weighing in on Council’s Fish & Wildlife Program

The Council has called for changes to their Fish and Wildlife Program in 2008.  PNUCC will work with the Council to ensure that the Program’s goals are clearly defined and useful in prioritizing future projects to fund.  We anticipate a major push from other parties for changes to the Program to lessen the Council’s role in fish and wildlife management decisions and justify a significant increase in funding.  PNUCC will support Program improvements to add transparency and rigor to how the Program is implemented in order to shore up the Council’s role in these matters, as well as work to ensure the Program continues to limit its focus to mitigating hydropower impacts for which BPA ratepayers are responsible. 

Outcomes:

1. Clearly identified salmon goals.
2. Clarity on how and why the Council selects specific projects for funding.
3. A Program that funds projects that are clearly linked to a hydropower impact.

Defining BPA’s Future Power Supply Role

PNUCC members have been working diligently on several fronts to develop recommendations for the long-term future power supply role of the Bonneville Power Administration – BPA’s Regional Dialogue.  It is imperative for PNUCC members to know with certainty what BPA will offer as they weigh their options for meeting customer demands beyond 2011.  In 2008 BPA is expected to offer its long-term contracts.  The 2008 effort will shift from developing policy to the details of contract language and rate methodologies.

Outcome:

1. Know BPA’s long-term role in: 1) each public utility’s obligation to meet load, 2) serving DSI load, and 3) providing benefits to residential and small farm customers of invest-owned utilities.

Untangling Transmission Issues

Regional transmission organizations being developed, FERC initiatives, Northern Tier Transmission Group, Columbia Grid, and BPA’s plans to expand the region’s transmission grid will be front and center on our 2008 agenda.  PNUCC members will be part of local, state, and national discussions on the importance of an adequate, stable, and well-managed transmission system. 

Outcome:

1. Understand the role of regional transmission organizations in planning, building and operating Northwest transmission. 
2. Assess the transmission infrastructure expansion needs.

  

Collaborating on BPA Costs

The PNUCC Board and members will continue to meet regularly with BPA’s top management to discuss the agency’s financial status and decisions that effect future rates.  The goals include enhancing BPA’s credibility with its customers, and providing timely understanding of and meaningful input to proposed BPA activities and policies.  Customers will gain a clearer understanding of the financial risks of BPA’s actions to inform their decisions on future power supply and price.

Outcome:

1. Participate in and understand BPA’s new Integrated Business Review

 

Tracking the Council

Each month PNUCC’s Council Report provides an in depth account of the Northwest Power and Conservation Council meetings.  With this report PNUCC members have a strong sense of the topics that were addressed and the actions that were taken by the Council, allowing them to follow the key regional issues from the comfort of their own office. 

Keeping Tabs on Energy Legislation

PNUCC has been monitoring restructuring activities and energy related legislation for the past decade.  It is a regular topic at our board meetings, and the implications for our members are profound.  We will continue to follow state, regional, and national progress and keep our members up to date.