Slide 33 of 33
Notes:
The bottom line of this study is we think the Northwest needs to start some serious discussions about how it can assure an adequate power supply during this transitional period in the industry.
The supply side is an important component of these discussions. Does the region need to take steps to support the development of generation for reliability purposes and, if so, how, at what cost and with what effects on the market?
Given the proximity of the potential problems and possibly for reasons of economy, the demand side needs to be addressed as well. Many believe that as end-users see market prices directly, they will reduce their demand in response to high prices sufficiently to avoid problems. Industrial and large commercial customers are most likely to see market prices and may be most able to respond to price signals with significant load reductions.
However, how long will it take for market prices to work their way through to most end-users and to see how end users respond? In the near term, we may have to examine other ways for the demand side to participate in achieving load-resource balance. There are a variety of approaches one could envision. They need to be reliable -- the load reduction needs to occur when needed, they should be voluntary, and they should make economic sense for the participants.
