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HomeMy WebLinkAbout20120202Revised Action Plan.pdfROCKY MOUNTAIN 4 POWER ADIVISONOFPACFICORP 201 South Main,Suite 2300 —2 ‘-‘Z Salt Lake City,Utah 84111 February 2,2012 VIA OVERNIGHTDELIVERY Jean D.Jewell Commission Secretary Idaho Public Utilities Commission 472 W.Washington Boise,ID 83702 Re:PAC-E-11-l0 In the Matter of PacifiCorp’s 2011 Integrated Resource Plan Dear Ms.Jewell: Enclosed for filing by PacifiCorp,d.b.a.Rocky Mountain Power (“Company”)is an original and seven (7)copies of the revised version of PacifiCorp’s 2011 Integrated Resource Plan (“IRP”)Action Plan (“Revised Action Plan”).A copy of the original action plan as well as a redline version is included to show changes.The Revised Action Plan is in response to feedback from the Oregon Public Utilities Commission and other parties. Informal inquiries may be directed to Ted Weston,Idaho Regulatory Manager,at (801)220- 2963. Sincerely, w$ Jeffrey K.Larsen Vice President,Regulation Enclosures Cc:Jean Jewell —Idaho Public Utilities Commission Mark Stokes -Idaho Power Company Nancy Kelly -Western Resource Advocates Randall Budge -Racine,Olson,Nye,Budge &Bailey Eric Olson -Racine,Olson,Nye,Budge &Bailey ORIGINAL ACTION PLAN PA c I F I C 0 R P -2 0 1 1 IR P CH A P T E R 9— A C T I O N PL A N Ta b l e 9. 1 — IR P Ac t i o n Pl a n Up d a t e Ac t i o n it e m s an t i c i p a t e d to ex t e n d be y o n d th e ne x t tw o ye a r s , or oc c u r af t e r th e ne x t tw o ye a r s , ar e in d i c a t e d in bl u e it a l i c fo n t . Tr a n s m i s s i o n ac t i o n pl a n it e m s ha v e be e n mo v e d to Ch a p t e r 10 , Tr a n s m i s s i o n Ac t i o n Pl a n . Ac t i o n It e m Ca t e g o r y Ti m i n g —- — Ac t i o n1 Wi n d • Ac q u i r e up to 80 0 MW of wi n d re s o u r c e s by 20 2 0 , di c t a t e d by re g u l a t o r y an d ma r k e t de v e l o p m e n t s su c h as (1 ) re n e w a b l e / c l e a n en e r g y st a n d a r d s , (2 ) ca r b o n re g u l a t i o n s , (3 ) fe d e r a l ta x in c e n t i v e s , (4 , ) ec o i w m n i c s , (5 ) na t u r a l ga s pr i c e fo r e c a s t s , (6 ) re g u l a t o r y su p p o r t fo r in v e s t m e n t s ne c e s s a r y to in t e g r a t e va r i a b l e en e r g y re s o u r c e s , an d (7 ) tr a n s m i s s i o n de v e l o p m e n t s . Th e 80 0 - m e g a w a t t le v e l is su p p o r t e d i’ co n s i d e r a t i o n of re g u l a t o r j ’ co m p l i a n c e ri s k s an d pu b l i c po l i c y in t e r e s t in cl e a n en e r g y re s o u r c e s . Ge o t h e r m a l • Th e Co m p a n y id e n t i f i e d ov e r 10 0 MW of ge o t h e r m a l re s o u r c e s as pa r t of a le a s t - c o s t re s o u r c e po r t f o l i o . Co n t i n u e to re f i n e re s o u r c e po t e n t i a l es t i m a t e s an d up d a t e re s o u r c e co s t s in 20 1 1 - 2 0 1 2 fo r fu r t h e r ec o n o m i c ev a l u a t i o n of re s o u r c e op p o r t u n i t i e s . Co n t i n u e to in c l u d e ge o t h e r m a l pr o j e c t s as el i g i b l e re s o u r c e s in fu t u r e al l - s o u r c e RF P s . So l a r • Ev a l u a t e pr o c u r e m e n t of Or e g o n so l a r ph o t o v o l t a i c re s o u r c e s in 20 1 1 vi a th e Co m p a n y ’ s so l a r RF P . Re n e w a b l e s / • Ac q u i r e ad d i t i o n a l Or e g o n so l a r re s o u r c e th r o u g h RF P s or ot h e r me a n s ii i or d e r to me e t ti m e Co m p a n y ’ s Di s t r i b u t e d 20 1 1 - 2 0 2 0 8. 7 MW co m p l i a n c e ob l i g a t i o n . Ge n e r a t i o n • Wo r k wi t h Ut a h pa r t i e s to in v e s t i g a t e so l a r pr o g r a m de s i g n an d de p l o y m e n t is s u e s an d op p o r t u n i t i e s in la t e 20 1 1 an d 20 1 2 , us i n g th e Co m p a n y ’ s ow n an a l y s i s of Wa s a t c h Fr o n t ro o f t o p so l a r po t e n t i a l an d ex p e r i e n c e wi t h th e Or e g o n so l a r pi l o t pr o g r a m . As re c o m m e n d e d in th e Co m p a n y ’ s re s p o n s e to co m m e n t s un d e r Do c k e t No . 07 - 0 3 5 - T 1 4 , th e Co m p a n y re q u e s t e d th a t th e Ut a h Co m m i s s i o n es t a b l i s h “a pr o c e s s in th e fa l l of 20 1 It o de t e r m i n e wh e t h e r a co n t i n u e d or ex p a n d e d so l a r pr o g r a m in Ut a h is ap p r o p r i a t e an d ho w th a t pr o g r a m mi g h t be st r u c t u r e d . ” • In v e s t i g a t e , am i d pu r s u e if co s t - e f f e c t i v e fr o m au im p l e m e n t a t i o n st a n d p o i n t , co m m e r c i a l / r e s i d e n t i a l so l a r ho t wa t e r he a t i n g pr o g r a m s . — Th e 20 1 1 JR P pr e f e r r e d po r t f o l i o in c l u d e s 30 MW of so l a r ho t wa t e r he a t i n g re s o u r c e s by 20 2 0 (1 8 MW in th e ea s t si d e am i d 12 MW in th e we s t si d e ) . Co m b i n e d He a t & Po w e r (C H P ) • Pu r s u e op p o r t u n i t i e s fo r ac q u i r i n g bi o n i a s s CH P re s o u r c e s , pr i m a r i l y th r o u g h th e PU R P A Qu a l l f y i n g Fa c i l i t y co n t r a c t i n g pr o c e s s . 1 Ro c k y Mo u n t a i n Po w e r , “R e : Do c k e t No . 07 - 0 3 5 - T 1 4 —T h r e e ye a r as s e s s m e n t of th e So l a r In c e n t i v e Pr o g r a m ” , De c e m b e r 15 , 20 1 0 . PA C I F I C O R P - 20 1 1 IR P CH A P T E R 9— A C T I O N PL A N — Th e pr e f e r r e d po r f o I i o co n t a i n s 52 MW of CH P re s o u r c e s fo r 20 1 1 - 2 0 2 0 (1 0 M W in th e ea s t si d e (1 1 1 ( 1 42 MW in th e we s t si d e , ) En e r g y St o r a g e • Pr o c e e d wi t h an en e r g y st o r a g e de m o n s t r a t i o n pr o j e c t , su b j e c t to Ut a h Co m m i s s i o n ap p r o v a l of th e Co m p a n y ’ s pr o p o s a l to de f e r an d re c o v e r ex p e n d i t u r e s th r o u g h th e de m a n d - s i d e ma n a g e m e n t su r c h a r g e . • In i t i a t e a co n s u l t a n t st u d y in 20 1 1 or 20 1 2 on in c r e m e n t a l ca p a c i t y va l u e an d an c i l l a r y se r v i c e be n e f i t s of en e r g y st o r a g e . Re n e w a b l e Po r t f o l i o St a n d a r d Co m p l i a n c e • De v e l o p an d re f i n e st r a t e g i e s fo r re n e w a b l e po r t f o l i o st a n d a r d co m p l i a n c e in Ca l i f o r n i a an d Wa s h i n g t o n . • Ac q u i r e a co m b i n e d - c y c l e co m b u s t i o n tu r b i n e re s o u r c e at th e La k e Si d e si t e in Ut a h by th e su m m e r of 20 1 4 ; th e pl a n t is pr o p o s e d to be co n s t r u c t e d by CH 2 M Hi l l E& C , In c . (“ C H 2 M Hi l l ” ) un d e r th e te r m s of an en g i n e e r i n g , pr o c u r e m e n t , an d co n s t r u c t i o n (E P C ) co n t r a c t . Th i s re s o u r c e co r r e s p o n d s to th e 20 1 4 CC C T pr o x y re s o u r c e in c l u d e d in th e 20 1 1 IR P pr e f e r r e d po r t f o l i o . • Is s u e an al l - s o u r c e RF P in la t e 20 1 1 or ea r l y 20 1 2 fo r ac q u i s i t i o n of pe a k i n g / i n t e r m e d i a t e / b a s e l o a d re s o u r c e s by th e su m m e r of 20 1 6 . — Th i s ac q u i s i t i o n co r r e s p o n d s to th e 59 7 MW 20 1 6 CC C T pr o x y re s o u r c e (F Cl a s s 2x 1 ) . • Pa c i f i C o r p wi l l re e x a m i n e th e ti m i n g an d ty p e of po s t - 2 0 1 4 ga s re s o u r c e s an d ot h e r re s o u r c e ch a n g e s as pa r t of th e 20 1 1 bu s i n e s s pl a n n i n g pr o c e s s an d pr e p a r a t i o n of th e 20 1 1 IR P Up d a t e . — (‘ o , i s k l e r si t i n g ad d i t i o n a l ga s - f i r e d re s o u r c e s in lo c a t i o , , s ot h e r th a i i Ut a h . In v e s t i g a t e re s o u r c e av a i l a b i l i t y is s u e s in c l u d i n g wa t e r av a i l a b i l l i , pe r m i t t i n g , tr a n s m i s s i o n co n s t r a i n t s , ac c e s s to na t u r a l ga s , an d po t e n t i a l im p a c t s of el e v a t i o n . Ac t i o n It e m Ca t e g o r y Ti m i n g 2 In t e r m e d i a t e / Ba s e - l o a d Th e r m a l Su p p l y - s i d e Re s o u r c e s 20 1 4 - 2 0 1 6 • Ac q u i r e up to 1, 4 0 0 MW of ec o n o m i c fr o n t of f i c e tr a n s a c t i o n s or po w e r pu r c h a s e ag r e e m e n t s as ne e d e d un t i l th e be g i n n i n g of su m m e r 20 1 4 , un l e s s co s t - e f f e c t i v e lo n g - t e r m re s o u r c e s ar e av a i l a b l e an d th e i r ac q u i s i t i o n is in th e be s t in t e r e s t s of cu s t o m e r s . Fi r m Ma r k e t . . . 3 20 1 1 - 2 0 2 0 — Re s o u r c e s wi l l be pr o c u r e d th r o u g h mu l t i p l e me a n s su c h as pe r i o d i c mi n i - R F P s th a t se e k re s o u r c e s le s s Pu r c h a s e s . th a n fi v e ye a r s in te r m , an d bi l a t e r a l ne g o t i a t i o n s . • Cl o s e l y mo n i t o r th e ne a r - t e r n i an d lo n g - t e r n , ne e d f o r fr o n t of f i c e tr a m i s a c t i o n s an d ad , j u s t pl a n n e d ac q u i s i t i o n s as ap p r o p r i a t e ba s e d on ma r k e t co m i d i t i o n s , re s o u r c e co s t s , an d lo a d ex p e c t a t i o m i s . • Co n t i n u e to pu r s u e ec o n o m i c pl a n t up g r a d e pr o j e c t s — s u c h as tu r b i n e sy s t e m im p r o v e m e n t s an d re t r o f i t s — Pl a n t an d un i t av a i l a b i l i t y im p r o v e m e n t s to lo w e r op e r a t i n g co s t s an d he l p me e t th e Co m p a n y ’ s fu t u r e CO , an d 4 Ef f i c i e n c y 20 11 - 2 0 2 0 ot h e r en v i r o n m e n t a l co m p l i a n c e re q u i r e m e n t s . Im p r o v e m e n t s — Su c c e s s f u l l y co m p l e t e th e de n s e - p a c k co a l pl a n t tu r b i n e up g r a d e pr o j e c t s sc h e d u l e d fo r 20 1 1 an d 20 1 2 , to t a l i n g 31 MW . PA C I F I C 0 R P -2 0 1 1 IR P CH A P T E R 9— A C T I O N PL A N Ac t i o n It e m Ca t e g o r y Ti m i n g j — (‘ o n i p l e t e th e re m a i n i n g tu r b i n e up g r a d e pr o j e c t s by 20 2 1 , to t a l i n g an in c r e m e n t a l 34 . 2 n - ‘, su b j e c t to co n t i n u i n g re v i e w of pr o j e c t ec o n o i m m i c s . — Se e k to me e t th e co m p a n y ’ s up d a t e d ag g r e g a t e co a l pl a n t ne t he a t ra t e im p r o v e m e n t go a l of 4 7 8 Bt u / k W h by 20 1 9 . 