E Energy 101 101 A Presentation to the A Presentation to the House Energy and Environment Committee Environment Committee Lisa Schwartz, Director, ODOE J Jason Eisdorfer, Utility Program Director, OPUC Ei d f Utilit P Di t OPUC 2013
Oregon Energy Usage Oregon Energy Usage I ntroduction 2
I ntroduction • Energy is a significant economic driver in Energy is a significant economic driver in both Oregon and the United States. • Oregonians spend about $6.5 billion on Oregonians spend about $6 5 billion on energy annually, not including transportation. • About 40% of electricity consumed in Oregon is produced in-state and most of that is from renewable sources, mainly hydropower. bl i l h d 3
Electricity – Oregon Resource Mix Source: ODOE 4
Electricity Types of Electric Utilities (2011 OPUC statistics) • Investor-Owned Utilities – 68 3% of Oregon sales Investor Owned Utilities 68.3% of Oregon sales • Three regulated by OPUC: PGE, PacifiCorp, Idaho Power • 73.8% of electric customers 73.8% of electric customers • Consumer-Owned Utilities – 29.4% of Oregon sales • 19 Cooperatives – 10.5% of customers 19 Cooperatives 10.5% of customers • 12 Municipals – 9.7% of customers • 6 Peoples Utility Districts – 6.0% of customers p y • Consumer-owned utilities are governed by their own boards. • Electricity service suppliers – 2.3% of Oregon sales y pp g • Nonresidential consumers of PGE and PacifiCorp may elect to buy electricity from alternative providers. 5
Physical Electric Plant 6
Electricity – Regional Players Bonneville Power Administration (BPA) Bonneville Power Administration (BPA) The Bonneville Power Administration is a Power Marketing Administration, an arm of the U.S. Department of Energy. Markets energy from federal dams on the Columbia River system, • equal to about one-quarter of the region’s firm energy, and the Columbia Generating Station nuclear plant. Owns and operates about three-quarters of the regional • transmission system. Funds fish and wildlife mitigation projects to reduce the Federal Funds fish and wildlife mitigation projects to reduce the Federal • • Columbia River Power System's impacts on fish and wildlife. Operates core energy efficiency programs for its consumer-owned • utility customers utility customers. 7
Electricity – Regional Players Bonneville Power Administration BPA provides cost-based rates and maintains public and • regional preference in its marketing of power. BPA sets its rates as low as possible consistent with sound business rates as low as possible consistent with sound business principles and the full recovery of all of its costs, including timely repayment of the federal investment in the system. Consumer-owned utilities receive lowest cost Tier 1 rates • from BPA. Investor owned utilities participate in a Residential Exchange Investor-owned utilities participate in a Residential Exchange • Program created to provide residential and small farm customers of Pacific Northwest utilities a form of access to lo low-cost Federal power. cost Fede al po e 8
Electricity – Regional Players NW Power Planning and Conservation Council • Interstate compact with two members from each I t t t t ith t b f h state: Oregon, Washington, Idaho and Montana • NW Power Act directs the Council to develop: NW P A t di t th C il t d l • A 20-year regional plan to assure the Northwest an adequate efficient and economical power supply adequate, efficient, and economical power supply • A plan to mitigate the effects of the dams on the Columbia River system y • BPA resources must be developed consistent with the Council’s power plan. p p 9
Electricity – 6 th Power Plan Power Plan components • 20-year demand forecast • Conservation supply curves (availability, cost) Conservation supply curves (availability, cost) • Electricity price forecasts • Generating resource alternatives (availability, G ti lt ti ( il bilit cost) • Action Plan 10
6 th Power Plan Results 6,000 RPS Hydro 5,000 y (MW a) RPS Solar 4,000 RPS ed Energy Geothermal RPS Biomass 3,000 RPS Wind RPS Wi d Dispatch 2,000 Conservation 1,000 1,000 Committed Wind 0 2007 07 2009 09 2011 1 2013 3 2015 5 2017 7 2019 9 2021 21 2023 23 2025 25 11
