Multi-State Process Discussion: Wyoming Corporations & Elections
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Multi-State Process Discussion
Wyoming Corporations, Elections & Political Subdivisions Committee
May 21, 2018
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PacifiCorp serves 6 states with
common
generation and transmission assets.
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Local distribution facilities are specific to
each state
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Allocation agreements are established
among the states to assign cost
responsibility for common facilities.
•
The most recent agreement is
known as the 2017 Protocol
•
Wyoming’s share is approximately
15%
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States are responsible for the cost they
impose on the system, whether it is
customer usage or state policies such
as renewable portfolio standards (RPS).
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15%
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Pacific Power States
Post-Realignment (2020)
Pre-realignment Generation
Resources
(States Share Proportionately)
Pacific Power States
Post-2029
Gas
Renewable
Coal
Replacement
resources
Rocky Mountain Power
States Post-Realignment
(2020)
Rocky Mountain Power
States Post-2029
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Q2/Q4 2018 – Negotiations with
all parties from 6 states
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Q1 2019 – Allocation agreement
filed with state commissions
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Q1/Q4 2019 – Review of filings
and hearings underway before
state commissions
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Q4 2019 – Commission rulings
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Jan. 1, 2020 – Agreement
effective
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Jan 2020 to Dec 2029 Transition
Period
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Coal plant investments uncertainty
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Valuation of coal plants to determine the state
trades
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Carbon risk impacts to valuation
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Location Marginal Pricing (Nodal Pricing Method)
for generation
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Changes to Integrated Resource Planning
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State load and resource balance / resource
adequacy test by state to prevent “leaning” or
free-riders
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Final reclamation responsibility
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Transmission gird impacts and ancillary services
issues
Wyoming is part of the Multi-State Process (MSP) managed by PacifiCorp, involving 5 states and 10 plants. The states have specific allocations and cost responsibilities, with Wyoming holding a 15% share. Diverging energy policies, coal plant investments, and transition periods post-2029 are key issues discussed among the states involved.
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Presentation Transcript
Multi-State Process Discussion Wyoming Corporations, Elections & Political Subdivisions Committee May 21, 2018
Multi-State Process (MSP) PacifiCorp serves 6 states with common generation and transmission assets. Local distribution facilities are specific to each state Allocation agreements are established among the states to assign cost responsibility for common facilities. The most recent agreement is known as the 2017 Protocol Wyoming s share is approximately 15% States are responsible for the cost they impose on the system, whether it is customer usage or state policies such as renewable portfolio standards (RPS).
Allocations and Cost Responsibilities State Allocations (MSP) Total Cost of Service California 2% Wyoming 15% Taxes OMAG Oregon 26% Idaho 6% Depreciation Return Washington 8% Wages Fuel Utah 43% $4.7b Wyoming $681m
Multi-State Process (MSP) 5 States 10 Plants 24 Units 5,923 MWs
Diverging State Energy Policies MSP Proposal Pacific Power States Post-2029 Pacific Power States Post-Realignment (2020) Pre-realignment Generation Resources (States Share Proportionately) Rocky Mountain Power States Post-Realignment (2020) Rocky Mountain Power States Post-2029 Coal Replacement resources Gas Renewable
Timeline and Major Issues Major Issues / Challenges Timeline Coal plant investments uncertainty Q2/Q4 2018 Negotiations with all parties from 6 states Valuation of coal plants to determine the state trades Q1 2019 Allocation agreement filed with state commissions Carbon risk impacts to valuation Q1/Q4 2019 Review of filings and hearings underway before state commissions Location Marginal Pricing (Nodal Pricing Method) for generation Changes to Integrated Resource Planning Q4 2019 Commission rulings State load and resource balance / resource adequacy test by state to prevent leaning or free-riders Jan. 1, 2020 Agreement effective Jan 2020 to Dec 2029 Transition Period Final reclamation responsibility Transmission gird impacts and ancillary services issues
