PacifiCorp plans to cut its coal reliance with wind, gas plants

Portland, Maine (Platts)--9Apr2009

PacifiCorp plans to significantly cut its reliance on coal-fired
generation by adding about 2,180 MW of renewable and natural gas-fired
generation over the next nine years, according to a draft plan it filed with
the Utah Public Service Commission late Wednesday.

Portland, Oregon-based PacifiCorp expects to add 1,400 MW of renewable
capacity -- mainly wind -- by 2018. Wind additions will range from 50 MW to
243 MW a year. The company plans to add about 830 MW in gas-fired resources
and 780 MW in various demand-side management resources by 2018. It also
expects to buy 1,400 MW through short-term purchases and 200 MW through
long-term contracts.

Under the proposed resource plan, the MidAmerican Energy Holdings unit
expects coal to make up 58% of its energy mix this year, falling to about 40%
by 2018. PacifiCorp owns about 6,018 MW of coal-fired capacity.

The utility may retire some coal units early depending on future CO2
regulation, the filing said. In developing its plan, PacifiCorp assumed CO2
emissions would cost $45/ton to $100/ton.

By 2018, PacifiCorp needs to add about 2,400 MW in its eastern service
territory, where it forecasts load will grow at a rate of 2.7%/year through
2018. The company expects to add 900 MW in its western area, where load is
growing at an annual rate of 1.6%.

In recent months, PacifiCorp lowered its demand growth rate, reflecting
the economic slowdown. The change in forecast reduced the need for expected
power purchases and delayed some gas-fired generation. PacifiCorp plans to
file its final resource plan on May 29.