Electricity – Regional Players • NW Energy Efficiency Alliance NW Energy Efficiency Alliance • Regional nonprofit investing in market- transforming energy efficiency initiatives and transforming energy efficiency initiatives and emerging technologies • Funded by BPA (on behalf of consumer-owned y ( utilities), Energy Trust (on behalf of Oregon investor-owned utilities) and other regional utilities tiliti • Energy-saving initiatives such as heat pumps, street lighting irrigation and industrial street lighting, irrigation and industrial refrigeration 12
Energy Stakeholders – Examples • Citizens’ Utility Board • Industrial Consumers of Northwest Utilities • Northwest Industrial Gas Users • Northwest Intermountain Power Producers • Renewable Northwest Project • Renewable Northwest Project • Northwest Energy Coalition • Northwest Energy Efficiency Council • Labor 13
Electricity • Usage • A typical household in Oregon uses about 1 000 • A typical household in Oregon uses about 1,000 kilowatt hours (kWh) of electricity per month. • Costs in Oregon are lower than the national averages. Costs in Oregon are lower than the national averages. Electricity Oregon U.S Average Timeframe Residential 10.04 cents/kWh 12.03 cents/kWh Oct. 2012 Commercial 8.43 cents/kWh 10.11 cents/kWh Oct. 2012 Industrial 5.79 cents/kWh 6.65 cents/kWh Oct. 2012 • Sources • Investor owned utilities have different resource mixes • Investor-owned utilities have different resource mixes than consumer-owned utilities, which receive most of their power from the federal (BPA) system. 14
Electricity Portland General Electric 2010 PacifiCorp 2010 Electricity Electricity Resource Mix Resource Mix Renewable Renewable Hydroelectric (Beyond (Beyond 10% Hydro) Hydro) Hydroelectric 7% 8% 31% Natural Gas 16% Other Natural Gas 1% 27% Nuclear 0.15% Other 0.25% Nuclear 0.32% Coal Coal 65% 35% Source: ODOE 15
Electricity Consumer Owned Utilities 2010 EWEB 2010 Electricity Resource Mix Electricity Resource Mix Renewable Renewable N t Natural Gas l G R Renewable bl Natural Gas (Beyond 3% (Beyond 3% Hydro) Hydro) Other 4% 0.22% Other 1% Nuclear 5% 3% Nuclear Nuclear 12% Coal 4% Coal 7% Hydroelectric Hydroelectric 77% 81% Source: ODOE 16
Electricity 12.00 2011 Residential Revenue per kWh 20 Largest Electric Utilities 10.00 8.00 Cents per kWh 6.00 4.00 2.00 0 00 0.00 17
Electricity • I nvestor Owned Utilities (2011 statistics) I nvestor Owned Utilities (2011 statistics) • Portland General Electric • 823,171 customers, 39.2% sales in Oregon 823 171 customers 39 2% sales in Oregon • PacifiCorp (Pacific Power) • 558,721 customers, 27.8% sales in Oregon l • Idaho Power • 18,385 customers, 1.4% sales in Oregon 18
Electricity 12.00 10.00 8 00 8.00 s per kWh 6.00 Cents 4.00 2.00 0.00 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Portland General Electric Portland General Electric PacifiCorp PacifiCorp Idaho Power Company Idaho Power Company 19
Electricity Two methods of meeting electricity needs: • Supply side • Supply side • Generation and power purchase agreements • Demand side • Demand side • Energy efficiency and demand response 20
Energy Planning I ntegrated Resource Planning I ntegrated Resource Planning OPUC requires investor-owned utilities to file plans regularly to: regularly to: Evaluate resources on a consistent and comparable basis; 1. Consider risk and uncertainty; 2. Make the primary goal of the process the selection of a portfolio of 3. resources with the best combination of expected costs and associated risks and uncertainties for the utility and its customers; y ; and Create an action plan that is consistent with the long-run public 4. interest as expressed in Oregon and federal energy policies interest as expressed in Oregon and federal energy policies 21
Electricity Example: PGE Needs 4,000 3,500 Annual Average Retail Load _ a 3,000 MW age Availability M 2,500 1,393 MWa 873 MWa 2,000 Long-term Contracts Annual Avera Wind - Biglow 1-3, Klondike II, Vansycle 1,500 Hydro - PGE owned, MID-C contracts 1,000 Natural Gas - Port Westward, Coyote, Beaver (as an i t intermediate resource) di t ) 500 Coal - Colstrip Coal - Boardman 0 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 An average megawatt (MWa) is 8,760 megawatt-hours – the continual output of a resource with 1 megawatt of capacity over a full year. 22
Electricity Resource Curve and Cost Uncertainty 300 250 Whiskers indicate High and Low cost range Coal Conservation 200 200 Gas 2006$/MWh Renewables Nuclear 150 2 100 50 50 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 , , , , , , , , 0 2 4 6 2 4 6 8 1 1 1 1 MWa 23
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