2 — co n t i n u e to mo n i t o r tu r b i n e an d ot h e r eq u i p m e n t te c h n o l o g i e s fo r co s t — e f f e c t i v e up g r a d e op p o r t u n i t i e s ti e d to fu t u r e pl a n t ma i n t e n a n c e sc h e d u l e s . Ac q u i r e up to 25 0 MW of co s t - e f f e c t i v e Cl a s s I de m a n d - s i d e ma n a g e m e n t pr o g r a m s fo r im p l e m e n t a t i o n in th e 20 1 1- 2 0 2 0 ti m e fr a m e . 5 Cl a s s 1 DS M 20 1 1 - 2 0 2 0 — Fo r 20 1 2 - 2 0 1 3 , pu r s u e up to 80 MW of th e co m m e r c i a l cu r t a i l m e n t pr o d u c t (w h i c h in c l u d e s cu s t o m e r - ow n e d st a n d b y ge n e r a t i o n op p o r t u n i t i e s ) be i n g pr o c u r e d as an ou t c o m e of th e 20 0 8 DS M RF P . — De p e n d i n g on fi n a l ec o n o m i c s , pu r s u e th e re m a i n i n g 17 0 MW fo r 20 1 2 - 2 0 2 0 , co n s i s t i n g of ad d i t i o n a l cu r t a i l m e n t op p o r t u n i t i e s an d ir r i g a t i o n / r e s i d e n t i a l di r e c t lo a d co n t r o l . • Ac q u i r e up to 1, 2 0 0 MW of co s t - e f f e c t i v e cl a s s 2 pr o g r a m s by 20 2 0 , eq u i v a l e n t to ab o u t 4, 5 3 3 GW h . Th i s in c l u d e s pr o g r a n i s in Or e g o n ac q u i r e d th r o u g h th e En e r g y Tr u s t of Or e g o n . — Pr o c u r e th r o u g h th e cu r r e n t l y ac t i v e DS ] I ’ I RF P an d su b s e q u e u i t DS M RF P s . • Ap p l y th e 20 1 1 IR P co n s e r v a t i o n an a l y s i s as th e ba s i s fo r th e Co m p a n y ’ s ne x t Wa s h i n g t o n 1- 9 3 7 co n s e r v a t i o n ta r g e t se t t i n g su b m i t t a l to th e Wa s h i n g t o n Ut i l i t i e s an d Tr a n s p o r t a t i o n Co m m i s s i o n fo r th e 20 1 2 - 2 0 1 3 6 Cl a s s 2 DS M 20 1 1 - 2 0 2 0 bi e n n i u m . Th e Co m p a n y ma y re f i n e th e co n s e r v a t i o n an a l y s i s an d up d a t e th e co n s e r v a t i o n fo r e c a s t an d bi e n n i a l ta r g e t as ap p r o p r i a t e pr i o r to su b m i t t a l ba s e d on fi n a l av o i d e d co s t de c r e m e n t an a l y s i s an d ot h e r ne w in f o r m a t i o n . . Le v e r a g e th e di s t r i b u t i o n en e r g y ef f i c i e n c y an a l y s i s of 19 di s t r i b u t i o n fe e d e r s in Wa s h i n g t o n (c o n d u c t e d fo r Pa c j f l c o r p by co m n n i o m i we a l t h As s o c i a t e s , In c . ) fo r an a l y s i s of po t e n t i a l di s t r i b u t i o n en e r g y ef f i c i e n c y in ot h e r ar e a s of Pa c j f i c o r p ‘s sy s t e m . (T h e Wa s h i n g t o n di s t r i b u t i o n en e r g y ef f i c i e n c y st u d y fi m i a l re p o r t is sc h e d u l e d fo r co i u i p l e t i o n ki ’ th e en d of Ma y 20 1 1. ) . Co n t i n u e to ev a l u a t e Cl a s s 3 DS M pr o g r a m op p o r t u n i t i e s . — Ev a l u a t e pr o g r a m sp e c i f i c a t i o n an d co s t - e f f e c t i v e n e s s in th e co n t e x t of IR P po r t f o l i o mo d e l i n g ’ , an d 7 Cl a s s 3 DS M 20 1 1 - 2 0 2 0 mo n i t o r ma r k e t ch a n g e s th a t ma y re m o v e th e vo l u n t a r y na t u r e of Cl a s s 3 pr i c i n g pr o d u c t s . 2 Pa c J l C o i p En e r g y He a t Ra t e Im p r o v e m e n t Pl a n , Ap r i l 20 1 0 . Su p p l y cu r v e de v e l o p m e n t in d i c a t e s th a t wh e n th e st a c k i n g ef f e c t of Cl a s s I an d Cl a s s 3 re s o u r c e in t e r a c t i o n s ar e co n s i d e r e d , th e se l e c t e d re s o u r c e s wi t h i n bo t h Cl a s s e s of DS M di m i n i s h . PA C I F I C O R P -2 0 1 1 1R P CH A P T E R 9— A C T I O N PL A N Ac t i o n It e m Ca t e g o r y Ti m i n g Ac t i o n ( s ) • Co n t i n u e to re f i n e th e Sy s t e m Op t i m i z e r mo d e l i n g ap p r o a c h fo r an a l y z i n g co a l ut i l i z a t i o n st r a t e g i e s un d e r va r i o u s en v i r o n m e n t a l re g u l a t i o n an d ma r k e t pr i c e sc e n a r i o s . Pl a n n i n g an d . Co n t i n u e to co o r d i n a t e wi t h Pa c i f i C o r p ’ s tr a n s m i s s i o n pl a n n i n g de p a r t m e n t on im p r o v i n g tr a n s m i s s i o n 8 Mo d e l i n g 20 1 1 - 2 0 1 2 in v e s t m e n t an a l y s i s us i n g th e IR P mo d e l s . Pr o c e s s Im p r o v e m e n t s • In c o r p o r a t e pl u g - i n el e c t r i c ve h i c l e s an d Sm a r t Gr i d te c h n o l o g i e s as a di s c u s s i o n to p i c fo r th e ne x t IR P . • Co n t i n u e to re f i n e th e wi n d in t e g r a t i o n mo d e l i n g ap p r o a c h ; es t a b l i s h a te c h n i c a l re v i e w co m m i t t e e an d a sc h e d u l e an d pr o j e c t pl a n fo r th e ne x t wi n d in t e g r a t i o n st u d y . REVISED ACTION PLAN REDLINE PA c I F I C 0 R P -2 0 1 1 IR P CH A P T E R 9— RE V I S E D AC T I O N PL A N Ta b l e 9. 1 — IR P Re v i s e d Ac t i o n Pl a n Up d a t e A nt nf l ip r n c. nn t nn n t p r l ,— n. l, p i ‘n f l ,4 t- h a ,, ps . r t +- n in u ,p n r r . ar an n , lr n- c t - p r ti , p np - , j i ti - I in ,p n r c . nr a ;. ,4 nn t - p , 4 n hi . +n I ,‘ -C n t £ •S L L S J LL A 1 3 Af l A L1JL L . _ ¼ 4 LJ S_ f l LS _ f l S J tJ _ ! J S J 1 f l 4 Lfl A S _ A1 S _ Z X S IV Y J S_ L a 3 53 1 !V J % , % # U 4 S tI L l S _ i . LI I S . Lt % . ’ t S I IV Y 1.3 J S_ L 4 . 1 13 , al S_ LA 1 S L A S _ I 1 . L S I S I An 1. 3 1 t4 . . . I IL A L A S . LS . f l A L . we be ve d t Ch a D l e r 10 , Tr a n s m i s s i o n Ac t i o n P1 . - — Ac t i o n ( s J Wi n d Ac q u i r e up to 80 0 MW of wi n d re s o u r c e s by 20 2 0 , di c t a t e d by re g u l a t o r y an d ma r k e t de v e l o p m e n t s su c h as (1 ) re n e w a b l e / c l e a n en e r g y st a n d a r d s , (2 ) ca r b o n re g u l a t i o n s . (3 ) fe d e r a l ta x in c e n t i v e s , (4 ) ec o n o m i c s , (5 ) na t u r a l ga s pr i c e fo r e c a s t s , (6 ) re g u l a t o r y su p p o r t fo r in v e s t m e n t s ne c e s s a r y to in t e g r a t e va r i a b l e en e r g y re s o u r c e s , an d (7 ) tr a n s m i s s i o n de v e l o p m e n t s . Th e 80 0 - m e g a w a t t le v e l is su p p o r t e d by co n s i d e r a t i o n of re g u l a t o r y co m p l i a n c e ri s k s an d pu b l i c po l i c y in t e r e s t in cl e a n en e r g y re s o u r c e s . • ln th e ne x : I R. P , Pa c i t i C o r p wi l l tr a c k an d re p o r t th e st a t i s t i c s us e d to ca l c u l a t e ca p a c i t y co n t r i b u t i o n fr o m it s wi n d re s o u r c e s as a me a n s of te s t i n g th e va l i d i t y of th e PL C C me t h o d . • Fu t u r e IR P cy c l e s wi l l in c l u d e a pr o j e c t i o n fo r wi n d ac q u i s i t i o n wi t h an d wi t h o u t ge o t h e r m a l un t i l a cl e a r e r pi c t u r e em e r g e s re g a r d i n g ge o t h e r m a l dr y ho l e ri s k . • Th e Co m p a n y wi l l co n t i n u e to re f i n e th e wi n d in t e g r a t i o n mo d e l i n g ap p r o a c h es t a b l i s h a te c h n i c a l re v i e w co m m i t t e e (T R C ) an d a sc h e d u l e an d pr o j e c t pl a n fo r th e ne x t wi n d in t e g r a t i o n st u d y . Th e TR C wi l l be fo r m e d an d me m b e r s id e n t i f i e d wi t h i n 30 da y s of th e ef f e c t i v e da t e of th e IR P Or d e r . Wi t h i n 30 da y s of th e ef f e c t i v e da t e of th e IR P Or d e r , a sc h e d u l e fo r th e st u d y wi l l be es t a b l i s h e d , in c l u d i n g fu l l op p o r t u n i t y fo r st a k e h o l d e r in v o l v e m e n t an d pr o g r e s s re v i e w s by th e TR C th a t wi l l al l o w th e fi n a l st u d y to be su b m i t t e d wi t h Re n e w a b l e s / th e ne x t IR P . Di s t r i b u t e d 2I — 2 O 2 Ge o t h e r m a l Ge n e r a t i o n _T h e Co m p a n y id e n t i f i e d ov e r 10 0 MW of ge o t h e r m a l re s o u r c e s as pa r t of a le a s t - c o s t re s o u r c e po r t f o l i o . Co n t i n u e to re f i n e re s o u r c e po t e n t i a l es t i m a t e s an d up d a t e re s o u r c e co s t s in 20 1 1 - 2 0 1 2 fo r fu r t h e r ec o n o m i c ev a l u a t i o n of re s o u r c e op p o r t u n i t i e s . Co n t i n u e to in c l u d e ge o t h e r m a l pr o j e c t s as el i g i b l e re s o u r c e s in fu t u r e al l - s o u r c e RF P s . • Th e om p a n kh n t i f i e d ov e r 10 0 MW of ge o t h e r m a l re s o u r c e s as pa r t of a le a s t - c o s t re s o u r c e po r t f o l i o . Co n t i n u e to re f l n e re s o u r c e po t e n t i a l es t i m a t e s an d up d a t e re s o u r c e co s t s in 20 1 1 - 2 0 1 2 fo r fu r t h e r ec o n o m i c ev a l u a t i o n of re s o u r c e op p o r t u n i t i e s . Co n t i n u e to ex p l i c i t l y in c l u d e ge o t h e r m a l pr o j e c t s as el i g i b l e re s o u r c e s in fu t u r e al l - s o u r c e RF P s . So l a r • Ev a l u a t e pr o c u r e m e n t of Or e g o n so l a r ph o t o v o l t a i c re s o u r c e s in 20 1 1 vi a th e Co m p a n y ’ s so l a r RF P . • Ac q u i r e ad d i t i o n a l Or e g o n so l a r re s o u r c e th r o u g h RF P s or ot h e r me a n s in or d e r to me e t th e Co m p a n y ’ s 8. 7 MW co m p l i a n c e ob l i g a t i o n . • Wo r k wi t h Ut a h pa r t i e s to in v e s t i g a t e so l a r pr o g r a m de s i g n an d de p l o y m e n t is s u e s an d op p o r t u n i t i e s in la t e 20 1 1 an d 20 1 2 , us i n g th e Co m p a n y ’ s ow n an a l y s i s of Wa s a t c h Fr o n t ro o f t o p so l a r po t e n t i a l an d ex p e r i e n c e wi t h th e Or e g o n so l a r pi l o t pr o g r a m . As re c o m m e n d e d in th e Co m p a n y ’ s re s p o n s e to co m m e n t s un d e r Do c k e t No . 