NORTHWEST POWER AND CONSERVATION COUNCIL December 4, 2012 Meeting by Webinar, the Council massaged the messages for the draft Mid-term Assessment of the Sixth Power Plan, now set to be released for comment later this month. The Resource Adequacy Forum’s report, which underscores the region’s need for capacity, was approved for posting on the Council’s website. And a new Fish and Wildlife Program amendment process will kick off in the spring. Next Meeting: January 15-16 in Portland. IN THIS ISSUE Mid-term Assessment Will be a New Year’s Baby .......................................................................... 1 Deck the Website with Adequacy Tidings ....................................................................................... 2 I’m Dreaming of a New F&W Program ........................................................................................... 2 Ten Sturgeon Spawning, Nine Burbot Swimming ........................................................................... 2 THE AGENDA______ ______________ Mid-term Assessment Will be a New Year’s Baby The Power Committee had a lengthy discussion this morning about the “pre-draft” report on the Midterm Assessment of the Sixth Power Plan, staffer Charlie Black told the Council. We will incorporate the Council’s advice today into a draft report, which the Power Committee will review, he said. Council members will be asked, by telephone or Webinar, to approve release of the draft for review around December 18, Black stated. The Council will take comments on the draft at its January meeting, the comment period will last until late January, and a decision on the final report could be made in February, he said. We will also continue the stakeholder outreach process we’ve had going on throughout the summer and fall, Black told the Council. I’ve met with Dick Adams of PNUCC, and he has already reserved time for a discussion about the draft report at PNUCC’s January board meeting, Black said. We plan more meetings with a variety of groups in the region, he added. There has been a lot more input on this document than there has been with other things the Council has done in the past, observed Jim Yost. The purpose of the assessment is to determine if we are on track in implementing the Sixth Power Plan, Black stated. He went over the nine chapters of the assessment, noting some of its key concepts. The report highlights the new emphasis in system planning on meeting peaking capacity and system flexibility needs, rather than just energy needs, Black said. The report points out that the character of the Northwest power system is changing and that there are significant differences among the region’s utilities, he stated. There’s a stronger linkage today between natural gas and power system planning because of greater dependence on gas for electricity generation, Black The convergence of power and transmission planning and power and natural gas planning mark a long-term shift of focus for us, said Phil Rockefeller. We will be more obliged to integrate factors that in the past were considered minor to our efforts, he added. This is an excellent overview, Rockefeller told Black. said. The report also reflects the Adequacy Forum’s conclusion that for the first time, the region is facing the need for new resources to maintain its adequacy standard, he noted, adding, “that’s a landmark change.” The report will contain updated forecasts and recommend the Council annually update its electricity demand, natural gas, and wholesale price forecasts, Black stated. The Power Committee has pointed out wholesale prices aren’t providing the right incentives to induce the building of new resources for peaking capacity and system flexibility, he said. Deck the Website with Adequacy Tidings The Council approved the Northwest Resource Adequacy Forum’s power supply adequacy assessment for 2017 for release to the public. The report, which indicates the region will have to acquire additional resources in the next five years to maintain a reliable power supply, will be posted on the Council’s website. The report concludes the region is “on course” in implementing the Sixth Plan, Black noted, with energy efficiency acquisitions in 2010 and 2011 exceeding the plan’s goals and that the 1,200 aMW goal for 2010-2014 “appears within reach.” I’m Dreaming of a New F&W Program Topics the assessment suggests the Seventh Power Plan address include planning for capacity and flexibility needs and the shifting paradigm for energy efficiency, he reported. The possibility of continued slow growth in demand could affect utilities’ resource and business plans, Black stated. The committee said the next plan should scrutinize the Council’s metrics for determining the costeffectiveness of conservation, as well as disincentives for distributed generation and demand response programs utilities experience as a result of BPA power sales contracts, he said. Other topics include greenhouse gas emissions and the convergence of power and transmission planning and power and natural gas planning, Black noted. It’s time for the Council to begin thinking about amending its Fish and Wildlife (F&W) Program, which was last amended in 2009, staffer Patty O’Toole said. The Council needs to revise the F&W program before starting work on the Seventh Power Plan, she noted. We estimate the power plan draft would come out in the fall of 2014 so we think the F&W process should begin this spring, O’Toole stated. Our schedule envisions releasing a draft F&W program in November 2013, with a final adopted by April 2014, she said. Bill Bradbury asked about the “shifting paradigm for energy efficiency.” We’ve heard that energy efficiency is affected by “where a utility is situated,” replied Black. The economics of acquiring energy efficiency are different for a public utility that is below its BPA Tier 1 allocation than a utility above Tier 1 and into Tier 2, and there are also differences for investor-owned utilities, he said. We are looking at how energy efficiency might contribute to meeting peaking capacity and system flexibility needs, and whether efficiency efforts can be targeted to areas with greater transmission constraints, Black added. December 11, 2012 Ten Sturgeon Spawning, Nine Burbot Swimming The Council approved a request from the Kootenai Tribe of Idaho for its White Sturgeon Aquaculture Conservation Project, with conditions, including that construction cost estimates do not exceed $16.6 million. The program aims to increase the populations of two native species, the white sturgeon and the burbot, by upgrading existing facilities and building a new hatchery. # # # 2
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