Reference Sheet Magic Valley Electrical Plan (MVEP) Update September 2018

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1 Reference Sheet Magic Valley Electrical Plan (MVEP) Update September Idaho Power

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3 Idaho Power Company TABLE OF CONTENTS Table of Contents... i Reference Sheet Magic Valley Electrical Plan (MVEP) Update...1 Purpose...1 Meeting Schedule...1 Power Terms...2 Unit Summary Table...2 Power Delivery System...3 Generation Resources...4 Alternative Resources...5 Energy Efficiency...5 Demand Response...5 Distributed Generation...6 Market Purchases...6 Integrated Resource Plan (IRP)...7 Transmission...8 Substations MVEP...10 Original Spatial Load Forecast...10 Buildout...11 Developed Community Goals and Siting Criteria...11 Buildout Requirements kv Requirements kv Requirements...12 Study Areas...13 West Valley North of the Snake River...13 West Valley South of the Snake River...15 East Valley...17 Page i

4 Idaho Power Company Load Growth...18 MVEP Five-Year Implementation Plan...19 Completed...19 Completed with Alterations...19 Not Yet Completed...19 Need to Update the MVEP...19 Results of the MVEP Update...20 Glossary...21 Appendix A 2008 MVEP Executive Summary...22 Appendix B MVEP Community Goals and Siting Criteria...26 Page ii

5 Slides 4-12 of 85 REFERENCE SHEET MAGIC VALLEY ELECTRICAL PLAN (MVEP) UPDATE Purpose The purpose of the Magic Valley Electrical Plan (MVEP) Update Community Advisory Committee (CAC) is to do the following: Update community goals and siting criteria for future transmission and substation electrical facility sites within the MVEP study area. Use the updated community goals and siting criteria to select a preferred alternative for future transmission and substation electrical facility sites in the MVEP study area. Discuss 2018 MVEP integration in local comprehensive plans. The recommendation of this committee will be used as a starting point when additional infrastructure is required on Idaho Power s electrical system. The normal public process will still be followed. Please share your unique perspectives throughout this process we value your input. Meeting Schedule September: Generation, substations, transmission, 2008 MVEP review, community goals and siting criteria October: November: December: (weather permitting) Siting criteria alignment, small-group mapping Select preferred alternative for substation and transmission line sites Review draft update, discuss comprehensive plan integration Notes Page 1

6 Slides of 85 Power Terms Voltage (kilovolts [kv]) The pressure that moves a current of electricity. One kv equals 1,000 volts. Power (megawatts [MW]) The rate at which work is performed. One MW equals 1,000,000 watts. One MW can power 650 homes on an average day, but only about 300 homes on a peak day, which occurs in the heat of the summer. One MW can power one to two large box stores Energy (kilowatt-hours [kwh]) The amount of power used over time. A 100-watt light bulb on for 10 hours will consume this much energy: Energy = 100 W 10 hours = 1,000 Wh = 1 kwh Capacity (MW) The maximum amount of power an element of the power system can handle or produce. For example, in a freeway analogy, capacity is represented by the number of cars that can cross a line on a freeway at the same time, while energy is represented by the number of vehicles that cross the line over time. Capacity constraints can be alleviated by the following: Decreasing the power required during peak hours (demand response) Decreasing the power required with energy efficiency measures Adding transmission lines, substations, and generators Peak demand (MW) The amount of power used during a peak day in summer or winter. Unit Summary Table Base Unit Typical Unit Voltage Volt (V) kilovolt (kv)* Power Watt (W) megawatt (MW)** Capacity Watt (W) megawatt (MW)** Energy Watt-hours (Wh) kilowatt-hours (kwh) *kilo = 1,000 **mega = 1,000,000 Page 2

7 Slide 24 of 85 Power Delivery System The electrical power delivery system is made of different elements. Power is drawn toward the load, as a mouse is drawn to cheese through a maze. The energy will find the path of least resistance (easiest route). Following are components of the power delivery system: 1. Generation Plant Energy is produced by generators at power plants. 2. Generation Substation The voltage is increased to make long-distance transmission more economical because the amount of energy loss due to resistance in the line is reduced. 3. High-Voltage Transmission (230 to 500 kilovolts [kv]) High-voltage transmission lines can transfer large amounts of power long distances. They are used to interconnect large cities and transfer power between states. The CAC will have the opportunity to review 230 kv high-voltage transmission lines that interconnect future source substations. 4. Source Substation Transforms or converts high-voltage transmission voltage to lower voltage transmission to serve distribution substations located throughout communities. They use 5 to 10 acres. 5. Transmission (46 to 138 kv) Transmission lines bring power to and interconnect distribution substations Page 3

