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[California Energy Commission Letterhead]
 

In the Matter of: )      Docket No. 06-IEP-1D
  )                     06-IEP-1M
Preparation of the )       
2007 Integrated Energy Policy Report )      NOTICE OF COMMITTEE
(2007 IEPR) )      WORKSHOP
_________________________________________ )       


Notice of Committee Workshop on
California's Electricity and Gas System Analyses


View Workshop Documents

The California Energy Commission (Energy Commission) Integrated Energy Policy Report (IEPR) Committee will conduct a workshop to describe the analyses of various electricity and gas system scenarios as part of the 2007 Integrated Energy Policy Report proceeding. Chairman Jackalyne Pfannenstiel is the Presiding Member of the IEPR Committee. Commissioner John L. Geesman is the Associate Member. Other Commissioners may attend and participate in the workshop.

The workshop will be held:

THURSDAY, AUGUST 16, 2007
9 a.m.


CALIFORNIA ENERGY COMMISSION
1516 Ninth Street
First Floor, Hearing Room A
Sacramento, California
(Wheelchair Accessible)

Note: Audio from this hearing will be broadcast over the Internet.
For details on listening in, please go to: www.energy.ca.gov/webcast/

Parties unable to attend this IEPR Committee workshop will be able to comment by conference call.

The conference call information is:
USA Toll Free Number: (800) 857-6618 after 9:00 a.m.
Pass code: IEPR Leader: LORRAINE WHITE

Purpose

This workshop will discuss the results of analyses of the electricity and gas system under various scenarios, associated changes to greenhouse gas (GHG) emissions, the current status of the staff's revised natural gas reference case for supply, demand, price, infrastructure issues, and alternatives, and how the Energy Commission should use these as part of the 2007 IEPR proceeding.

Newly Available Elements From Staff's Scenario Project

Staff expects to publish additional documentation of analyses made as part of the Scenario Project. Two specific elements were not available by June 8 when the original documentation was posted to the 2007 IEPR website: (1) implications of retirement and replacement of aging power plants on expected system performance measures, and (2) impacts on natural gas market clearing prices of lower consumption of natural gas as a power generation fuel as predicted by analysis of scenarios involving high penetrations of energy efficiency measures and renewable generating technologies on a West-wide basis. A combination of staff and contractor documentation is forthcoming.

The aging power plant retirement and replacement assessment examines one or more approaches to implementation of the aging power plant retirement and repowering policy adopted in the 2005 IEPR. There are important implications of this policy on transmission owners, the California Independent System Operator, generation owners, and the load serving entities purchasing the output of these facilities. This workshop provides an opportunity for the 2007 IEPR Committee to determine whether progress is being made on the Energy Commission's policy, and to identify any issues associated with this determination.

Examining the impacts on market clearing natural gas prices that result from lower consumption of natural gas for power generation, increased energy efficiency and renewable generation, reviewed in the Scenario Project, may assist in quantifying one of the benefits of these preferred resources compared to resource plans relying more on conventional generating technologies. This workshop provides an opportunity for parties to comment on the results that have been documented, and whether they should be used in examining the costs and benefits of these resources as a means to achieve the GHG reduction goals established for California by Assembly Bill 32.

Revised Natural Gas Market Assessment

Following the June 7 workshop on the preliminary natural gas reference case, parties provided comments which staff has reviewed and determined whether, and if so, how to respond. A revised natural gas reference case has been prepared and the results are described in the Revised Natural Gas Market Assessment report. A portion of the workshop agenda will be devoted to staff's presentation of revised results, and parties will be encouraged to make comments concerning the impacts of the changes made by staff.

The staff's Revised Natural Gas Market Assessment will be posted at: www.energy.ca.gov/2007_energypolicy/documents/index.html under the Workshop & Meetings subheading.

