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Green Mountain Power CorporationMulti-Attribute Decision Making Workshop Document Integrated Resource Planning 2007 – Attributes used Today in Electric Resource Plans

La Capra Associates, Inc

February 12, 2007

Preliminary and Confidential: For Internal Discussion Only

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Attributes

Revenue Requirement related– Price– Rates– Risks– NPV Revenue Requirements

Non-Revenue Requirement related– Environmental– Reliability– Financial Feasibility– Community Impact – Etc.

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Options to Incorporate the Other Attributes

SecondaryOther attributes such as environmental impacts are subordinate to cost

attributes, acting only as tie breakers

MonetizationConverts Everything to an economic or cost basis during analysis phaseFactors all these into Societal NPVRisk 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

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Sampling of Attributes Employed in Decision Making

Attributes MethodApplication

State Use of Multi-Attribute Considerations

Monitization / ScorecardVT GMP IRP-2003 X X X X X X

CT CT DPUC Capacity Solicitation X X X X X X X X X

CO PUC rules, Xcel Energy IRP X X X X X X

DE Statute required, Delmarva IRP X X X X X X X X

FL PUC Rules require consideration X X X X X X X X

HI HECO IRP multi-attribute process X X X X X X X X X X

MN NSP Resource Plan X X X X X X

OK PSO RFP / Generation Plan X X X X Scorecard

Secondary

Secondary

Trade off ???

Monitized

Monitization / Scorecard

Scorecard ???

Secondary

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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