1010-S AMH MORR DYLA 034

SHB 1010 - H AMD

By Representative Morris

   On page 2, line 36, strike all of section 3 and insert the following:

   "NEW SECTION. Sec. 3. (1) Except as otherwise provided under this section, each electric utility must develop an integrated resource plan, by July 31, 2006, consistent with the provisions of this section. Such a plan must be updated, at minimum, in 2009, 2014, and 2019, and, at a minimum, must include:

   (a) A range of forecasts of future customer demand using methods that examine the effect of economic forces on the consumption of electricity and that address changes in the number, type, and efficiency of electrical end-uses;

   (b) An assessment of technically feasible improvements in the efficient generation, transmission, distribution, and use of electricity, including load management and fuel switching, as well as currently employed and new policies and programs needed to obtain the efficiency improvements;

   (c) An assessment of technically feasible generating technologies including but not limited to renewable resources, cogeneration, power purchases, and thermal resources;

   (d) An evaluation comparing the cost-effectiveness of generating resources with the cost-effectiveness of improvements in the efficient use of electricity;

   (e) The integration of the demand forecasts and resource evaluations into a long-range integrated resource plan describing the mix of resources and efficiency measures that will meet current and future needs at:

   (i) The lowest reasonable cost, including but not limited to, all direct costs of a project or resource over its effective life and quantifiable environmental costs and benefits directly attributable to the project or resource; and

   (ii) The lowest reasonable risk, including but not limited to, an assessment of risk associated with fuel price, fuel availability, hedging, and future environmental regulations, to the utility and its ratepayers;

   (f) A short-term plan outlining the specific actions to be taken by the utility consistent with the long-range integrated resource plan; and

   (g) For all plans subsequent to the initial integrated resource plan, a progress report that relates the new plan to the previous plan.

   (2) Electric utilities that have less than twenty-five thousand customers may develop an integrated resource plan that includes, at a minimum, only the following:

   (a) The mix of resources and efficiency measures that the utility intends to use and acquire to meet current needs and future needs for five, ten, and fifteen years at:

   (i) The lowest reasonable cost, including all direct costs of a project or resource; and

   (ii) The lowest reasonable risk, including an identification of economic or financial risk and risk associated with fuel price, fuel availability, hedging, and future environmental regulations, to the utility and its ratepayers; and

   (b) Analysis demonstrating how the electric utility determined the resources.

   (3) The requirements of this section do not apply to:

   (a) A consumer-owned utility that purchases all of its power under a contract with a federal power marketing agency; or

   (b) A consumer-owned utility that has less than a total of three percent load growth during the three years prior to the year of a required integrated resource plan."

EFFECT: Revises the substitute bill so that utilities that purchase all power from a contract with a federal power marketing agency are exempt from developing an integrated resource plan. Utilities with less than three percent load growth over the three years prior to the year of a required integrated resource plan are also exempt. Utilities with less than 25,000 customers are required to create modified integrated resource plans with fewer elements than a full integrated resource plan.