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The Role of the Public Utilities Commission in Colorado’s New Energy Economy. Presentation for Mr. Akira Tonosaki and Mr. Yosuke Toyota Colorado Public Utilities Commission March 11, 2010. Welcome to Colorado. PUC Structure: Commissioners. Three Commissioners Appointed by the Governor
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The Role of the Public Utilities Commission in Colorado’sNew Energy Economy Presentation for Mr. Akira Tonosaki and Mr. Yosuke Toyota Colorado Public Utilities Commission March 11, 2010
PUC Structure: Commissioners • Three Commissioners • Appointed by the Governor • Confirmed by majority vote of State Senate • Serve four-year teams – may be reappointed • No more than two Commissioners from one political party • Judicial functions and legislative functions
The Commissioners Ron Binz Matt Baker Jim Tarpey
What Do We Regulate? 60% • Investor-owned electric utilities • Investor-owned natural gas utilities • Intrastate natural gas pipelines----------------------------------------------- • Some telecommunications carriers & services • Passenger transportation • Railroad crossings • Investor-owned water utilities • Pipeline safety • Relay Service for the hearing impaired 15% 1% 10% 10% 4%
Colorado’s Balanced Approach • Coal producing state (#8 of 50 states) • Natural gas producing state (#7 of 50 states) • Substantial wind and solar resources • Moderate electric rates • Governor with a “New Energy Economy” focus • Supportive Legislature • Regulators and utilities with an eye on the goal
Our State Energy Priorities • Stress renewable resources • Aggressive State Renewable Portfolio Standard • Progressive resource planning at Commission • Healthy renewables industry • A commitment to addressing climate change • Boost Energy Efficiency • Customer: education • Utility: engagement • Regulatory: incentive regulation; rate structure changes • Advanced technologies development • Research and demonstration for carbon sequestration • Concentrating solar field at PSCo’s Cameo coal-fired plant • CAES and other storage strategies • Smart grid test bed in Boulder, Colorado • Transmission development • SB 100 in Colorado • Western Renewable Energy Zones participation
History of Colorado’s RPS • Amendment 37 (2004) • Voter initiated; 10% renewable energy by 2020; separate solar requirement; net metering • HB 1281 (2007) • 20% renewables by 2020; 10% for municipal utilities and cooperatives; solar requirement • HB 1001 (2010) • 30% by 2020; carve out for DG of 3% by 2020(~650 MW PV)
Xcel Energy • ~7000 MW peak load • 2004-present • 1,200 MW wind capacity • 60 MW solar capacity • By 2015 • Additional 750 MW wind capacity • >250 MW new solar thermal • >160 MW new photovoltaic
Reduce Colorado’s carbon emissions by 20% below 2005 levels by 2020 • Reduce Colorado’s carbon emissions by 80% below 2005 levels by 2050
Solar Electric Density • Use: 100 MW(ac)/mile2 • Colorado Peak Integrated Demand: 11GW • Result: 110 mile2 required land area
But what if 11 GW of solar were spread around the state in 100 MW installations? It might look like this...
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Energy Zones Tot 3 Expansion Project EPTP NNMI HIGH PLAINS EXPRESS Albuquerque SunZia WYOMING Wyoming Generation High Plains Express Dave Johnston LRS Pawnee/ Story COLORADO Midway Limon Comanche Lamar Holcomb ARIZONA Gladstone NEW MEXICO Phoenix Socorro Tucson
Price Levels and Volatility 4.9 to 1.0
Customer Education Two 75-watt Compact Fluorescent Lights will reduce CO2 emissions by One Metric Ton over their lifetime
Colorado’s Energy Efficiency Commitment • DSM goals in legislation (HB 1037) • Commission rules • Exceeded statutory minimum (growing to 1.2% of sales) • Expedited cost recovery • Bonus mechanism • Tie-in to utility electric resource planning • Requirement of a recent CPCN for gas turbines • Demand response solicitation • Expanding residential AC program • Significant weatherizaton and EE activity coming from ARRA funding
Concentrating Solar in Colorado Concentrating solar w/storage $ Other baseload (coal w CCS; nuclear)
PUC’s ERP Decision for XcelEnergy Major Decision Items • Affirmed commitment to competitive bidding for resources • Approved closure of two coal plants • Approved large solar projects (200 - 600 MW) • 750 MW of additional wind capacity (to 1950 MW) • Assumed future CO2 price in modeling ($20/ton + 7% growth)
CAES Characteristics • CAES turbine has heat rate that is only about 50% of conventional gas turbine (~4000 BTU/kWh) • CAES has a relatively high round-trip efficiency • Eastern Colorado appears to have suitable sites • EPRI studies underway