8 Slides of Distribution Substation Distribution substations are located throughout communities and are common in both urban and rural areas. They typically cover 2 to 3 acres. Substations are used to transform one voltage to another and protect and control power lines. They include transformers, circuit breakers, switches, support structures, and large metallic pipe called bus to connect the components together. 7. Distribution Lines (12.5 and 34.5 kv) Distribution lines carry power from substations to homes and businesses. Because of the local nature and the quantity of distribution lines, they are out of the defined scope of the MVEP. Underground Distribution 34.5 kv distribution is typically overhead, but 12.5 kv distribution can be underground or overhead. Typically, installing underground distribution is more expensive than overhead distribution. The difference in cost is usually borne by the party that requests the underground line. Generation Resources Idaho Power s generation resources include the following. See Table 3.2 on page 24 of the company s 2017 Integrated Resource Plan (IRP) for a detailed list. Seventeen hydroelectric facilities along the Snake River and its tributaries. They vary in size. The Hells Canyon Complex (HCC) is the largest. Part ownership of three coal-fired generation plants. Three natural gas-fired plants. One small diesel generator (infrequently used). Idaho Power also has many customer-owned generation resources feeding into our system, many of which reside in the Magic Valley. These generation sources use transmission and distribution lines to deliver energy to our customers. In 2017, 76 percent of Idaho Power s supply of electricity came from company-owned generation resources. Page 4

9 Slides of 85 Alternative Resources Energy Efficiency Energy efficiency Methods or appliances that assist in saving energy. Examples include the following: Efficient appliances use less energy (e.g., LED bulbs and new appliances). Switching devices can save energy by controlling when other devices operate (e.g., smart switches that turn off the light when no one is in the room). Construction materials can reduce the amount of energy loss from homes (e.g., insulation). Demand Response Demand response (DR) Programs designed to shift load from peak demand hours to when there is ample capacity. The goal is to delay or eliminate the need to build new generation resources. Net energy consumption may or may not be reduced. Demand response programs can take different forms: Some programs incent customers to reduce energy usage during peak hours or shift the energy use to non-peak hours. An example is setting a timer on a dishwasher to delay operation. For other programs, customers agree beforehand to have certain loads switch off or cycle, as with irrigation pumps or air conditioners. Current demand response programs include the following: A/C Cool Credit Participating residential customers air conditioners are cycled on and off, typically over a three-hour period. Irrigation Peak Rewards Participating irrigation customers agree to have their irrigation pumps turned off when needed. Flex Peak Program Some large commercial and industrial customers agree to use less energy during peak hours. Page 5

10 Slides of 85 Distributed Generation Distributed generation Small generators connected to the distribution system (e.g. wind turbine). The Magic Valley has the following types of distributed generation: Wind Geothermal Biomass Hydro Market Purchases Market purchases Power purchased from the market by Idaho Power to augment its own generation. Idaho Power purchases power from the market to augment its own generation. The cost is high when demand is high (middle of summer). Highest in late afternoon when Idaho Power s peak hits. Sometimes we must purchase power from the southeast (Utah, Arizona, New Mexico). This power can be quite expensive. The cost is low when demand is low (spring and fall). In 2017, Idaho Power purchased 23.8% of its energy on the market. The percentage is typically between 15% and 30% and depends on many factors, including hydro conditions. Page 6

11 Slides of 85 Integrated Resource Plan (IRP) Idaho Power s IRP examines the demand for energy over the next 20 years and the best ways to meet that demand for our customers. The plan is updated every two years. The 2017 IRP was submitted to the Idaho Public Utilities Commission and the Public Utility Commission of Oregon in June The IRP describes the company s projected need for additional electricity and the resources necessary to meet that need while balancing reliability, environmental responsibility, efficiency, risk and cost. Idaho Power enlists the assistance of its customers in developing the IRP through an advisory council the Integrated Resource Plan Advisory Council (IRPAC) which consists of members of the environmental community, major industrial customers, irrigation representatives, state legislators, public utility commission representatives, and other interested parties. The IRPAC s responsibilities include the following: Representing the interests of Idaho Power s more than 525,000 customers Participating in open and active discussions of relevant issues Working with Idaho Power to develop ways to engage the public in the IRP process The IRPAC meets with Idaho Power regularly over a period of several months during the development of the company s IRP. These meetings are public. The current plan is posted on Idaho Power s website (under Energy > Planning). The table below from the current plan lists the plan s additional generation resources. Date Resource Installed Capacity 2026 B2H 500 megawatts (MW) transfer capacity Apr Sep, 200 MW transfer capacity Oct Mar 2031 Reciprocating engines 36 MW 2032 Reciprocating engines 36 MW 2033 Combined-cycle combustion turbine (1x1) 300 MW 2035 Reciprocating engines 54 MW 2036 Reciprocating engines 54 MW Page 7

