For Bandon Utilities Commission

Transcription

1 For Bandon Utilities Commission July 12, 2017

2 Profile BPA, a component of the U.S. Department of Energy, is a non-profit and self-funded power marketing administration in the Pacific Northwest. Congress created BPA in 1937 to deliver and sell the power from the Bonneville Dam. Today BPA markets wholesale electrical power from 31 federal hydroelectric dams located in the Northwest, one nonfederal nuclear plant, and several small nonfederal power plants.

3 Mission The BPA s mission as a public service organization is to create and deliver the best value for our customers and constituents as we act in concert with others to assure the Pacific Northwest: An adequate, efficient, economical and reliable power supply. A transmission system capable of integrating and transmitting power from federal and nonfederal generating units, providing service to BPA s customers, providing interregional interconnections, and maintaining electrical reliability and stability. Mitigation of the Federal Columbia River Power System s impacts on fish and wildlife. BPA is committed to cost-based rates and public and regional preference in its marketing of power.

4 Agenda CONTRACT, RATE AND BANDON SPECIFICS

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6 The Federal Columbia River Power System

7 Generation Resources Hydro generation is largely controlled by the need to move water for nonpower purposes- mainly fish operations and flood control Most hydro projects are interdependent, inflows and outflows must be coordinated with the owners of several non-federal dams in the Columbia River and Snake River basins Nonfederal nuclear plant provides baseload energy Renewable wind helps customers meet state RPS goals Contract purchases cover any shortfalls to ensure reliable service

8 BPA System Fuel Mix in CY 2016

9 Water Year Runoff Varies Widely Runoff Volume (MAF) Average Water Year Oct - Sept 132 Maximum Water Year Oct Sept Minimum Water Year Oct Sept The firm critical output of the FCRPS is based on the record low runoff observed in 1937 the Critical Water Year at 69.4 MAF. Firm critical output is reduced further by specific fish spill operations required in the operating year. FCRPS Tier 1 sales are limited to firm critical output.

10 Water Year Runoff Varies Widely

11 Annual Water Supply Forecast Uncertainty Oct-Dec: Most Uncertainty in water supply forecast Jan-Mar: more data on snowpack conditions, forecast uncertainty begins to decrease Apr-May: Annual water supply uncertainty is lower but the shape of the spring runoff is still uncertain

12 Critical Water vs Average Water Secondary energy sales are made from water inventory above Critical Water.

13 Turning Runoff into Energy Limitations on generation output: Water supply is limited Water takes time to move through the system Generators in planned or unplanned maintenance reduce capacity Navigation requirements limit out flows fish operations can require increases or decreases to out flows Recreation needs set water elevation targets at projects with reservoirs The machine capacity of the FCRPS is 22,458 MW. This is the maximum potential generation if there were no operating restrictions and unlimited water supply. IN FY-18 the FCRPS is planned to generate 6,550 Annual amw of energy under 1937 critical water year conditions. 6,550 Annual amw * 8,760 hrs = 57,378,000 MWh of energy The FCRPS peaking capacity for 60 minutes is 13,599 MW

14 System Shaped Load vs Customer Load BPA uses water from storage and makes market power purchases to serve loads when the customer s load shape is greater than the FCRPS System Shaped Load When customer load is less than System Shaped Load BPA can sell power into the market

15 BPA Customers Publicly Owned Utilities Entitled to a statutory preference and priority in the purchase of available federal power Northwest Regional Municipalities Public Utility Districts Cooperatives Tribal Utilities Investor Owned Utilities Entitled to the Residential Exchange Program that effectively provides an offset to IOU residential and small farm customers rates Includes Portland General Electric, Puget Sound Energy, PacifiCorp, Avista, NorthWestern Energy, and Idaho Power. Direct Service Industries BPA is not required to, but may sell power for direct consumption to a limited number of existing industrial companies in the Northwest Aluminum Smelters (e.g. Alcoa, Columbia Falls Aluminum) Chemical and paper, and other metal industries (e.g. Port Townsend Paper Corporation) Sales outside the Northwest Public and investor owned utilities in the Southwest and California Sales, purchases, and exchanges of power via the Southern Intertie Transmission Services Network and point-to-point transmission services for transmission customers Generation integration services for renewable and thermal resources Conservation and environmental impact analysis services

