1. 1 Renewable Energy Working Group Status Update of the Oregon Renewable Portfolio Standard Kip Pheil Oregon Department of Energy October 29, 2008

2. 2 Discussion Outline  Oregon RPS Review  Progress towards Compliance  Detours, Caution Signs, Etc.  Contacts & Links

3. 3 3 Oregon RPS review RPS Elements  SB 838 (ORS 469A) Obligations  Eligible Resources  Conditional Standards Non-RPS Elements  Embedded Legislation (see also: www.Oregon-RPS.org)

4. 4 4 Electricity Sources Oregon’s Electricity Resource Mix, 2005.* 2007 Use = 5,600 aMW 2025 Est = 6,400 aMW * State of Oregon Energy Plan 2007-2009

5. 5 5 Oregon RPS Obligations Post – 1994 Generation, mostly

6. 6 6 Eligible Resources

7. 7 7 Conditional Standards

8. 8 8 Embedded SB 838  Extend Public Purpose Charge - 2025  renewable <20 MW projects only  www.energytrust.org  8% (soft) target for 2025  End ban on IOU rate-based conservation investments above PPC  Green Power option - all utilities  voluntary purchases do not satisfy RPS

9. 9 Progress  WREGIS review & updates  Detailed PGE forecast  PacifiCorp forecast  Consumer-Owned Utilities  New Resources

10. 10 Tracking via WREGIS*  Background  Oregon RPS WREGIS  Anatomy of a REC ^ (* Western Renewable Energy Generation Information System) (^ Renewable Energy Certificate)

11. 11 WREGIS – Role  Serves generators, load serving entities, retail sellers, brokers, and others  Compliance (RPS) and Voluntary Markets www.wregis.org

12. 12 WREGIS – Governance  WECC Charter, December 2004  creates WREGIS Committee (WC)  semi-autonomous WECC Board Committee  “fair, credible, consistent with the public interest, and responsive to the needs of participants”  WC, seven members elected by stakeholder group

13. 13 Oregon REC Basics  RPS Compliance proved by REC tracking  1 MWh, qualified electricity => 1 REC  Bundled REC = REC w/ energy  Unbundled REC = REC w/o energy  Oregon RPS - Jan ‘07 banking start  No “use it or lose it” provision

14. 14 RPS - REC Geography Bundled = US WECC only Unbundled = entire WECC (ergo WREGIS) BPA renewable product – no site constraint Large IOU cap <20% each yr Large COU cap <50% (to 2020) ESS not capped NM CO WY MT AB AZ UT NE BC SD TX BJ (BC)

15. 15 WREGIS GU Statistics 2008 mileposts

16. 16 WREGIS GU Statistics 2008

17. 17 WREGIS GU Statistics 2008

18. 18 RPS vs Voluntary Green  Oregon Utilities need Oregon-certified, WREGIS-issued REC for RPS compliance  To Get an Oregon Qualified REC 1.Gen Owner or Rep become a WREGIS Account Holder 2.Register Generating Unit (GU) 3.Get GU Certified for Oregon 4.Report Generation (MWh)  Oregon Utilities need WREGIS-issued REC for Voluntary Green Power Program

19. 19 GU Options & Issues  Small GU (< 360 kW) can self-report  Options to Aggregate  Larger GU needs a QRE *  Current vs Prior Period Issue  Retro-REC Creation (Jan ‘07 to Oct ‘08) (* Qualified Reporting Entity)

20. 20 GU - WREGIS Fees < 30 kW < 1 MW < 10 MW > 10 MW Size

21. 21 Sample WREGIS REC * 1 st of 4 parts (* courtesy of PacifiCorp)

22. 22 Sample WREGIS REC * 2 nd of 4 parts (* courtesy of PacifiCorp)

23. 23 Sample WREGIS REC * 3 rd of 3 parts (* courtesy of PacifiCorp)

24. 24 Sample WREGIS REC * 4 th of 4 parts (* courtesy of PacifiCorp)

25. 25 Green Tag vs REC Options for Generators  California Consumer-Owned Utility custom RPS programs  Climate Trust  Chicago Climate Exchange (CCX)  Brokers (of Environmental Attributes) – several listed on WREGIS web

26. 26 (* PGE 2009 Integrated Resource Plan, June 12, 2008) PGE 2014 forecast * Estimated Retail load: 2,681 aMW 26

27. 27 Electricity Sources * State of Oregon Energy Plan 2007-2009 Oregon’s Electricity Resource Mix, 2005.* 2007 Use = 5,600 aMW 2025 est = 6,400 aMW

28. 28 PGE forecast, ’11 – ’08 * (* PGE 2009 IRP, August 21, 2008) No Banking

29. 29 PGE forecast, ’11 – ’08 * (* PGE 2009 IRP, August 21, 2008) REC Bank RPS Obligation save spend

30. 30 PGE forecast, ’11 – ’08 * (* PGE 2009 IRP, August 21, 2008) REC Bank RPS Obligation save spend Wall w/o Banking Wall w/ Banking

31. 31 PacifiCorp – ODOE est. Old is 1995 to 2007

32. 32 New Resources  Oregon Certified in WREGIS  Pacific Power  PGE  Renewable Northwest Project (www.rnp.org)

33. 33 OR Certified in WREGIS Total Capacity = 2,900 MW ~ 960 aMW * 2007 Oregon = 5,600 aMW * As of August 28, 2008

34. 34 PacifiCorp * * OPUC Update, June 10, 2008

35. 35 PGE * * OPUC Update, June 10, 2008

36. 36 Detours  Low-Impact Hydro  QRE (or not to QRE)  Retro-REC  Incremental Resources  Account Holder as of 1-1-09

37. 37 More Detours  Unique REC Claims  Pre-1995 Resources  Load Growth & Remote Resources = More Transmission  More Transmission = Time & Money

38. 38 Oregon RPS, WREGIS Info  More on the Oregon RPS (w/ links to OPUC): www.oregon-RPS.org  WREGIS: www.wregis.org  ODOE homepage: http://www.energy.state.or.us  Kip Pheil (ODOE): kip.pheil@state.or.us 503-378-4442  Lisa Schwartz (OPUC): lisa.c.schwartz@state.or.us 503-378-8718 a BTU of prevention is worth a kWh of cure. * * conversion factor and system efficiency not to scale