1. Utilities’ Perspectives on the NWPCC 6 th Power Plan June 11, 2009 Whitefish, MT Introduction to Utility Panel Scott Corwin, Public Power Council

2. 2 Utility View of 6 th Power Plan Plan is more important than ever before  Guides some BPA actions  Planning new resources – used in various venues  Planning for conservation  Tie to I-937 in Washington Utilities have load and resource expertise to share. Linkage: Planners and Implementers Per January 2008 Issues Comments: want to ensure the Plan is relevant to the duty to serve customers needs.

3. 3 6 th Power Plan Process Getting it right is more important than speed; please take the time necessary. Lots more public/Council interaction needed before Draft is released Complex Modeling and Policy Choices  Decisions must make sense apart from modeling results; sound judgment will lead to sensible and achievable plan  Collaborations with BPA on other complex topics might provide models for moving forward.

4. 4 Sample Issue: Carbon Cost Treatment Outcome of carbon debate is uncertain, even with policy known, prices assumptions will vary. Inclusion of carbon cost as random variable in base case leads to carbon driven Plan Instead remove carbon cost from base model and treat as a sensitivity in the analysis.  Study various levels of cost separately  Make reasoned/realistic resource choices in Plan

5. 5 Issues of Concern Conservation achievement rates Capacity adequacy System ability to integrate and deliver renewable resources Planned surplus power in modeling Lower Snake Dam Scenarios  Example on communications

6. Public Outreach and Communication Clarify context and use of the Plan State scenarios in plain language Take the time you need, engage utilities We stand ready to help Next up -- two Power Point Presentations by:  Dick Adams, PNUCC, on utility resource planning.  Bill Gaines of Tacoma Power, and Craig Smith of Snohomish PUD, on specific elements of the plan from utility managers’ perspective. 6