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SPP, Wind, and Transmission Expansion

SPP, Wind, and Transmission Expansion. Oklahoma Clean Energy Independence Commission February 25, 2010 Les Dillahunty, Senior Vice President, Engineering and Regulatory Policy. Introduction. Our Beginning. Founded 1941 with 11 members

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SPP, Wind, and Transmission Expansion

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  1. SPP, Wind, and Transmission Expansion Oklahoma Clean Energy Independence CommissionFebruary 25, 2010 Les Dillahunty, Senior Vice President, Engineering and Regulatory Policy

  2. Introduction

  3. Our Beginning • Founded 1941 with 11 members • Utilities pooled resources to keep Arkansas aluminum plant powered for critical defense • Maintained after WWII for reliability and coordination

  4. 3 Interconnections / 8 NERC Regions

  5. Operating Region • 370,000 square miles service territory • 50,575 miles transmission lines: • 69 kV – 16,182 miles115 kV – 10,041 miles138 kV – 9,284 miles161 kV – 4,469 miles230 kV – 3,831 miles345 kV – 6,662 miles500 kV – 106 miles 6

  6. Members in nine states:

  7. 56 SPP Members

  8. Quick Statistics • 66,175 megawatts capacity resources • 847 plants – 6,079 substations 9

  9. Wind Integration and Transmission Expansion

  10. 2009 Wind In Service: 2001 Source: NREL

  11. Wind Installed by Year (2002-2009) Source: SPP

  12. Renewable Energy Standards By State Source: SPP 14

  13. w/ HVDC Proposals

  14. Generation Interconnection Requests 17

  15. Generation Interconnection Clusters and Major Cities 18

  16. 164’ 151’ 92’ 328’ 262’ 164’ 88’ 103’ 116’ 133’ 138’ Made by JT 50m Wind Turbine 100m Wind Turbine 80m Wind Turbine 765 kV-AC 500 kV-DC 800 kV-DC 500 kV-AC 345 kV-AC To Scale Height Comparison Produced by Midwest ISO

  17. Correlation Between Wind and Load

  18. Wind Status in Oklahoma Installed Wind • 865 MW installed through 3Q 2009 • 3% wind generation in 2008 • Ranks 12th total wind installation Online Manufacturing Source: AWEA, NREL

  19. Oklahoma Weatherford Wind Energy Center • $300,000 in annual lease payments to landowners • $17 million in property taxes over 20 years • 147 MW • 150 workers during construction peak; 6 full-time O&M positions Source: NREL

  20. Oklahoma CPV – OU Spirit project • Annual allocations from addition of 2.3 MW Siemens turbines • $1,057,000 in new tax dollars for two school districts • CareerTech allocation from county revenue will increase by $227,000 • County general funds will increase by $190,000 –will assist with building new jail • EMS services will receive $57,000 increase • County Heal services will receive $20,000 increase Source: Woodward County Assessor

  21. Oklahoma, Wind, and Economic Development • Economic benefit of 1,000 MW = $1.25 billion • 5,530 construction jobs, 215 permanent jobs • Average wages in component manufacturing industry = $40,709 - 15% higher than average state wage • Strong correlation between Western OK counties that have lost population in recent decades with counties that have significant wind resources • In many cases, land suited for wind development has lower per-acre returns for agricultural use • Sooner Survey of 600 registered voters: • 72% of Oklahomans willing to pay more for wind-generated electricity • 91% approve of further development of wind farms Source: NREL; Cole, Hargrave Snodgrass, and Associates; Oklahoma Department of Commerce

  22. Component Manufacturing-Oklahoma, Kansas • Bergey WindPower (Oklahoma) • Employs 42, manufactures one turbine per day • DMI Industries (Oklahoma) • Employs 215 • Siemens (Kansas) • Broke ground September 2009 • Will invest $50 million in new facility • Expected to employ 400 workers by 2012 @ >$16/hour • Planned annual output = 650 nacelles Sources: NREL, Wichita Eagle

  23. Arkansas Becoming Manufacturing Hub • LM Glasfiber • Employs 300 workers @ $12-$15/hour • Invested $95 million in Little Rock • Mitsubishi Power Systems • Announced October 2009 • $100 million plant will bring 400 jobs in 2011 • Nordex • Sept 2009 - Broke ground on $100 million plant • Expected to employ 700 by 2014 • Emergya Wind Technologies/Polymarin • Plans to invest $16 M and create 830 jobs @ $15/hour Installed Wind Existing Manufacturing Announced manufacturing Sources: NREL, AR Economic Dev. Commission, Nordex, Arkansas Business

  24. SPP is Building Transmission

  25. Transmission Expansion - Costs

  26. Transmission Expansion - Miles

  27. Draft EHV Overlay 30

  28. Priority Projects Group 2

  29. Quantitative Benefits • Study quantified NPV benefits of $1.5 billion over 40 years • B/C Ratio of 0.74

  30. Qualitative Benefits 33

  31. Examples of Other Transmission Benefits • Fuel Diversity • Market Liquidity Improvements • Ability to Idle High Cost/Environmental Impact Resources • Energy Capacity and Ancillary Market Facilitation • Storm Hardening • Increased Competition • Extreme Reliability Event Mitigation (n-1) and (n-2) Weather & Wind • Ability to Serve New Load • Capacity Factor Improvement of Wind Resources • Reserve Margin Reduction • Export and Import Improvement • Improved Operational Efficiencies

  32. Larger Transmission Reduces Right of Way

  33. Cost Allocation

  34. RSC and CAWG 37

  35. Highway/Byway Cost Allocation

  36. Current and Future Markets

  37. What kind of markets does SPP have now? Transmission: Participants buy and sell use of regional transmission lines that are owned by different parties 2009 transmission market transactions = $486 million Energy Imbalance Service (EIS): Participants buy and sell wholesale electricity in real-time Market uses least expensive energy from regional resources to serve demand (load) first SPP monitors resource/load balance to ensure system reliability 2009 wholesale market transactions = $1.14 billion 40 40

  38. Transmission Service As “Sales Agents,” we administer … • Provides “one-stop shopping”for use of regional transmission lines • Consistent rates, terms, conditions • Independent • Process > 12,000 transactions/month • 2009 transmission market transactions = $486 million …a 1,621 page transmission tariff on behalf of our members and customers.

  39. Transmission Service

  40. Transmission Service

  41. EIS Market Operation SPP’s energy market is like the “NYSE”… • Monitors supply/demand balance • Ensures economic dispatchwhile meeting system reliability • Provides settlement data • 2009 wholesale market transactions = $1.14 billion …and follows over 200 pages of market protocols.

  42. Benefits of current real-time energy market

  43. 46

  44. SPP Pricing Zone Information 47

  45. Impact of Congestion on Locational Prices 48

  46. Impact of Congestion on Locational Prices

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