200308011st Response of PacifiCorp to Staff.pdf

825 N.E. Mu/tnomah
Portland, Oregon 97232
[phone]
PACIFICORP
PACIRC POWER UTAH POWER
July 31 , 2003 1"-'
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Scott Woodbury
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
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RE:Idaho P AC-03-
IPUC 1 st Set Data Requests (1-10)
Please find enclosed PacifiCorp s Response to IPUC I st Set of Data Requests (1-10).
If you have any questions, please call me at [phone].
Sincerely,
(J
Paul Wrigley,
Manager, Regulation
Enclosure
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Proud Spon'or of the
200212004 U.S. OlympicTeam
P AC-03-9/PacifiCorp
July 31 , 2003
IPUC 1st Set Data Request No. 1.1
IPUC Data Request No. 1.1
PacifiCorp initially proposed a similar program in Idaho in 2000 (Reference P AC-
OO-l), but that program was rejected by the Commission. Please briefly explain
how this new program is different, including why the proposed price per 100 kWh
block is so much less than in the year 2000 proposal.
Response to IPUC Data Request No.1.1
The program structure remains the same today as that filed in 2000. The program
offers customers the option to support "new" renewable energy by purchasing
blocks equal to 100 kilowatt-hours. There is no limit to the number of blocks a
customer may purchase. All costs and benefits associated with this option are
allocated to the customers who voluntarily choose the option. The optional
renewable energy charge is in addition to all other charges the contained in a
customer s regular rate.
On behalf of program participants, Utah Power will purchase renewable energy
from newly constructed generation. The purchases are in addition to the
renewable energy investments cited in the Company s Integrated Resource Plan
as well as the Company s recent commitment to purchase the output of the new
Eurus Combine Hills wind facility in Oregon that is expected to go on line at the
end of 2003.
At the time of the original filing the retail price recommended was based on
energy costs at that time. Wind energy costs were higher and market prices were
different than what they are today as well. The original filing also included
awareness campaign funding amounts which were allocated to broadcast and print
advertising spending.
The current proposal is based on current market conditions, lower renewable
energy costs and lower program operating and customer education/marketing
costs.
The program continues to encourage greater use of renewable energy and
promotes the growth and development of new renewable sources in the Western
regIOn.
P AC-03-9/PacifiCorp
July 31 2003
IPUC 1st Set Data Request No. 1.2
IPUC Data Request No. 1.2
Please provide workpapers or other information showing how the proposed price
premium of$1.95 per 100 kWh block has been determined. Clearly state any
assumptions used in the analysis. Also clearly state the basis for any assumed
values used in the analysis.
Response to IPUC Data Request No. 1.2
The requested information is provided in Attachment IPUC 1.2.
IDAHO
PAC-O3-
ACIFICORP
ATTACHMENT IPUC DATA REQUEST 1.
PAC:! F I GORP
Power Delivery Controller Group
825 NE Multnomah St. . 17th Floor. Portland, Oregon 97232
. Fax [phone]
Blue Sky Repricin2 Summary
Introduction
Blue Sky is a voluntary customer-supported wind power program, which provides customers in
Oregon, Washington, Wyoming and Utah the choice to purchase wind-generated electricity in fIXed
monthly increments of 100-kilowatt-hours blocks and help displace energy that would otherwise be
generated by fossil fuel or hydro plants.
Customers who purchase Blue Sky wind power pay for it through a direct payment on their monthly
electricity bill. Each lOO-kWh block costs an additional fixed monthly charge of $2.95. This is a
separate charge and is in addition to a customer s basic service charges. The additional charge
represents the above-market costs of renewable power and customer education, communication and
administrative costs.
Currently Blue Sky is a wind power product, which includes both the power commodity and the green
benefit into one bundled commodity product. Since the start of the Blue Sky program, the renewable
energy market has evolved to split the sale of renewable energy into two parts: Electricity, which is a
bundled commodity product and green tags, which are a renewable premium. PacifiCorp is
considering transitioning Blue Sky to a green tag resource to lower costs and more closely reflect
operational issues. A new price for Blue Sky would be implemented to incorporate the purchase of
green tags.
