Puget Sound Energy (PSE) has submitted to Washington state regulators two preliminary solicitations for proposals to enhance the utility's energy-efficiency programs and increase its power supplies.
The two draft request for proposals (RFPs), both filed with the Washington Utilities and Transportation Commission (UTC), are part of the utility’s continuing efforts to meet the energy needs of a Western Washington service area predicted to add approximately one million residents over the next 20 years.
Kimberly Harris, executive vice president and chief resource officer of PSE, said: “The current economic slump has only temporarily softened the demand for energy.
“Long term, we expect population growth and economic growth to substantially increase our region’s energy requirements. And for PSE, the most cost-effective, environmentally responsible way to meet this need is with energy efficiency, renewable power, and clean-burning natural gas-fired generation.”
PSE said that regional growth, the expiration of purchased-power contracts in coming years and the potential retirement of aging PSE power plants are the principal drivers behind the utility’s need for additional power supplies.
PSE’s recently updated integrated resource plan estimates that the utility will need nearly 1,100MW of new electricity supply by winter 2016-17 to meet customers’ peak demand. That need grows to approximately 5,000MW by 2029.
The first of PSE’s two RFPs seeks to enhance the utility’s already programs for helping customers use less energy. The utility’s 2009 integrated resource plan estimates that energy-efficiency services to customers could save PSE more than 530 average-MWs of electricity over the next 20 years. Those savings would forestall the need to build four average-sized natural gas-fired power plants, the company said.
The updated resource plan also identifies 90 million therms of achievable natural-gas savings by PSE customers.
The draft energy-efficiency RFP filed will invite qualified firms to offer services that complement or improve upon PSE’s existing energy-saving programs involving rebates and grants to residential, commercial and industrial customers.
The RFP for new power supplies will ask outside power producers, marketers, and power-plant developers to help PSE procure approximately 1,000MW of new electricity resources by 2016.
While PSE anticipates energy efficiency, renewable power and gas-fired generation will be its sources of new power supply in coming years, the RFP will consider any viable power-supply offering or technology that can be in operation by 2016. PSE will consider various contract arrangements, such as investment in existing power plants, ownership of new plants, or long-term power purchases.
PSE has obtained more than 1,600MW of long-term power resources over the past four years. The acquisitions include PSE’s development of wind-power facilities in Central Washington (Wild Horse) and Southeast Washington (Hopkins Ridge), the purchase of three natural gas-fired power plants in the state (Goldendale, Sumas and Mint Farm), and a long-term hydropower-purchase contract with the Chelan County Public Utility District.
The public has 60 days to submit written comments to the UTC on the proposed RFPs. Following the public comment period and commission review, PSE plans to formally issue the RFPs early next year.