1. Communities Renewable Energy Study
Salt Lake City – Summit County – Park City
Analysis of impacts and benefits associated with
transitioning to 100 percent renewable power
Prepared by Energy Strategies, LLC
Communities Renewable Energy Study

2. Communities Renewable Energy Study
Introduction
August 9, 2017
Communities Renewable Energy Study

3. Why a Renewable Energy Study?
Commitment to community-wide sustainable energy and environmental practices
All three Communities have greenhouse gas (GHG) goals
Salt Lake City and Park City have adopted community-wide 100% renewable electricity goals
Recent cost reductions in renewable energy technology have made RE generated electricity more affordable
Risk and exposure to future electricity rate increases
Economic and environmental co-benefits
Communities Renewable Energy Study

4. Communities Renewable Energy Study
Rocky Mountain Power Will Continue to be Dependent on Fossil-Based Electricity
Source: PacifiCorp 2015 Integrated Resource Plan Volume 1, Figure 8.25, Page 193.
Communities Renewable Energy Study

5. Community Renewable Energy RFP
Solicitation issued May 2016
Interest in assessing impacts of supplying residents and businesses with 100% renewable electricity:
Costs of developing new renewable energy generation
Electricity rate impacts
Criterial pollutants, GHG emissions, and water use
Impacts on jobs, wages and economic output
Identify regulatory and legislative pathways that enable Communities to acquire 100% renewable electricity
Salt Lake City, Park City and Summit County
2040 – Summit County
Communities Renewable Energy Study

6. Communities Renewable Energy Study
Project Team
Energy Strategies, LLC
Jeff Burks, Project lead
Gary Mirich and Don Hendrickson - Modeling and Rate Analysis
Hollie Hohlfelder, Daniel Ramirez, Gibson Peters – Co-benefits
Allison Clements - CCA Legislative and Regulatory Analysis
Steering Committee
Lisa Yoder, Sustainability Program Manager for Summit County
Tyler Poulson, Sustainability Program Manager for Salt Lake City
Luke Cartin, Environmental Sustainability Manager for Park City
Communities Renewable Energy Study

7. Communities Renewable Energy Study
Study Approach
Communities Renewable Energy Study

8. Base Case projections of electricity:
Model was Developed to Forecast Future Electricity Customers, Demand, Rates, and Expenditures by Community
Base Case projections of electricity:
Customers
Demand
Expenditures
Rates
Estimated MWh and MW needed to achieve 100% renewable electricity supply
Cost estimates and forecasts of renewable energy generation by resource and related costs
Identify and evaluate renewable electricity procurement pathways and costs
Calculate 100% RE electricity supply costs impacts on Base Case expenditures and rates
Communities Renewable Energy Study

9. Communities Renewable Energy Study
Base Case Assumptions
2015 “PacifiCorp Electric Operations” baseline data for customers by class, expenditures, and sales
PacifiCorp 2015 IRP projections of Utah customer load growth by customer class
Assumed 2.13% growth in revenue requirements and rates
Revenue requirements between 2006 and 2015 rate cases actually increased at 6.6% annual rate
PacifiCorp 2017 IRP Renewable energy cost data
2015 IRP projections of fuel mix of generation portfolio
Communities Renewable Energy Study

10. Renewable Energy Costs
PacifiCorp IRP Resource Costs
Resource
Study ID
Resource Description
State
2017 $/MWh
(before Tax Credit)
Tax Credit
Solar 1
PV Poly-Si Fixed Tilt
Utah
66.00
(4.23)
Solar 2
PV Poly-Si Single Tracking
58.72
(3.76)
Solar 3 OR
87.16
(4.60)
Solar 4
80.35
(4.26)
Wind 1
2.0 MW turbine ID
54.49
(18.37)
Wind 2
2.0 MW turbine CF
62.27
Wind 3 WY
46.58
Geothermal
Greenfield Binary
Undefined
87.96
(16.33)
Market Survey Resource Costs
Solar 5
PV Solar Generic
37.84
Solar 6
42.43
Wind 4
Wind Generic
53.24
Wind 5
58.25
Communities Renewable Energy Study

11. Electricity Supply Scenarios Analyzed and Compared to the Base Case
Rocky Mountain Power Business-As-Usual
Target years 2032 and 2040
Community Renewable Energy Tariff (CRET)
Approved Public Service Commission tariff
Community Choice Aggregation (CCA)
CCA legislation adopted in Utah
Communities Renewable Energy Study

12. Communities Renewable Energy Study
Procurement Pathways Evaluated to Achieve 100% Renewable Electricity Supply
Front-End Loaded
Acquire 100% or renewable electricity supply by the end of 2021, to take advantage of the Production Tax Credits
Straight Line
Incremental acquisitions in equal, annual amounts, –2032 or 2019–2040
Hybrid
60-67% of renewable electricity supply acquired by the end of 2021; balance procured in equal annual amounts through 2032/2040
Communities Renewable Energy Study

