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IRP in Vermont

IRP in Vermont. Docket 7081 Workshop Sept. 13, 2005. IRP in VT. What are IRP’s and How are they developed? DUP – How does it impact VELCO’s Transmission Planning How do Distribution Utilities use VELCO Transmission Planning? Alternatives to Transmission – Analysis and Selection.

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IRP in Vermont

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  1. IRP in Vermont Docket 7081 Workshop Sept. 13, 2005

  2. IRP in VT • What are IRP’s and How are they developed? • DUP – How does it impact VELCO’s Transmission Planning • How do Distribution Utilities use VELCO Transmission Planning? • Alternatives to Transmission – Analysis and Selection

  3. What are IRP’s 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 public’s 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 utility’s 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. T&D Reliability & Efficiency • Comprehensive multi-year study of T&D 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 VELCO’s 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; Monadnock;post-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

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