1. PacifiCorp Informational Update Presented to the Utah Geothermal Power Generation Workshop by Ernie Wessman PacifiCorp VP, Resource Development & Construction August 2005

2. IRP Implementation Update Utah SB-26 Overview

3. Utah Senate Bill 26 Background –High growth, transmission constraints –Need for significant new resources –Multiple potential suppliers PacifiCorp procurement decisions –Currant Creek and Lake Side: best cost/risk balance –Perception of self-build/own bias –Debt imputation not well understood –Concerns raised with legislators

4. Utah SB 26 Legislative History Grew out of concerted effort during legislative interim Enacted 2/25/05 after unanimous House and Senate approval Immediate effective date Passed after bills stalled in 2003 and 2004 Broad range of collaborators

5. Utah SB 26 Content Defines “significant energy resource” –10 year/100 MW minimums –Any resource transaction with an affiliate Requires significant energy resources to be procured through PSC-approved solicitation process –Exemptions limited to: Emergencies Valuable time-limited commercial or technical opportunity Other public-interest reasons

6. Utah SB 26 Content PSC to establish rules to frame solicitations: –Criteria for screening potential bidders –Methodology for evaluating competing bids –Level of information to be disclosed to bidders –Participation and role of independent evaluator –Multi-state issues

7. Utah SB 26 Content 10-phase Process 1.Utility completes IRP/Action plan 2.Utility submits proposed RFP solicitation process a. Utility may seek exemption 3.PSC approves/modifies RFP solicitation process 4.Utility conducts solicitation 5.PSC hires independent evaluator 6.Utility submits resource selection and cost to PSC for review 7.PSC reviews resource selection and approves/rejects 8.Utility proceeds with procurement a. Utility may seek mid-course review of decision by PSC 9.Resource becomes part of utility portfolio 10.PSC orders recovery of actual costs up to pre-approved level a. Costs above authorization w/o mid-course review are subject to PSC review b. Costs above authorization w/mid course review are fully recoverable

8. Utah SB 26 Expected Outcomes Up front agreement on conduct of solicitations Transparent bidding process Independent review of process compliance Transparent basis for evaluation/selection of resources More stakeholder confidence in utility decisions Greater certainty of cost recovery Potential to improve rating agency confidence

9. Thank You