Green Tags
Green tags are certificates that represent the environmental benefit of renewable energy. They verify
the source of green energy production and the environmental attribute associated with the green
energy. Green tags are created when renewable energy is produced and substituted for traditional
power. Green tags are not issued unless a corresponding amount of renewable power is generated and
that electricity was sold as conventional power. Buying green tags has the same effect as buying
renewable power. Both replace fossil fuel generators with renewables and both have exactly the same
environmental benefit.
Green tags are generally less expensive than renewable power because there are less transaction costs.
Green tags can provide business customers flexibility to aggregate different sites because green tags
can typically be purchased for any location. Green tags also minimize the potential customer price
volatility given that the retail price of Blue Sky is currently dependent on the difference between the
costs of bundled wind resources and the average market costs at Palo Verde and Mid-Columbia for
conventional power plus marketing, education and administrative costs.
July 31 2003
Pricing Objectives
The current pricing of $2.95 is based on bundled green power purchased at Foote Creek IV through
September 30 , 2003. The objective of the repricing analysis is to calculate a price for two separate
purchasing alternatives starting on April 1 st, 2003: green tags and bundled green power.
Pricing Methodology
The Blue Sky program costs were broken into two categories: Fixed costs and variable costs. Fixed
costs include customer communications (Bill inserts, direct mail, participant communications, and
donations), affmity groups, business partnership program, fulfillment, printed collateral
administration, and product management. The variable cost of the program is the green power
premium multiplied by the number of blocks sold. The green power premium is the incremental cost
for PacifiCorp to buy green power in place of conventional or brown power. The cost of green tags is
the green power premium because a green tag by defmition is the difference in buying green power
instead of conventional power. On the other hand, the green power premium when purchasing
bundled green power is the net difference between the price paid for the bundled green power and the
value of selling the power as conventional power.
The pricing model used to calculate the breakeven price for a block of Blue Sky was created as a
Microsoft Excel worksheet. The breakeven price will generate a zero net gain or loss in after-tax cash
flows on a present value basis using forecasts for future blocks sold and costs associated with Blue Sky
over the four-year analysis period. The pricing model calculated separate breakeven prices using all
green tag purchases or all bundled green power purchases. Breakeven prices were calculated
assuming no balance or deficit in dollars or power purchases from the current program are carried
forward. They also assume that all Foote Creek IV purchases after April 1 st, 2003 will be applied to the
current program s deficit in power purchases.
Pricing Assumptions
The projected Blue Sky tariffs start date is April 1 , 2003. The analysis is calculated over a four-
year period from April 1st, 2003 to March 31st, 2007. The four-year analysis period is split into
eight 6-month time periods.
The price estimates for Green Tags are in a range between $3-1 O/mwh with a base price of
$7/mwh. These prices are in real terms and thus, were escalated semi-annually for the analysis.
The escalation rate used was 2.8% annually.
The price estimates for bundled green power are in a range between $42-62/mwh with a base price
of $43/mwh. These prices are nominallevelized prices, which remain constant over the analysis.
The incremental power costs were derived using the December 10, 2002 Official Market Price
Curve developed by PacifiCorp s Commercial and Trading department.
The fixed costs (nominal) are forecasted at $416 196 annually over the four-year analysis period.
The fIrst year forecast is 327 941 for sales of 100 kWh blocks annually. The blocks sold forecast
increases to 346 140 annually for years two through four.
All sales of 100 kWh blocks of Blue Sky are equal to the green purchases for any 6-month time
period.
July 31 2003
Breakeven Pricing Model Results
The model calculated a breakeven price per 100-kWh block of $1.95 using green tags for all power
purchases starting April 1, 2003. The forecasted after tax cash flows related to this green tag scenario
is shown in Exhibit A. Using green tags is a lower cost option than using bundled green power, which
breaks even at $2.04 per 1O0-kWh block. Both prices are significantly less than the current price of
$2.95. The large reduction is due to the cheaper cost for the green power premium (incremental cost
of green tags and bundled green power).
The assumptions that are most important to the price of a block of Blue Sky are the cost of green tags
and cost of bundled green power. A high and low estimate for each of these variables was used
produce a possible range of outcomes for the breakeven prices. The following table shows the
outcome of the high and low estimates compared to the base estimates.
Breakeven Price Summary
Green Tags Bundled Green Power
Low Base High Low Base Hiah
Initial Assumptions for April-Sept, 2003
(Varies over time)
Cost of Green Taqs ($/mwh)$3.$7.$10.
