Wyoming Energy Summit Gillette, Wyoming May 8, 2019 Jonathan Weisgall Vice President, Government Relations Berkshire Hathaway Energy
Topics • Industry trends • Can Trump trump markets? • Regionalization update • Wildfires • Industry uncertainties 2
Industry trends
State-by-State Changes in Generation Mix
U.S. Electric Generation Sources 1949-2017
CO 2 Emissions Across U.S. Economy
CO 2 Emissions by Sector/Fuel Type
Electric Power Generation and Emissions
Electric Power Sector Generation and CO 2 Emissions 9
CO 2 Emissions — Electricity v. Transportation 10
Impact of Natural Gas on Emission Reductions 11
Limited Reach of Rooftop Solar (2017)
Can Trump trump markets?
Trump Administration Actions • Going after renewables? Or promoting fossil fuels? Or both? • Obama Clean Power Plan stayed by courts and then repealed • Proposed replacement (Affordable Clean Energy) weaker • Proposed withdrawal from the Paris Climate Accord • Proposed rulemaking to subsidize nuclear/coal • Proposed elimination of Obama fuel efficiency standards • 2017 tax bill: Proposed elimination of wind/solar credits • Proposed 65% and more cuts to DOE’s renewables budgets • Trump’s personal hostility to wind and solar 14
So Why Renewables? Other Drivers • Lower costs for renewable energy • Customers want renewables • Aggressive state and city policies • Federal tax credits (PTC/ITC) still in place • Hedge against fossil prices • Long-term assurance of stable prices
Corporate renewable deals 2014-2018
Regionalization update
North American Electric Power Grids
Regional Transmission Organizations 19
Western Interconnection Balancing Authorities 20
Western U.S.: 37 Fiefdoms RED M Beaumaris Castle, Wales
Initial EIM Footprint (PacifiCorp 2014, NV Energy 2015) 22
EIM 2016 • Nov. 1, 2014: PacifiCorp • Dec. 1, 2015: NV Energy • Oct. 1, 2016: Arizona Public Service, Puget Sound • Oct. 1, 2017: PGE • April 1, 2018: Idaho Power, Powerex • April 1, 2019: BANC (for SMUD portion of BA) • April 2020: Seattle City Light • Also in talks: • CENACE, Baja, California • LADWP • Salt River Project • Northwestern Energy
EIM 2019 24
CA renewable energy production 4.29.18
Duck Curve 2019: oversupply and ramping
Renewable Energy Curtailment 2014-2018
Wildfires
Wildfires and Climate Change August 6, 2018 August 6, 2018 29
California Wildfire Risk
California Wildfire Risk (cont’d)
California Wildfire Risk Drivers
Tubbs (2017) and Hanly (1964) fires
Uncertainties
Uncertainties • De-carbonization without tax credits • Cybersecurity threats • Integrating intermittent resources into the grid • Minimal growth but investment needs • Federal-state conflicts • Impact of PG&E bankruptcy • Utilities: monopolies or deregulated? 35
Uncertainties (cont’d) • Customer choice • Disaggregation • Becoming more customer-centric • Subsidize uneconomic power plants? • No direct price on carbon • Can free energy markets work? 36
1912 EV charging station
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