12 Sides and of 85 Transmission Typical Transmission and Distribution Structures Capacity, height, right-of-way requirements, and cost vary by voltage and construction. Typical values are as follows: Voltage (kv) Capacity (MW) Typical Height (feet) Right-of-Way (feet) Cost (per mile) 500 1, $ millions $400k $640k $230k $330k $150k $220k Page 8

13 Slides and of 85 Substations Substations are used to transform one voltage to another and protect and control power lines. They include transformers, circuit breakers, switches, support structures, and large metallic pipe called bus to connect the components together. Source substation Converts high-voltage transmission lines (230 kilovolts [kv] and above) to lower voltages (46 to 138 kv). Acts as a power source for distribution substations. Distribution substation Substations that serve local loads in urban and rural neighborhoods. Substation Type Capacity (MW) Area (acres) Cost Source $7M $14M Distribution $3M $5M Page 9

14 Slides of MVEP The 2008 Magic Valley Electrical Plan Final Report is posted on Idaho Power s website (under Energy > Planning). The study area (shown below) encompasses all or part of six counties: Cassia, Gooding, Jerome, Lincoln, Minidoka, and Twin Falls. Original Spatial Load Forecast Defined the area (Idaho Power s service area). Determined property ownership 46% private land in Assume private land will fill in and that public land will require very little electrical load. Assigned land use/zoning designations to all private land; land use/zoning maps were obtained from the county and city jurisdictions. Assigned a load density to land-use/zoning designations for all private land (= MW/mi 2 ). Used the private land and load density to determine the buildout load requirement for the area 2,300 MW Page 10

15 Sides of 85 Buildout Buildout is defined as the point in time when all available land is developed according to the land-use ordinances. Growth is driven by industry, transportation, and population, but is bounded by the amount of available land and water. Buildout load by county: County 2007 Load (MW) Buildout Load (MW) Cassia Gooding Jerome Lincoln Minidoka Twin Falls Total 710 2,300 Anticipated energy efficiency and demand response reduces the total projected buildout load to 2,000 MW. Developed Community Goals and Siting Criteria The CAC created goals that set forth criteria to guide their choices for the alternatives for siting transmission lines and substations. The 2008 Community Goals and Siting Criteria can be found in Appendix B. Page 11

16 Slides 65 of 85 Buildout Requirements 230 kv Requirements Two source substations and connecting 230 kv transmission lines Source Substation 1 mapping results: Group 2: Between N and E (Preferred) Group 3: Co-locate with the existing Clover Substation Group 4: Between N and E Source Substation 2 mapping results: All groups chose to co-locate Source Substation 2 with the proposed Cedar Hills 500 kv substation. Land has not been purchased for Cedar Hills yet but is tentatively located at 2900 N and 4100 E for mapping purposes. The siting of the Cedar Hills 500 kv substation is out of scope for the MVEP update. 138 kv Requirements Nine distribution substations and connecting 138 kv transmission lines Page 12

17 Slides of 85 Study Areas The study area was divided into three areas: The blue area (West Valley North of the Snake River) encompasses the western area north of the canyon The green area (West Valley South of the Snake River) refers to the western area south of the canyon The tan area (East Valley) refers to the eastern portion of the study area West Valley North of the Snake River Distribution Substation 1 mapping results Group 1: Three to four miles north of Shoshone along west side of Hwy 75 Group 2: 520 North Rd north of Shoshone and east of Hwy 75 (preferred) Group 3: 520 N off Hwy 75 north of Shoshone existing 138 kv in and out Group 4: 520 N off Hwy 75 Group 5: 520 N off Hwy 75 (preferred) Page 13

