The Energy We Live By™ The Energy We Live By™ Platte River Power Authority Resource Planning Community Listening Sessions May 2013 1
The Energy We Live By™ Outline of Presentation • Platte River History • System Overview & Resource Mix • Energy Efficiency Programs • Rate Comparisons • Planning Activities – Past & Future 2 2
The Energy We Live By™ PLATTE RIVER HISTORY 3 3
The Energy We Live By™ Platte River Power Authority History • Not-for-profit joint action agency • Generates and delivers reliable, low-cost, and environmentally responsible electricity to its owner communities — Estes Park, Fort Collins, Longmont and Loveland • Formed in 1973 in response to a U.S. Bureau of Reclamation announcement that it would be unable to supply enough hydropower to meet cities’ future need 4 4
The Energy We Live By™ Current Board Members Platte River Board of Directors Estes Park Fort Collins Longmont Loveland Mayor Bill Pinkham Mayor Karen Weitkunat Mayor Dennis Coombs Mayor Cecil Gutierrez Mr. Reuben Bergsten Mr. Gerry Horak Mr. Tom Roiniotis Mr. Steve Adams Local Decision Making 5 5
The Energy We Live By™ Platte River Management Team Board of Directors General Counsel Joseph Wilson General Manager Jackie Sargent Environmental Financial Corporate Government & Planning & Operations Services/ Customer Service Services Services External Affairs Compliance Jason Frisbie John Bleem Dave Smalley Karin Hollohan Barb Ateshzar Deb Schaneman 6 6
The Energy We Live By™ Platte River Focus: Balance Reliability Environmental Stewardship Competitive Price Sustainability & Innovation 7 7
The Energy We Live By™ SYSTEM OVERVIEW AND RESOURCE MIX 8 8
The Energy We Live By™ Local Electric System Partnership Residential Small Business Generation Transmission Distribution Large Business Estes Park Platte River Power Authority • Sole Electricity Supplier Fort Collins • Joint Ownership / Equity Longmont • Local Governance Loveland Customers • Not for Profit 9 9
The Energy We Live By™ The Energy We Live By™ 10
The Energy We Live By™ Electric Load Growth Characteristics 140% 120% Summer Peak 100% Winter Peak 80% Energy 60% Population 40% 20% 0% 11 11
The Energy We Live By™ Resources: Coal 5 Rawhide Energy Station Craig Station (Yampa Project) • 100% Ownership • 18% Ownership (Units 1 and 2) • Maximum rating of 280 MW • Ownership rating of 155 MW • 25 miles North of Fort Collins • Located near Craig Colorado • Highest reliability • Very good reliability • Highest operating hours • High operating hours • Lowest operating cost • Low operating cost • Highest capital cost • High capital cost 12 12
The Energy We Live By™ NO x & SO 2 Emissions: U.S. Coal Units 60 50 lb / MWh 40 lb/MWh 30 Craig 1 & 2 20 Rawhide 10 Gas Units 0 Nearly 500 Individual Plants Environmental Protection Agency 13 13
The Energy We Live By™ CO 2 Emissions: U.S. Coal Units 3.5 Craig 2 Craig 1 3.0 Rawhide 2.5 lb / kWh lb/kWh 2.0 1.5 Gas Unit Rates 1.0 0.5 0.0 Nearly 500 Individual Plants Environmental Protection Agency 14 14
The Energy We Live By™ Mercury Removal Progress: Coal Houston Astrodome Analogy • 25.6 billion ping-pong balls would fill the Astrodome stadium. • Imagine 19 of the balls are gray (mercury) and the rest are white; that’s the concentration of mercury in the stack gases. • New equipment to remove 14 of mercury balls by 2018 (three- quarter reduction). 2018 emissions ~ 1/3 teaspoon per day 15 15
The Energy We Live By™ Resources: Natural Gas 5 Gas Combustion Turbines • Five separate units – 388 MW total (summer) • Located at Rawhide Energy Station • Low operating hours • Highest operating cost • Low capital cost 16 16
The Energy We Live By™ Renewable Resources: Hydropower • First Platte River resource (1970’s) • Amounts decreasing over time • Multiple generating units • “Loveland” and “Salt Lake” areas • Significant cost increases • Less flexible operations over time • Water availability risk • Firm supply at peak • Still relatively low cost 17 17
The Energy We Live By™ Renewable Sources: Wind Currently Reviewing Proposals for New Wind Sources National Renewable Energy Laboratory 18 18
The Energy We Live By™ Wind Generation at Time of Peak 100% Wind provides energy – but not firm peak capacity 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 19 19