16 Operating Revenues BPA Revenues FY2016 1% 2% 1% 1% 26% 69% Power Sales Power Bookouts Miscellaneous Power Transmission Sales U.S. Treasury Fish Credits Miscellaneous Transmission

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18 ENERGY EFFICIENCY BPA is at the forefront of promoting energy efficiency a key tool to meeting future customer demand for electricity through BPA and regional energy efficiency programs provide guidelines and funding to support utility-run programs that achieve electrical energy savings for commercial, industrial, agricultural, and residential consumers. BPA s energy efficiency programs include smart grid, demand response, and distributed energy resources. These programs offer additional tools to help manage peak load and congestion.

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20 OPERATIONAL FOCUS ON FISH SURVIVAL

21 PROTECTING AND IMPROVING FISH HABITAT

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24 BPA TRANSMISSION SYSTEM MAP

25 BPA TRANSMISSION SYSTEM BPA owns and operates 75% of the Pacific Northwest s high voltage electrical transmission system. BPA s system includes more than 15,000 miles of transmission line and 285 substations. The system enables a peak loading of about 30,000 MW and generates more than $700 million a year in revenues from transmission services. BPA s Transmission Services operates under an Open Access Transmission Tariff based on FERC s pro forma tariff as a nonjurisdictional entity. Transmission service is offered to public utilities, investor owned utilities, direct service industries, and power marketers

26 Power Contract, Rates and Bandon Specifics

27 Tiered Rates and Regional Dialogue Contracts BPA has significant fixed capital investment in the FCRPS with net utility plant assets valued at $18.3 billion in FY2016; debt on these assets is $18.1 billion Tiered Rates Methodology (TRM) and 20-year Regional Dialogue contracts established in FY2012, valid through September 30, 2028 Tier 1 power rates recover the costs of the FCRPS, energy efficiency, fish and wildlife Each customer has a contract high water mark (CHWM) which is the amount of Tier 1 System Firm Critical Output they can purchase based on their historical loads Tier 2 power rates cover the cost of new resources needed to meet customer load growth. Customers may elect to serve Tier 2 load with Load Growth Rate, Short Term Rate, Vintage Rates, or Non-Federal Resources

28 Rates Low in BPA Served States

29 Specifics About Bandon s BPA Contract The City of Bandon purchased 7.4 amw from BPA in CY 2016 at an average cost of 40 per MWh. Currently Bandon is entitled to 7.75 amw of Tier 1 power from BPA. BPA/Bandon s joint forecast calls for about 0.25% load growth to 7.6 amw in In the event that loads exceed Tier 1 entitlement, Bandon has elected to have BPA acquire all additional energy from the market, and pass through costs (referred to as the Load-Growth Rate). Contract in effect through September Current projections are for a 5.5% rate increase for Bandon s power costs (two year cycle).

30 Bandon s BPA Purchases CY 2016 MWh amw Power Cost Transmission Cost Total Cost Cost per MWh Jan-16 6, $ 250,422 $ 44,239 $ 294,661 $ 43 Feb-16 5, $ 221,448 $ 49,140 $ 270,588 $ 46 Mar-16 6, $ 199,598 $ 39,201 $ 238,799 $ 39 Apr-16 4, $ 189,222 $ 25,261 $ 214,483 $ 44 May-16 4, $ 127,422 $ 24,610 $ 152,032 $ 33 Jun-16 4, $ 152,160 $ 25,915 $ 178,075 $ 41 Jul-16 4, $ 161,553 $ 25,919 $ 187,472 $ 42 Aug-16 4, $ 160,288 $ 26,169 $ 186,457 $ 40 Sep-16 4, $ 175,865 $ 25,990 $ 201,855 $ 45 Oct-16 5, $ 161,924 $ 33,626 $ 195,550 $ 38 Nov-16 5, $ 164,598 $ 40,056 $ 204,654 $ 37 Dec-16 8, $ 251,891 $ 52,777 $ 304,668 $ 38 65, $ 2,216,391 $ 412,903 $ 2,629,294 $ 40

31 Questions