07 - 0 3 5 - T 1 4 , th e Co m p a n y re q u e s t e d th a t th e Ut a h Co m m i s s i o n es t a b l i s h “a pr o c e s s in th e fa l l of 20 1 It o de t e r m i n e wh e t h e r a co n t i n u e d or ex p a n d e d so l a r pr o g r a m in Ut a h is ap p r o p r i a t e an d ho w th a t pr o g r a m mi g h t PA c I F I C 0 R P - 2 0 1 1 IR P CH A P T E R 9— R E V I S E D AC T I O N PL A N be st r u c t u r e d ” • In v e s t i g a t e , an d pu r s u e if co s t - e f f e c t i v e fr o m an im p l e m e n t a t i o n st a n d p o i n t , co m m e r c i a l / r e s i d e n t i a l so l a r ho t wa t e r he a t i n g pr o g r a m s . Th e 20 1 1 IR P pr e f e r r e d po r t f o l i o in c l u d e s 30 MW of so l a r .- w a t e r he a t i n g re s o u r c e s by 20 2 0 (1 8 MW in th e ea s t si d e an d 12 MW in th e we s t si d e ) . • In th e co n t e x t of th e Or e g o n so l a r RF P s , an a k ie th e tr a d e - o f f s be t w e e n ea r l y an d la t e r ac q u i s i t i o n of so l a r re s o u r c e s . Co m b i n e d He a t & Po w e r (C H P ) • Pu r s u e op p o r t u n i t i e s fo r ac q u i r i n g bi o m a s s CI - I P re s o u r c e s , pr i m a r i l y th r o u g h th e PU R P A Qu a l i f y i n g Fa c i l i t y co n t r a c t i n g pr o c e s s . Th e pr e f e r r e d po r t f o l i o co n t a i n s 52 MW of CH P re s o u r c e s fo r 20 1 1 - 2 0 2 0 (1 0 MW in th e ea s t si d e an d 42 MW in th e we s t si d e ) En e r 2 y St o r a g e • Pr o c e e d wi t h an en e r g y st o r a g e de m o n s t r a t i o n pr o j e c t , su b j e c t to Ut a h Co m m i s s i o n ap p r o v a l of th e Co m p a n y ’ s pr o p o s a l to de f e r an d re c o v e r ex p e n d i t u r e s th r o u g h th e de m a n d - s i d e ma n a g e m e n t su r c h a r g e . In i t i a t e a co n s u l t a n t st u d y in 20 1 1 —) - i - 2 - o n in c r e m e n t a l ca p a c i t y va l u e an d an c i l l a r y se r v i c e be n e f i t s of en e r g y st o r a g e . • Co n d u c t a st u d y of gr i d fl e x i b i l i t y fo r ac c o m m o d a t i n g va r i a b l e en e r g re s o u r c e s (V E R ) as pa r t of th e ne x t IR P fi l i n g . Th e st u d y wi l l in c l u d e th e fo l l o w i n g el e m e n t s : — De f i n i t i o n of an d su g g e s t me t r i c s by wh i c h to me a s u r e fl e x i b i l i t y (a p p l i c a b l e to al l fl e x i b i l i t y re s o u r c e s in c l u d i n g : th e r m a l , de m a n d re s p o n s e (D R ) , an d st o r a g e ) . — An in v e n t o r y of ex i s t i n g fl e x i b i l i t y ne e d s an d th e ad e q u a c y or ca p a b i l i t y of ex i s t i n g as s e t s to me e t th e m . — A pr o j e c t i o n of fl e x i b i l i t y ne e d s in th e IR P ti m e f r a m e to su c c e s s f u l l y in t e g r a t e pr o j e c t VE R ad d i t i o n s . — A co m p a r i s o n of be n e f i t s an d co s t s of ob t a i n i n g fl e x i b i l i t y fr o m th e ra n g e of fl e x i b i l i t y re s o u r c e s (c o n v e n t i o n a l th e r m a l , DR . st o r a g e , et c ) . Re n e w a b l e Po r t f o l i o St a n d a r d Co m p l i a n c e De v e l o p an d re f i n e st r a t e g i e s fo r re n e w a b l e po r t f o l i o st a n d a r d co m p l i a n c e in Ca l i f o r n i a an d Wa s h i n g t o n . • Pa c i f i C o r p wi l l ex p a n d th e ne x t IR P to in c l u d e di s c u s s i o n of RP S co m p l i a n c e st r a t e g i e s an d th e ro l e of RE C sa l e s an d pu r c h a s e s . Th e Co m p a n y wi l l be se l e c t i v e in it s di s c u s s i o n to av o i d co n f l i c t be t w e e n th e IR P . RP S Im p l e m e n t a t i o n Pl a n an d RP S Co m p l i a n c e Re p o r t . A.Ct I O f l It e m Ca t e g o r y - / Ac t i o n ( s ) 1 Ro c k y Mo u n t a i n Po w e r , “R e : Do c k e t No . 07 - 0 3 5 - T i 4 — Th r e e ye a r as s e s s m e n t of th e So l a r in c e n t i v e Pr o g r a m ” , De c e m b e r 15 , 20 1 0 . I PA c I F I C 0 R P - 2 0 1 1 CH A P T E R 9— R E V I S E D AC T I O N PL A N Ac t i o n ( s ) Ac q u i r e a co m b i n e d - c y c l e co m b u s t i o n tu r b i n e re s o u r c e at th e La k e Si d e si t e in Ut a h by th e su m m e r of 20 1 4 ; th e pl a n t is pr o p o s e d to be co n s t r u c t e d by CH 2 M Hi l l E& C , In c . (“ C H 2 M Hi l l ” ) un d e r th e te r m s of an en g i n e e r i n g , pr o c u r e m e n t , an d co n s t r u c t i o n (E P C ) co n t r a c t . Th i s re s o u r c e co r r e s p o n d s to th e 20 1 4 CC C T pr o x y re s o u r c e in c l u d e d in th e 20 1 1 IR P pr e f e r r e d po r t f o l i o . an au so u r c e P in la t e 20 1 1 or ea r l y 20 1 2 fo r ac q u i s i t i o n of p e a k i n g ’ i n t e r m e u i a t e i o a s e i o a a re s o u r c e s su m m e r o f 2 p l ó . ac q u i s i t i o n co r r e s p o n -a ’ - o c 59 7 MW 20 1 6 CC C T pr o x y re s o u r c e (F Cl a s s 2x 1) . Pa c i f i C o r p wi l l re e x a m i n e th e ti m i n g an d ty p e of po s t - 2 0 1 4 ga s re s o u r c e s an d ot h e r re s o u r c e ch a n g e s as pa r t of th e 20 1 1 bu s i n e s s pl a n n i n g pr o c e s s an d pr e p a r a t i o n of th e 20 1 1 IR P Up d a t e . Th e re e x a m i n a t i o n wi l l in c l u d e do c u m n a t i o n of ca p i t a l co s t an d op e r a t i n g co s t tr a d e o f f s be t w e e n re s o u r c e ty p e s . _C o n s i d e r si t i n g ad d i t i o n a l ga s - f i r e d re s o u r c e s in lo c a t i o n s ot h e r th a n Ut a h . In v e s t i g a t e re s o u r c e av a i l a b i l i t y is s u e s in c l u d i n g wa t e r av a i l a b i l i t y , pe r m i t t i n g , tr a n s m i s s i o n co n s t r a i n t s , ac c e s s to na t u r a l ga s , an d po t e n t i a l im p a c t s of el e v a t i o n . • Is s u e an al , - s o r c e FP in ea r l y 20 1 2 fo r po t e n t i a l ac q u i s i t i o n of pe a k i n g / i n t e r m e d i a t e / b a s e l o a d re s o u r c e s by th e su m m e r of 20 1 6 to fi l l an y re m a i n i n g re s o u r c e ne e d in d i c a t e d by an up d a t e d lo a d an d re s o u r c e ba l a n c e re f l e c t i n g th e re s u l t s of DS M RF P s , ac q u i s i t i o n of fr o n t of f i c e tr a n s a c t i o n s , re s e r v e ma r g i n se n s i t i v i t y an a l y s i s , an d ot h e r re l e v a n t in f o r m a t i o n . Ac q u i r e up to 1, 4 0 0 M- V - - - - f ec o n o m i c fr o n t of f i c e tr a n s a c t i o n s or po w e r pu r c h a s e ag r e e m e n t s as ne e d e d mt 4 th e be g i n n i n g of th r o u g h su m m e r - -4 2 . Q j , . un l e s s co s t ef f e c t i v e lo n g te r m re s o u r c e s ar e av a i l a b l e an d th e i r ac q u i s i t i o n is in th e be s t i— e - f cu s t o m e r s . — Re s o u r c e s wi l l be pr o c u r e d th r o u g h mu l t i p l e me a n s , su c h as pe r i o d i c mi n i - R F P s th a t se e k re s o u r c e s le s s th a n fi v e ye a r s in te r m , an d bi l a t e r a l ne g o t i a t i o n s . _C 1 o s e l y mo n i t o r th e ne a r - t e r m an d lo n g - t e r m ne e d fo r fr o n t of f i c e tr a n s a c t i o n s an d ad j u s t pl a n n e d ac q u i s i t i o n s as ap p r o p r i a t e ba s e d on ma r k e t co n d i t i o n s , re s o u r c e co s t s , an d lo a d ex p e c t a t i o n s . — Ac t i v e l y se a r c h fo r rn r k c oo t c n s th a t co u l d co s t - e f f e c l \ e’ Jc f c r cg u i s i t i o n or co n s t r u c t i o n of a 20 1 6 CC C T re s o u r c e . Co n t i n u e to pu r s u e ec o n o m i c pl a n t up g r a d e pr o j e c t s — s u c h as tu r b i n e sy s t e m im p r o v e m e n t s an d re t r o f i t s — an d un i t av a i l a b i l i t y im p r o v e m e n t s to lo w e r op e r a t i n g co s t s an d he l p me e t th e Co m p a n y ’ s fu t u r e CO2 an d ot h e r en v i r o n m e n t a l co m p l i a n c e re q u i r e m e n t s . — Su c c e s s f u l l y co m p l e t e th e de n s e - p a c k co a l pl a n t tu r b i n e up g r a d e pr o j e c t s sc h e d u l e d fo r 20 1 1 an d 20 1 2 , to t a l i n g 31 MW . — Co m p l e t e th e re m a i n i n g tu r b i n e up g r a d e pr o j e c t s by 20 2 1 , to t a l i n g an in c r e m e n t a l 34 . 2 MW , su b j e c t to co n t i n u i n g re v i e w of pr o j e c t ec o n o m i c s . 2 In t e r m e d i a t e / Ba s e - l o a d Th e r m a l Su p p l y - s i d e Re s o u r c e s •• Fi r m Ma r k e t Pu r c h a s e s Pl a n t 4 Ef f i c i e n c y Im p r o v e m e n t s — Se e k to me e t th e Co m p a n y ’ s up d a t e d ag g r e g a t e co a l pl a n t ne t he a t ra t e im p r o v e m e n t go a l of 47 8 I PA C I F I C O R P - 2 0 1 1 [R P CH A P T E R 9— R E V I S E D AC T I O N PL A N :. Ac t i o n : It e m Ca t e g o r Ac t i o n ( s ) Bt u / k W h by 20 1 9 . 2 _C o n t i n u e to mo n i t o r tu r b i n e an d ot h e r eq u i p m e n t te c h n o l o g i e s fo r co s t - e f f e c t i v e up g r a d e op p o r t u n i t i e s ti e d to fu t u r e pl a n t ma i n t e n a n c e sc h e d u l e s . . Fo r th e ne x t IR P co m p l e t e a st u d y of c o s i - e i 0 c t i e an d re l i a b l e pr o d u c t i o n ef f i c i e n c y op p o r t u n i t i e s at ge n e r a t i n g fa c i l i t i e s (s t a t i o n lo a d re d u c t i o n op p o r t u n i t i e s no t cu r r e n t l ’ be i n g ca p t u r e d in th e IR P ) wh e r e th e Co m p a n y ha s so l e ow n e r s h i p of th e fa c i l i t y . Th e re s o u r c e op p o r t u n i t i e s id e n t i f i e d wi l l be mo d e l e d ag a i n s t co m p e t i n g de m a n d an d su p p l y - s i d e re s o u r c e s in th e ne x t IR P . Th o s e se l e c t e d wi l l be ta r e e t e d fo r co m p l e t i o n by 20 1 5 pr o v i d e d pl a n t ou t a c e s ar e no t re q u i r e d . Ac q u i r e up - a t to - l e a s t 2- O - 1 0 0 MW of in c r e m e n t a l co s t - e f f e c t i v e Cl a s s I de m a n d - s i d e ma n a g e m e n t pr o g r a m s fo r im p l e m e n t a t i o n in th e 20 1 - —t m e $ r m + e r e s o u r c e bs 20 3 an d up to 25 0 MW h\ 20 h . Fo r 20 1 2 20 1 3 , pu r s u e up to 4W — e O } 2 n a l i z e a: : ce m e n t l’ o r th e co m m e r c i a l cu r t a i l m e n t pr o d u c t (w h i c h in c l u d e s cu s t o m e r - o w n e d st a n d b y ge n e r a t i o n op p o r t u n i t i e s ) . be i n g pr o c u r e -n r a c u m . 