1 / 24

Diane Johnson General Manager, Strategic Planning Colorado Springs Utilities

The Role of Renewables in Your Future Resource Portfolio APPA National Conference June 12, 2006 Colorado Springs Utilities’ Approach. Diane Johnson General Manager, Strategic Planning Colorado Springs Utilities. Presentation Overview. Colorado Springs Utilities Profile

ward
Download Presentation

Diane Johnson General Manager, Strategic Planning Colorado Springs Utilities

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Role of Renewables in Your Future Resource PortfolioAPPA National ConferenceJune 12, 2006Colorado Springs Utilities’ Approach Diane Johnson General Manager, Strategic Planning Colorado Springs Utilities

  2. Presentation Overview • Colorado Springs Utilities Profile • Framework for a Renewable Energy Strategy • Community Drivers – Customer surveys • Industry Drivers – EIRP & WAPA requirements • Regulatory Drivers – RPS - Amendment 37 • Challenges & Potential Opportunities • Customer-side renewables programs • Customer-side renewable energy plan • Net metering • PV rebate program • Green product program

  3. Colorado Springs Utilities Profile • 617,991 customers for all combined services • 202,901 electric customers - 178,000 residential • We generate approximately 85% of electricity used • 3,257 miles of electric transmissions & distribution lines • Nearly 70% of lines are underground • 2,160 miles of natural gas pipes • 1,738 miles of water distribution pipes • 1,600 miles of wastewater main pipes

  4. Customer Feedback • People generally support renewable energy and DSM programs, but cost is a deciding factor in overall acceptance • Community values demonstrate the following priorities: 1. price, 2. power supply, 3. environmental considerations • A majority of stakeholders feel Springs Utilities should move away from coal and gas due to the finite nature of these resources • In all likelihood, any policy will not please the total customer base

  5. Willingness-To-Pay & Who Should Pay • National surveys suggest consumers support renewables • Springs Utilities customer survey – June 2004

  6. EIRP Drivers • Sound strategic & operational planning • Required by WAPA – PPA for 70MW large hydro • Minimize cost of electricity (rates) • Meet reliability requirements • Maintain financial soundness • Promote environmental stewardship • Balance risk and cost • Provide flexible plans

  7. Public Process & Advisory Groups Utilities Board Policies and Limitations Transmission Forecasts EIRP Analysis Direction & Recommendations Supply Side Options • Existing & New • Supply side resources • Demand side & RE programs • Legislative agenda • Short & long term budgets • Rate structure Conventional Coal, Gas, etc. Renewable Strategy Hydro, Wind, Solar, etc. Influencing Customers’ Consumption thru DSM Environmental & Reliability Requirements • Education • Efficiency • Regulation • Load shaping • Rate Structure • Economic Development

  8. EIRP Analysis Process General Public Preference is to Rates Low General Public Preference General Public Preference

  9. Operational Issues with Wind • Wind integration is challenging for smaller utilities • Wind RFP – supply profile is anti-coincident to demand

  10. EIRP Leverages Four-Service Infrastructure • New small hydro on water delivery system • 2006 (560 kW) • 2007 (900 kW) • 11 sites under review (potential 2400+ kW) • Engineering and economic studies • Biogas - Byproduct of waste water treatment • Wind – Utilities-owned • Biomass – Forest residue from fire treatment • Other Options • Partner with DoD to purchase wind • REC purchase

  11. EIRP Summary • 2004 EIRP Recommendations • Medium Renewables • 3 MW Hydro • 10 MW Wind • 13 MW Medium Hydro • Conduct additional analysis of biomass options, 2005-6 • Moderate (National average) DSM • 0.25% of energy per year, 0.4% of demand • Traditional supply side resources • Coal – 2016 • Coal – 2021 • Key Drivers for 2006 EIRP Update/Changes • Economics • Operational issues • RPS - Amendment 37 – Decision to self-certify

  12. RPS Background • RPS is a policy instrument that mandates distribution utilities to generate (or cause to be generated) minimum amounts of renewables as a percent of electricity sales • 17 states (and counting), since Massachusetts first adopted in 1997 • Arguments in favor: • Efficient means of meeting RE targets • Incentives for cost minimization • Low transaction costs • Minimizes ongoing government intervention • Spreads costs evenly over targeted area • Arguments against: • Forced investment • Rate impacts • Possible supply/demand imbalance

