Salt Lake County Electrical Plan Task Force October Douglas N. Bennion, P.E. Vice President Rocky Mountain Power

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1 Salt Lake County Electrical Plan Task Force October 2009 Douglas N. Bennion, P.E. Vice President Rocky Mountain Power 1

2 Rocky Mountain Power s Bright History In 1881, Salt Lake City became the fifth city in the world to have central station electricity, behind only London, New York City, San Francisco and Cleveland. Utah Power & Light, as the company was first known, was formed in 1912 from several small electric companies in Utah, Idaho and western Colorado 2

3 Early Growth in the Region Purchased L.L. Nunn s Telluride Power Co. in 1912, including facilities in Utah, Idaho and Colorado. From , purchased three other large power companies in Utah and Idaho. Over the next ten years, acquired additional electric utilities, mostly small enterprises. By 1922, the company operated forty generating plants with an installed capacity of 224,000 kilowatts. 3

4 Expansion of Electrical System Only 30 percent of American industry was run by electricity in 1912; up to 70 percent by Residential electric service took hold more slowly, with many rural areas still without electric utility service into the 1930s. UP&L continued to expand its service area and acquire new generation resources from the 1920s through the 1960s. Began work in 1959 on a major transmission line to bring power generated at Arizona s Glen Canyon Dam to Utah customers. From 1960s through early 1980s, constructed new coal-fueled power plants in Utah and Wyoming. Number of customers increased from 282,000 in 1968 to 500,000 in

5 PacifiCorp - Today PacifiCorp was formed in PacifiCorp merged with Utah Power & Light in PacifiCorp was acquired by Scottish Power in PacifiCorp was acquired by MidAmerican Energy Holdings Company in

6 PacifiCorp Business Units Rocky Mountain Power delivers electricity to customers in Utah, Wyoming and Idaho. Pacific Power delivers electricity to customers in Oregon, Washington and California. PacifiCorp Energy includes the company s electric generation, commercial and energy trading functions and coal-mining operations. 6

7 Rocky Mountain Power RMP Customers Rural Urban 1,000, , ,000 Revenue $2.0b Rural Urban $1.0b $1.0b Employees* 3,750 Territory 110,000 square miles *Includes PacifiCorp Energy employees 7

8 UTAH Customers by County Box Elder 11,860 (1.5%) Davis 77,481 (10.1%) Tooele 19,236 (2.5%) Juab 1,434 (0.2%) Millard 3,700 (0.5%) Cache 19,595 (2.6%) Salt Lake (47.9%) Utah 72,596 (9.5%) Sanpete 4,108 (0.5%) Sevier 7,815 (1.0%) Rich 3,355 (0.4%) Weber 88,211 (11.5%) Morgan 1,936 (0.3%) Summit 25,797 (3.4%) Wasatch 2,512 (0.3%) Duchesne 36 Carbon 4,908 (0.6%) Emery 4,914 (0.6%) Daggett Uintah 9,906 (1.3%) Grand 5,642 (0.7%) ~770,000 Customers Population today ~ 2.6 million Population 2030 ~ 3.4 million 34% increase statewide Beaver 2,510 (0.3%) Piute 890 (0.1%) Wayne Iron 18,639 (2.4%) Garfield 1,448 (0.2%) San Juan 2,152 (0.3%) Source: Revenue Report RVN308 December 2007 Washington 9,769 (1.3%) Kane 8

9 Utah Enjoys Low Electric Prices 9

10 Load (MW) Electric Generation Demand is Increasing 4,500 Wasatch Front Monthly Peak Demand History WF distribution load (w/o industrials) Expected peak load forecast = 3% Base load growth = 1.7% 4,000 3,500 3,000 2,500 2,000 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 10

11 GWh Megawatts Customers Increasing Energy Demands The need connecting new generation resources to meet everincreasing customer electricity demand at the lowest possible cost. Energy Demand Generation Deficit 70,000 60,000 1, ,000 40,000 30, ,000-1,500-2,000 20,000 10, ,500-3,000-3, UT OR WY WA ID CA 11

12 The Challenge 12

13 Generation Resources Managing customer power costs in the face of growing load and peak demand. Increasing environmental compliance costs Emerging legislative mandates focused on renewable energy and climate change mitigation. Not In My Back Yard opposition to nearly all of our infrastructure investments. 13

14 As seen by the Customer Customer Right to receive safe, adequate and reliable service Reasonable prices without discrimination Freedom from monopolistic exploitation 14

15 As seen by the Utility Utility Obligation to serve all customers Prices set by regulators Prudent operating expenses passed on to customers Monopoly service territory Reasonable opportunity not a guarantee to earn a fair and reasonable return on its investments that serve customers 15

16 Siting Our High Voltage Transmission Expansion Segment H 2014 $842M Segment A 2010 $130M Segment E 2012 $604M Segment D 2012 $247M Segment B 2010 $531M Segment C 2012 $428M Segment F 2013 $314M Segment G 2012 $469M To Bring Generation Resources to Load Centers A $6+ Billion Project 16

17 There are Four Primary Elements of an Electrical System Generation Transmission Distribution Delivery 17

18 Basic Transmission & Distribution System How it All Fits Together Generation Plant Local Area Transmission Lines Distribution Substation Stepdown Transformer Main Grid Transmission Lines Transmission Substation Stepdown Transformer Generator Step-up Transformer Distribution Lines Distribution Transformer Delivery 18

19 Where to place these necessary electrical assets to serve our home and businesses? 19

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