18 Slide 67 of 85 Distribution Substation 2 mapping results Group 1: North of I-84 in the same business park as the Idaho Department of Fish and Game Group 2: Northwest area of Crossroads behind industrial buildings (preferred) Group 3: Hwy 93 and Crossroads tap existing 138 kv line east of Hwy 93. Also, tap line west of substation for dual feed (planned hospital). Keep line on the north side of the freeway Group 4: Crossroads tap upgraded 138 kv line Group 5: Anywhere on Crossroads, around 400 (preferred) Distribution Substation 3 mapping results Group 1: 350 West Rd Group 2: Hwy 25 and County Line Rd west of Jerome (preferred) Group 3: 3350 S and County Line Rd Gooding County side, location flexible Group 4: County Line Rd 1 mile north of Bob Bart Hwy new 138 kv line Group 5: 500 West Rd and Hwy 25 Jerome (preferred) Page 14

19 Slide 68 of 85 West Valley South of the Snake River Distribution Substation 4 mapping results (all mapping results were considered equally acceptable) Group 1: No address designated Group 2: 4300 N & Hwy 30 location chosen due to limitation to growth at Melon Valley due to landscape Group 3: 4325 N and 1200 E new line from Buhl Group 4: 4400 N and 1250 E Group 5: Hwy 30 and 1300 E Buhl Distribution Substation 5 mapping results (all mapping results were considered equally acceptable) Group 1: No address designated Group 2: 3500 N and 2400 E by the highway and road Group 3: Hwy 74 and 2400 E Group 4: No address designated Group 5: 3500 N and 2500 E Page 15

20 Slide 68 of 85 Distribution Substation 6 mapping results (all mapping results were considered equally acceptable) Group 1: No address designated Group 2: 3500 N and Grandview Group 3: 3500 N and 2900 E south of Twin Falls Group 4: No address designated Group 5: 3500 N and 2900 E Distribution Substation 7 mapping results (all mapping results were considered equally acceptable) Group 1: No address designated Group 2: 3500 N and 3200 E west of Rock Creek Group 3: 3500 N and 3300 E southeast of Twin Falls Group 4: No address designated Group 5: 3500 N and 3300 E Distribution Substation 8 mapping results (all mapping results were considered equally acceptable) Group 1: No address designated. Group 2: Falls Ave and 3300 E. Group 3: 3900 N (Addison) and 3300 E on existing line locating further south to avoid prime canyon rim land. Group 4: Between Addison and Falls E on 3400 E. Group 5: Addison and Hankins on land north of D&B This ground is undeveloped and would be easier to build on than in a highly developed area. Distribution Substation 9 mapping results (all mapping results were considered equally acceptable) Group 1: 4200 N and 1900 E between Filer and Buhl Group 2: 4200 N and 1900 E between Filer and Buhl Group 3: 4200 N and 1900 E Group 4: 4200 N and 1900 E Group 5: 4100 N and 1900 E Page 16

21 Slide 69 of 85 East Valley No new distribution substations required Considerations for siting transmission lines: Any line routing should avoid crossing the jurisdictional boundaries of the municipal electrical or Rural Electrical Association entities in the area Do not extend 138 kv transmission up to Adelaide Substation to the north Page 17

22 Slides of 85 Load Growth Changes in the Magic Valley are as follows: The ten-year average annual growth rate of customer accounts is 1.43% (987 new customer accounts per year) The ten-year average annual growth rate of load is 0.83% County 2007 Load (MW) 2017 Load (MW) Cassia Gooding Jerome Lincoln Minidoka Twin Falls Total Page 18

23 Slides of 85 MVEP Five-Year Implementation Plan Completed Build Kimberly Substation Completed with Alterations Install a new 230 to 138 kv transformer at King Substation (accomplished with Justice Substation adjacent to King Substation) Build more capacity into the Buhl area (accomplished with North View Substation northeast of Buhl) Build a new 138 kv transmission line to the Buhl area (built along 1600 E) Not Yet Completed Upgrade the existing Filer Substation from 46 to 138 kv Build a new 138 kv transmission line from Poleline Substation to Filer Substation Upgrade South Park Substation in Southwest Twin Falls from 46 to 138 kv Bring a new 138 kv transmission line to South Park Substation from Russet Substation (downtown Twin Falls) Need to Update the MVEP The following drive the need to update the MVEP Evolving community goals Changing future land use and zoning Growth not always occurring where and when it is anticipated Page 19

