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This presentation highlights SDG&E's preparations for summer 2005, including their service area, customer mix, demand response and reliability programs, supply-side improvements, energy mix balancing, and plans for the future.
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Serving you today. Planning for tomorrow. SDG&E’s Presentation to the Senate Energy Committee February, 2005
SDG&E’s Service area and Customers Mix • SDG&E serves the electric and gas needs of San Diego County and the electric needs of the southern portion of Orange County • SDG&E’s Service area has a peak electric load of about 4,100 MW • SDG&E serves about 82% of the load, the rest is served by Direct Access providers. • SDG&E Customer Mix # CustomersUsage SDGEDASDGE DA • Residential 89% 63% 45% 1% • Commercial 11% 34% 42% 35% • Industrial <1%3%13%64% 100% 100% 100% 100%
SDG&E’s Preparations for Summer 2005 – Overview • SDG&E has sufficient resources to meet loads and operating reserves under average weather conditions (“1 in 2”) • Committed resources will provide 103% of expected demand for summer 2005. • Only 5% of SDG&E’s capacity comes from resources SDG&E controls which are outside of California • Local reliability meets ISO grid planning criteria • Criteria assumes adverse weather conditions (“1 in 10”), single largest transmission line out of service and single largest generator out of service (N-1, G-1) • Demand Response • Price driven programs may contribute up to 68 MW • Reliability programs may contribute up to 51 MW
Day Ahead Notification Programs Day-of Notification Programs Technical Assistance and Technology Incentives Education, Awareness and Outreach 20/20 Residential and Small Commercial Residential Programs Commercial/Industrial (small to medium-sized) New Construction SDG&E’s Preparations for Summer 2005 – Demand Side Demand Response Programs Energy Efficiency Programs
SDG&E’s Preparations for Summer 2005 – Supply Side • Installing New Generation • 45 MW peaking combustion turbine – June 2005 • Transmission Improvement • Miguel Substation upgrade – October 2004 • Mission – Miguel 230 KV transmission line – Summer 2005 • Nine additional projects completed that add to local reliability • Operating Procedures • Developed operating procedures in conjunction with the ISO for congestion mitigation
Balancing Loads and Resources Apr 1st Apr 30th Apr 1st Apr 8th Apr 5th 0000 2400 • Annual • Monthly balancing • Determine capacity • and energy needs • Determine fuel needs • Determine risk • strategy • Monthly – • Weekly • Hourly balancing • Fuel Purchasing • Economy transactions • Daily • Hourly matching • Economy transactions • Submit Schedules to • ISO • Hourly • Real time Weekly Procurement Mtg Review previous week – Plan next 10 days
Planning for the Future • SDG&E’s Updated Long-Term Resource Plan follows a balanced strategy to ensure safe, reliable supply: • Reduce demand through conservation, energy efficiency, demand reduction programs • Increase supplies from renewable sources and provide 20% of our energy from renewables by 2010 • Add more transmission to ensure reliability and access to additional lower cost, fuel diverse and renewable power • Obtain new generation in San Diego to ensure reliability, replace expiring CDWR contracts, reduce RMR payments, and allow retirement of aging local generation • This balanced approach offers flexibility and avoids risk of dependence on any single option • Consistent with the Energy Action Plan
Acquiring Resources for the Future • Energy Efficiency and Demand Response • Pursuing additional energy efficiency • New demand response programs including advanced metering infrastructure • Resources Under Development • Renewable resource solicitation underway • Palomar Energy Project 540 MW – Summer 2006 • Otay Mesa Power Project 560 MW - 2008 • Transmission Planning • Pursuing new transmission interconnection path to meet future energy and reliability needs • 5 Year Grid Planning studies to ensure local reliability • Future Resources Acquired Through Open Competitive Bids • Open bids for all resource types • Renewable bids for Renewable Portfolio Standard
Information Sharing with ISO and CEC • ISO • Information sharing occurs at both planning and operating levels • Sharing data to better manage intrazonal congestion • Transmission planning studies • CEC • Integrated Energy Policy Report • CEC’s natural gas price forecast is an input to SDG&E’s forecast • CEC IEPR generation cost estimates are referenced in the development of SDG&E’s projected generic resource costs
Serving you today. Planning for tomorrow.