Cost of Bundled Green Power ($/mwh)$42.$43.$62.
Market Power Cost ($/mwh)$33.$33.$33.
Green Power Premium ($/mwh)$3.$7.$10.$8.$9.$28.
Results
Breakeven Price $1.$1.$2.$1.$2.$3.
The above table shows a range of possible answers for the breakeven price using either green tags or
bundled green power. The estimated range for the cost of green tags is between $3 and $10 per mwh.
This range creates a breakeven price between $1.54 to $2.27 using green tags. The estimated range for
the cost of bundled green power is between $42 and $62 per mwh. This range creates a breakeven
price between $1.94 to $3.94 using bundled green power. The variance between the high and low
breakeven price for bundled green power ($2.00) is larger than that of for green tags ($0.73), which
indicates that there is more risk associated with using bundled green power purchases. The green
power premium, which represents the incremental cost of purchasing green power compared
conventional power is also greater for bundled green power in the initial six-month period (The green
power premium varies as costs change over time).
Conclusion
Transitioning the Blue Sky program from a bundled energy product to a green tag product would be
beneficial. The purchase of green tags will allow the company to reduce the price to customers.
PacifiCorp will also be able to control the balancing of monthly purchases and sales more efficiently
and minimize the risk of not achieving a zero net gain or loss at the end of four years. In conclusion
the price for a 1O0-kWh block of Blue Sky should be reduced to $1.95 starting April 1 st, 2003.
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P AC-03-9/PacifiCorp
July 31 , 2003
IPUC 1 st Set Data Request No. 1.
IPUC Data Request No. 1.3
Please provide a program budget showing a detailed breakdown of program costs
including management and administrative costs, marketing costs, bundled green
energy costs and green tag costs.
Response to IPUC Data Request No. 1.3
Please see Exhibit A in response to Request 1.2.
P AC-03-9/PacifiCorp
July 31 , 2003
IPUC 1st Set Data Request No. 1.4
IPUC Data Request No. 1.4
Please explain why PacifiCorp is proposing to acquire bundled green energy
and/or green tags in this program, rather than just one type of product.
Response to IPUC Data Request No. 1.4
PacifiCorp seeks to leverage Blue Sky program revenues to stimulate the
construction of new renewable resources, and believes that the flexibility of
purchasing either bundled green energy, or green tags alone, increases the ability
to accomplish that goal. While purchases of bundled green energy is sometimes
necessary to developing a specific project, usually transmission and trading
constraints limit PacifiCorp s ability to take physical delivery of bundled green
energy. Moreover, physical delivery typically entails higher costs due to
transmission wheeling costs and losses as well. While our general preference is to
engage in tag purchases alone because of these factors, PacifiCorp wants to leave
open the possibility of taking physical delivery in instances where doing so may
be advantageous to the program and the development of new renewable resources
in our service territory.
P AC-03-9/PacifiCorp
July 31 , 2003
IPUC 1 st Set Data Request No. 1.
IPUC Data Request No. 1.5
What is the relative value of bundled green energy vs. green tags? Would the
price per block be different if it was based on purchase of bundled green energy
than on green tags? Is so, explain why.
Response to IPUC Data Request No. 1.5
As discussed in response to request 1.4, the purchase of physical power may
entail transmission wheeling costs and losses that are not incurred when
purchasing tags alone. Generally the purchase of bundled green energy will
therefore be higher. In a recent Blue Sky purchase for example, the Blue Sky
program had to pay a $4/MWh premium above the market value of the delivered
power in order to accomplish the transaction.
While purchases of bundled green energy will usually result in higher program
costs, this is not always the case. Since Blue Sky customers do not consume the
purchased blocks of power, PacifiCorp s purchases of bundled green energy must
be unbundled and the energy portion resold into the market. It is possible for
market prices to rise between the time the energy is purchased and when it is
resold. This can result in a net gain to the program. It can also result in additional
losses if market prices decline. The speculative nature of such transactions causes
PacifiCorp to prefer purchasing tags alone, or else tying the purchase price to
future market prices so that the selling price matches the purchase price as closely
as possible. The uncertainty in whether the bundled green energy purchase is a
net gain or an additional net loss adds to the uncertainty in the cost of the
program. This has been an important factor in PacifiCorp s general preference for
tag purchases.
