Western Interstate Energy Board Presentation. Doug Larson, Executive Director June 18, 2014

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1 Western Interstate Energy Board Presentation Doug Larson, Executive Director June 18, 2014

2 Outline of presentation What is WIEB? Areas of work Looking forward

3 What is WIEB? Legal basis An interstate compact adopted by 11 states and ratified by Congress in 1970 Geography 11 western States; 3 Canadian Provinces Membership Board consists of appointees of the Governors/Premiers 3

4 WIEB Board members Alberta David James, Department of Energy Arizona - Leisa Brug, Office of Energy Policy British Columbia Les McLarren, Ministry of Energy & Mines California Bob Weisenmiller, CEC (Janea Scott, CEC Alternate) Colorado Jeff Ackermann, Colorado Energy Office (WIEB Vice Chair) Idaho John Chatburn, Office of Energy Resources (WIEB Chair) Montana Jeff Blend, Dept. of Environmental Quality Nevada Paul Thomsen, Governor s Office of Energy New Mexico Vacant (likely appointment of David Martin, EMNRD) Oregon Vacant Saskatchewan Mike Balfour, Ministry of the Economy Utah Cody Stewart, Governors Office (Samantha Julian, Office of Energy Development, Alternate) Washington Tony Usibelli, State Energy Office (WIEB Treasurer) Wyoming Shawn Reese, Governor s Office 4

5 Organization Chart Western Interstate Nuclear Compact Established by interstate compact ratified by P.L ; members appointed by Governors of signatory states State-Provincial Steering Committee Committee on Regional Electric Power Cooperation (CREPC) Joint Committee of WIEB and WCPSCs All energy and regulatory agencies in the states/provinces in Western Interconnection Western Interstate Energy Board Members appointed by Governors of AZ, CA, CO, ID, MT, NV, NM, OR, UT, WA, WY, plus provincial representatives from AB, BC, SK Web site High-Level Radioactive Waste Committee Coal Mine Reclamation Committee Western Interconnection Regional Advisory Body (WIRAB) Governors created pursuant to Section215(j) of the Federal Power Act. Appointees by Governors / Premiers from AB, AZ, BC, CA, CO, ID, MT, NE, NV, NM, OR, SD, UT, T, WA, WY and Mexico. Federal Energy Regulatory Commission North American Electric Reliability Corporation Western Electricity Coordinating Council Peak Reliability Western Conference of Public Service Commissions 5

6 SPSC geographical context Western Interconnection 6

7 Areas of work by NASEO and WIEB Federal support of state energy programs Federal legislation Energy efficiency Energy emergencies Alternative transportation fuels Western grid reliability Efficient use of the Western grid Integration of variable generation Western gas-electric system interdependencies Interconnection-wide transmission planning Nuclear waste transportation Coal mine regulations, public lands, etc. NASEO WIEB 7

8 Grid reliability Federal support of state energy programs Federal legislation Energy efficiency Alternative transportation fuels Energy emergencies Western grid reliability Efficient use of the Western grid Integration of variable generation Western gas-electric system interdependencies Interconnection-wide transmission planning Nuclear waste transportation Coal mine regulations, public lands, etc. NASEO WIEB 8

9 Fragmented operation of Western grid 37 separate Balancing Authorities in the West; 54 transmission operators 9

10 Grid reliability Focus on Western Electricity Coordinating Council (WECC) Establish process to identify, analyze and make recommendations on reliability challenges Maintain a robust public transmission planning process Rectify shortcomings in reliability uncovered in the September 8, 2011 Pacific Southwest outage Under the Federal Power Act, WIRAB gives advice on grid reliability to WECC, Peak Reliability, NERC and FERC 10

11 Efficient use of Western grid Federal support of state energy programs Federal legislation Energy efficiency Alternative transportation fuels Energy emergencies Western grid reliability Efficient use of the Western grid Integration of variable generation Western gas-electric system interdependencies Interconnection-wide transmission planning Nuclear waste transportation Coal mine regulations, public lands, etc. NASEO WIEB 11

