1. Northwest Power and Conservation Council Action Plan Summary

2. Northwest Power and Conservation Council Major Categories of Action Conservation Generating Resources Ensuring Adequacy Demand Response Smart Grid Transmission Bonneville Monitoring Implementation Analytical Capability Fish and Power

3. Northwest Power and Conservation Council Conservation Action Plan Summary 1.Acquire Cost- Effective Savings Identified 2.Ongoing Adaptive Management 3.Research Development & Confirmation

4. Northwest Power and Conservation Council Acquire Cost-effective Savings Identified (Utilities, BPA, SBCs, NEEA, States) Near-term savings targets (#1) –1200 MWa over five years & sufficient funding –Develop plans for new initiatives (#2) Market transformation not in NEEA plans (#3) –More MT than NEEA budget & strategic plan Improve building codes & compliance (#4) Support improved federal standards (#4) Enhancements (#5 - #11) –Regulatory, RTF, BPA backstop, avoided cost, IRP

5. Northwest Power and Conservation Council Adaptive Management (Utilities, BPA, ETO, NEEA, States) Develop mechanisms to identify high- priority actions across the region (#12) –High-level forum –Periodic review & recommendations (NEET) RTF-related (#13 - #16) –Review RTF from NEET –Systematic comparison of savings –Improve planning tracking reporting –Improve measurement & evaluation

6. Northwest Power and Conservation Council Research Development & Confirmation (All) Demonstration activity (#17) –Measure cost & savings –Programmatic approaches Delivery mechanisms, implementation strategies, infrastructure needs Market & technical research (#18) –New measure markets & technical –Load shape & capacity impacts Regulatory recovery (#19)

7. Northwest Power and Conservation Council Generating resource actions Acquire cost-effective generating resources when needed 1)Acquisition guidelines for energy, capacity or ancillary service needs 2)Facilitate development of smaller-scale low-carbon resources Ensure adequate system flexibility 3)Reduce demand for system flexibility 4)Expand access to existing system flexibility 5)Assess regional adequacy of system flexibility 6)Assess flexibility augmentation options

8. Northwest Power and Conservation Council Generating resource actions Expand menu of low-carbon resources 7)Commercialize and confirm promising low-carbon resources 8)Review resource development incentives & mandates 9)Support efforts to develop CO2 sequestration options 10)Monitor development of other resources and technologies Support planning and decision-making 11)Conduct resource assessment 12)Plan for optimal development of the power system 13)Develop long-term synthetic hourly wind dataset

9. Northwest Power and Conservation Council Ensuring Adequacy Provide annual adequacy assessments Review resource and load data Review methodology and thresholds Share information with other regions, especially WECC

10. Northwest Power and Conservation Council Demand Response Monitoring experience Develop pilot programs Assess potential as flexibility resource

11. Northwest Power and Conservation Council Smart Grid Monitor development Develop demonstration programs Assess potential applications

12. Northwest Power and Conservation Council Transmission Participate in WECC activities and assessment –Wind integration –Resource adequacy –Transmission planning and expansion Track transmission expansion proposals and consider impact on the region Assess transmission needs for wind development

13. Northwest Power and Conservation Council Bonneville – Summary Implementation of Council Plan and Program –Support regional scale conservation initiatives, facilitate utility efforts –Aggressively pursue institutional and business practice solutions to balancing needs –Take a broad look at possible sources of capacity and flexibility, if they are needed to meet its obligations Complete regional dialogue contract implementation Adjust for court rulings, if necessary seek legislative solution Administrator’s discretion on DSI service: obtain reserves

14. Northwest Power and Conservation Council Bonneville Actions – 1 Implement the Council’s Power Plan Meet Conservation goals –Targets: Ensure publics have incentives, support and flexibility to pursue appropriate conservation acquisition; fund conservation as Tier 1 obligation –Require reporting and verification –Offer flexible and workable programs, including backstop role for BPA –Support (fund and implement) regional activities, e.g., NEEA, RTF, NEET