Background

As required by Senate Bill 1389 (Stats. 2002, Ch. 568), the Energy Commission conducts "assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices." The Energy Commission uses these assessments and forecasts to develop energy policies that conserve resources, protect the environment, ensure energy reliability, enhance the state's economy, and protect public health and safety. The Energy Commission adopts the IEPR in odd-numbered years and in even-numbered years adopts an energy review to update analyses from the previous IEPR or to raise energy issues that have emerged since the previous proceeding. (Pub. Resources Codes 25301(a) and 25302(d)).

On March 26, 2007, Energy Commission staff conducted a public workshop to discuss a different approach to the natural gas analysis staff was planning to use in the 2007 natural gas market assessment. In addition, staff requested comments to the inputs, assumptions, and issues staff proposed for use in its reference case. Staff received feedback from workshop participants as well as written comments from four entities. After a discussion with the Energy Commission's Natural Gas and IEPR Committees, staff incorporated some of the inputs from the workshop. A reference case natural gas forecast was published on May 31, 2007 and a public workshop conducted on June 7, 2007. Based on comments at the workshop and from written comments that were received, staff is issuing a revised reference case forecast for consideration by the IEPR Committee in preparing the 2007 IEPR.

On June 18 and July 9, staff conducted workshops on elements of its scenario project that were available for publication. Two specific topics were not ready for discussion at these two workshops: (1) implications of retirement and replacement of aging power plants on expected system performance measures, and (2) impacts on natural gas market clearing prices of lower consumption of natural gas as a power generation fuel as predicted by scenarios involving high penetrations of energy efficiency measures and renewable generating technologies on a West-wide basis. Staff and contractor reports addressing these two topics are now posted on the Energy Commission website.

The IEPR Committee is interested in these two analysis strengths and how they might integrate for purposes of the 2007 IEPR. A workshop incorporating both provides an opportunity for parties to comment on this anticipated integration.

Workshop Participation and Comments

The IEPR Committee requests participation of interested parties in this workshop and proceeding and encourages them to present their views either orally at the workshop or through written comments. The IEPR Committee will take general comment from the public immediately following the workshop presentations.

Parties should provide comments both orally at the workshop and in writing. Written comments are requested by 5 p.m. on Monday, August 13, 2007. Comments submitted before the workshop will be used to facilitate the discussion. You can also submit comments after the workshop by 5 p.m. on Friday, August 31, 2007. For comments on Scenario Analyses and Aging Power Plants include docket No. 06-IEP-1M. For comments on the staff's Revised Natural Gas Market Assessment report, include the docket number No. 06-IEP-1D. For both, indicate August 16, 2007 Committee Workshop in the subject line or first paragraph of your comments. The Energy Commission encourages comments by e-mail. Please include your name or organization in the name of the file. Those submitting comments by electronic mail should provide them in either Microsoft Word format or as a Portable Document File (PDF) to docket@energy.state.ca..

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

California Energy Commission
Dockets Office, MS-4
Re: Docket No. 06-IEP-1D (Natural Gas)
Docket No. 06-IEP-1M (Scenario Project/Aging Power Plants)
1516 Ninth Street
Sacramento, CA 95814-5512

Participants may also provide original and 12 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.

Additional Information

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

The service list for the 2007 Integrated Energy Policy Report is handled electronically. Notices and documents for these proceedings are posted to the Energy Commission website http://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 http://www.energy.ca.gov/listservers/index.html.

Questions regarding the 2007 Integrated Energy Policy Report proceeding should be directed to Lorraine White, IEPR program manager, at (916) 654-4075 or by e-mail at lwhite@energy.state.ca.. For technical questions on scenario and aging power plant analyses, please contact Michael Jaske by phone at (916) 654-4777, or by email at mjaske@energy.state.ca.. For Natural Gas Market Assessment report questions, please contact Ruben Tavares by phone at (916) 654-5171, or by e-mail at rtavares@energy.state.ca.

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..

Date: August 6, 2007

commissioner signature
JACKALYNE PFANNENSTIEL
Commissioner and Presiding Member
Integrated Energy Policy Committee
commissioner signature
JOHN L. GEESMAN
Commissioner and Associate Member
Integrated Energy Policy Committee

Date Posted: August 6, 2007

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

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