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13 Efficient use of the existing grid The State-Provincial Steering Committee has worked on measures to make more efficient use of the existing grid by: Building an internet tool, GridTracker, available to all anyone, to analyze historical use of the grid ( Leading the evaluation of a Western Energy Imbalance Market. Fostering the deployment of advanced technologies for better info on real-time grid conditions (e.g., synchrophasors) The SPSC has begun to look at ways to: Make use of the $105+ million invested in synchrophasors Revamp our transmission path rating in the West Energy Imbalance Market 13

14 Integration of variable generation Federal support of state energy programs Federal legislation Energy efficiency Alternative transportation fuels Energy emergencies Western grid reliability Efficient use of the Western grid Integration of variable generation Western gas-electric system interdependencies Interconnection-wide transmission planning Nuclear waste transportation Coal mine regulations, public lands, etc. NASEO WIEB 14

15 Generation additions Additions 56,000 MW Retirements 24,000 MW BUT there will be more 15 Source: Western Electricity Coordinating Council

16 What we need: MORE SYSTEM FLEIBILITY Peaking Intermediate Baseload Old Paradigm Wind/solar New Paradigm 16

17 California duck chart 17

18 18 How to increase system flexibility Balancing resources over a large geographic area Faster energy markets, e.g., EIM Reform of reserve sharing practices Intra-hour transmission scheduling Demand response Better use of existing transmission capacity Cost NREL/WIEB reports on Western company forecasting VER Penetration Level

19 Western gas and electric system interdependencies Federal support of state energy programs Federal legislation Energy efficiency Alternative transportation fuels Energy emergencies Western grid reliability Efficient use of the Western grid Integration of variable generation Western electricity / natural gas interdependencies Interconnection-wide transmission planning Nuclear waste transportation Coal mine regulations, public lands, etc. NASEO WIEB 19

20 Western gas and electric system interdependencies Phase 1:Will there be adequate natural gas infrastructure to meet the needs of the electric industry in the West approximately 10 years in the future? Summary presentation at Phase 2:Will the gas system have adequate short-term operational flexibility to meet electric industry requirements? Completed at end of June Considering a Phase 3 to focus on geographic hot spots in the Western Interconnection 20

21 Interconnection-wide transmission planning Federal support of state energy programs Federal legislation Energy efficiency Alternative transportation fuels Energy emergencies Western grid reliability Efficient use of the Western grid Integration of variable generation Western electricity / natural gas interdependencies Interconnection-wide transmission planning Nuclear waste transportation Coal mine regulations, public lands, etc. NASEO WIEB 21

22 Interconnection-wide transmission planning Progress grew out of frustration of Western Governors during the Western Electricity Crisis Now have a robust, transparent interconnection-wide analysis process at WECC that is answering state questions about the regional impacts of different futures See WECC 2013 transmission plan at PlanSummary.pdf 22

23 Interconnection-wide transmission planning States are integral to the WECC process WIEB staff chairs the WECC Studies Work Group State study requests have always been high priority for WECC January 2014 joint SPSC/WIRAB study request: Evaluate the reliability of the grid in 2024 assuming Significantly more renewables than expected Greater than expected coal retirements More distributed generation SPSC contributing funds for WECC to develop new tools to better assess system ramping needs Results beginning in the fall 23

24 Looking forward: the Section 111(d) challenge WIEB interest Regional implications for the Western power system Direction from the WIEB Board What s been done so far March 5 webinar Legal framework (EDF, cel) Regional cooperation opportunities (RAP) March 25 meeting of PUCs/energy agencies across the interconnection and with EPA, NRDC, cel, PacifiCorp, APS, WESTAR April 25 WIEB Board decision to make 111(d) a priority May 28, WIEB staff meet with WESTAR on collaboration on 111(d) June - Discussions initiated with regional reliability organization (WECC) 24

25 111(d) What s planned SPSC contract for support on 111(d) through April 2015 Development on ongoing grid reliability analysis with WECC and industry subregions Dialogue with western state air directors State energy agency/puc discussion on October in San Diego Request for support for interconnection-wide work from DOE 25

26 Questions? 26