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Evaluation of NEW LARGE ENERGY LOADS

Evaluation of NEW LARGE ENERGY LOADS. July 28, 2014 Andy Wendell. Current Situation. Significant increase in requests for energy loads. Requests ranging between 1 and 10 MegaWatts . 30 + independent inquiries for new large load. (5) active applicants

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Evaluation of NEW LARGE ENERGY LOADS

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  1. Evaluation of NEW LARGE ENERGY LOADS July 28, 2014 Andy Wendell

  2. Current Situation • Significant increase in requests for energy loads. • Requests ranging between 1 and 10 MegaWatts. • 30+ independent inquiries for new large load. • (5) active applicants • Anticipating 5 to 7MW to come on-line in 2014 Characteristics: • Expansion capability is valued. • Service locations are county wide (non-specific) • Targeting available leased space • Load type is “flat” 24/7 2

  3. Mitigation • Engineering fees adjusted to reflect true costs • Implementation of large load application process • Adjustments to application • Utilization of new service deposit language Results: Reduction in “tire kickers” Improved responsiveness to applicants Improved engineering and system planning 3

  4. Potential Mid-Term Impacts • Electrical system capacity • Physical infrastructure • Reliability & redundancy • Revenues • Idle services 4

  5. Revenue Impact Retail versus Wholesale Annual average Distribution system growth is approximately 2 to 3 MW 5

  6. Planned Mitigation • Track and monitor new applications • Rate committee actions • Calibrate Schedule 4 (contract) • Consider aggregation language • Evaluation of system impact charges • Study revenue requirements • Engineering • Evaluation of “net-zero” impact • Evaluate impacts to long range planning model 6

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