20 0 8 DS M RF P I f co s t ef f e c t i v e , th e co n : n a n \ 2; hO e ih r a e a m x ci nv th e 3rd qu a r t e r of 2 ( ) 2. —D e p e n d i n g on fi n a l ec o n o m i c s , pu r s u - na i . i 4 n 17 0 M —6 - w - - 2 - 0 l 2 20 2 0 , co n s i s t i n g of ad d i t i o n a l 5 Cl a s s I DS M 20 1 1 20 2 0 cu r t a i l m e n t op p o r t u n i t i e s an d ir r i g a t l e a re s i d e n t i a l di r e c t lo a d co n t r o l . — Co m p l e t e an an a l y s i s of th e ec o n o m i c fe a s i b i l i t y of Cl a s s I ir r i g a t i o n lo a d co n t r o l in th e we s t by th e se c o n d qu a r t e r of 2 0 1 2 . If th e an a l y s i s su g g e s t s Cl a s s I ir r i g a t i o n lo a d co n t r o l is ec o n o m i c in th e we s t , th e Co m p a n y wi l l so u r c e de l i v e r y of a pr o g r a m th r o u g h a Re q u e s t fo r Pr o p o s a l co n c u r r e n t wi t h th e re so u r c i n g of Cl a s s 1 ir r i g a t i o n lo a d co n t r o l pr o g r a m de l i v e r y in th e ea s t by th e th i r d qu a r t e r of 20 1 2 . — Is s u e an RF P in 20 1 2 to re - p r o c u r e th e de l i v e r y of th e Co o l Ke e p e r pr o g r a m fo l l o w i n g th e 20 1 3 co n t r o l se a s o n . Fo r th e RF P , th e Co m p a n y wi l l se e k ma r k e t ap p r o a c h e s ac c e p t a b l e to Ut a h re g u l a t o r s to ex p a n d th e pr o g r a m be y o n d it s cu r r e n t le v e l be g i n n i n g in 20 1 4 . . Ac q u i r e up to 1, 2 0 0 MW of co s t ef f e c t i v e Cl a s s 2 pr o a m s by 20 2 0 , eq u i v a l e n t to ab o u t ,5 3 3 GW h . Th i s 4- F e - 0 + - t 0 e e g o n ac q u i r e d th r o u g h th e En e r g y &t e e o —? c - 0 - e m h - - r a - c - c - . r r e n t l y ac t i v e DS M RF P ch O % c 2 — R 2 h O Ap p l y th e 20 1 I IR P co n s e r v a t i o n an a l y s i s as th e ba s i s fo r th e Co m p a n y ’ s ne x t Wa s h i n g t o n 1- 9 3 7 co n s e r v a t i o n 6 Cl a s s 2 DS M po ta r g e t se t t i n g su b m i t t a l to th e Wa s h i n g t o n Ut i l i t i e s an d Tr a n s p o r t a t i o n Co m m i s s i o n fo r th e 20 1 2 - 2 0 1 3 bi e n n i u m . Th e Co m p a n y ma y re f i n e th e co n s e r v a t i o n an a l y s i s an d up d a t e th e co n s e r v a t i o n fo r e c a s t an d bi e n n i a l ta r g e t as ap p r o p r i a t e pr i o r to su b m i t t a l ba s e d on fi n a l av o i d e d co s t de c r e m e n t an a l y s i s an d ot h e r ne w in f o r m a t i o n . . Ac q u i r e at le a s t 90 0 MW ’ a n d j o .8 0 0 MW of co s t - e f f e c t i v e Cl a s s 2 pr o g r a m s bs 20 2 0 , eq u i a i n t to at le a s t 4, 5 3 3 GW h au d up to 9. 0 6 6 GV v ’ h . Ac q u i r e at le a s t 52 0 MW an d up to 10 0 0 MW of co s t - e f f e c t i v e Cl a s s 2 DS M _ b y 20 1 6 . 2 Pa c ( f l C o r p En e r g y He a t Ra t e Ii n p r o v e n e n t Pl a n , Ap r i l 20 1 0 . PA C I F I C O R P - 2 0 1 1 IR P CH A P T E R 9— RE V S w AC T I O N PL A N 1S1 qu a r t e r 12 fi l e a re s i d e n t i a l ho m e re s i d e n t i a l ho m e co m p a r i s o n re p o r t pr o g r a m in Ut a h an d Wa s h i n g t o n , an d in v e s t i g a t e br o a d e r ap p l i c a t i o n s by th e en d of 20 1 4 th a t ca n be im p l e m e n t e d by 20 1 6 . di r e c t di s t r i b u t i o n pr o g r a m s ta r g e t i n g sa v i n g s fr o m th e re s i d e n t i a l an d sm a l l co m m e r c i a l se c t o r s th a t ca n be de l i v e r e d be g i n n i n g in 20 1 3 . Th e Co m p a n y wi l l se e k to ac q u i r e al l co s t - e f f e c t i v e re s o u r c e s th a t ar e av a i l a b l e fr o m th e RF P . Th e co s t ef f e c t i v e n e s s an a l y s i s wi l l co n s i d e r an y ad v e r s e im p a c t on th e ex i s t i n g DS M pr o g r a m s . Th e re s u l t s of th e RF P wi l l be kn o w n pr i o r to th e Co m p a n y se e k i n g ac k n o w l e d g e m e n t of th e fi n a l sh o r t li s t fo r th e al l - s o u r c e RF P . Th e Co m p a n y wi l l pr o m p t l y fi l e fo r co m m i s s i o n ap p r o v a l s to im p l e m e n t th e co s t - e f f e c t i v e pr o g r a m s . • Fo r th e ne x t IR P . pr i o r to be g i n n i n u mo d e l i n g an d sc r e e n i n g of DS M , an d as pa r t of th e pu b l i c in p u t pr o c e s s . pr o v i d e an an a l y s i s of al t e r n a t i v e s to th e cu r r e n t su p p l y cu r v e bu n d l i n g an d ra m p i n g me t h o d s fo r mo d e l i n g • By th e en d of 20 1 2 pr o v i d e an an a l y s i s of th e su f f l c e n c of cu r r e n t st a f f i n g le v e l s to ac h i e v e pr o g r a m m a t i c co s t ef f e c t i v e ee r e - cf f c i e n c y ta r g e t s es t a h i s h c c i th : _L e v e r a g e th e di s t r i b u t i o n en e r g y ef f i c i e n c y an a l y s i s of 19 di s t r i b u t i o n fe e d e r s in Wa s h i n g t o n (c o n d u c t e d fo r Pa c i f i C o r p by Co m m o n w e a l t h As s o c i a t e s , In c . ) fo r an a l y s i s of po t e n t i a l di s t r i b u t i o n en e r g y ef f i c i e n c y in ot h e r ar e a s of Pa c i f i C o r p ’ s sy s t e m pr o v h i e d Co m p a n y re c e j s p r o a I by th e ap p i ra R Co in i : i o . i re c o v e r y of th e sl J \ co s t e ce : n a n d - s i d e cu s t o m e r ci c n c y su r c h a r g e . . (T h e Wa s h i n g t o n di s t r i b u t i o n en e r g y ef f i c i e n c y st u d y fi n a l re p o r t is - se h e 4 4 - o r co m p l e t e c ! io n by th e en d of Ma D e c e m b e r 26 , 20 1 1 . ) — In c l u d e in th e 20 1 3 IR P a de t c i c d p’ a n an d sc h e d u l e to im : ea e i : co s t - e f f e c t i v e CV R in ea c h st a t e as — By Ma y 1, 2 0 1 2 th e co m p a n y wi l l sc h e d u l e a wo r k sh o p in ea c h of it s ma j o r st a t e s wi t h co m m i s s i o n st a f f to pr e s e n t fi n d i n g s of th e Wa s h i n g t o n CV R ev a l u a t i o n . — By th e en d of 20 1 2 pe r f o r m a hi g h - l e v e l sc r e e n i n g of 40 pe r c e n t of it s di s t r i b u t i o n ci r c u i t s in ea c h of th e st a t e s to id e n t i f y ci r c u i t s wh e r e co s t ef f e c t i v e en e r g y sa v i n g s ap p e a r s vi a b l e an d de t a i l e d ci r c u i t st u d y is wa r r a n t e d pr o v i d e d th e Co m p a n y re c e i v e s ap p r o v a l by th e ap p r o p r i a t e Co m m i s s i o n fo r re c o v e r y of th e st u d y co s t th r o u g h th e de m a n d - s i d e cu s t o m e r ef f i c i e n c y su r c h a r g e . — By th e en d of 2 0 1 3 pe r f o r m a hi g h - l e v e l sc r e e n i n g of th e re m a i n i n g 60 pe r c e n t of it s di s t r i b u t i o n ci r c u i t s in ea c h of th e st a t e s to id e n t i f y ci r c u i t s wh e r e co s t - e f f e c t i v e en e r g y sa v i n g s ap p e a r vi a b l e an d de t a i l e d ci r c u i t st u d y is wa r r a n t e d nr o v i d e d th e Co m n a n v re c e i v e s an n r o v a l by th e an n r o n r i a t e st a t e co m m i s s i o n Ac t i o n It e m Ca t e g o r y I A — By 3r d qu a r t e r 20 1 2 th e Co m p a n y wi l l su b m i t fo r co m m i s s i o n ap p r o v a l a pl a n to ac q u i r e en e r g y ef f i c i e n c y re s o u r c e s fr o m th e Co m p a n y ’ s Sp e c i a l Co n t r a c t cu s t o m e r s in Ut a h an d Id a h o th a t ca n be re l i a b l y ve r i f i e d an d de l i v e r e d by 20 1 6 . an d wi l l pu r s u e th o s e re s o u r c e s pr o v i d e d th e Co m m i s s i o n s in th o s e st a t e s ap p r o v e a co s t - r e c o v e r y me c h a n i s m fo r th e pl a n . — By 1s t au a r t e r 20 1 2 is s u e a sy s t e m - w i d e RF P (e x c l u d i n u Or e u o n fo r sn e c i f i c di r e c t in s t a l l an d ot h e r en e r g y ef f i c i e n c y me a s u r e s . ap p r o v e d by th e st a t e . Ad j u s t e d to re f l e c t 20 1 1 IR P ’ s in i t i a l MW co n t r i b u t i o n fr o m Cl a s s 2 re s o u r c e s ex p e c t e d to be ac q u i r e d in Or e g o n (r e d u c e s th e MW co n t r i b u t i o n fr o m Or e g o n fr o m 56 2 MW s by 20 2 0 to 28 3 MW s , a 27 9 MW re d u c t i o n . Pc i F i C o R P -2 0 1 1 JR P CH A P T E R 9— R E V I S E D AC T I O N PL A N Ac t i o n It e m Ca t e g o r y I ._ _ _ _ I- of th e st u d y co s t th r o u g h th e de n i n J - s i d e cu s t o m e r In th e 20 1 3 IR P in c l u d e th e re s u l t s of th e CV R ev a l u a t i o n to da t e . cy su r c h a r g e . L or t f o I i o mo d e l i n g4-a a d th a t ma y re m o v e mc vo l u n t a r y ua t u i c ut iu pi l c i n g pr o d u c t s . • Du r i n g 20 1 2 up d a t e th e Co n s e r v a t i o n Po t e n t i a l As s e s s m e n t to mo r e ac c u r a t e l y re f l e c t Cl a s s I an d 3 DS M re s o u r c e op p o r t u n i t i e s in re g a r d s to 1) ma r k e t an d re g u l a t o r y ca p a b i l i t i e s an d cl i m a t e s in ea c h st a t e . 2) in t e r a c t i o n s wi t h i n an d be t w e e n Cl a s s I an d Cl a s s 3 re s o u r c e po t e n t i a l s id e n t i f i e d , an d 3) th e im p a c t of ex i s t i n g Cl a s s 3 pr o g r a m s on pr o d u c t po t e n t i a l . • Du r i n g 20 1 2 ha v e a th i r d - p a r t y co n s u l t a n t re v i e w an d pr e p a r e a re p o r t on ho w ot h e r ut i l i t i e s tr e a t pr i c e - re s p o n s i v e pr o d u c t s in th e i r re s o u r c e pl a n n i n c pr o c e s s (f o r ex a m p l e , as an ad j u s t m e n t to th e i r lo a d fo r e c a s t an d / o r as a fi r m pl a n n i n g re s o u r c e ) , an d pr e p a r e a re c o m m e n d a t i o n on ho w th e Co m p a n y mi g h t ap p l y co n t r i b u t i o n s fr o m pr i c e pr o d u c t s to he l p de f e r in v e s t m e n t s in ot h e r re s o u r c e op t i o n s co s t - e f f e c t i v e l y . • Fo r th e 20 1 3 IR P pr o v i d e a se n s i t i v i t y an a l y s i s , si m i l a r to po r t f o l i o de v e l o p m e n t Ca s e 31 in th e 20 1 1 IR P , th a t mo r e ac c u r a t e l y re f l e c t s in c r e m e n t a l Cl a s s 3 pr o d u c t op p o r t u n i t i e s (i n c r e m e n t a l to Cl a s s I pr o d u c t s . ot h e r Cl a s s 3 pr o d u c t s , an d to ex i s t i n g im p a c t s of Cl a s s 3 pr o d u c t s th e Co m p a n y is al r e a d y ru n n i n g ) . 