White Paper – Least Cost Electricity Procurement

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Presentation transcript:

White Paper – Least Cost Electricity Procurement Proposed Scope of Work Review 2006 law in the context of overall RI electricity law and regulation. Define elements of Least Cost Procurement (LCP) and related aspects of the law; develop outline to identify issues for Stakeholders. Participate in Stakeholder meeting (February 2007) to discuss issues and to elicit Stakeholder instructions to develop principles and recommendations on LCP implementation. Draft a “white paper” describing key issues that have to be addressed in order to implement LCP. Identify options where appropriate. Circulate white paper to obtain comments from Stakeholders; revise draft if required. Attend Stakeholder meeting in April 2007 to explain the white paper and discuss suggestions for further refinements. Prepare final document. www.synapse-energy.com | ©2006 Synapse Energy Economics Inc. All rights reserved.

White Paper – Least Cost Electricity Procurement Draft Outline Introduction and Background Choosing the Least Cost plan Identifying “system reliability and energy efficiency” resources Procuring Supply resources Related issues (optional additional task) www.synapse-energy.com | ©2006 Synapse Energy Economics Inc. All rights reserved.

White Paper – Least Cost Electricity Procurement Draft Outline Choosing the Least Cost plan Planning and procurement time horizon Metrics for cost-effective,reliable, prudent, and environmentally responsible. Metric or guideline for “optimally cost-effective, reliable, prudent and environmentally responsible www.synapse-energy.com | ©2006 Synapse Energy Economics Inc. All rights reserved.

White Paper – Least Cost Electricity Procurement Draft Outline Identifying “system reliability and energy efficiency” resources define “system reliability” define “diverse sources”; energy efficiency resources, including attributes such as “prudent", "reliable" and "lower cost than acquisition of additional supply" ; distributed generation resources, including attributes such as “reliable", "cost-effective" and "net system benefits " ; demand response resources, combined heat and power resources; and renewable resources. www.synapse-energy.com | ©2006 Synapse Energy Economics Inc. All rights reserved.

White Paper – Least Cost Electricity Procurement Draft Outline Procuring Supply resources Acquisition approaches Pricing options Term lengths (contract durations) www.synapse-energy.com | ©2006 Synapse Energy Economics Inc. All rights reserved.

White Paper – Least Cost Electricity Procurement Draft Outline Related issues (optional additional task) Interaction with existing programs (e.g. SBC, RPS, RGGI) Transition from existing standard offer service www.synapse-energy.com | ©2006 Synapse Energy Economics Inc. All rights reserved.