March 7, SUBJECT: Update from Portland General Electric on Their IRP

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1 Henry Lorenzen Chair Oregon Bill Bradbury Oregon Guy Norman Washington Tom Karier Washington W. Bill Booth Vice Chair Idaho James Yost Idaho Jennifer Anders Montana Tim Baker Montana March 7, 2017 MEMORANDUM TO: FROM: Council members John Ollis SUBJECT: Update from on Their IRP BACKGROUND: Presenter: Summary: Franco Albi, This presentation will summarize some key takeaways from the most recent (PGE) Integrated Resource Plan (IRP) filed with Oregon Public Utility Commission in November Relevance: The PGE IRP discusses how PGE might meet resource needs over the planning horizon with a mix of energy efficiency, demand response, renewables, and a combination of other resources that are dispatchable and fulfill annual/seasonal capacity needs. More Info: Link to PGE 2016 IRP S.W. Sixth Avenue, Suite 1100 Steve Crow Portland, Oregon Executive Director Fax:

2 PGE 2016 Integrated Resource Plan NWPCC Power Committee March 14, 2017 Franco Albi Manager, Integrated Resource Planning

3 Today s Topics 2016 IRP Overview OPUC process Opportunities and Challenges Continuous Evaluation Continuous Evolution 2

4 2016 IRP Continuous improvement in a rapidly changing environment Incorporate changing policy Federal Clean Power Plan Western Energy Imbalance Market Oregon Clean Electricity Plan (SB 1547) Commitment to rigorous analysis Load Forecast methodology Resource Adequacy methodology Integration of all resources Resource potential studies Flexibility and Energy Storage analysis Adaptive Action Plan Minimize greenhouse gas emissions Maintain Resource Adequacy Maximize resource options 3

5 2016 IRP Three integrated components to deliver sustainability Wind, Solar, Hydro, Biomass, Geothermal Energy Management Cost-effective Energy Efficiency Increasing Demand Response Renewable Expansion Optimizing Capacity Technology Integration 4

6 2016 IRP OPUC procedural schedule for Docket LC months OPUC Process 70 days IRP Filed Nov 15 OPUC Public Meeting Dec Comment 1 67 days OPUC Workshop Feb 16 Reply 1 Mar 31 Reply 2 Jun 23 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Today Jan 24 Comment 1 14-day data request Reply 1 42 days May 10 PGE Roundtable Comment 2 42 days May 12 Comment 2 7-day data request (best efforts) Reply 2 35 days Staff Memo 34 days OPUC Public Meeting _ Aug 8 Aug 9 PGE Roundtable Jul 28 Staff Memo OPUC Order Aug 31 OPUC Order 5

7 Opportunities and Challenges Technology and data enable the integration of centralized generation with renewable and distributed resources Demand-side and distributed resources continue evolving Energy Trust programs PGE Demand Response (Nest pilot) Distributed Resource Aggregation Energy Management Resource flexibility is increasing and costs are decreasing Battery storage Renewable diversity Advanced thermal technology Flexibility and efficiency Evaluation of all resources through the IRP Variable resource integration Distributed Energy Resource Planning Balance cost and risk Increased complexity Data and communications enable markets Plants Balancing Authority Performance Operations Efficiency Reliability 6

8 Continuous Evaluation Four key areas of focus for Resource Planning at PGE 2016 IRP Next IRPs RPS Capacity OPUC Process 2016 IRP Updates Begin 2019 IRP Integrating Optimization with Compliance Resource Adequacy & Flexibility 7

9 Continuous Evolution 2016 Participants 9 Advocacy Groups Renewable Northwest Public Utility Commission of Oregon Natural Resources Defense Council 7 Agencies and Utilities 13 Commercial Entities Ongoing engagement Information sharing Industrial Customers of Northwest Utilities Sierra Club Development input Data Requests *as of January 10, 2016 Northwest and Intermountain Power Producers Coalition Northwest Energy Coalition Citizens Utility Board 8