7 Cl a s s 3 DS M 2q 1 1 20 2 0 • Im p l e m e n t in Ut a h an d Wa s h i n g t o n (s u b j e c t to re g u l a t o r y ap p r o v a l s ) re s i d e n t i a l in f o r m a t i o n pi l o t s to te s t th e ef f e c t s of pr o v i d i n g cu s t o m e r s gr e a t e r am o u n t s of us a g e in f o r m a t i o n on th e qu a n t i t y of el e c t r i c i t y th e y co n s u m e . Th e pi l o t s wi l l le v e r a g e th e ex i s t i n g AM R me t e r i n g cu r r e n t l y av a i l a b l e in th e s e st a t e s . Pi l o t s wi l l co n s i s t of th r e e te s t gr o u p s ea c h re c e i v i n g va r y i n g le v e l s of us a g e in f o r m a t i o n : o Gr o u p 1 - Ho m e co m p a r i s o n re p o r t s an d en e r g y co n s e r v a t i o n su g g e s t i o n s o Gr o u p 2 - Da i l y us a g e da t a th r o u g h Ho m e En e r g y Mo n i t o r i n g so f t w a r e (k e y co m p o n e n t to pr i c i n g pr o d u c t s ) o Gr o u p 3 — Ho m e co m p a r i s o n re p o r t s , en e r g y sa v i n g s su g g e s t i o n s , an d da i l y us a g e da t a th r o u g h Ho m e En e r g y Mo n i t o r i n g so f t w a r e Pi l o t s wi l l be im p l e m e n t e d in 20 1 2 , ru n th r o u g h o u t 20 1 3 , an d an an a l y s i s an d re c o m m e n d a t i o n pr e p a r e d in 20 1 4 , pr i o r to th e de v e l o p m e n t of th e 20 1 5 IR P . • If th e an a l y s i s of Cl a s s I ir r i g a t i o n lo a d co n t r o l in th e we s t (s e e ac t i o n it e m 5) in d i c a t e s th a t su c h pr o g r a m s ar e no n - e c o n o m i c , in v e s t i g a t e . th r o u a h a pi l o t pr o g r a m in Or e g o n a Cl a s s 3 ir r i g a t i o n ti m e - o f - u s e pr o g r a m as an al t e r n a t i v e ap p r o a c h fo r ma n a g i n g ir r i g a t i o n lo a d s in th e we s t . Su p p l y cu r v e de v e l o p m e n t in d i c a t e s th a t wh e n th e st a c k i n g u re s o u r c e in t e r a c t i o n s ar e co n s i d e r e d , th e se l e c t e d Cl a s s e s of DS M di m i n i s h . Pc w i C o P - 20 1 1 IR P CH A P T E R 9— RE v I s E D AC T I O N PL A N Ac t i o n It e m Ca t è g ô r y Ac t i o n ( s ) • Co n t i n u e to re f i n e — t h e Sy s t e m Op t i m i z e r mo d e l i n g ap p r o a c h fo r an a 1 y z i n - e o a l ut i l i z a t i o n st r a t e g i e s un d e r Pt . re g u l a t i o n an d ma r k e t pr i c e sc e n a r i o s . an n i n g an d • Co n t i n u e to co o r d . : wi t h Pa c i f i C o ’ s tr a n s s5 o n pi n a4 m e o 4 — — m v m g tr a n s m i s s i o n 8 Mo d e l i n g 20 1 1 20 1 2 in v e s — - R - ? mo d e l s . Pr o c e s s • In c o r p o r a t e pl u g - i n el e c t r i c ve h i c l e s an d Sm a r t Gr i d te c h n o l o g i e s as a di s c u s s i o n to p i c fo r th e ne x t IR P . Im p r o v e m e n t s . . . . Co n t i n u e to re 4 - n e th wi n d 4 n t e g r a t i o n mo d e l i n g ap p r o a c h ; et a h- c h r n c a l re v i e w co m m r n e e an d a sc h e d u l e an d pr o j e c t pl a n fo r th e ne x t wi n d in t e g r a t i o n st u d y . • Th e Co m p a n y wi l l ho s t a te c h n i c a l wo r k s h o p fo r st a k e h o l d e r s an d th e co m m i s s i o n e r s on Fe b r u a r y 17 , 20 1 2 fo r st a k e h o l d e r s th a t ha v e a co n f i d e n t i a l i t y ag r e e m e n t in pl a c e . — At th e te c h n i c a l wo r k s h o p . th e Co m p a n y wi l l re v i e w wi t h st a k e h o l d e r s th e me t h o d o l o g y , as s u m p t i o n s an d re c e n t l y co m p l e t e d an a l y s i s of up c o m i n g Na u g h t o n 3 em i s s i o n co n t r o l in v e s t m e n t s . Th e Na u g h t o n 3 an a l y s i s wi l l be pr o v i d e d to st a k e h o l d e r s , su b j e c t to co n f i d e n t i a l i t y ag r e e m e n t s , as so o n as pr a c t i c a b l e . — At th e te c h n i c a l wo r k s h o p , th e Co m p a n y wi l l pr e s e n t th e me t h o d o l o g y , as s u m p t i o n s an d re s u l t s of a Co a l Re p l a c e m e n t St u d y sc r e e n i n g an a l y s i s pe r f o r m e d fo r Ji m Br i d g e r 3, Ji m Br i d g e r 4, Hu n t e r I at a mi n i m u m . Th e Co m p a n y wi l l co m p l e t e th e an a l y s i s on as ma n y ot h e r un i t s as po s s i b l e wi t h i n th e ti m e co n s t r a i n t s . Th e Co m p a n y wi l l al s o pr e s e n t in f o r m a t i o n pe r t a i n i n g to pl a n n e d in v e s t m e n t s in th e Cr a i g an d Ha y d e n fa c i l i t i e s of wh i c h th e Co m p a n y ha s ow n e r s h i p sh a r e bu t do e s no t ha v e op e r a t i o n a l re s p o n s i b i l i t i e s . — Th e sc r e e n i n g an a l y s i s wi l l be pe r f o r m e d us i n g a sp r e a d s h e e t mo d e l th a t as s u m e s a ga s - f i r e d CC C T , sc a l e d to th e si z e of th e co a l un i t be i n g an a l y z e d , re p l a c e s th e co a l un i t in 20 1 5 . — Th e sc r e e n i n g an a l y s i s wi l l in c l u d e li n e - i t e m re s u l t s sh o w i n g an n u a l ca p i t a l co s t s an d fi x e d an d va r i a b l e 9 Co a l op e r a t i n g co s t s fo r ea c h co a l un i t an d th e re p l a c e m e n t CC C T re s o u r c e . — — — Th e sc r e e n i n g an a l y s i s wi l l be pe r f o r m e d on th r e e di f f e r e n t ma r k e t sc e n a r i o s pa i r i n g va r y i n g le v e l s of na t u r a l ga s pr i c e s an d CO 2 co s t s . At le a s t on e sc e n a r i o wi l l in c l u d e a lo w ga s / h i g h CO , pa i r i n g . — Th e sc r e e n i n g an a l y s i s wi l l re p o r t a ra n k or d e r of th e no m i n a l le v e l i z e d ne t pr e s e n t va l u e re v e n u e re q u i r e m e n t (P V R R ) be n e f i t / c o s t on a pe r kW - m o ba s i s fo r ea c h sc e n a r i o . — Th e Co m p a n y wi l l ma k e av a i l a b l e to st a k e h o l d e r s th a t ha v e si g n e d ap p r o p r i a t e co n f i d e n t i a l i t y ag r e e m e n t s th e as s u m p t i o n s an d re s u l t s of th e sc r e e n i n g St u d y fi v e bu s i n e s s da y s be f o r e th e te c h n i c a l wo r k s h o p . • Th e Co m p a n y wi l l in c l u d e in it s 20 1 1 IR P up d a t e an up d a t e d Co a l Re p l a c e m e n t St u d y fo c u s i n g on th o s e un i t s an a l y z e d in th e sc r e e n i n g an a l y s i s as de s c r i b e d ab o v e . — Th e up d a t e d Co a l Re p l a c e m e n t St u d y wi l l be pe r f o r m e d us i n g th e Sy s t e m Op t i m i z e r mo d e l an d wi l l ex p l o r e a ra n g e of na t u r a l ga s pr i c e s an d CO 2 co s t s in va r y i n g co m b i n a t i o n s . — Th e up d a t e d Co a l Re p l a c e m e n t St u d y wi l l di s c u s s an d ev a l u a t e fl e x i b i l i t y in th e em e r g i n g en v i r o n m e n t a l re g u l a t i o n s an d th e as s o c i a t e d ec o n o m i c s th a t ma y pr e s e n t op t i o n s to th e Co m p a n y to av o i d ea r l y co m p l i a n c e co s t s by of f e r i n g to sh u t do w n ce r t a i n in d i v i d u a l un i t s pr i o r to th e en d of th e i r cu r r e n t l y ap p r o v e d de p r e c i a b l e li v e s . In th e un d a t e d Sn i d v th e (‘ o m n a n v wi l l nr o v i d e a co n c i s e ex o l a n a t i o n an d tr a n s n a r e n t ex a m o l e of it s I PA c I F I C 0 R P - 2 O I I I R P CI A P T E R 9— R vi s i AC T I O N PL A N . Ac t i o n ( Ac t i o n It e m — Cn t e g o r y — tr e a t m e n t of po s t - 2 3 co s t s an t , al y s i s th a t sh o w s th e re s u l t s of tr e a t m e n t s of en v i r o n m e n t a l in v e s t m e n t s ma d e pr i o r tu lb av o i d a b l e an d un a v o i d a b l e . • Th e Co m p a n y re c o g n i z e s th a t Co m m is s i o n ac k n o w l e d g e m e n t of th i s ac t i o n it e m do e s no t im p a c t Co m m i s s i o n di s p o s i t i o n of en v i r o n m e n t a l in v e s t m e n t s by th e Co m p a n y . • In th e sc e n a r i o de f i n i t i o n ph a s e of th e 1R i3 pr o c e s s , th e Co m p a n y wi l l ad d r e s s wi t h st a k e h o l d e r s th e in c l u s i o n of an y tr a n s m i s s i o n pr o j e c t s on a ca s e - b y - c a s e ba s i s . — De v e l o p an ev a l u a t i o n pr o c e s s an d cr i t e r i a fo r ev a l u a t i n g tr a n s m i s s i o n ad d i t i o n s . ii ! Tr a n s m i s s i o n — Re v i e w wi t h st a k e h o l d e r s wh i c h tr a n s m i s s i o n pr o j e c t s sh o u l d be in c l u d e d an d wh y . — Ba s e d on th e ou t c o m e of th e s e st e p s , Pa c i f i C o r p wi l l pr o v i d e ap p r o p r i a t e tr a n s m i s s i o n se g m e n t an a l y s i s fo r wh i c h th e Co m p a n y re q u e s t s ac o w l e d g e m e n t (i n c l u d i n g Wa l l u l a to Mc N a r v an d Si g u r d to Re d Bu t t e ) . 11 • Fo r th e 20 1 1 IR P up d a t e in c l u d e th e re s u l t s of a Sy s t e m Op t i m i z e r po r t f o l i o se n s i t i v i t y an a l y s i s co m p a r i n g t h c Ma r g i n re s o u r c e an d co s t im p a c t s of a 12 pe r c e n t ve r s u s 13 pe r c e n t pl a n n i n g re s e r v e ma r g i n . REVISED ACTION PLAN CLEAN PA C I F I C O R P - 20 1 1 IR P CH A P T E R 9— R E v I S E D AC T I O N PL A N Ta b l e 9. 