  13. Colorado Amendment 37 • RPS passed by Colorado voters in Nov. 2004 – the first ever voter-initiated RPS • Renewable Energy Standard • 3% of retail sales by 2007; 6% by 2011; 10% by 2015 • 1.25 in-state multiplier • Average standard compared to RPS policies in other states • Eligible renewables– wind, solar, biomass, small hydro (<10 MW), geothermal, RECs • Solar Mandates for IOUs • 0.4% or retail sales by 2015 (1/2 on customer-side) • Minimum rebates for solar PV – $2 per watt • Rate Cap – Maximum 1% retail rate impact on each customer’s annual electricity bill • Municipal Utilities • Option to self-certify - no solar mandates • Option to exempt through local election

  14. Colorado Springs City Council Position on A37 • Opposed based on: • State law imposed on a “home rule” city • EIRP calls for optimum level of renewables • Emission reductions similar from EIRP • DSM does not count • Issues addressed later in SB 143 • Cost - mostly burdened business customers • Small hydro definition excludes 28 MW Tesla

  15. Amendment 37 Election Results

  16. RPS Requirements & Schedule Initial Analysis Planned renewables and DSM could easily reduce phase 1 compliance needs to 0, especially with revised water limits

  17. Customer-side Renewables and Amendment 37 Strategy • Amendment 37 (SB 143) compliance • Our direction is to comply with Amendment 37 by self-certifying a “substantially similar” renewable energy standard • We support & encourage voluntary additions of RE to our system • Springs Utilities’ objectives with customer-side RE programs • Support the intent of Amendment 37 • Provide customers greater choice • Be good stewards of the environment • Ensure safety and reliability of distributed energy resources • Gain experience with small-scale, distributed generation • Be an active partner in RE market development (e.g. PV) • Operational strategy – combine customer-side RE with DSM

  18. Customer-side Renewable Energy Plan • Background • 2004 Renewable Energy Options Assessment study identified leading customer-side renewable energy options • Purpose • Support the intent of EIRP • Consistent with organizational strategy and environmental goals • Acknowledge strategic role of customer-side renewables – i.e., A37 • Objectives of the Customer-side Plan • Benchmarking • Gap analysis • Develop scenarios • Establish strategic direction • Outline a 5-year tactical plan

  19. Net Metering Pilot Program • Launched in 2004 to formalize what was an informal policy • City Council approved “enhancements” in the 2006 Rate Case • Supports RE plans and parallels amendment 37 requirements • Current participation • 1 commercial customer • 4 residential customers • More systems expected due to rebate program

  20. Renewable Energy Rebate Program (Photovoltaics) • $4 per watt (AC) rebate – residential, C&I • Modest budget ($220,000) • 2006 Participation goal – 60 kW • Process • Reservation request • Pre-inspection • Rebate claim • Post-inspection • Interconnection authorization • More info at www.csu.org/residential/rebates/renew_rebate/index.html

  21. Green Power Product • Available since 1998 • Objective are: (1) to give customers choice (2) to capture un-tapped demand exhibited in “willingness-to-pay” surveys • Sold in blocks: $3.32/100kWh, monthly payment • Hedging benefit – Electric cost adjustment credit for each block purchased • Customers: 1000 residential, 15 business • 1 MW wind contract • Source: Ponnequin Wind Farm on CO/WY border • Actual wind production depends on intermittent resource • True-up discrepancy with RECs or purchased wind

  22. Summary • Balancing cost, reliability and environmental stewardship • Leveraging four-service infrastructure • Addressing the challenges of wind integration • Meeting RPS - Amendment 37 obligations via Springs Utilities’ own renewable energy standard • Supporting emerging renewable energy technologies through PV rebates & green product programs • Responding to diverse customer views on cost of renewables through voluntary programs

  23. Questions?? Contact: Diane Johnson General Manager, Strategic Planning Colorado Springs Utilities dcjohnson@csu.org 719.668.7513

More Related