Green Power Balances out Portfolio

Puget Sound Energy released for public comment a draft least-cost plan that details the utility’s strategy for meeting its customers’ growing energy needs with a balanced portfolio featuring energy efficiency, renewable resources and efficient thermal-power generation.

Bellevue, Washington – May 5, 2003 [] The utility already began to implement its renewable component. PSE recently signed a near-term agreement with PPM Energy to receive power from Stateline Wind Farm in Walla Walla, Washington. The agreement will provide PSE’s portfolio with 68,000 MW hours of Renewable Energy for a year. “We are committed to making Renewable Energy an important part of our balanced power-supply portfolio and Stateline gives us a great opportunity to gain experience with this type of generation,” said Eric Markell, senior vice president of energy resources at PSE. “Renewable resources are becoming more economically viable sources of energy as the technology continues to improve.” PSE has set a goal to meet a minimum 5 percent of customers’ energy-supply needs with renewable resources by 2013. The commitment to Renewable Energy is a key part of PSE’s plan, especially with some of the company’s existing purchased-power contracts already expiring. PSE soon will face a power-supply deficit of 300 average MW, enough to serve 300,000 homes. If this deficit is not addressed, PSE would be forced to rely more heavily on unpredictable wholesale markets for power to serve its customers. “A utility and its customers can win or lose with too much or too little generating capacity, depending on what happens in the highly volatile wholesale energy market,” said Steve Reynolds, president and chief executive officer of PSE. “Our draft least-cost strategy is designed to provide customers low cost and low risk by meeting their needs through a balanced portfolio of energy efficiency and supply resources.” PSE’s plan, which will be submitted for review by the Washington Utilities and Transportation Commission (WUTC) at the end of April, also focuses on energy-efficiency savings and a diversified mix of additional new power resources to serve its customers’ future needs. The utility is targeting a minimum of 150 aMW in energy-efficiency savings over 10 years, enough energy to power 150,000 homes. PSE also plans to achieve 21 million therms in natural-gas savings over the same period of time, enough to serve 22,000 homes. Furthermore, PSE is exploring additional energy-efficiency targets beyond the aforementioned goals. “Energy efficiency is an essential component of our least-cost plan,” said Cal Shirley, director of energy efficiency at PSE. “It is a cost-effective method of acquiring power to serve our customers and it is good for the environment. These are the key reasons Puget Sound Energy recently doubled its commitment to energy efficiency with a US$20 million annual investment. However, energy efficiency is just one of several strategies needed to address the growing demand of our customer base.” PSE plans to meet its remaining resource requirements through a diversified mix of additional new energy supplies. The supply mix might include energy from purchased-power agreements, the purchase or development of new generating facilities and/or joint development of new generation facilities with others.
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