The price per block would likely be higher for bundled green energy only product
for the reasons cited above, but also because limiting purchases to bundled green
energy vastly shrinks the potential market from which purchases can be made.
PacifiCorp s last purchase of bundled green energy came down to a single eligible
counterparty capable of delivering power, whereas the last purchase of green tags
alone was done through a broker on a bulletin board at a very competitive price.
Had the counterparty in bundled green energy deal demanded $1 O/MWh above
market instead of $4/MWh, PacifiCorp would have had no recourse but to pay it
without an option to purchase green tags alone.
P AC- E-03-9/PacifiCorp
July 31 , 2003
IPUC 1 st Set Data Request No. 1.
IPUC Data Request No. 1.6
Are there additional costs associated with acquiring bundled green energy as
opposed to acquiring green tags?
Response to IPUC Data Request No. 1.6
Yes, the costs are higher because of the vastly smaller bundled green energy
market, added costs due to transmission wheeling and losses, and because of
physical and policy limitations on taking energy delivery. Purchases of physical
power at times when PacifiCorp expects to have surplus power is deemed
speculative and not allowed by internal risk policies. Potential counterparties
usually have the same restrictions. It can be difficult and costly to find mutually
acceptable times for delivery of the unbundled green energy product to
PacifiCorp s system.
P AC-03-9/PacifiCorp
July 31 , 2003
IPUC 1st Set Data Request No. 1.7
IPUC Data Request No. 1.7
What participation level does PacifiCorp expect in Idaho during each of the first
four years? What is the current participation level in Oregon, Utah, Washington
and Wyoming?
Response to IPUC Data Request No. 1.7
Currently 11 543 customers in Oregon, Utah, Washington and Wyoming are
participating in our Blue Sky program.
In the first year of the program we expect approximately 160 Idaho customers to
participate in the program; in the second year 250 customers; in the third year
350; and in the fourth year 415.
Utah Power serves approximately 59 554 residential and non-residential
customers in Idaho. Approximately 47 000 are residential customers.
P AC-03-9/PacifiCorp
July 31 , 2003
IPUC 1 st Set Data Request No. 1.
IPUC Data Request No. 1.8
Please explain how the program will be marketed in Idaho. What proportion
marketing costs will be spent in Idaho?
Response to IPUC Data Request No. 1.8
Utah Power will inform all customers about the option s availability through
media releases, bill inserts, as well as customer and community newsletters. In
addition, targeted mailings may be planned. Our partnerships with environmental
groups will be used to help get the word out to consumers, businesses and local
environmental groups and their members. In addition, information (i.e. brochure)
about the program will be available at various Utah Power community events.
Customer account managers will also make our large business customers aware of
the option and its associated benefits.
Outreach efforts will likely be focused in Rexburg, Ammon and Preston.
Cost efficiencies result from producing customer communication material for all
Utah Power customers. The proportion of the marketing dollars allocated to bill
inserts and other direct response material relates directly to the number of
customers served in each state and/or the targeted customer group. Our Idaho
customers represent approximately 3% of the current customer base eligible for
the program. Our pricing analysis looked at total program costs and anticipated
prescriptions rates across all jurisdictions.
P AC- E-03-9/PacifiCorp
July 31 , 2003
IPUC 1 st Set Data Request No. 1.
IPUC Data Request No. 1.9
If PacifiCorp collects more or less than necessary from participants in order to
cover program costs, will the Company propose changes in the price charged per
100 kWh block? How will the Company balance purchases and sales to avoid a
net gain or loss on the program?
Response to IPUC Data Request No. 1.9
The revenues collected from the program participants are applied to program
costs. All costs and benefits will be allocated only to those customers who
voluntarily participate in the program. This program is not subsidized by other
customers. The company will not earn money from the program. Any surplus
funds will be invested in additional renewable energy on behalf of participating
customers.
P AC-03-9/PacifiCorp
July 31 , 2003
IPUC 1st Set Data Request No. 1.10
IPUC Data Request No. 1.10
Page 2 of the Company s Application states the following:
PacifiCorp will keep interested parties informed of purchases for the program on a
twice per year basis. If there is not availability at the right price to purchase at a
level (capped within the $1.95 retail price) then PacifiCorp will attempt to make
purchases at the next level. The reports will summarize purchases and note
reasons for choosing a "tier" and, if applicable, foregoing more preferred options
in light of available tag supply.
