Platte River Power Authority Overview

Transcription

1 Estes Park Longmont Fort Collins Loveland Platte River Power Authority Overview City of Fort Collins Climate Action Plan Citizen Advisory Committee June 12, 2014

2 Platte River Power Authority History We exist to serve the needs of our member/owner communities Formed in 1973 in response to a U.S. Bureau of Reclamation announcement that it would be unable to supply enough hydropower to meet cities future need Contracts executed with each of the cities and among the cities term to

3 Local Electric System Partnership Changing Boundaries Residential Small Business Generation Transmission Distribution Platte River Power Authority Not for profit Joint Ownership Local governance Estes Park Fort Collins Longmont Loveland Large Business Customers 3

4 Current Board Members Platte River Board of Directors Estes Park Fort Collins Longmont Loveland Mayor Bill Pinkham Mayor Karen Weitkunat Mayor Dennis Coombs Mayor Cecil Gutierrez Mr. Reuben Bergsten Mr. Gerry Horak Mr. Tom Roiniotis Mr. Steve Adams Local Decision Making 4

5 Existing Wholesale Resources 5 Rawhide Coal 5 Hydropower Craig Coal (multiple sites) Rawhide Gas (simple cycle) Wind (multiple sites) 5

6 Overall Energy Resource Mix 2013 Also sell surplus in wholesale market Electric Energy Consumed All Four Municipalities 6

7 New Wind Resource Fall 2014 Medicine Bow Silver Sage Spring Canyon 7

8 8 Spring Canyon Wind Project

9 Energy Savings (MWh) Demand Side Management Resources Total savings = 3.7% of Municipality energy (annual energy use of 14,000 homes) Load growth = 17% Average cost = 2.4 cents per kwh Investment (millions) 9

10 Benchmarking CO 2 Emissions Resources not Emitting CO 2 (lb/kwh) Wholesale Rates 10

11 Platte River s Strategic Plan Approved by Board of Directors December 2013 Supporting Plans: 2012 Integrated Resource Plan Climate Action Plan

12 Strategic Initiatives Operational Excellence Compliance Assurance Technological Innovation & Sustainability Safety Goals for Each All Departments All Employees Financial Stability Employee Engagement Exceptional Customer Service Diversified Energy Supply Portfolio Improved Collaboration & Communications 12

13 Why Diversify? Reduce emissions Lower risk of effects from new legislation/regulation Increase fuel supply flexibility Improve resource optimization to serve Municipal loads Reduce financial risks Integrate more renewable energy Participate in new electricity markets Support preferences of the Municipalities

14 Diversify Energy Supply Portfolio STRATEGIC PLAN DIRECTIVES/GOALS: Investigate options to reduce our carbon footprint: CO 2 emissions 20% reduction by 2020 as a guideline (80% by 2050) Study expanded use of renewable resources: Colorado Standard (qualified sources) 20% by 2020 as a guideline Evaluate natural gas combined cycle generation: Fuel diversity/reduced emissions/renewable source integration Analyze benefits & costs of more distributed resources Maintain position as lowest cost wholesale supplier in Colorado 14

15 Greenhouse Gas Reduction Guidelines 100% 90% 80% 70% 2020 EPA Proposal Attributes: State by State implementation ~ 35% reduction for Colorado by 2030 ~ 2012 baseline (others are 2005) Comparable to Platte River guidelines 60% 50% 40% 30% 2030 Platte River EPA Fort Collins (April 2014) 20% 10% % 15

16 Analysis for the City of Fort Collins Council approved Resolution on April 1, 2014 Platte River is partnering with Fort Collins Utilities to develop a set of electricity resource planning scenarios to support Fort Collins Climate Action Plan An Intergovernmental Agreement was approved June 3, 2014 Project plan (charter) is being developed to clarify details 16

17 Resource Planning Focus Considering two primary factors Cost and Risk Mitigate Cost and Risk While Maintaining Reliability, Compliance and Safety Cost Risk CO2 charges Fuel volatility Markets Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Case 8 Portfolio Cost (NPV or Life Cycle) 20 17

18 Risk Mitigation Example Illustrative Base Case with CO2 charge Municipality Electric Supply Cost ($) Base Case no CO2 charge Diversified Case with CO2 charge Diversified Case no CO2 charge Evaluation Period 18

19 Schedule Staffing & Support Jan-Mar Apr-Jun Jul-Sep Oct-Dec New Staff Additions Consulting Selections Jan-Mar 15 Software and Systems Software Acquisition and Deployment Modeling/ Analysis Modeling Plan Development Data Collection Decision Analysis Fort Collins Climate Action Plan Consultant Reports Drafting IRP Communication Listening Sessions Survey Reporting Stakeholder Communications/ Draft Report Customer Surveys Final Report 19

20 Estes Park Longmont Fort Collins Loveland Questions/Discussion? 20