1. White Paper – Least Cost Electricity Procurement
Proposed Scope of Work
Review 2006 law in the context of overall RI electricity law and regulation.
Define elements of Least Cost Procurement (LCP) and related aspects of the law; develop outline to identify issues for Stakeholders.
Participate in Stakeholder meeting (February 2007) to discuss issues and to elicit Stakeholder instructions to develop principles and recommendations on LCP implementation.
Draft a “white paper” describing key issues that have to be addressed in order to implement LCP. Identify options where appropriate.
Circulate white paper to obtain comments from Stakeholders; revise draft if required.
Attend Stakeholder meeting in April 2007 to explain the white paper and discuss suggestions for further refinements.
Prepare final document.
| ©2006 Synapse Energy Economics Inc. All rights reserved.

2. White Paper – Least Cost Electricity Procurement
Draft Outline
Introduction and Background
Choosing the Least Cost plan
Identifying “system reliability and energy efficiency” resources
Procuring Supply resources
Related issues (optional additional task)
| ©2006 Synapse Energy Economics Inc. All rights reserved.

3. White Paper – Least Cost Electricity Procurement
Draft Outline
Choosing the Least Cost plan
Planning and procurement time horizon
Metrics for cost-effective,reliable, prudent, and
environmentally responsible.
Metric or guideline for “optimally cost-effective, reliable, prudent and environmentally responsible
| ©2006 Synapse Energy Economics Inc. All rights reserved.

4. White Paper – Least Cost Electricity Procurement
Draft Outline
Identifying “system reliability and energy efficiency” resources
define “system reliability”
define “diverse sources”;
energy efficiency resources, including attributes such as “prudent", "reliable" and "lower cost than acquisition of additional supply" ;
distributed generation resources, including attributes such as “reliable", "cost-effective" and "net system benefits " ;
demand response resources,
combined heat and power resources; and
renewable resources.
| ©2006 Synapse Energy Economics Inc. All rights reserved.

5. White Paper – Least Cost Electricity Procurement
Draft Outline
Procuring Supply resources
Acquisition approaches
Pricing options
Term lengths (contract durations)
| ©2006 Synapse Energy Economics Inc. All rights reserved.

6. White Paper – Least Cost Electricity Procurement
Draft Outline
Related issues (optional additional task)
Interaction with existing programs (e.g. SBC, RPS, RGGI)
Transition from existing standard offer service
| ©2006 Synapse Energy Economics Inc. All rights reserved.