Guidance forUtility Adequacy

Assessments

Steering Committee MeetingJanuary 29, 2010

January 29, 2010 Resource Adequacy Steering Committee Meeting

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Outline

• Arguments For Utility Guidance

• Arguments Against Utility Guidance

• Current Regional Adequacy Standard

• Potential methodology to provide guidance

January 29, 2010 Resource Adequacy Steering Committee Meeting

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Arguments For Utility Guidance

• Could help make utility planning more consistent throughout the region

• Would make utility planning consistent with the Council’s power plan

• Would help utilities with smaller long-term resource planning budgets

January 29, 2010 Resource Adequacy Steering Committee Meeting

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Arguments Against Utility Guidance

• Could be perceived as infringing on the jurisdiction of individual utilities

• Would be very difficult to develop a precise tool

• Could be misused as a surrogate for a long-term planning process

January 29, 2010 Resource Adequacy Steering Committee Meeting

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Current Regional Adequacy Standard Measures

• Energy: Annual average generating capability must equal annual average load– Includes an amount of non-firm resources derived from

an LOLP analysis • Capacity: Sustained-peak generating capability

must equal sustained-peak load plus a reserve margin– Sustained-peak generation includes some non-firm

resources– Reserve margin is derived from an LOLP analysis that

includes some non-firm resources

January 29, 2010 Resource Adequacy Steering Committee Meeting

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Possible Approach for Utility Energy Measure

• Annual generating capability = annual load

• Amount of non-firm generation to include is a function of total non-firm available to the utility plus other factors

• This function has not yet been defined

January 29, 2010 Resource Adequacy Steering Committee Meeting

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Possible Approach for Utility Capacity Measure

• Sustained-peak generating capability = sustained-peak load plus a reserve margin

• Sustained-peak generation includes some non-firm generation, which is a function of total non-firm available to the utility plus other factors

• The reserve margin is a function of the total non-firm available to the utility plus other factors

• This function has not yet been defined