1 — IR P Re v i s e d Ac t i o n Pl a n Up d a t e n[ Ca t e g o r y Ac t i o n ( s ) c Wi n d • Ac q u i r e up to 80 0 MW of wi n d re s o u r c e s by 20 2 0 , di c t a t e d by re g u l a t o r y an d ma r k e t de v e l o p m e n t s su c h as (1 ) re n e w a b l e / c l e a n en e r g y st a n d a r d s , (2 ) ca r b o n re g u l a t i o n s , (3 ) fe d e r a l ta x in c e n t i v e s , (4 ) ec o n o m i c s , (5 ) na t u r a l ga s pr i c e fo r e c a s t s , (6 ) re g u l a t o r y su p p o r t fo r in v e s t m e n t s ne c e s s a r y to in t e g r a t e va r i a b l e en e r g y re s o u r c e s , an d (7 ) tr a n s m i s s i o n de v e l o p m e n t s . Th e 80 0 - m e g a w a t t le v e l is su p p o r t e d by co n s i d e r a t i o n of re g u l a t o r y co m p l i a n c e ri s k s an d pu b l i c po l i c y in t e r e s t in cl e a n en e r g y re s o u r c e s . • In th e ne x t 1R P . Pa c i f l C o r p wi l l tr a c k an d re p o r t th e st a t i s t i c s us e d to ca l c u l a t e ca p a c i t y co n t r i b u t i o n fr o m it s wi n d re s o u r c e s as a me a n s of te s t i n g th e va l i d i t y of th e PL C C me t h o d . • Fu t u r e IR P cy c l e s wi l l in c l u d e a pr o j e c t i o n fo r wi n d ac q u i s i t i o n wi t h an d wi t h o u t ge o t h e r m a l un t i l a cl e a r e r pi c t u r e em e r g e s re g a r d i n g ge o t h e r m a l dr y ho l e ri s k . • Th e Co m p a n y wi l l co n t i n u e to re f i n e th e wi n d in t e g r a t i o n mo d e l i n g ap p r o a c h ; es t a b l i s h a te c h n i c a l re v i e w co m m i t t e e (T R C ) an d a sc h e d u l e an d pr o j e c t pl a n fo r th e ne x t wi n d in t e g r a t i o n st u d y . Th e TR C wi l l be fo r m e d an d me m b e r s id e n t i f i e d wi t h i n 30 da y s of th e ef f e c t i v e da t e of th e IR P Or d e r . Wi t h i n 30 da y s of th e ef f e c t i v e da t e of th e IR P Or d e r , a sc h e d u l e fo r th e st u d y wi l l be es t a b l i s h e d , in c l u d i n g fu l l op p o r t u n i t y fo r st a k e h o l d e r in v o l v e m e n t an d pr o g r e s s re v i e w s by th e TR C th a t wi l l al l o w Re n e w a b l e s / th e fi n a l st u d y to be su b m i t t e d wi t h th e ne x t IR P . Di s t r i b u t e d Ge o t h e r m a l Ge n e r a t i o n • Th e Co m p a n y id e n t i f i e d ov e r 10 0 MW of ge o t h e r m a l re s o u r c e s as pa r t of a le a s t - c o s t re s o u r c e po r t f o l i o . Co n t i n u e to re f i n e re s o u r c e po t e n t i a l es t i m a t e s an d up d a t e re s o u r c e co s t s in 20 1 1 - 2 0 1 2 fo r fu r t h e r ec o n o m i c ev a l u a t i o n of re s o u r c e op p o r t u n i t i e s . Co n t i n u e to in c l u d e ge o t h e r m a l pr o j e c t s as el i g i b l e re s o u r c e s in fu t u r e al l - s o u r c e RF P s . • Th e Co m p a n y id e n t i f i e d ov e r 10 0 MW of ge o t h e r m a l re s o u r c e s as pa r t of a le a s t - c o s t re s o u r c e po r t f o l i o . Co n t i n u e to re f i n e re s o u r c e po t e n t i a l es t i m a t e s an d up d a t e re s o u r c e co s t s in 20 1 1 - 2 0 1 2 fo r fu r t h e r ec o n o m i c ev a l u a t i o n of re s o u r c e op p o r t u n i t i e s . Co n t i n u e to ex p l i c i t l y in c l u d e ge o t h e r m a l pr o j e c t s as el i g i b l e re s o u r c e s in fu t u r e al l - s o u r c e RF P s . So l a r • Ev a l u a t e pr o c u r e m e n t of Or e g o n so l a r ph o t o v o l t a i c re s o u r c e s in 20 1 1 vi a th e Co m p a n y ’ s so l a r RF P . • Ac q u i r e ad d i t i o n a l Or e g o n so l a r re s o u r c e th r o u g h RF P s or ot h e r me a n s in or d e r to me e t th e Co m p a n y ’ s 8. 7 MW co m p l i a n c e ob l i g a t i o n . • Wo r k wi t h Ut a h pa r t i e s to in v e s t i g a t e so l a r pr o g r a m de s i g n an d de p l o y m e n t is s u e s an d op p o r t u n i t i e s in la t e 20 1 1 an d 20 1 2 , us i n g th e Co m p a n y ’ s ow n an a l y s i s of Wa s a t c h Fr o n t ro o f t o p so l a r po t e n t i a l an d ex p e r i e n c e wi t h th e Or e g o n so l a r pi l o t pr o g r a m . As re c o m m e n d e d in th e Co r n p a n y s re s p o n s e to co m m e n t s un d e r Do c k e t No . 07 - 0 3 5 - T l 4 , th e Co m p a n y re q u e s t e d th a t th e Ut a h Co m m i s s i o n es t a b l i s h “a pr o c e s s in th e fa l l of 20 1 1 to de t e r m i n e wh e t h e r a co n t i n u e d or ex p a n d e d so l a r pr o g r a m __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ in Ut a h is ap p r o p r i a t e an d ho w th a t pr o g r a m mi g h t be st r u c t u r e d . ”1 1 Ro c k y Mo u n t a i n Po w e r . “R e : Do c k e t No . 07 - 0 3 5 - T 1 4 — Th r e e ye a r as s e s s m e n t of th e So l a r In c e n t i v e Pr o g r a m ” , De c e m b e r 15 . 20 1 0 . PA C I F I C O R P - 2 0 1 l IR P CH A P T E R 9— R E V I S E D AC T I O N PL A N Ac t l o n . L It e m Ca o i y Ac t i o n ( s ) • In v e s t i g a t e , an d pu r s u e if co s t - e f f e c t i v e fr o m an im p l e m e n t a t i o n st a n d p o i n t , co m m e r c i a l / r e s i d e n t i a l so l a r wa t e r he a t i n g pr o g r a m s . • Th e 20 1 1 IR P pr e f e r r e d po r t f o l i o in c l u d e s 30 MW of so l a r wa t e r he a t i n g re s o u r c e s by 20 2 0 (1 8 MW in th e ea s t si d e an d 12 MW in th e we s t si d e ) . • In th e co n t e x t of th e Or e g o n so l a r RF P s . an a l y z e th e tr a d e - o f f s be t w e e n ea r l y an d la t e r ac q u i s i t i o n of so l a r re s o u r c e s . Co m b i n e d He a t & Po w e r (C H P ) • Pu r s u e op p o r t u n i t i e s fo r ac q u i r i n g bi o m a s s CH P re s o u r c e s , pr i m a r i l y th r o u g h th e PU R P A Qu a l i f y i n g Fa c i l i t y co n t r a c t i n g pr o c e s s . • Th e pr e f e r r e d po r t f o l i o co n t a i n s 52 MW of CH P re s o u r c e s fo r 20 1 1 - 2 0 2 0 (1 0 MW in th e ea s t si d e an d 42 MW in th e we s t si d e ) En e r g y St o r a g e • Pr o c e e d wi t h an en e r g y st o r a g e de m o n s t r a t i o n pr o j e c t , su b j e c t to Ut a h Co m m i s s i o n ap p r o v a l of th e Co m p a n y ’ s pr o p o s a l to de f e r an d re c o v e r ex p e n d i t u r e s th r o u g h th e de m a n d - s i d e ma n a g e m e n t su r c h a r g e . • In i t i a t e a co n s u l t a n t st u d y in 20 1 1 on in c r e m e n t a l ca p a c i t y va l u e an d an c i l l a r y se r v i c e be n e f i t s of en e r g y st o r a g e . • Co n d u c t a st u d y of gr i d fl e x i b i l i t y fo r ac c o m m o d a t i n g va r i a b l e en e r g y re s o u r c e s (V E R ) as pa r t of th e ne x t IR P fi l i n g . Th e st u d y wi l l in c l u d e th e fo l l o w i n g el e m e n t s : — De f i n i t i o n of an d su g g e s t me t r i c s by wh i c h to me a s u r e fl e x i b i l i t y (a p p l i c a b l e to al l fl e x i b i l i t y re s o u r c e s in c l u d i n g : th e r m a l , de m a n d re s p o n s e (D R ) , an d st o r a g e ) . — An in v e n t o r y of ex i s t i n g fl e x i b i l i t y ne e d s an d th e ad e q u a c y or ca p a b i l i t y of ex i s t i n g as s e t s to me e t th e m . — A pr o j e c t i o n of fl e x i b i l i t y ne e d s in th e IR P ti m e f r a m e to su c c e s s f u l l y in t e g r a t e pr o j e c t VE R ad d i t i o n s . — A co m p a r i s o n of be n e f i t s an d co s t s of ob t a i n i n g fl e x i b i l i t y fr o m th e ra n g e of fl e x i b i l i t y re s o u r c e s (c o n v e n t i o n a l th e r m a l , DR . st o r a g e , et c ) . Re n e w a b l e Po r t f o l i o St a n d a r d Co m p l i a n c e • De v e l o p an d re f i n e st r a t e g i e s fo r re n e w a b l e po r t f o l i o st a n d a r d co m p l i a n c e in Ca l i f o r n i a an d Wa s h i n g t o n . • Pa c i f i C o r p wi l l ex p a n d th e ne x t IR P to in c l u d e di s c u s s i o n of RP S co m p l i a n c e st r a t e g i e s an d th e ro l e of RE C sa l e s an d pu r c h a s e s . Th e Co m p a n y wi l l be se l e c t i v e in it s di s c u s s i o n to av o i d co n f l i c t be t w e e n th e IR P , RP S Im p l e m e n t a t i o n Pl a n an d RP S Co m p l i a n c e Re p o r t . • Ac q u i r e a co m b i n e d - c y c l e co m b u s t i o n tu r b i n e re s o u r c e at th e La k e Si d e si t e in Ut a h by th e su m m e r of 20 1 4 ; th e pl a n t is • pr o p o s e d to be co n s t r u c t e d by CH 2 M Hi l l E& C , In c . (“ C H 2 M Hi l l ” ) un d e r th e te r m s of an en g i n e e r i n g , pr o c u r e m e n t , an d In t e r m e d i a t e / co n s t r u c t i o n (E P C ) co n t r a c t . Th i s re s o u r c e co r r e s p o n d s to th e 20 1 4 CC C T pr o x y re s o u r c e in c l u d e d in th e 20 1 1 IR P pr e f e r r e d Ba s e - l o a d po r t f o l i o . 2 Th e r m a l . . . Su p p l y - s i d e • Pa c i f i C o r p wi l l re e x a m i n e th e ti m i n g an d ty p e of po s t - 2 0 1 4 ga s re s o u r c e s an d ot h e r re s o u r c e ch a n g e s as pa r t of th e 20 1 1 Re s o u r c e s bu s i n e s s pl a n n i n g pr o c e s s an d pr e p a r a t i o n of th e 20 1 1 IR P Up d a t e . Th e re e x a m i n a t i o n wi l l in c l u d e do c u m e n t a t i o n of ca p i t a l co s t an d op e r a t i n g co s t tr a d e o f f s be t w e e n re s o u r c e ty p e s . • Co n s i d e r si t i n g ad d i t i o n a l ga s - f i r e d re s o u r c e s in lo c a t i o n s ot h e r th a n Ut a h . In v e s t i g a t e re s o u r c e av a i l a b i l i t y is s u e s in c l u d i n g PA c I F I C 0 R P - 20 1 1 IR P CH A P T E R 9— R E V I S E D Ac T I o N PL A N Ac t i o n It e m Cg o . Ac t i o n ( s ) wa t e r av a i l a b i l i t y , pe r m i t t i n g , tr a n s m i s s i o n co n s t r a i n t s , ac c e s s to na t u r a l ga s , an d po t e n t i a l im p a c t s of el e v a t i o n . • Is s u e an al l - s o u r c e RF P in ea r l y 20 1 2 fo r po t e n t i a l ac q u i s i t i o n of pe a k i n g / i n t e r m e d i a t e / b a s e l o a d re s o u r c e s by th e su m m e r of 20 1 6 to fi l l an y re m a i n i n g re s o u r c e ne e d in d i c a t e d by an up d a t e d lo a d an d re s o u r c e ba l a n c e re f l e c t i n g th e re s u l t s of DS M RF P s , ac q u i s i t i o n of fr o n t of f i c e tr a n s a c t i o n s , re s e r v e ma r g i n se n s i t i v i t y an a l y s i s , an d ot h e r re l e v a n t in f o r m a t i o n . • Ac q u i r e ec o n o m i c fr o n t of f i c e tr a n s a c t i o n s or po w e r pu r c h a s e ag r e e m e n t s as ne e d e d th r o u g h su m m e r 2 0 l 6 . — Re s o u r c e s wi l l be pr o c u r e d th r o u g h mu l t i p l e me a n s , su c h as pe r i o d i c mi n i - R F P s th a t se e k re s o u r c e s le s s th a n fi v e ye a r s Fi r m Ma r k e t in te r m , an d bi l a t e r a l ne g o t i a t i o n s . Pu r c h a s e s • Cl o s e l y mo n i t o r th e ne a r - t e r m an d lo n g - t e r m ne e d fo r fr o n t of f i c e tr a n s a c t i o n s an d ad j u s t pl a n n e d ac q u i s i t i o n s as ap p r o p r i a t e ba s e d on ma r k e t co n d i t i o n s , re s o u r c e co s t s , an d lo a d ex p e c t a t i o n s . — Ac t i v e l y se a r c h fo r ma r k e t op t i o n s th a t co u l d co s t - e f f e c t i v e l y de f e r ac q u i s i t i o n or co n s t r u c t i o n of a 20 1 6 CC C T re s o u r c e . • Co n t i n u e to pu r s u e ec o n o m i c pl a n t up g r a d e pr o j e c t s — s u c h as tu r b i n e sy s t e m im p r o v e m e n t s an d re t r o f i t s — a n d un i t av a i l a b i l i t y im p r o v e m e n t s to lo w e r op e r a t i n g co s t s an d he l p me e t th e Co m p a n y ’ s fu t u r e CO2 an d ot h e r en v i r o n m e n t a l co m p l i a n c e re q u i r e m e n t s . — Su c c e s s f u l l y co m p l e t e th e de n s e - p a c k co a l pl a n t tu r b i n e up g r a d e pr o j e c t s sc h e d u l e d fo r 20 1 1 an d 20 1 2 , to t a l i n g 31 MW . — Co m p l e t e th e re m a i n i n g tu r b i n e up g r a d e pr o j e c t s by 20 2 1 , to t a l i n g an in c r e m e n t a l 34 . 