24 Slides of 85 Results of the MVEP Update County MVEP Buildout Load (MW) MVEP Update Buildout Load (MW) Cassia Gooding Jerome Lincoln Minidoka Twin Falls Total 2,300 2,600 (rounded) Buildout loads grew due to increased industrial zoning and better future land-use and zoning data Two new source substations will be required (same as the original MVEP) Nine new distribution substations will be required (same as the original MVEP) Purpose of the 2018 MVEP Update CAC will be to review the prior CAC s recommendations for source substations, distribution substations, and connecting 230 and 138 kv transmission lines and select a single preferred alternative for each substation and line route. The preferred alternative should be in accordance with the updated community goals and siting criteria. Anticipated energy efficiency and demand response reduced the total projected buildout load to 2,000 MW in the 2008 MVEP and 2,200 MW in the 2018 MVEP Update. Page 20

25 Idaho Power Company Glossary Buildout The point in time when all available land is developed according to the land-use ordinances. Capacity The maximum amount of power an element of the power system can handle or produce. Measured in megawatts (MW). Demand response (DR) Programs designed to shift load from peak demand hours to when there is ample capacity. The goal is to delay or eliminate the need to build new generation resources. Distributed generation Small generators connected to the distribution system (e.g. wind turbine). Distribution substation Substations that serve local loads in urban and rural neighborhoods. Energy Amount of power used over time. Measured in kilowatt-hours (kwh). Energy efficiency Methods or appliances that assist in saving energy. Kilovolt Unit of measurement of voltage. 1 kv = 1,000 volts. Load Cumulative electrical demand from customers in an area. Market purchases Power purchased from the market by Idaho Power to augment its own generation. Megawatt Unit of measurement of power. 1 MW = 1,000,000 Watts. Peak demand The amount of power used during a peak day in summer or winter. Measured in megawatts (MW). Power The rate at which work is performed. Measured in megawatts (MW). One MW = 1,000,000 watts. Source substation Converts high-voltage transmission lines (230 kilovolts [kv] and above) to lower voltages (46 to 138 kv). Acts as a power source for distribution substations. Substations Substations are used to transform one voltage to another and protect and control power lines. They include transformers, circuit breakers, switches, support structures, and large metallic pipe, called bus, to connect the components. Voltage The pressure that moves a current of electricity. Measured in kilovolts (kv) for power lines. One kv = 1,000 volts. Page 21

26 Idaho Power Company Appendix A 2008 MVEP Executive Summary The Magic Valley has seen significant population growth in the last 20 years and with it a corresponding growth in electrical load. Where once there was excess electrical capacity due to the many power plants and transmission lines feeding the valley, growth-driven electrical load is nearing the point that additional resources must soon be built. And it is important that new transmission lines and substations fit into a larger strategy to serve the valley and are located such that they operate for many years without becoming obsolete by being placed in the wrong location. Idaho Power (IPC) invited members of the Magic Valley community to be part of a Community Advisory Committee (the Committee) to help plan for the new electrical facilities that will provide for growth. The Committee, made up of local elected officials, city and county planning representatives, environmental interest groups, agricultural interests, Forest Service and BLM representatives, developers and community members, met monthly for nearly a year. The inside cover of this report shows a complete list of Committee members. Developed in concert with the Committee, the Magic Valley Electrical Plan (Plan) describes infrastructure improvements and additions that will be needed to provide an adequate and dependable power supply far into the future. It provides a long-range, buildout strategy to serve the electrical power needs of Idaho Power s customers in a six county region made up of Gooding, Lincoln, Jerome, Twin Falls and parts of Minidoka and Cassia counties. It must be noted that the new 500,000 volt transmission lines that are planned to be built in the Magic Valley in the next few years were outside the mission of this Committee. Additionally, the Committee did not address any transmission external to the Magic Valley that might be used to deliver energy to the valley. The Magic Valley Electrical Plan, Community Advisory Committee started its work in December 2007 with a bus tour of generation and transmission facilities, beginning a series of primarily educational meetings that were held monthly through March of Through these educational sessions, they were introduced to electrical power concepts, generation, transmission, substations, energy efficiency and regulatory affairs. Additionally, the Committee was introduced to Idaho Power s electrical system, from production to delivery. The Committee then developed Goals laying out criteria they would use in determining appropriate locations for substations and transmission lines, giving much consideration to specific local issues as well as plan implementation. Details concerning the various Goals the Committee developed can be found in Appendix C. Using the education gained in the first four meetings and the Goals they developed in February and March, the Committee laid out proposed substation locations and transmission line routes to serve the Magic Valley through buildout. The Committee came up with five different alternatives for evaluation. Idaho Power staff provided drawings combining the alternatives so the Committee could further refine their choices. The Committee was also provided a scoring matrix based on their Goals that they could fill out to guide them in their initial alternative evaluation. In the end, the Committee reached consensus on preferred and acceptable alternatives broken down by sub-areas: Page 22

