KEN PAYNE RI SENATE POLICY OFFICE LEAST COST PROCUREMENT CREATING OPPORTUNITY
LEAST COST PROCUREMENT “ COMPREHENSIVE ENERGY CONSERVATION, EFFICIENCY AND AFFORDABILITY ACT OF 2006 ” • Builds on URA of 1996 • Reconfigures institutional architecture • Respects diversity of interests • Treats efficiency economically • Facilitates development of renewables • Provides low-income energy assistance
LEAST COST PROCUREMENT CREATING OPPORTUNITY • RESPECTING CONTEXT (REGIONAL AND NATIONAL) • VALUING DIVERSITY (ENERGY RESOURCES) • LEVELING PLAYING FIELD (GENERATION/EFFICIENCY) • EMBRACING FLEXIBILITY (CONDITIONS CHANGE)
LEAST COST PROCUREMENT D I VERSITY L C E O N T F X OPPORTUNITY I B E I X L T I FAIRNESS T Y
LEAST COST PROCUREMENT EQUAL CONSIDERATION FROM SUBSIDY MODEL URA: Demand Side Management surcharge Fund cost effective investment TO ECONOMIC MODEL LCP: Efficiency and Conservation Measures: 1) prudent, 2) reliable and 3) lower cost than acquisition of supply
LEAST COST PROCUREMENT TRANSITION DSM 2013 2006 2020 2008 LEAST COST PROCUREMENT
LEAST COST PROCUREMENT BASIC PRINCIPLE: PRICE x USE = COST EFFICIENT USE SYSTEM BENEFITS USER BENEFITS
LEAST COST PROCUREMENT “ THE COMPREHENSIVE ENERGY CONSERVATION, EFFICIENCY AND AFFORDABILITY ACT OF 2006 ” Kenneth F. Payne, Director RI Senate Policy Office 145 State House Providence, RI 02903 (401) 276 -5552 [email protected] state. ri. us