2 MW , su b j e c t to co n t i n u i n g re v i e w Pl a n t of pr o j e c t ec o n o m i c s . 4 Ef f i c i e n c y — Se e k to me e t th e Co m p a n y ’ s up d a t e d ag g r e g a t e co a l pl a n t ne t he a t ra t e im p r o v e m e n t go a l of 47 8 Bt u / k W h by 20 1 9 . 2 mp r o v e m e n t s • Co n t i n u e to mo n i t o r tu r b i n e an d ot h e r eq u i p m e n t te c h n o l o g i e s fo r co s t - e f f e c t i v e up g r a d e op p o r t u n i t i e s ti e d to fu t u r e pl a n t ma i n t e n a n c e sc h e d u l e s . • Fo r th e ne x t JR P co m p l e t e a st u d y of co s t - e f f e c t i v e an d re l i a b l e pr o d u c t i o n ef f i c i e n c y op p o r t u n i t i e s at ge n e r a t i n g fa c i l i t i e s (s t a t i o n lo a d re d u c t i o n op p o r t u n i t i e s no t cu r r e n t l y be i n g ca p t u r e d in th e IR P ) wh e r e th e Co m p a n y ha s so l e ow n e r s h i p of th e fa c i l i t y . Th e re s o u r c e op p o r t u n i t i e s id e n t i f i e d wi l l be mo d e l e d ag a i n s t co m p e t i n g de m a n d an d su p p l y - s i d e re s o u r c e s in th e ne x t IR P . Th o s e se l e c t e d wi l l be ta r g e t e d fo r co m p l e t i o n by 20 1 5 pr o v i d e d pl a n t ou t a g e s ar e no t re q u i r e d . Ac q u i r e at le a s t 14 0 MW of in c r e m e n t a l co s t - e f f e c t i v e de m a n d - s i d e ma n a g e m e n t re s o u r c e by 20 1 3 an d up to 25 0 MW by 20 1 5 . — Fi n a l i z e an ag r e e m e n t fo r th e co m m e r c i a l cu r t a i l m e n t pr o d u c t (w h i c h in c l u d e s cu s t o m e r - o w n e d st a n d b y ge n e r a t i o n op p o r t u n i t i e s ) . If co s t ef f e c t i v e , th e co m p a n y wi l l fi l e fo r ap p r o v a l by th e 3’ qu a r t e r of 20 1 2 . — Co m p l e t e an an a l y s i s of th e ec o n o m i c fe a s i b i l i t y of Cl a s s 1 ir r i g a t i o n lo a d co n t r o l in th e we s t by th e se c o n d qu a r t e r of 5 Cl a s s I DS M 20 1 2 . If th e an a l y s i s su g g e s t s Cl a s s I ir r i g a t i o n lo a d co n t r o l is ec o n o m i c in th e we s t , th e Co m p a n y wi l l so u r c e de l i v e r y of a pr o g r a m th r o u g h a Re q u e s t fo r Pr o p o s a l co n c u r r e n t wi t h th e re - s o u r c i n g of Cl a s s I ir r i g a t i o n lo a d co n t r o l pr o g r a m de l i v e r y in th e ea s t by th e th i r d qu a r t e r of 20 1 2 . — Is s u e an RT P in 20 1 2 to re - p r o c u r e th e de l i v e r y of th e Co o l Ke e p e r pr o g r a m fo l l o w i n g th e 20 1 3 co n t r o l se a s o n . Fo r th e RF P , th e Co m p a n y wi l l se e k ma r k e t ap p r o a c h e s ac c e p t a b l e to Ut a h re g u l a t o r s to ex p a n d th e pr o g r a m be y o n d it s cu r r e n t 2 Pa c f i C o r p En e r g y He a t Ra t e Im p r o v e m e n t Pl a n , Ap r i l 20 1 0 . PA C I F I C O R P - 20 1 1 IR P CH A P T E R 9— R E v I s E D AC T I O N PL A N • Ap p l y th e 20 1 1 IR P co n s e r v a t i o n an a l y s i s as th e ba s i s fo r th e Co m p a n y ’ s ne x t Wa s h i n g t o n 1- 9 3 7 co n s e r v a t i o n ta r g e t se t t i n g su b m i t t a l to th e Wa s h i n g t o n Ut i l i t i e s an d Tr a n s p o r t a t i o n Co m m i s s i o n fo r th e 20 1 2 - 2 0 1 3 bi e n n i u m . Th e Co m p a n y ma y re f i n e th e co n s e r v a t i o n an a l y s i s an d up d a t e th e co n s e r v a t i o n fo r e c a s t an d bi e n n i a l ta r g e t as ap p r o p r i a t e pr i o r to su b m i t t a l ba s e d on fi n a l av o i d e d co s t de c r e m e n t an a l y s i s an d ot h e r ne w in f o r m a t i o n . • Ac q u i r e at le a s t 90 0 MW3an d up to 1, 8 0 0 MW of co s t - e f f e c t i v e Cl a s s 2 pr o g r a m s by 20 2 0 , eq u i v a l e n t to at le a s t 4, 5 3 3 GW h an d up to 9, 0 6 6 GW h . Ac q u i r e at le a s t 52 0 MW an d up to 10 0 0 MW of co s t - e f f e c t i v e Cl a s s 2 DS M by 20 1 6 . — By 1st qu a r t e r of 20 1 2 fi l e a re s i d e n t i a l ho m e re s i d e n t i a l ho m e co m p a r i s o n re p o r t pr o g r a m in Ut a h an d Wa s h i n g t o n , an d in v e s t i g a t e br o a d e r ap p l i c a t i o n s by th e en d of 20 1 4 th a t ca n be im p l e m e n t e d by 20 1 6 . — By 3r d qu a r t e r 20 1 2 th e Co m p a n y wi l l su b m i t fo r co m m i s s i o n ap p r o v a l a pl a n to ac q u i r e en e r g y ef f i c i e n c y re s o u r c e s fr o m th e Co m p a n y ’ s Sp e c i a l Co n t r a c t cu s t o m e r s in Ut a h an d Id a h o th a t ca n be re l i a b l y ve r i f i e d an d de l i v e r e d by 20 1 6 , an d wi l l pu r s u e th o s e re s o u r c e s pr o v i d e d th e Co m m i s s i o n s in th o s e st a t e s ap p r o v e a co s t - r e c o v e r y me c h a n i s m fo r th e pl a n . — By 1s t qu a r t e r 20 1 2 is s u e a sy s t e m - w i d e RF P (e x c l u d i n g Or e g o n ) fo r sp e c i f i c di r e c t in s t a l l an d ot h e r di r e c t di s t r i b u t i o n pr o g r a m s ta r g e t i n g sa v i n g s fr o m th e re s i d e n t i a l an d sm a l l co m m e r c i a l se c t o r s th a t ca n be de l i v e r e d be g i n n i n g in 20 1 3 . Th e Co m p a n y wi l l se e k to ac q u i r e al l co s t - e f f e c t i v e re s o u r c e s th a t ar e av a i l a b l e fr o m th e RF P . Th e co s t ef f e c t i v e n e s s an a l y s i s wi l l co n s i d e r an y ad v e r s e im p a c t on th e ex i s t i n g DS M pr o g r a m s . Th e re s u l t s of th e RF P wi l l be kn o w n pr i o r to th e Co m p a n y se e k i n g ac k n o w l e d g e m e n t of th e fi n a l sh o r t li s t fo r th e al l - s o u r c e RF P . Th e Co m p a n y wi l l pr o m p t l y fi l e fo r co m m i s s i o n ap p r o v a l s to im p l e m e n t th e co s t - e f f e c t i v e pr o g r a m s . • Fo r th e ne x t IR P , pr i o r to be g i n n i n g mo d e l i n g an d sc r e e n i n g of DS M , an d as pa r t of th e pu b l i c in p u t pr o c e s s , pr o v i d e an an a l y s i s of al t e r n a t i v e s to th e cu r r e n t su p p l y cu r v e bu n d l i n g an d ra m p i n g me t h o d s fo r mo d e l i n g en e r g y ef f i c i e n c y me a s u r e s . • By th e en d of 20 1 2 pr o v i d e an an a l y s i s of th e su f f i c i e n c y of cu r r e n t st a f f i n g le v e l s to ac h i e v e pr o g r a m m a t i c co s t ef f e c t i v e en e r g y ef f i c i e n c y ta r g e t s es t a b l i s h e d in th i s pl a n . • Le v e r a g e th e di s t r i b u t i o n en e r g y ef f i c i e n c y an a l y s i s of 19 di s t r i b u t i o n fe e d e r s in Wa s h i n g t o n (c o n d u c t e d fo r Pa c i f i C o r p by Co m m o n w e a l t h As s o c i a t e s , In c . ) fo r an a l y s i s of po t e n t i a l di s t r i b u t i o n en e r g y ef f i c i e n c y in ot h e r ar e a s of Pa c i f i C o r p ’ s sy s t e m pr o v i d e d th e Co m p a n y re c e i v e s ap p r o v a l by th e ap p r o p r i a t e Co m m i s s i o n fo r re c o v e r y ’ of th e st u d y co s t th r o u g h th e de m a n d - si d e cu s t o m e r ef f i c i e n c y su r c h a r g e . . (T h e Wa s h i n g t o n di s t r i b u t i o n en e r g y ef f i c i e n c y st u d y fi n a l re p o r t wa s co m p l e t e d De c e m b e r 26 , 20 1 1 . ) — In c l u d e in th e 20 1 3 IR P a de t a i l e d pl a n an d sc h e d u l e to im p l e m e n t co s t - e f f e c t i v e CV R in ea c h st a t e as ap p r o v e d by th e st a t e . — By Ma y 1, 2 0 1 2 th e co m p a n y wi l l sc h e d u l e a wo r k sh o p in ea c h of it s ma j o r st a t e s wi t h co m m i s s i o n st a f f to pr e s e n t fi n d i n g s of th e Wa s h i n g t o n CV R ev a l u a t i o n . — By th e en d of 20 1 2 pe r f o r m a hi g h - l e v e l sc r e e n i n g of 40 pe r c e n t of it s di s t r i b u t i o n ci r c u i t s in ea c h of th e st a t e s to id e n t i f y Ad j u s t e d to re f l e c t 20 1 1 IR P ’ s in i t i a l MW co n t r i b u t i o n fr o m Cl a s s 2 re s o u r c e s ex p e c t e d to be ac q u i r e d in Or e g o n (r e d u c e s th e MW co n t r i b u t i o n fr o m Or e g o n fr o m 56 2 MW s by 20 2 0 to 28 3 MW s , a 27 9 MW re d u c t i o n . jc ’ 6 Cl a s s 2 DS M PA C I F I C O R P - 20 1 1 IR P CH A P T E R 9— R E V I S E D AC T I O N PL A N Ac t i o n It e m Ca t e g o r y Ac t i o n ( s ) ci r c u i t s wh e r e co s t ef f e c t i v e en e r g y sa v i n g s ap p e a r s vi a b l e an d de t a i l e d ci r c u i t st u d y is wa r r a n t e d pr o v i d e d th e Co m p a n y re c e i v e s ap p r o v a l by th e ap p r o p r i a t e Co m m i s s i o n fo r re c o v e r y of th e st u d y co s t th r o u g h th e de m a n d - s i d e cu s t o m e r ef f i c i e n c y su r c h a r g e . — By th e en d of 20 1 3 pe r f o r m a hi g h - l e v e l sc r e e n i n g of th e re m a i n i n g 60 pe r c e n t of it s di s t r i b u t i o n ci r c u i t s in ea c h of th e st a t e s to id e n t i f y ci r c u i t s wh e r e co s t - e f f e c t i v e en e r g y sa v i n g s ap p e a r vi a b l e an d de t a i