27 Idaho Power Company Overall Area: 230,000 Volt Transmission and Source Stations Area 1: West Valley North of Snake River Area 2: West Valley South of Snake River Area 3: East Valley While the Committee provided Idaho Power with preferred alternatives for substation and transmission line placement, they also developed secondary alternatives should the primary alternatives be too difficult to build. Preferred Alternatives Overall Area: 230,000 Volt Transmission and Source Substations (See Figure 1) The Committee chose preferred sites for two new source substations in the Magic Valley. The first preferred source substation location is a site between East and North in Twin Falls County. The second source substation is the planned Cedar Hill Substation. Cedar Hill is part of the Gateway West 500,000 volt transmission project and its exact location has not yet been determined. For planning purposes, it is shown on the map as being located near the existing Amsterdam Substation, southeast of Kimberly. Figure 1 also shows a preferred 230,000 volt transmission line route from Cedar Hill Substation to the new source substation and then heading northwest to the existing King Substation. The Committee further ranked other alternatives for use if the source substation locations or 230,000 volt line routes are not attainable. Descriptions of these alternatives can be found in the body of this report. Area 1: West Valley North of Snake River (See Figure 2) The Committee determined that for the West Valley, north of the Snake River, two of the developed alternatives were equal in merit and thus Idaho Power could use either one of them for choosing 138,000 volt distribution substations and line routes. While these two alternatives were deemed the most preferred, the Committee stated that Idaho Power could choose the routing proposed by any of the other groups if the line routing improved dependability. Area 2: West Valley South of Snake River (See Figure 3) In the West Valley, south of the Snake River, the Committee determined that all developed alternatives were equally acceptable with a few caveats: Each alternative independently had some dependability issues and would require some additional lines to make them more dependable Avoid siting a substation across from D&B Supply on Addison Avenue East because there is a conflict with planned development If feasible, the Committee prefers to use the railroad right-of-way for 138,000 volt transmission line routing through Buhl Area 3: East Valley (See Figure 4) Page 23

28 Idaho Power Company The Committee did not designate any particular alternative as the preferred choice for the East Valley evaluation area. Instead, they listed the following stipulations: Any line routing should avoid crossing the jurisdictional boundaries of the municipal electric or Rural Electrical Association entities in the area Do not extend the 138,000 volt transmission line up to Adelaide Substation to the north Not all the facilities proposed by the Committee are needed in the near term and will be phased in based on load growth rates, dependability, transmission line and transformer adequacy, available budget and Community Advisory Committee recommendations. This is a concept plan and before Idaho Power does any siting or placement of infrastructure, open houses and perhaps community meetings (for large projects) will be held to provide information on specific proposed projects and gather input. Individual projects resulting from this plan will still require jurisdictional approval and will be put through a public siting process. Substations and transmission lines associated with this plan are subject to change due to land availability, jurisdictional and citizen objections or needs that are discovered during the project development phase. This first step, however, will give the jurisdictions and citizens a heads-up as to where high-voltage transmission facilities may be located and allow them to plan accordingly. It is also our hope that this plan will be incorporated in jurisdictional comprehensive plans. In preparing the Magic Valley Electrical Plan, Idaho Power has taken into account the effect that energy efficiency will have on future electrical load in the Magic Valley. Idaho Power is committed to reducing electrical load through the use of energy efficiency at all customer levels as is the State of Idaho as documented in the 2007 Idaho Energy Plan. As stated in the Idaho Energy Plan, when acquiring resources, Idaho and Idaho utilities should give priority to: (1) Conservation, energy efficiency and demand response In conjunction with activities outside Idaho Power s control such as expected improvements in Idaho building standards, customer involvement, distributed generation and energy efficiency technology advancements Idaho Power expects new electrical load will be significantly reduced between now and Valley buildout. Along these lines, the 2007 Idaho Energy Plan also states In order to protect and enhance Idaho s quality of life, it is incumbent on all citizens to use Idaho s precious natural resources, including energy, in a wise and responsible manner. Appendix B of this report discusses energy efficiency as it relates to the Magic Valley. The cost in 2008 dollars for the infrastructure identified in this plan to serve the buildout projected load is between $138M and $154M, depending on which alternative or combination of alternatives are built. Future changes in technology may make some of these improvements unnecessary or, at least, delay their need. These types of shifts, however, are impossible to predict; therefore, Idaho Power can only monitor them and understand that no matter how good the present plans are, external forces can change them. Idaho Power sincerely thanks every member of the Community Advisory Committee. The time and effort the Committee gave to this project will enable Idaho Power to go forward with plans Page 24

