1. Guidance for Utility Adequacy Assessments Steering Committee Meeting January 29, 2010

2. Resource Adequacy Steering Committee Meeting 2 Outline Arguments For Utility Guidance Arguments Against Utility Guidance Current Regional Adequacy Standard Potential methodology to provide guidance

3. January 29, 2010Resource Adequacy Steering Committee Meeting 3 Arguments For Utility Guidance Could help make utility planning more consistent throughout the region Would make utility planning consistent with the Council’s power plan Would help utilities with smaller long-term resource planning budgets

4. January 29, 2010Resource Adequacy Steering Committee Meeting 4 Arguments Against Utility Guidance Could be perceived as infringing on the jurisdiction of individual utilities Would be very difficult to develop a precise tool Could be misused as a surrogate for a long- term planning process

5. January 29, 2010Resource Adequacy Steering Committee Meeting 5 Current Regional Adequacy Standard Measures Energy: Annual average generating capability must equal annual average load –Includes an amount of non-firm resources derived from an LOLP analysis Capacity: Sustained-peak generating capability must equal sustained-peak load plus a reserve margin –Sustained-peak generation includes some non-firm resources –Reserve margin is derived from an LOLP analysis that includes some non-firm resources

6. January 29, 2010Resource Adequacy Steering Committee Meeting 6 Possible Approach for Utility Energy Measure Annual generating capability = annual load Amount of non-firm generation to include is a function of total non-firm available to the utility plus other factors This function has not yet been defined

7. January 29, 2010Resource Adequacy Steering Committee Meeting 7 Possible Approach for Utility Capacity Measure Sustained-peak generating capability = sustained- peak load plus a reserve margin Sustained-peak generation includes some non-firm generation, which is a function of total non-firm available to the utility plus other factors The reserve margin is a function of the total non- firm available to the utility plus other factors This function has not yet been defined