13. Economic and Environmental Co-Benefits
Economic Development Benefits
Direct, indirect and induced jobs
Salary and wages
Economic output
Avoided Air Emissions and the Value of Emissions Reductions
CO2 emissions
Criteria pollutants (Nitrogen oxides (NOX) and sulfur dioxide (SO2)
Avoided fresh water consumption
Communities Renewable Energy Study

14. Expenditure and Rate Impacts Community Renewable Energy Tariff
Communities Renewable Energy Study

15. Expenditure and Rate Impacts:
Communities Renewable Energy Study

16. Communities Renewable Energy Study
Economic Co-Benefits
Communities Renewable Energy Study

17. Economic Development Co-Benefits
Salt Lake City
830 MW
Park City
67 MW
Summit County
87 MW
Construction Operations
Employment
13,628
1,100
1,429
Wage and Salary ($ millions)
$746
$60
$78
Economic Output ($ millions)
$1,770
$143
$186
During Operation
324 23 30
$19
$1.4
$1.8
$33
$2.3
$3.0
Includes Direct, Indirect, and Induced Effects. Construction Operations Jobs are defined as full-time equivalent for one year.
Communities Renewable Energy Study

18. Environmental Co-Benefits
Communities Renewable Energy Study

19. Co-Benefits: Summit County 2032
Low End
Annual Tons Avoided in 2032
Cumulative Tons Avoided 2019 – 2032
High End
CO2 Emissions
81,261
640,974
188,540
1,603,848
SO2 Emissions 43
346
106
1,029
NOX Emissions 68
544
161
1,528
High End
Annual Gallons in 2032
Fresh Water use
69 million
Communities Renewable Energy Study

20. Co-Benefits: Summit County 2040
Low End
Annual Tons Avoided in 2040
Cumulative Tons Avoided 2019 – 2040
High End
CO2 Emissions
75,656
928,614
168,522
2,179,545
SO2 Emissions 40
493 87
1,250
NOX Emissions 63
779
135
1,898
High End
Annual Gallons in 2040
Fresh Water use
60 million
Communities Renewable Energy Study

21. High End CO2 Emissions Reductions: Summit County
2032 Goal Goal
Communities Renewable Energy Study

22. Communities Renewable Energy Study
Conclusions
Communities Renewable Energy Study

23. Communities Renewable Energy Study
2032 Base Case
Rocky Mountain Power’s rates will increase
Electricity supply portfolio will still be more than 70% fossil-fuel based
RMP emissions of CO2 will decline as coal is replaced by natural gas
Increased dependence on natural gas will subject customers to fuel price volatility
Utility investments in energy efficiency resources and customer investments in distributed solar PV will reduce electricity loads
Communities Renewable Energy Study

24. Renewable Energy Scenario Findings
Electricity expenditures and rates will be modestly higher compared to Rocky Mountain Power Base Case
Straight-Line, annual procurement of additional electricity supply is the lowest cost
Front-End Loaded is the highest cost
Enables communities to meet renewable electricity goals earlier
Rate impacts (shocks) are more pronounced in early years, but…
Avoids the most emissions of CO2 and criteria pollutants
Cost differences between scenarios converge over time
By 2040 rate of each scenario are virtually the same
CCA is marginally more expensive than CRET
Communities Renewable Energy Study

25. Communities Renewable Energy Study
By the Numbers
Salt Lake City
Park City
Summit County
Rate Impact in 2032, % higher than Base Case per kWh (CRET)
11% to 12%
9% to 10%
Rate Impact in 2032, % higher than Base Case per kWh (CCA Straight Line)
14%
11%
Monthly Impact to Average Residential Bill in 2032 compared to Base Case (CRET)
$7 to $8
$15 to $17
$9 to $11
Fuel-Price Risk
None
Avoided GHG Emissions in 2032
As high as 1.8 million tons
As high as 145,000 tons
As high as 189,000 tons
GHG Emissions in Target Year
Zero
Communities Renewable Energy Study

26. Limitations of this Study
Results are guidance as to magnitude and direction
Results reflect one set of assumptions, developed with the Steering Committee
Cost to acquire renewable energy (Utah Photovoltaic Solar)
Rocky Mountain Power rate increases (2.13% annually)
Effectiveness of new energy efficiency programs (PacifiCorp)
Penetration level of new distributed generation (Navigant for PacifiCorp)
Does not include the significant value of avoiding fuel-cost risk and stable energy costs
Communities Renewable Energy Study