IRP in Vermont

1
IRP in Vermont

• Docket 7081
• Workshop Sept. 13, 2005

2
IRP in VT

• What are IRPs and How are they developed?
• DUP How does it impact VELCOs Transmission
  Planning
• How do Distribution Utilities use VELCO
  Transmission Planning?
• Alternatives to Transmission Analysis and
  Selection

3
What are IRPs and How are they developed?

• A plan for meeting electric energy needs over
  twenty years at lowest cost by combining
• Power supply (central distributed)
• Transmission and distribution
• End-use efficiency
• IRPs are developed separately by each utility
• Power supply is company-wide
• Transmission distribution is location specific
• End-use efficiency affecting each utility

4
Legal Basis for IRP

• Under 30 V.S.A. 218c. an IRP is a plan for
  meeting the publics need for energy services,
  after safety concerns are addressed, at the
  lowest present value life cycle cost, including
  environmental and economic costs, through a
  strategy combining investments and expenditures
  on energy supply, transmission and distribution
  capacity, transmission and distribution
  efficiency, and comprehensive energy efficiency
  programs.

5
Principal Criteria of Solution

• Societal cost
• Fuel
• Capital (construction financing)
• Environmental (Externalities)
• Stability
• Solution must be flexible
• Robust across scenarios
• Avoid rate shocks
• Financial viability
• Rates must maintain utilitys investment grade
  credit rating and access to capital markets

6
Scenario Development
7
Portfolio Development
8
Analysis of End-use Efficiency Potential
9
Ranking Portfolio Performance
10
TD Reliability Efficiency

• Comprehensive multi-year study of TD system
  efficiencies
• Prioritize all right-of-way clearing on areas
  with greatest need
• Monitor delivery system reliability indices
• Use line patrols and infrared scans to find and
  correct problems before they cause outages
• Address capacity constraints consistent with DUP
  planning guidelines
• Consider all feasible alternatives including
  joint facilities with neighboring utilities,
  on-site generation and DSM
• Consider environmental impacts, societal costs
  and other public concerns
• Work with VELCO in support of the Northwest
  Reliability Project

11
DUP How does it impact VELCOs Transmission
Planning

• Southern Loop as an example
• Local reliability issue post contingency with
  existing loads (CV DUP Docket 6805)
• Regional reliability problems S. Vt/SW NH
• RTEP S. Loop Monadnockpost-NRP
• Potential local capacity needs (CV DUP Docket
  6805)
• Future regional/state capacity needs (RTEP)
• All will be examined in CVPS DUP Docket 6805

12
How do Distribution Utilities use VELCO
Transmission Planning?

• DU Utility Planners work with VELCO continuously
  ( VUPG)
• VELCO considers DU power supply plans
• e.g.. 1987 VELCO Plan revised in 1992 after Phase
  I/II multi-terminal and NW VT cogen plans
  changed
• Transmission projects and Power Supply interact
  for least-cost solution, e.g., Northern Loop/ VJO
  delivery

13
Alternatives to Transmission Analysis and
Selection

• DUP analysis looks at least-cost societal NPV to
  compare solutions does not differentiate
  between public and private benefits/costs
• Risk of complex implementation plans and
  reliability of long-run performance are factors
• ISO-NE adopted transparent planning to allow
  entry by merchant G/T/DR providers
• Viable financing plans are critical Vt may add
  alternatives without regional cost support