Please explain what is meant by "levels" and "tiers." Please provide copies of
informational notices provided to Blue Sky program participants in Oregon, Utah
Washington and Wyoming.
Response to IPUC Data Request No. 1.
In the filing, PacifiCorp proposed a four-tier hierarchy of desirability for
renewable resources, with local new resources at the top as the most desirable.
The term "level" was used to refer to a specific tier. The quoted paragraph sought
to explain that PacifiCorp will endeavor to purchase the most desirable resources
first, and will resort to less desirable categories only if the more desirable
resources are either unavailable or prohibitively expensive.
Copies of informational notices are provided as Attachments IPUC lO(a), lO(b),
and 10(c). Copies of the Forecast newsletters which were sent to participants are
provided as Attachment IPUC 10(d).
IDAHO
P A C-03-
ACIFICORP
ATTACHMENT IPUC DATA REQUEST 1.10(a)
825 N.E. Multnomall
Po-rtland, Oregon 97232
~, PACIFIC POWER
Date
Name
Address
City, State Zip
Dear Name
Great News!
Thanks to the support of Blue Sky'M customers like you, the reduced cost of acquiring wind generation and improved
technologies, the price for a 100 kilowatt-hour (kwh) block of Blue Sky has been lowered $1- to just $1.95 starting
May 1 2003. This is the second time since the program s launch in 2000 that we ve been able to decrease the price.
You are making a difference.
Your participation in our Blue Sky program continues to encourage the development of new wind energy. Since the
program began nearly 44 million kwh of pollution-free energy has been added to the regional power system. That'
enough energy to serve more than 3 600 households for a year and has prevented nearly 38 tons of carbon dioxide
emissions.
Customer response to the program has been phenomenal-nearly 11 000 customers including are now participating.
Customers are choosing Blue Sky to:
Encourage more renewable energy development
Reduce environmental impacts
Improve air quality
Reduce power needed from fossil-fuel generation sources
You ve helped make a national statement. PacifiCorp, the parent company of Pacific Power now ranks third in the
nation for customer participation on the U.S. Department of Energy s Top 10 list of utility "green pricing" programs.
It's less expensive.
The price change will be reflected on your next bill. You will be billed for the same number of blocks that you are
purchasing now. For example if you buy only one block now, you will be charged only $1.95 starting May 1 2003.
This amount is prorated.
Increase your commitment to renewable energy
With the new lower price, the dollars you put toward Blue Sky can go even further. Now for about six cents per day,
you can purchase one block of Blue Sky and help support wind energy. Consider buying an additional block with your
savings" from the price change. If you d like to change your participation level, please complete the reply card below
and return in the enclosed postage-paid envelope.
For more information
Read more about the program, our commitment to the environment and other sustainable initiatives in the enclosed
newsletter. If you have any questions, please call 1-800-769-3717 or e-mail bluesky~pacificorp.com. You can also
visit our Web site at www.pacificpower.net/goto/renewablepower.
Thank you for participating in our Blue Sky program.
Sincerely,
""' .,../
, Su~~~i~~~t~l~Y
Amanda Nelson
Vice President, Customer Services
------------------------------------------------------------------------------------------------------------------------------
Blue Sky order form
Yes, I would like to do more to encourage the growth and development of new renewable energy sources in the
region. The following indicates a change in my Blue Sky enrollment and I agree to pay the additional monthly charges
below. I understand that each block is equivalent to 100 kwh ofpol1ution-free wind power and costs $1.95 each. Para
un representante que hab!a espano!: 888-225-2611.
2 blocks ($3.90)
3 blocks ($5.85)
4 blocks ($7.80)
~ $1.95/block/month
Account number
Name
Address
City, St Zip
Phone E-mail address
Signature Date
We cannot guarantee that electricity from a particular facility willjlow directly to a customer s home or business. However we do guarantee that we
will deliver to the regional power grid an amount of renewable energy equal to the amount of your block purchase. All Blue Sky purchases help
support renewable energy generation. Pacific Power s parent company. PacifiCorp purchases power and/or certificates associated with power from
renewable power plants. Blue Sky is overseen by Oregon Public Utility Commission.
