Climate Change: Climate Change: A Northwest Perspective Peggy Duxbury Seattle City Light February 20, 2008

Most hydro-dependent region = most affected by climate change impacts Allocation Matters! NW Leadership on conservation and renewables should be recognized NW utilities spend billions on salmon recovery, habitat protection, FERC relicensing to keep hydro operating Climate Change: A Northwest perspective

Seattle Times, Nov 1, 2006

Primary Fuel Type Coal = Black Oil or Diesel = Blue Natural Gas = Red U.S. Power Plants The size of each circle represents the quantity of emissions in million tons 15 million tons 4.0 million tons Power plant CO 2 emissions And 4% of national power output Power plants in the Northwest generate 1% of national power plant CO 2 emissions

1,500 lbs/MWh 2,000 lbs/MWh 1,000 lbs/MWh LOWEST EMISSION RATES IN US (lbs of CO 2 per mwh of electricity produced)

Northwest Efficiency Achievements 1978 – 2005 Since 1978 Utility & BPA Programs, Energy Codes & Federal Efficiency Standards Have Produced Over 3100 aMW of Savings. SOURCE: NW Power and Conservation Council, 2007

Allocation Comparison: Output vs. Emission Source: EIA 2004 & 2005 *CO 2 allowance allocation based on total electricity output, including fossil, renewable, and incremental nuclear output (relative to 1990). Difference between emission and performance/output $5/ton = $479 $7/ton = $671 $10/ton = $959 million Avoided Emissions from NW conservation (compared to coal)

“ In most of the11 state where AEP operates, it’s under no obligation to hold down demand. On the contrary, it makes more money the more electricity people use.” Source: “ Inside the Messy Reality of Cutting Power Plant’s CO 2 Output” Wall Street Journal, Thursday, July 12, 2007 Many still do little / no conservation:

Comparison of Emission-Based Allocation To Top Ten Emitting Utilities v NW States *Utility allowance allocation based on 2004 data reported in Ceres, Natural Resource Defense Council, and Public Service Enterprise Group, Benchmarking Air Emissions of the 100 Largest Electric Power Producers in the United States 2004, (April 2006). State allowance allocation based on 2004 and 2005 EIA data. Tons CO 2 levels had 3,100 MW of conservation been coal-fired generation

Emission-Based Give Many Allowances to Few Emission-Based Give Many Allowances to Few Source: “Benchmarking Air Emissions of the 100 Largest Electric Generation Owners -2004” *CO 2 allowance allocation based on total electricity output, including fossil, renewable, and incremental nuclear output (relative to 1990). Tons

Lowest ranking states (number higher due to ties): ND, WY, MS, SD, AL, MO, AR, OK, TN, AK, IN, LA, GA, VA, KY, WV, NE Source: The State Energy Efficiency Scorecard for 2006, ACEEE, June, 2007 Energy Efficiency Scorecard Highest ranking states: VT, CT, CA, MA, OR, WA, NY, NJ, RI Maine 15 New Hampshire 18 Vermont 1 Massachusetts 4 Rhode Island 9 Connecticut 1 New York 7 Pennsylvania 14 New Jersey 8 Delaware 30 Maryland 20 Dist. Columbia 22

Maine New Hampshire Vermont Massachusetts Rhode Island Connecticut New York Pennsylvania New Jersey Delaware Maryland District of Columbia Western Regional Climate Action Initiative Regional Greenhouse Gas Initiative California motor vehicle CO 2 emissions standards  RPS requirement or goal  Florida GHG target AB 32                                           Regional and State Climate Initiatives

Hydro most impacted power system from climate change Allocation matters! Emission-based allocation: –Disadvantages the NW –Rewards behavior we should discourage NW leadership should be recognized CONCLUSIONCONCLUSION