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[California Energy Commission Letterhead]

In the Matter of: )      Docket No. 06-IEP-1K
Preparation of the )       
2007 Intregrated Energy policy Report )      WORKSHOP
(2007 IEPR) )        
_________________________________________ )       

Notice of IEPR Committee Workshop on the
Cost of Electricity Generation

View Workshop Documents

The California Energy Commission's (Energy Commission) Integrated Energy Policy Report (IEPR) Committee (the Committee) will conduct a workshop to receive public comments on the staff Levelized Cost of Generation Model (Model) and Draft Staff Report Comparative Costs of California Central Station Electricity Generation Technologies. Chairman Jackalyne Pfannenstiel is the Presiding Member, and Commissioner John L. Geesman is the Associate Member of the Committee. Other Commissioners may attend and participate in the workshop. The workshop will be held:

TUESDAY, JUNE 12, 2007
9 a.m.
1516 Ninth Street
First Floor, Hearing Room A
Sacramento, California
(Wheelchair Accessible)

Note: This meeting will be broadcast over the Internet. For details on how to participate
via WebEx or to view the Webcast, please see the instructions (PDF 2 pgs. 96 kb).


This workshop will review the staff work to develop a consistent set of generation cost estimates as described in the Draft Staff Report that will be posted on the Energy Commission website. The Cost of Generation Project includes three development phases: modify the Model that was developed for the 2003 IEPR to correct errors, add new analytical features, and include a easy documentation for all potential users; update engineering and financial cost information Model inputs; and validate the cost estimates that would be used as a building block for resource planning studies. The Cost of Generation project includes electricity generated from a variety of generation technologies including conventional sources, renewables, clean coal, and nuclear.

The goal of the staff project is to have a single set of the most current levelized costs that would be used for all energy program studies at the Energy Commission and other state agencies. These levelized costs are useful for evaluating the financial feasibility of a generation technology and comparing the costs between different technologies. Since most studies involving new generation require an assessment of costs, accurate and readily available cost of generation estimates are essential for any resource planning study.

To develop an accurate and relevant set of generation cost estimates, the Committee seeks comments and the participation of the state's major utilities, conventional and renewable generation developers, and other interested parties in this process.


The 2003 IEPR Cost of Generation estimates were produced using a cost of generation model that was developed by the Energy Commission staff and consultants. Cost of generation estimates were not developed for 2005 IEPR since the staff Model was undergoing extensive revisions. The updated Model has been formatted to a more transparent structure using drop down windows. The Model also has new features to provide screening and sensitivity curves. In addition, it has been formatted to provide wholesale electricity prices. The financial and engineering characterizations for inputs to the Model have been completely updated. The fossil-fueled technology information was updated based on a data request for as-built and as-operating costs of 34 facilities that were built in California since 2001. The alternative technology characterizations are based on a combination of actual costs and a survey of industry experts.

The staff also improved the documentation and now provides a comprehensive User's Guide to facilitate the use of the Model. Both the Model and the User's Guide will be made available upon request.

Written Comments

Written comments must be submitted by 5 p.m. on June 22, 2007. Comments submitted before the workshop will be used to facilitate the discussion. Please include the docket number No. 06-IEP-1K and indicate 2007 IEPR COST OF GENERATION in the subject line or first paragraph of your comments. The Energy Commission encourages comments by electronic mail (e-mail). Please include your name or organization in the name of the file. Those submitting comments by e-mail should provide them in either Microsoft Word format or as a Portable Document File (PDF) to docket@energy.state.ca.us.

In addition to electronic filing, one original paper copy must also be hand-delivered or mailed to:

California Energy Commission
Dockets Office, MS-4
Re: Docket No. 06-IEP-1K
1516 Ninth Street
Sacramento, CA 95814-5512

Workshop participants may also provide an original paper copy and 20 copies at the beginning of the workshop. Workshop participants may also provide an original and 10 copies at the beginning of the workshop. All written materials relating to this workshop will be filed with the Dockets Unit and become part of the public record in this proceeding.

Public Participation

The Energy Commission's Public Adviser provides the public assistance in participating in Energy Commission activities. If you want information on how to participate in this forum, please contact the Public Adviser's Office by phone at (916) 654-4489 or toll free at (800) 822-6228, by FAX at (916) 654-4493, or by e-mail at pao@energy.state.ca.us. If you have a disability and require assistance to participate, please contact Lou Quiroz at (916) 654-5146 at least five days in advance.

Questions regarding the 2007 IEPR proceeding should be directed to Lorraine White, IEPR program manager, at (916) 654-4075 or by email at lwhite@energy.state.ca.us. For technical questions regarding this workshop, please contact Anitha Rednam at (916) 653-8236, or by e-mail at arednam@energy.state.ca.us, or Joel Klein at 654-4822, or by e-mail at jklein@energy.state.ca.us. Please direct all news media inquiries to Claudia Chandler, Assistant Executive Director, at (916) 654-4989, or by e-mail at mediaoffice@energy.state.ca.us.

To participate in this meeting through the Energy Commission's WebEx on-line meeting service, parties must first register in advance. Required information includes name, valid email address, and company name (type in N/A if representing self.) See attachment for a description of, and instructions for, WebEx participation.

For parties who choose not to register via WebEx, or who want to view the workshop presentations and hear the audio but do not wish to provide input, the workshop will be broadcast over the Internet. For details, please go to: http://www.energy.ca.gov/webcast/

The service list for the 2007 IEPR is handled electronically. Notices and documents for these proceedings are posted to the Energy Commission website at: www.energy.ca.gov/2007_energypolicy/. When new information is posted, an e-mail will be sent to those on the energy policy e-mail list server. We encourage those who are interested in receiving these notices to sign up for the list server through the website www.energy.ca.gov/listservers/.

commissioner signature
Chairman and Presiding Member
Integrated Energy Policy Report Committee
commissioner signature
Commissioner and Associate Member
Integrated Energy Policy Report
Electricity Committee

Date Posted: May 25, 2007

Note: California Energy Commission's formal name is State Energy Resources Conservation and Development Commission.

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