S8: Energy Efficiency, Renewables and Non-Wires

BPA and public power cooperatively accomplish public power’s share of regionally cost-effective energy efficiency/demand management and renewable resources. BPA deploys cost-effective non-construction alternatives to transmission expansion.

Other Information:

Consistent with the Council’s energy efficiency targets for all the region’s utilities, BPA will work with the public utilities we serve to help ensure that they achieve their share of energy efficiency in the region. In this context, BPA will pursue energy efficiency that is regionally cost effective and will continue to treat energy efficiency as a resource integral to meeting our load-serving obligations. BPA expects the costs of achieving public power’s share of these targets will be recovered in Tier 1 rates (to the extent BPA pays for them). To meet its conservation goals, BPA intends to implement tiered rates to create an economic incentive for customers to pursue conservation whenever they face Tier 2 rates. BPA will also provide a set of conservation programs that build on those incentives to ensure that conservation targets are met at the lowest practical cost. While the specific portfolio of conservation programs is slated to be set closer to 2012, the programs are expected to be a combination of costeffective energy efficiency acquisition programs, adoption of policies that support others’ development or acquisition of cost-effective energy efficiency, support of market transformation that results in more efficient electric energy use and support for tribal and low-income weatherization programs. BPA’s renewable resources goal will be to ensure the development of our share of cost-effective renewables based on our public customers’ share of regional load growth and the renewables forecast in the Council’s power plans. Targets will be adjusted over time to match load growth and the Council’s updated forecasts. To achieve these targets, BPA will pursue least-cost actions including the acquisition of renewable-based power to serve public power load at Tier 1 and Tier 2 rates. BPA is also committed to providing shaping and integration services to public power utilities serving requirements load to accommodate intermittent renewable generation. BPA will work with others in the region to promote long-term resource planning and to minimize the costs of integrating large amounts of wind into the grid. In particular, BPA will work with the region to develop flexibility resources to balance loads and resources in real time in order to accommodate wind variability and to identify needed transmission system upgrades as noted in the Northwest Wind Integration Action Plan. BPA may also choose to provide renewable incentives such as a rate credit program. To help ensure the targets are met, BPA will budget up to $21 million/year (plus escalation) in Tier I rates to cover above-market renewable costs. BPA plans to design its renewable efforts to complement utility and state-level initiatives such as portfolio standards. BPA will also continue to evaluate and deploy cost-effective non-wires solutions to transmission needs, including demand-side management, on equal footing with new transmission construction.

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