20050422Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
Case No. IPC-04-, Order No. 29762
April 22, 2005
Contact: Gene Fadness [phone]
Website: www.puc.state.id.
Commission accepts Idaho Power growth plan
Boise - The Idaho Public Utilities Commission today accepted an Idaho Power plan to meet
increased electrical demand over the next decade. The commission lauded the company
increased focus on conservation and development of renewable energy sources. The commission
also praised the company s efforts to increase public involvement in developing the plan.
However, commissioners said the company continues to rely too heavily on gas-fired generation
to meet summer peak demand and should do more to implement conservation programs. The
commission also urged Idaho Power to study the potential for opportunity to increase supply and
produce revenue through enhanced transmission capability.
All regulated electric and gas utilities are required to submit, every two years, an Integrated
Resource Plan (IRP), that generally sets forth how the utility intends to serve the requirements of
customers over the next 10 years. Idaho Power developed its IRP over a year s time and included
input from industrial and irrigation customers, the environmental community, the Legislature, the
governor s office and commission staff.
Acceptance of an IRP does not mean that new generation projects or resource acquisitions will
be approved when companies petition the commission to include the projects in rates. All
projects are evaluated for their necessity and prudency at the times they are proposed.
The commission said the 2004 IRP "is a significant improvement" over previous plans. There are
nearly equal amounts of generation planned from renewable resources and the more traditional
thermal generation. The commission cited, in particular, the 124 MW the company intends to
generate from conservation programs like air-conditioner cycling and peak irrigation clipping
and home construction efficiency measures.
Given the continuation of drought conditions in Idaho, we believe that speedy implementation
of demand-side management and energy efficiency programs are critical to serving Idaho
customers " the commission said. "Though we are pleased with the efforts so far, we find that
Idaho Power could and should do more to implement conservation.
We are pleased to see that the company s preferred portfolio includes large acquisitions of
renewable resources, namely wind and geothermal resources " the commission said. However
the company s continued reliance on gas-fired generation causes concern given volatile natural
gas prices. Further, recent state actions that reduce the amount of irrigation pumping call into
question the need for additional peaking resources, the commission said.
The commission asked the company to expand its IRP in 2006 to include an analysis of possible
transmission projects, noting that expanded transmission could interconnect the company with a
larger variety of electrical sources and produce revenue. The commission also urged the
company to explore the possibility of adding generation to existing coal plants and consider new
clean-coal technologies before making a final decision on new coal generation.
The IRP projects an increase in customer households from 320 000 to more than 380 000 by the
end of 2013. Idaho Power continues to plan future power supply sources based on a "worse than
median" water conditions. The utility used to count on up to 60 percent of its generation to come
from the utility s own hydroelectric dams, but a sixth consecutive year of drought has forced a
greater dependency on other sources.
Idaho Power plans to increase its power supply by about 800 average megawatts. The company
average amount of electricity need to serve its customers is 1660 average megawatts. The
company also plans on increasing its capacity (the amount of electricity needed to serve its
customers at peak-use times) by another 940 megawatts. Its current peak load capacity (reached
in the summers of2002 and 2003) is 3000 megawatts.
The long-term plan calls for the following portfolio:
76 MW from demand response programs. These are programs where customers can
choose to reduce or shift their electricity use. They include an air conditioning cycling
program and an irrigation peak-clipping program.
48 MW from energy efficiency programs such as manufactured home incentives, home
energy checkups and industrial and irrigation efficiency efforts.
350 MW from wind-powered generation
100 MW from geothermal-powered generation
48 MW from combined heat and power facilities. These are typically located at industrial
sites that produce power as a byproduct of their manufacturing process.
88 MW from natural gas plants
62 MW from distributed generation and purchases of electricity on the wholesale market.
Distributed generation are typically small-power facilities that generate at or near the site
of ultimate consumption as opposed to most electricity, which is generated at a remote
site and transported by long-distance transmission lines to the consumer. Distributed
generation displaces the need to transport power along the transmission and utility
distribution system.
500 MW from coal-fired generation.
The company, in recent months, issued a request-for-proposals for 200 MW of wind generation
and for an 88-MW peaking resource.
A full text of the commission s order, along with other documents related to this case, are
available on the commission s Web site. Click on "File Room" and then on "Recent Orders and
Notices " and scroll down to Order No. 29762.