29 Idaho Power Company to serve the Magic Valley and gain public acceptance of the specific pieces that must, through further public collaboration, be put in place to make this plan a reality. This Plan is a result of the Committee s efforts and will serve as the basis for further studies to refine, stage and request permitting for future infrastructure improvements in the Magic Valley. Page 25

30 Idaho Power Company Appendix B MVEP Community Goals and Siting Criteria As a first step in determining the feasibility of individual line routes and substation locations, the Committee created Goals that set forth various criteria to guide their choices for the various alternatives they would develop. The effort began in February when the Committee broke up into small groups to discuss issues that are important to them when planning to meet the Magic Valley s future energy needs. Much discussion took place concerning energy efficiency and conservation, environmental stewardship and reliability (dependability). The Goals were also used in the scoring matrix to guide them in their initial alternative evaluation. The Goals were divided into 6 areas: Reliability (Dependability): Provide reliable (dependable) electric service to all Idaho Power customers in the Magic Valley service area Provide adequate system capacity to satisfy N-1 conditions (for main grid transmission) throughout the Magic Valley service area Provide redundant systems that provide a minimum of N-1 capability (for main grid transmission) throughout the Magic Valley service area Continue maintenance and operation programs that ensure optimum reliability Efficiency: Plan, manage and operate the Magic Valley electrical system for optimum efficiency Plan and develop efficient systems that require fewer new lines, fewer line miles and fewer substations, including consideration for distributed generation Maintain reasonable costs to customers for electrical service Energy Conservation: Optimize conservation of electrical energy resources Design and operate the electrical system to conserve electricity Provide effective public education programs regarding efficient use of electricity, conservation, etc. Develop and offer all feasible and applicable energy conservation programs and incentives throughout the Magic Valley service area Encourage as much as feasible, the use of energy efficient design and operation in new building construction Environment: Avoid or minimize impacts to the environment from the electrical system Avoid negative impacts from electrical facilities and system operation on the natural environment, sensitive resources and wildlife habitat; mitigate unavoidable negative impacts where appropriate Avoid or minimize the negative aesthetic and visual impacts caused by the development and operation of electrical system facilities; mitigate unavoidable negative impacts where appropriate Do not construct/operate electrical facilities in designated scenic byways or that negatively affect other tourism assets Support the burying of electrical transmission lines where feasible to avoid undesired visual impacts and support desired community design and function Avoid negative impacts and interference to agricultural lands and operations; mitigate negative impacts where appropriate Utilize generation resources available in the Magic Valley where feasible Page 26

31 Idaho Power Company Planning and Design: Plan and design of electrical system facilities that effectively meet the Magic Valley s current and future electrical demands Identify and accommodate the electrical needs of defined growth areas Minimize the physical footprint of electrical facilities Utilize distributed generation wherever feasible to minimize the amount and extent of new electrical facilities Upgrade/expand existing electrical facilities wherever feasible to minimize the need for construction of new facilities Incorporate multiple lines (transmission and distribution) on each pole system when feasible to reduce the need for additional/new pole systems Accommodate/incorporate the use of cogeneration projects as much as feasible, while meeting other system Goals Plan, design and construct facilities on an as needed basis, with consideration to anticipated needs Protect and minimize impact to existing structures from new facility design Siting: Site new facilities with an effective balance between system needs and area resident concerns Utilize existing electrical and transportation corridors where feasible when siting new electrical transmission facilities Avoid siting new facilities in residential areas Place substations out of developed areas where feasible Site new substations early to minimize conflicts with development Page 27