Transcript LaCapraGMPIRP2007MultiAttributeWorkshop.ppt

Preliminary and Confidential:
For Internal Discussion Only
Green Mountain Power Corporation
Multi-Attribute Decision Making Workshop Document
Integrated Resource Planning 2007 – Attributes used Today in Electric Resource Plans
La Capra Associates, Inc
February 12, 2007 1
Attributes
Revenue Requirement related
– Price
– Rates
– Risks
– NPV Revenue Requirements
Non-Revenue Requirement related
– Environmental
– Reliability
– Financial Feasibility
– Community Impact
– Etc.
2
Options to Incorporate the Other Attributes

Secondary
Other attributes such as environmental impacts are subordinate to cost
attributes, acting only as tie breakers

Monetization
Converts Everything to an economic or cost basis during analysis phase
Factors all these into Societal NPV
Risk Profiles

Scorecard Systems
Assigns points to each attribute and their level of results, trade-offs
effected decided early in analysis
Points could be based on absolute attribute values or relative values to other
options being considered
Total Points used to make decision

Trade-off Analysis
Explicit numerical values not assigned to attributes
Results of all attributes considered for implicit and explicit trade-offs at
time of decision as opposed to time of analysis
3
Sampling of Attributes Employed in Decision Making
X
X
X
CT
CT DPUC Capacity Solicitation
X
X
X
X
X
X
CO
PUC rules, Xcel Energy IRP
X
X
X
X
X
DE
Statute required, Delmarva IRP
X
X
X
X
X
FL
PUC Rules require consideration
X
X
X
X
X
HI
HECO IRP multi-attribute process
X
X
X
X
X
MN
NSP Resource Plan
X
X
X
X
OK
PSO RFP / Generation Plan
X
X
X
X
/W
ion
ate
s)
rU
Co
se
mm
un
ity
/C
RP
ult
S
ura
l Im
pa
cts
X
X
(Em
iss
rsi
GMP IRP-2003
Method
La
nd
VT
Fin
Use of Multi-Attribute Considerations
X
tal
ive
En
vi r
on
me
n
u ri
ty
/D
ility
yS
ec
ea
sib
En
erg
an
cia
lF
g.,
Co
st
State
Co
st
(e.
ty
Attributes
NP
VR
R)
(O
the
r) /
Co
Ec
st
on
Ris
om
k/
ics
Un
ce
Re
rta
liab
int
ility
y
Application
X
X
Monitization / Scorecard
X
Scorecard ???
X
Secondary
X
X
Secondary
X
X
X
Secondary
X
X
X
Trade off ???
X
Monitized
X
X
X
X
Scorecard
4
Observations

Use of multiple attributes is more common than the
commoditization of electricity would imply

Trade-offs are made somewhere in decision making or decision
support process (analysis)

Trade-offs most visible if incorporated during the decision
process
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