New Renewables, Transmission, and Less Coal in Pacific Power 2021 IRP
Posted on September 17, 2021 by Sudeshna Pal
Tags, Energy
Pacific Power (also known as PacifiCorp) filed its 2021 Integrated Resource Plan (IRP) on September 1, 2021, with the Oregon Public Utility Commission (PUC). The IRP is a long-term (typically 20 years) resource acquisition plan that utilities in Oregon are required to file every two years with the PUC. Renewable energy resources including wind and solar generation, battery storage, and new transmission buildouts dominate the utility’s future resource portfolio. The plan also includes a notable increase in demand response resources, and, for the first time in the utility’s IRP history, nuclear resources.
The IRP is the outcome of a year-long stakeholder process. The PUC’s IRP guidelines direct utilities to design a least-cost least-risk resource plan for Oregon utility customers. Utilities estimate the future load growth on their system to establish a resource need. The plan then explains how various resource options could meet the resource needs in a least-cost least-risk manner. The utility also must comply with federal- and state-level clean energy goals (for example, Oregon House Bill 2021).
Pacific Power’s least-cost least-risk resource portfolio, or the “preferred portfolio,” includes more than 5600 MW of new solar resources, 1792 MW of new wind generation, and more than 6000 MW of battery and pumped hydro storage resources to be added to the utility’s system through 2040. The portfolio also includes about 1500 MW of nuclear resources and more than 6000 MW of demand-side resources. CUB is particularly supportive of demand-side resources because they are typically clean and less costly for customers.
Pacific Power is one of the largest utilities in the West that depends heavily on coal-powered electricity generation. As clean energy goals become more ambitious and codified in state laws, the utility’s future resource portfolio must reflect a transition away from fossil fuel toward cleaner energy resources. Pacific Power plans to retire 14 of its 22 coal units by 2030 and another 5 by 2040, along with several natural gas plants. The utility is also converting some coal plants into natural gas plants to reduce emissions. The utility plans to build hundreds of miles of new transmission lines to support planned new generation resources.
The IRP identifies an Action Plan which represents the resource actions that the utility will take in the next two to four years. The IRP asks the PUC to support this plan. The biggest question mark in Pacific Power’s current IRP is the nuclear resource the company has proposed to add to its portfolio. Investing in a new type of nuclear power plant carries significant risks. However, because the proposed nuclear investments are not within this four-year window, the PUC will not decide on the nuclear investment. The investment in nuclear power will be revisited and examined in Pacific Power’s next IRP.
Within the four-year Action Plan on this IRP, are significant investments in energy efficiency, solar, solar with batteries, wind, pumped hydro, and transmission. The company also proposes to retire the Colstrip coal units, convert two of the Jim Bridger coal units to natural gas, and retire the two Naughton coal units.
Once the IRP is filed at the PUC, it undergoes a thorough review by PUC Staff and other stakeholders including CUB. At the end of the review process, PacifiCorp will seek PUC acknowledgement for its resource acquisition strategy or Action Plan.
In the coming months, CUB will review and comment on Pacific Power’s 2021 IRP. We will be doing a thorough analysis of the utility’s cost, risk, and emissions reduction strategies to ensure that the plan is in the best interest of Oregon customers. Stay tuned to the CUB Blog for updates.
Note: Pacific Power is the name that this utility uses in Oregon, Washington, and California. In Utah, Wyoming and Idaho, it provides service under the name Rocky Mountain Power. The utility can also be identified by its corporate name, PacifiCorp.
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09/17/21 | 0 Comments | New Renewables, Transmission, and Less Coal in Pacific Power 2021 IRP