IDAHO
PAC-03-
ACIFICORP
TT ACHMENT IPUC DATA REQUEST
10(b)
825 NE. Multnomall
Portland, Oregon 97232
,.
UTAH POWER
Date
Name
Address
City, State Zip
Dear Name,
Great News!
Thanks to the support of Blue Sky'" customers Jike you , the reduced cost of acquiring wind generation and improved
technologies, the price for a 100 kilowatt-hour (kwh) block of Blue Sky has been lowered $1 - to just $1.95 starting
May 1 2003. This is the second time since the program s launch in 2000 that we ve been able to decrease the price.
You are making a difference.
Your participation in our Blue Sky program continues to encourage the development of new wind energy. Since the
program began nearly 44 million kwh of pollution-free energy has been added to the western U.S. power grid. That's
enough energy to serve more than 3 600 households for a year and has prevented nearly 38 tons of carbon dioxide
emissions.
Customer response to the program has been phenomenal-nearly 11 000 customers including are now participating.
Customers are choosing Blue Sky to:
Encourage more renewable energy development
Reduce environmental impacts
Improve air quaJity
Reduce power needed from fossil-fuel generation sources
You ve helped make a national statement. PacifiCorp, the parent company of Utah Power now ranks third in the nation
for customer participation on the U.S. Department of Energy s Top 10 Jist of utility "green pricing" programs.
It's less expensive.
The price change will be reflected on your next bill. You will be billed for the same number of blocks that you are
purchasing now. For example, if you buy only one block now, you will be charged only $1.95 starting May 1 , 2003. This
amount is prorated.
Increase your commitment to renewable energy
With the new lower price, the dollars you put toward Blue Sky can go even further. Now for about six cents per day, you
can purchase one block of Blue Sky and help support wind energy. Consider buying an additional block with your
savings" from the price change. If you d like to change your participation level, please complete the reply card below
and return in the enclosed postage-paid envelope.
For more information
Read more about the program, our commitment to the environment and other sustainable initiatives in the enclosed
newsletter. For more infonnation on our wind energy purchases, please see the back of this letter. If you have any
questions, please call 1-800-842-8458 or e-mail bluesky~pacificorp.com. You can also visit our Web site at
www.utahpower.netlgoto/renewablepower.
Thank you for participating in our Blue Sky program.
Sincerely,
""'
.,...t
, Sustainability, It's ;n our nature.
Amanda Nelson
Vice President, Customer Services
----------------------------------------------------------------------------------------------------------------------------
Blue Sky order form
Yes, I would like to do more to encourage the growth and development of new renewable energy sources in the
region. The following indicates a change in my Blue Sky enrollment and I agree to pay the additional monthly charges
below. I understand that each block is equivalent to 100 kwh of pollution-free wind power and costs $1.95 each. Para
representante que hab/a espano/: 888-225-2611.
2 blocks ($3.90)
3 blocks ($5.85)0 4 blocks ($7.80)
~ $1.95/block/month
Account number
Name
Address
City, St Zip
Phone E-mail address
Signature Date
We cannot guarantee that electricity from a parlicular facility willflow direcTly 10 a cusTomer s home or business. However, we do guaranTee thaT we
will deliver to the regional power grid an amount of renewable energy equal to the amount of your block purchase. All Blue Sky purchases help support
renewable energy generation. Utah Powers parent company, PacifiCorp purchases power and/or certificates associatedwilh power from renewable
power plants. Blue Sky is overseen by the UTah Public Service Commission.
Where is the wind energy generated?
At this time, the program purchases renewable energy from wind projects located in Wyoming, Washington and Oregon.
As demand continues to grow, we will purchase renewable energy from other newly developed local and regional
generating facilities. Recently we purchased 15 000 megawatt-hours of wind energy on behalf of our Blue Sky customers
and expect to announce another purchase in the near future. In the future, our renewable energy purchases could expand
to new solar or new geothermal generation.
New wind energy is the cleanest form of renewable energy because it produces no air pollutants, wastewater, smog or
acid rain. It also helps reduce greenhouse gas emissions.
The wind energy supported by Blue Sky is in addition to the renewable energy already purchased by PacifiCorp. Blue
Sky supports additional renewable resources.