15. Northwest Power and Conservation Council Bonneville Actions – 2 Capacity and flexibility –Aggressively pursue institutional and business practice solutions to balancing needs –Take a broad look at possible sources of capacity and flexibility, if they are needed to meet its obligations If customers place load on BPA, financial risk of acquisitions should be placed on them Preserve benefits of the FBS for the region Meet its fish and wildlife obligations

16. Northwest Power and Conservation Council Bonneville Actions – 3 Implement policy choices made in tiered rates, signing long-term contracts and revising residential exchange program in ways allowing achievement of identified goals Revise policy choices if necessary due to Ninth Circuit action, with regional input Exercise discretion in considering DSI service, ensuring that Act’s required reserves are provided and focusing on potential for cost- effective ancillary service provision

17. Northwest Power and Conservation Council Bonneville Actions – 4 If policies for tiered rates, residential exchange (including ASC), long-term contracts, and related matters are struck down by Ninth Circuit, initiate regional efforts to revise or seek legislative solution if necessary to achieve policy goals of those efforts.

18. Northwest Power and Conservation Council Monitoring Ongoing monitoring of plan implementation Monitoring conditions and assumptions for significant changes Biennial Monitoring Report Perform analysis as needed to assess the effects of changing conditions, data, or policies on the Power Plan

19. Northwest Power and Conservation Council Enhancing Regional Data Capabilities Work with NEEA, RTF and utilities to gather end-use consumption data Improve consumption data availability for the irrigation and industrial sectors Improve access to hourly load data from balancing authorities Work with NEEA, RTF and utilities to identify and fill regional “data holes” identified through NEET and other processes:

20. Northwest Power and Conservation Council Analytical Capability Maintain and enhance forecasting and planning models –Expand the capabilities of the load forecasting system –Refine the Regional Portfolio Model and increase tools for interpreting and analyzing the results –Update the Aurora model of Western electricity markets –Enhance the Genesys model of the PNW power system and test new approaches Develop a methodology to better assess hydroelectric sustained peaking capability

21. Northwest Power and Conservation Council Fish and Power Facilitate a process for long-term integrated fish and power planning discussions Develop contingency plans Maintain and enhance analytical capability Monitor status of Columbia River Treaty Keep abreast of climate change science

22. Northwest Power and Conservation Council Additions & Replacements

23. Northwest Power and Conservation Council Bonneville Bonneville should implement the policy decisions it has made in the areas of tiered rates, the long-term contracts, the Residential Exchange Program, including the Average System Cost Methodology, and other areas as yet unresolved, such as service to the DSIs. Bonneville should work with region if these decisions are overturned by the Ninth Circuit. If Bonneville acquires resources to serve, for example, its Tier 1 loads, Tier 2 loads, and perhaps the DSIs, those resources should be consistent with the Council’s power plan. –Aggressively pursue institutional and business practice solutions to balancing needs –Take a broad look at possible sources of capacity and flexibility, if they are needed to meet its obligations Bonneville should implement its commitment to acquire all cost-effective conservation. Bonneville should implement the Council’s fish and wildlife program.

24. Northwest Power and Conservation Council Enhancing Regional Data Capabilities Work with NEEA, RTF and utilities to gather end-use consumption data: –A common survey and data gathering instrument –Develop the requirements for a data clearinghouse –Develop the data gathering cycles for each sector/measure –A coordinated data gathering implementation plan for 2010-2015

25. Northwest Power and Conservation Council Maintain and Improving Analytical Capability Improve consumption data availability for the irrigation and industrial sectors Improve access to hourly load data from balancing authorities Work with NEEA, RTF and utilities to identify and fill regional “data holes” identified through NEET and other processes: –End-use hourly load shapes –Energy use for ICE end-uses –Panel Data for residential and small commercial, especially elder care facilities. Develop a methodology to better assess hydroelectric sustained peaking capability