The Energy We Live By™ Renewable Resources: Solar • Office complex solar system • Installed in 1986 – still running after 27 years • Supported CSU students and research projects over time • Charged fleet electric vehicles • Currently reduces headquarters campus loads System peak load typically occurs after maximum solar output Average output at time of peak ~ 12% Solar PV valuation study – Governor’s Energy Office 2011 20 20
The Energy We Live By™ Renewable Supply & Demand Forecast 300,000 250,000 New Source(s) Needed by 2015 200,000 Renewables (MWh) Forecast Based On: • Renewable Standard 150,000 • Municipal Policies • Voluntary Programs 100,000 Existing Renewable Sources (~ 3% of average supply – varies by Municipality) 50,000 0 21 21
The Energy We Live By™ Timing of Past Resource Additions 300 No new coal being considered 250 200 Hydro 150 Coal MW Gas 100 Wind 50 0 22 22
The Energy We Live By™ Overall Resource Mix: 2012 Maximum Output Energy Produced Hydro Wind Wind Rawhide Hydro LAP Rawhide Hydro Peaking LAP Peaking SLIP Hydro Units Units SLIP (Gas) (Gas) Craig Coal Craig Rawhide Coal Coal Rawhide Coal 23 23
The Energy We Live By™ Existing Resource Costs Simple Cycle Gas (Rawhide) Wind (Med Bow & Silver Sage) Hydro (LAP and SLIP) Coal (Rawhide and Craig) Resources are very different – 0 20 40 60 80 100 • Firm capacity available Cost ($/MWh) • Operating schedule 2012 average operating costs 24 24
The Energy We Live By™ Costs for New Resource Options Solar (PV) Biomass New resource options Hydropower are also very different Wind Combined Cycle Gas Existing Resources (average) 0 20 40 60 80 100 120 140 160 Cost ($/MWh) U.S. average – Energy Information Administration 2013 http://www.eia.gov/forecasts/aeo/er/pdf/electricity_generation.pdf 25 25
The Energy We Live By™ Fuel Cost Trends: Natural Gas 9.00 2012 Gas Cost: Platte River 8.00 $40.47 per MWh 7.00 (4 cents per kWh) 6.00 $/MCF 5.00 4.00 3.00 2.00 Hydraulic Fracturing 1.00 0.00 EIA U.S. wellhead gas prices – annual average price (dollars per 1,000 cubic feet) 26 26
The Energy We Live By™ Fuel Cost Trends: Coal 18.00 2012 Costs – Platte River: 16.00 • Rawhide – 1.2 cents per kWh Price 14.00 • Craig – 1.7 cents per kWh drop • Average coal ~ 1/3 the cost of gas 12.00 in 2013 $/Ton 10.00 8.00 International demand & 6.00 export infrastructure 4.00 expansions 2.00 0.00 EIA Sub-bituminous Coal – annual average (dollars per ton) 27 27
The Energy We Live By™ Resource Utilization 700 City Loads Surplus Sales: (2012) Sales to wholesale 600 market – lowers Municipal rates 500 Megawatts Surplus Sales Surplus Sales (from Coal) 400 Peaking & Purchases Craig 300 Rawhide 200 Hydro Western Wind 100 - Highest Load Lowest Load 550 1 1099 1648 2197 2746 3295 3844 4393 4942 5491 6040 6589 7138 7687 8236 28 28
The Energy We Live By™ Municipal Loads & Resource Balance 1,000 900 ~ 15% Planning Reserve in 2019 Projected Municipal Peak 800 Goal is 15% or greater 700 Rawhide Natural Gas Peaking (Five separate units) 600 MW 500 400 Rawhide Coal Unit 1 300 200 Craig Coal Units (1&2) 100 Hydropower (LAP + SLIP) 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 29 29
The Energy We Live By™ ENERGY EFFICIENCY (DEMAND SIDE) RESOURCES 30 30
The Energy We Live By™ Why Energy Efficiency (DSM)? • Relatively low cost resource – Low “cost of conserved energy” for sponsoring utilities – Good payback for participating customers – Causes higher rates (~1% higher for existing programs) • Environmental benefits – Reduced fossil fuel consumption – Reduced emissions (criteria pollutants & greenhouse gases) – Slows load growth / potential to delay the need for new generation • Economic support / keeps energy spending local – Participating customers spend $2.5 per $1 of program incentives – Since 2002: $12M rebates $30M in local efficiency investment – Revenue to local/regional providers of efficiency services Reduces load growth – usually does not eliminate it 31 31
The Energy We Live By™ Cash rebates & technical Electric assistance for energy efficient upgrades – Efficiency building envelope & HVAC Program or industrial equipment Cash rebates, technical assistance and referrals to experienced contractors for Lighten UP energy-efficient lighting retrofits Building Funding for building Tune-up retrocommissioning 32 32
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