There is interest in developing a new renewable power project in Utah. Wind projects generally are sited in windy areas
and near high voltage power lines capable of delivering power to populated areas. Other important considerations are
environmental and visual impacts, and other local considerations.
How is renewable energy sold?
In the past, our wind energy purchases were made as bundled energy. Our expanded approach to purchasing renewable
energy means we will be buying power or unique claims (certificates) on the electricity from renewable plants. Both
approaches support new renewable energy generation, reduce regional air pollution and help fight global warming.
Certificates (green tags) are created when renewable power is generated. They guarantee that the renewable power was
generated and delivered to the power system, thereby benefiting our environment. Certificates' make it easier to buy and
sell renewable energy throughout the system.
IDAHO
PAC-03-
ACIFICORP
ATTACHMENT IPUC DATA REQUEST 1.10(c)
825 E. Multnomall
Port/arid, Oregon 97232
-:.
PACIFIC POWER
Date
Name
Address
City, State Zip
Dear Name
Great News!
Thanks to the support of Blue Sky'" customers like you , the reduced cost of acquiring wind generation and improved
technologies, the price for a 100 kilowatt-hour (kwh) block of Blue Sky has been lowered $1- to just $1.95 starting
May 1 2003. This is the second time since the program s launch in 2000 that we ve been able to decrease the price.
You are making a difference.
Your participation in our Blue Sky program continues to encourage the development of new wind energy. Since the
program began nearly 44 million kwh of pollution-free energy has been added to the regional power system. That'
enough energy to serve more than 3 600 households for a year and has prevented nearly 38 tons of carbon dioxide
emissions.
Customer response to the program has been phenomenal-nearly 11 000 customers including are now participating.
Customers are choosing Blue Sky to:
Encourage more renewable energy development
Reduce environmental impacts
Improve air quality
Reduce power needed from fossil-fuel generation sources
You ve helped make a national statement. PacifiCorp, the parent company of Pacific Power now ranks third in the
nation for customer participation on the U.S. Department of Energy s Top 10 list of utility "green pricing" programs.
It's less expensive.
The price change will be reflected on your next bill. You will be billed for the same number of blocks that you are
purchasing now. For example, if you buy only one block now, you will be charged only $1.95 starting May I , 2003.
This amount is prorated.
Increase your commitment to renewable energy
With the new lower price, the dollars you put toward Blue Sky can go even further. Now for about six cents per day,
you can purchase one block of Blue Sky and help support wind energy. Consider buying an additional block with your
savings" from the price change. If you d like to change your participation level, please complete the reply card below
and return in the enclosed postage-paid envelope.
For more information
Read more about the program, our commitment to the environment and other sustainable initiatives in the enclosed
newsletter. If you have any questions, please call 1-800-842-8458 or e-mail bluesky~pacificorp.com. You can alsovisit our Web site at www.pacificpower.net/goto/renewablepower.
Thank you for participating in our Blue Sky program.
Sincerely,
Sustainability
It's ;n our nature.
Amanda Nelson
Vice President, Customer Services
-----------------------------------------------------------------------------------------------------------------------------
Blue Sky order form
Yes, I would like to do more to encourage the growth and development of new renewable energy sources in the
region. The following indicates a change in my Blue Sky enrollment and I agree to pay the additional monthly charges
below. I understand that each block is equivalent to 100 kwh of pollution-free wind power and costs $1.95 each. Para
un representante que hab/a espana/: 888-225-2611.
2 blocks ($3.90)
3 blocks ($5.85)
4 blocks ($7.80)
~ $1.95/blocklmonth
Account number
Name
Address
City, St Zip
Phone E-mail address
Signature Date
We cannot guarantee that electricity from a particular facility wil/flaw directly 10 a cuslamers home or business. However. we do guaranlee thaI wewil/ deliver 10 the regional power grid an amount afrenewable energy equal to Ihe amount of your block purchase. All Blue Sky purchases help
support renewable energy generation. Pacific Power s parenl company, PacifiCorp purchases power and/or certificates associatedw;lh power from
renewable power planls, Blue Sky is overseen by your slale 's regulators.
IDAHO
PAC-03-
ACIFICORP
ATTACHMENT IPUC DATA REQUEST
10(d)