How We Heat Structures How We Power Our Electric Cars

Transcription

1 How We Heat Structures How We Power Our Electric Cars

2 In 2008, As Oil Peaked At $147 BBL And Heating Oil Hit $4.71/Gallon, Maine Approached The Abyss And Recognized There Was No Safety Net By 2020 State Law Calls For The Development Of 3000 MW Of Renewable Energy In The Form Of On-shore Wind By 2020 We Will Likely Be Generating Power Off-shore and Electric Vehicles Will Be As Ubiquitous As The Prius Is Today

3 ETS--Uniquely able to Store Intermittent Generation Allows Grid to Accommodate Higher % of Renewables Concept Demonstrated with Vinalhaven Concept Demonstrated with Vinalhaven Pilot Program

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5 Maine s Highest-in-the-nation Dependence On Oil For Heating Means We Are Paying An Enormous Petro-Dependence Tax That: Drains The State s Economy Of Productive Capital Adversely Affects The Social Fabric Of Our Society Contributes To Global Warming-GHGs Has Adverse National Security Implications For America Is Disproportionately Felt In Poorer Parts Of Maine Holds Our Future Hostage To Forces Beyond Our Control Is In Conflict With State Policies To Develop Renewable Energy Resources

6 MAINE WILL DIVERSIFY ITS FUEL MIX Out Of Sheer Practical Necessity Coupled With Political Leadership Maine Is In A Race To Weatherize Structures And Switch Fuels before The Next 2008-like Oil Price Spike-throws The Economy And Policy Making Into A Crisis There Is A Role To Play For Wood Pellets, Natural Gas, Propane, Heat pumps, Even Heating Oil But Over Time, NO OTHER FUEL HAS THE ABILITY FOR MARKET PENETRATION AND TRANSFORMATION AS Electricity-every Building Is Already Wired And The Infrastructure Is Already In Place

7 Utilities Required To Sell Off Generating Assets Remain T & D Only T & D Rates For Off-Peak ETS Extremely Attractive

8 Member Of New England Power Pool Able To Sell Off-Peak Power Directly To Customers Can Enter Into Multi-Year Purchase Contracts Value Proposition-Offer Customers p Hedged Value--Multi-Year Year Fixed Rate

9 CMP: Residential=560,000 customers, 65,000 commercial accounts BANGOR HYDRO: Residential=117,000 customers, 17,000 commercial accounts MPS: Residential=30,000 customers 5500 commercial accounts

10 Natural Gas=43% Renewables= 50% Conclusion: Natural Gas Sets Electricity Pricing In New England EIA 2008 Data

11 The Underlying Reality Of A New Paradigm The De-Coupling Of Natural Gas Pii Pricing From Crude Oil Shale l Gas Finds Expanded E d d Pipeline Development

12 Natural Gas vs. Oil Has Taken Place The Decoupling Of Natural Gas From Oil Makes Electricity A Better And Cheaper Alternative Because It Can Be: Hedged Is More Secure Primarily Domestic-USA Or Canada Consider Current Heating Oil Prices : OEIS Week of January l7 Statewide Avg-$3.18

13 Long Term Electricity And Delivery Rates Mean That Heat Can Be Supplied at $2.45-$2.50/Oil 50/Oil Equivalent. Locked-in For 2+ Years

14 Average Home Using 7.5 KW Supplemental Room Heater: Supplants ~600 Gallons/Heating Oil Per Season (15,000 kwh Of Electricity) 150 Homes = (1 MW Of Demand) X 600 Gallons = 90, Gallons 1% Of CMP s Residential Customers = 5,500 Homes 5, X 600 Gallons = 3,300, Gallons 5,500 Homes = 36+ MW 10% CMP Market Penetration = 33,000,000 Gallon Reduction In Oil Use Using ETS As A SUPPLEMENTAL HEATING SOURCE!

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