IRP Workshop - CVPS February 12, 2007

Power Supply Issues HQ/VY Contracts Terminate Climate Change and CO2 Emissions Resource Portfolio Factors – Diversity – Renewable – Stable or Predictable Prices – Nuclear vs No Nuclear – Small / In-state vs Large Imports

Power Supply Initiatives Act 61 – Efficiency – SPEED – CHP – Public Involvement Process Vermont Generation Feasibility New England Market Changes (FCM) Distributed Utility Planning Renewable Portfolio Standards

2007 CVPS IRP Reiteration of the 2003 Decision Analysis Portfolio risk management Multi-Attribute Trade-off Analysis – Price (NPV and variability) – Resource Attributes ? Size Location CO2 (RGGI) Renewable IRP Analyses Can Inform the Public Involvement Process

GMP 2007 IRP Process Follow- up to 2003 Decision Analysis Scenario Evaluation of Six Resource Portfolios Decision Analysis to Refine Scenario Evaluations Stress testing Best Portfolios to support contingency planning Multi-Attributes Trade-off Analysis for Decision Making – Revenue Requirements (NPV and variability) – Other Portfolio Attributes Environmental Impacts Financial Impacts Resource Locations Fossil fuel dependency Resource Plan Flexibility IRP information needs will be used to inform the Public Involvement process

Multi-Attribute Demonstration Parameter InputPortfolio Mix Resource Cost- S Cost- U CO 2 CO 2 C& T Aesthe tic Mar ket Mark et / DSM CC / GT / DSM Generat ion Mix Renewa ble / DSM CCGT-NG GT-Oil CoalGas CoalGas-Seq CO Wind-Large Wind-Small Market Cap Market Energy DSM PV