l e d ci r c u i t st u d y is wa r r a n t e d pr o v i d e d th e Co m p a n y re c e i v e s ap p r o v a l by th e ap p r o p r i a t e st a t e co m m i s s i o n fo r re c o v e r y of th e st u d y co s t th r o u g h th e de m a n d - s i d e cu s t o m e r ef f i c i e n c y su r c h a r g e . — In th e 20 1 3 IR P in c l u d e th e re s u l t s of th e CV R ev a l u a t i o n to da t e . Du r i n g 20 1 2 up d a t e th e Co n s e r v a t i o n Po t e n t i a l As s e s s m e n t to mo r e ac c u r a t e l y re f l e c t Cl a s s I an d 3 DS M re s o u r c e op p o r t u n i t i e s in re g a r d s to 1) ma r k e t an d re g u l a t o r y ca p a b i l i t i e s an d cl i m a t e s in ea c h st a t e , 2) in t e r a c t i o n s wi t h i n an d be t w e e n Cl a s s I an d Cl a s s 3 re s o u r c e po t e n t i a l s id e n t i f i e d , an d 3) th e im p a c t of ex i s t i n g Cl a s s 3 pr o g r a m s on pr o d u c t po t e n t i a l . • Du r i n g 20 1 2 ha v e a th i r d - p a r t y co n s u l t a n t re v i e w an d pr e p a r e a re p o r t on ho w ot h e r ut i l i t i e s tr e a t pr i c e - r e s p o n s i v e pr o d u c t s in th e i r re s o u r c e pl a n n i n g pr o c e s s (f o r ex a m p l e , as an ad j u s t m e n t to th e i r lo a d fo r e c a s t an d / o r as a fi r m pl a n n i n g re s o u r c e ) , . a n d pr e p a r e a re c o m m e n d a t i o n on ho w th e Co m p a n y mi g h t ap p l y co n t r i b u t i o n s fr o m pr i c e pr o d u c t s to he l p de f e r in v e s t m e n t s in ot h e r re s o u r c e op t i o n s co s t - e f f e c t i v e l y . • Fo r th e 20 1 3 IR P pr o v i d e a se n s i t i v i t y an a l y s i s , si m i l a r to po r t f o l i o de v e l o p m e n t Ca s e 31 in th e 20 1 1 IR P , th a t mo r e ac c u r a t e l y re f l e c t s in c r e m e n t a l Cl a s s 3 pr o d u c t op p o r t u n i t i e s (i n c r e m e n t a l to Cl a s s 1 pr o d u c t s , ot h e r Cl a s s 3 pr o d u c t s , an d to ex i s t i n g im p a c t s of Cl a s s 3 pr o d u c t s th e Co m p a n y is al r e a d y ru n n i n g ) . • Im p l e m e n t in Ut a h an d Wa s h i n g t o n (s u b j e c t to re g u l a t o r y ap p r o v a l s ) re s i d e n t i a l in f o r m a t i o n pi l o t s to te s t th e ef f e c t s of pr o v i d i n g cu s t o m e r s gr e a t e r am o u n t s of us a g e in f o r m a t i o n on th e qu a n t i t y of el e c t r i c i t y th e y co n s u m e . Th e pi l o t s wi l l 7 Cl a s s 3 DS M le v e r a g e th e ex i s t i n g AM R me t e r i n g cu r r e n t l y av a i l a b l e in th e s e st a t e s . — Pi l o t s wi l l co n s i s t of th r e e te s t gr o u p s ea c h re c e i v i n g va r y i n g le v e l s of us a g e in f o r m a t i o n : o Gr o u p 1 - Ho m e co m p a r i s o n re p o r t s an d en e r g y co n s e r v a t i o n su g g e s t i o n s o Gr o u p 2 - Da i l y us a g e da t a th r o u g h Ho m e En e r g y Mo n i t o r i n g so f t w a r e (k e y co m p o n e n t to pr i c i n g pr o d u c t s ) o Gr o u p 3 — Ho m e co m p a r i s o n re p o r t s , en e r g y sa v i n g s su g g e s t i o n s , an d da i l y us a g e da t a th r o u g h Ho m e En e r g y Mo n i t o r i n g so f t w a r e Pi l o t s wi l l be im p l e m e n t e d in 20 1 2 , ru n th r o u g h o u t 20 1 3 , an d an an a l y s i s an d re c o m m e n d a t i o n pr e p a r e d in 20 1 4 , pr i o r to th e de v e l o p m e n t of th e 20 1 5 IR P . • If th e an a l y s i s of Cl a s s I ir r i g a t i o n lo a d co n t r o l in th e we s t (s e e ac t i o n it e m 5) in d i c a t e s th a t su c h pr o g r a m s ar e no n - e c o n o m i c , in v e s t i g a t e , th r o u g h a pi l o t pr o g r a m in Or e g o n a Cl a s s 3 ir r i g a t i o n ti m e - o f - u s e pr o g r a m as an al t e r n a t i v e ap p r o a c h fo r ma n a g i n g ir r i g a t i o n lo a d s in th e we s t . PA C I F I C O R P -2 0 1 1 IR P CH A P T E R 9— R E v I S E D AC T I O N PL A N • Th e Co m p a n y wi l l ho s t a te c h n i c a l wo r k s h o p fo r st a k e h o l d e r s an d th e co m m i s s i o n e r s on Fe b r u a r y 17 , 20 1 2 fo r st a k e h o l d e r s th a t ha v e a co n f i d e n t i a l i t y ag r e e m e n t in pl a c e . — At th e te c h n i c a l wo r k s h o p , th e Co m p a n y wi l l re v i e w wi t h st a k e h o l d e r s th e me t h o d o l o g y , as s u m p t i o n s an d re c e n t l y co m p l e t e d an a l y s i s of up c o m i n g Na u g h t o n 3 em i s s i o n co n t r o l in v e s t m e n t s . Th e Na u g h t o n 3 an a l y s i s wi l l be pr o v i d e d to st a k e h o l d e r s . su b j e c t to co n f i d e n t i a l i t y ag r e e m e n t s , as so o n as pr a c t i c a b l e . — At th e te c h n i c a l wo r k s h o p , th e Co m p a n y wi l l pr e s e n t th e me t h o d o l o g y , as s u m p t i o n s an d re s u l t s of a Co a l Re p l a c e m e n t St u d y sc r e e n i n g an a l y s i s pe r f o r m e d fo r Ji m Br i d g e r 3, Ji m Br i d g e r 4, Hu n t e r 1 at a mi n i m u m . Th e Co m p a n y wi l l co m p l e t e th e an a l y s i s on as ma n y ot h e r un i t s as po s s i b l e wi t h i n th e ti m e co n s t r a i n t s . Th e Co m p a n y wi l l al s o pr e s e n t in f o r m a t i o n pe r t a i n i n g to pl a n n e d in v e s t m e n t s in th e Cr a i g an d Ha y d e n fa c i l i t i e s of wh i c h th e Co m p a n y ha s ow n e r s h i p sh a r e bu t do e s no t ha v e op e r a t i o n a l re s p o n s i b i l i t i e s . — Th e sc r e e n i n g an a l y s i s wi l l be pe r f o r m e d us i n g a sp r e a d s h e e t mo d e l th a t as s u m e s a ga s - f i r e d CC C T , sc a l e d to th e si z e of th e co a l un i t be i n g an a l y z e d , re p l a c e s th e co a l un i t in 20 1 5 . — Th e sc r e e n i n g an a l y s i s wi l l in c l u d e li n e - i t e m re s u l t s sh o w i n g an n u a l ca p i t a l co s t s an d fi x e d an d va r i a b l e op e r a t i n g co s t s fo r ea c h co a l un i t an d th e re p l a c e m e n t CC C T re s o u r c e . — Th e sc r e e n i n g an a l y s i s wi l l be pe r f o r m e d on th r e e di f f e r e n t ma r k e t sc e n a r i o s pa i r i n g va r y i n g le v e l s of na t u r a l ga s pr i c e s an d C0 2 co s t s . At le a s t on e sc e n a r i o wi l l in c l u d e a lo w ga s / h i g h CO2 pa i r i n g . 9 Co a l — Th e sc r e e n i n g an a l y s i s wi l l re p o r t a ra n k or d e r of th e no m i n a l le v e l i z e d ne t pr e s e n t va l u e re v e n u e re q u i r e m e n t (P V R R ) be n e f i t / c o s t on a pe r kW - m o ba s i s fo r ea c h sc e n a r i o . — Th e Co m p a n y wi l l ma k e av a i l a b l e to st a k e h o l d e r s th a t ha v e si g n e d ap p r o p r i a t e co n f i d e n t i a l i t y ag r e e m e n t s th e as s u m p t i o n s an d re s u l t s of th e sc r e e n i n g St u d y fi v e bu s i n e s s da y s be f o r e th e te c h n i c a l wo r k s h o p . • Th e Co m p a n y wi l l in c l u d e in it s 20 1 1 IR P up d a t e an up d a t e d Co a l Re p l a c e m e n t St u d y fo c u s i n g on th o s e un i t s an a l y z e d in th e sc r e e n i n g an a l y s i s as de s c r i b e d ab o v e . — Th e up d a t e d Co a l Re p l a c e m e n t St u d y wi l l be pe r f o r m e d us i n g th e Sy s t e m Op t i m i z e r mo d e l an d wi l l ex p l o r e a ra n g e of na t u r a l ga s pr i c e s an d C0 2 co s t s in va r y i n g co m b i n a t i o n s . — Th e up d a t e d Co a l Re p l a c e m e n t St u d y wi l l di s c u s s an d ev a l u a t e fl e x i b i l i t y in th e em e r g i n g en v i r o n m e n t a l re g u l a t i o n s an d th e as s o c i a t e d ec o n o m i c s th a t ma y pr e s e n t op t i o n s to th e Co m p a n y to av o i d ea r l y co m p l i a n c e co s t s by of f e r i n g to sh u t do w n ce r t a i n in d i v i d u a l un i t s pr i o r to th e en d of th e i r cu r r e n t l y ap p r o v e d de p r e c i a b l e li v e s . — In th e up d a t e d St u d y , th e Co m p a n y wi l l pr o v i d e a co n c i s e ex p l a n a t i o n an d tr a n s p a r e n t ex a m p l e of it s tr e a t m e n t of po s t - 20 3 0 co s t s an d wi l l pr o v i d e an an a l y s i s th a t sh o w s th e re s u l t s of tr e a t m e n t s of en v i r o n m e n t a l in v e s t m e n t s ma d e pr i o r to 20 1 5 bo t h av o i d a b l e an d un a v o i d a b l e . • Th e Co m p a n y re c o g n i e s th a t Co m m i s s i o n ac k n o w l e d g e m e n t of th i s ac t i o n it e m do e s no t im p a c t Co m m i s s i o n di s p o s i t i o n of en v i r o n m e n t a l in v e s t m e n t s by th e Co m p a n y . -i n el e c t r i c ve h i c l e s an d Sm a r t Gr i d te c h n o l o g i e s as a di s c u s s i o n to p i c fo r th e ne x t IR P . PA c I F I C 0 R P -2 0 1 1 IR P - CH A P T E R _ 9 — R E v I S E D Ac T I o N PL A N Ac t i O n I It e m Ac t i o n ( s ) • In th e sc e n a r i o de f i n i t i o n ph a s e of th e IR P pr o c e s s , th e Co m p a n y wi l l ad d r e s s wi t h st a k e h o l d e r s th e in c l u s i o n of an y tr a n s m i s s i o n pr o j e c t s on a ca s e - b y - c a s e ba s i s . — De v e l o p an ev a l u a t i o n pr o c e s s an d cr i t e r i a fo r ev a l u a t i n g tr a n s m i s s i o n ad d i t i o n s . 10 Tr a n s m i s s i o n — Re v i e w wi t h st a k e h o l d e r s wh i c h tr a n s m i s s i o n pr o j e c t s sh o u l d be in c l u d e d an d wh y . — Ba s e d on th e ou t c o m e of th e s e st e p s , Pa c i f i C o r p wi l l pr o v i d e ap p r o p r i a t e tr a n s m i s s i o n se g m e n t an a l y s i s fo r wh i c h th e Co m p a n y re q u e s t s ac k n o w l e d g e m e n t (i n c l u d i n g Wa l l u l a to Mc N a r y an d Si g u r d to Re d Bu t t e ) . 11 • Fo r th e 20 1 1 IR P up d a t e in c l u d e th e re s u l t s of a Sy s t e m Op t i m i z e r po r t f o l i o se n s i t i v i t y an a l y s i s co m p a r i n g th e re s o u r c e an d Ma r g i n co s t im p a c t s of a 12 pe r c e n t ve r s u s 13 pe r c e n t pl a n n i n g re s e r v e ma r g i n .