Renewable Energy and Appalachian Power Company A Utility Perspective

Transcription

1 Renewable Energy and Appalachian Power Company A Utility Perspective Presented By: Peggy Simmons Manager Renewable Energy American Electric Power WEST VIRGINIA WIND WORKING GROUP CANAAN VALLEY RESORT AND CONFERENCE CENTER OCTOBER 20,

2 Introduction AEP / Appalachian Power (APCo) Overview AEP / APCo Renewables Experience Renewable Energy Options for West Virginia Transmission Conclusion 2

3 The AEP Footprint Strength Strength & Scale Scale in in Assets Assets & Operations Operations 5.2 million customers in 11 states Industry-leading size and scale of assets: Asset Size Industry Rank Domestic Generation ~38,400 MW #2 Transmission ~39,000 miles #1 Distribution ~208,000 miles #1 3

4 Appalachian Power Company (APCO) One of seven regional utility subsidiaries of American Electric Power Serving 1 Million+ customers in WV, Va and TN Generation Capacity : 8,018 MW Transmission lines: 5,360 miles Distribution lines: 47,981 miles 4

5 Hydro and Solar Experience AEP has over a century of experience in hydroelectric generation Developer Owner Operator Off-taker Current Hydro portfolio total: 364 MW in PJM (PPAs + Owned) Plus 586 MW Smith Mountain pumped-hydro storage unit in VA AEP Ohio, an APCO affiliate, recently executed a 10 MW solar PPA for a 2010 project 6

6 AEP Renewable Footprint New 10 MW Solar PPA with juwi Solar Inc. Renewables Portfolio* Wind PSO 5 PPAs SWEPCo 1 PPA APCo 4 PPAs I&M 2 PPAs AEP Ohio 2 PPAs Total Regulated AEPEP owned AEPEP 2 PPAs Non-regulated Hydro (run-of-river) Regulated owned / PPA Solar Regulated - PPA 591MW 79MW 376MW 150MW 100MW 1,296MW 310MW 177MW 487 MW 364MW 10MW * Includes owned assets and long-term purchased power agreements (PPA) 7

7 Why Renewables for AEP? Portfolio Diversity / Hedge Federal RPS Carbon Legislation / Regulation Timing: Supply and demand places upward pressure on pricing Best sites will be developed fist 29 states already have an RPS 6 more have renewables goals Federal subsidies are set to expire Help to buy-down cost of energy for customers Corporate Sustainability Initiative 2,000 MW of renewables by

8 Renewables for APCo Renewables included in latest APCO VA Integrated Resource Plan (IRP) Green Pricing Option Rider for metered customers Cost of Renewables are relatively comparable to conventional generation over the long term Proactively secured 5 PPAs totaling 376 MW 9

9 Camp Grove Wind Farm Executed PPA: Q Commercial Operation Date: January 2008 Name Plate Capacity: 150 MW (APCO share 75 MW) Developer: Orion Energy Group Location: Marshall & Stark Counties, IL 10

10 Fowler Ridge III Wind Farm Executed PPA: Q Commercial Operation Date: February 2009 Name Plate Capacity : ~100 MW Developer: BP Alternative Energy Location: Benton County, IN 11

11 Grand Ridge II and Grand Ridge III Executed PPA: Q Commercial Operation Date: Q Name Plate Capacity : Grand Ridge II 51 MW Grand Ridge III 49.5 MW Developer: Invenergy, LLC Location: LaSalle County, IL 12

12 Beech Ridge Energy LLC Executed PPA: Q Commercial Operation Date: Under Construction Name Plate Capacity: MW Developer: Invenergy, LLC Location: Greenbrier County, WV 13

13 New AEP 1,100 MW Renewables RFP AEPSC issued RFP on behalf of all seven OPCOs on June 1st Structured as a rolling RFP: 2009 Project Bids due Jun 30, 2009 (PJM only) 2010 Project Bids due Aug 31, 2009 (SPP + PJM) 2011 Project Bids due Jan 15, 2010 (SPP + PJM) Seeks wide range of proposals and full price transparency in support of regulatory prudency No AEP self-build option 14

14 AEP Renewable RFP Highlights Project Location Bid Price Structure Bidder Eligibility Evaluation and Selection 15

15 Transmission Vision 765 kv backbone system that provides cost-effective connections from areas of high wind potential to major load centers Approximately 19,000 miles of new 765 kv transmission lines Plan is estimated to cost $60 billion in 2007 dollars 16

16 Conclusion AEP is actively pursuing renewable resources across its footprint AEP is leading the effort to build-out a nationwide high voltage (HV) transmission grid AEP is first mover in many technology areas AEP is undertaking many actions for future Greenhouse Gas (GHG) reductions including the addition of renewables to its portfolio 17

17 Questions Peggy Simmons Manager, Renewable Energy American Electric Power 155 W. Nationwide Blvd. Columbus, OH (614)