Strong Response for Oregon Utility RFP

PacifiCorp received bids for 5,600 MW of new renewable resources in its request for proposal for adding 1,100 megawatts of renewables in the next seven years.

Portland, Oregon – April 27, 2004 [] This is one of the largest such requests for renewables ever released by an investor-owned utility in the US, said the company. The company’s “Renewable Resource Request for Proposals,” or RFP 2003B, is a consequence of the utility’s integrated resource planning (IRP) process, a 10-year plan the company said is designed to ensure safe, reliable, low-cost energy for Pacific Power and Utah Power customers. PacifiCorp serves six western states as Pacific Power and Utah Power. “We received tremendous response to the renewables RFP, and that demonstrates to us there are many sophisticated bidders interested in delivering renewable resources to our customers.” said Stan Watters, senior vice president, PacifiCorp. “Building a diverse, low-cost and low-risk energy portfolio that includes renewables will allow us to meet demand and provide the best value for customers.” Proposals came from 42 bidders for 54 projects, most of which are new developments. In all, 85 percent of the proposed resources are from wind sources, and the remaining is split between geothermal and hydro. Bidders were required to submit pricing with and without extension of the federal production tax credit for wind resources. Proposed delivery points are spread across PacifiCorp’s six-state service area, with all resources located within the Western Electricity Coordinating Council, including areas outside PacifiCorp’s control area. Next steps in the RFP process include thorough review of the bids, verifying creditworthiness of top scorers and assembling a short list of proposal finalists. PacifiCorp expects it will announce the bid winners in late June. In the next 10 years, PacifiCorp’s IRP calls for bringing up to 1,400 MW of renewable generation into PacifiCorp’s resource portfolio. Projected load growth indicates a total need for about 4,000 additional MW of capacity between 2004 and 2013. This growth includes additional energy needs of current customers, requirements for new customers and potential increased requirements for supply reserves. PacifiCorp’s IRP provides a diversified resource approach incorporating both reduced energy use through demand-side management as well as new resources. New resources include renewables such as wind and thermal resources such as natural gas and coal. Together, these resources are expected to provide low-cost, low-risk and highly reliable sources of energy for customers while balancing social and environmental needs. The IRP examines expected load and resource balance over the next 20 years and proposes an action plan for acquiring resources within the coming five years. It is re-examined every two years. “The renewable RFP demonstrates an extension of the company’s growing use of renewable resources,” Watters said. “For example, we are pleased to have played a key role in bringing the new 41-megawatt Eurus Combine Hills wind farm online last December in Oregon. We’re also proud of our wind power purchases in Wyoming, as well as our customers’ support of wind energy through our voluntary Blue Sky program.” Last month, the American Wind Energy Association (AWEA) awarded PacifiCorp its 2004 Utility Leadership Award at its world-wide conference in Chicago.
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