What is public power?

Transcription

1 Electricity 101

2 What is public power? Public Power Customers are key stakeholders Not for profit Assets held publicly Public board meetings Elected board sets rates Local control Investor Owned Utilities Investors are key stakeholders For profit Assets held privately Private/board meetings Public Utility Commission sets rates Investor control

3 NPPD Facts Service Area NPPD Serves All or Parts of 86 of Nebraska s 93 Counties NPPD Service Area Estimated Population 600, Wholesale Communities 25 Rural Public Power Districts and Rural Cooperatives 80 Retail Communities 91,000 customers 3

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6 Nebraska Public Power Wholesale Customers 105

7 NPPD s Generation Profile 7

8 Diversity is our Strength!

9 Electric Industry Fundamentals Almost every activity involving comfort, commerce, communication and convenience involves electricity. Electricity is unique it generally must be produced at the same time it is consumed we have no large scale warehouse to store it. The industry has evolved for 100 years but there has been no revolutionary changes. 87% of all electricity comes from coal, natural gas and nuclear energy.

10 Electric Industry Fundamentals U.S. electricity consumption totaled nearly 3,862 billion kilowatt-hours (kwh) in 2014 U.S. electricity use in 2014 was more than 13 times greater than electricity use in Share of total U.S. electricity use by major consuming sectors in 2014: Residential 36% Commercial 35% Industrial 28% (includes direct use of electricity) Transportation 0.2% (mostly by public transit systems)

11 Electricity makes a difference Korea

12 A WATT IS A UNIT OF ELECTRICITY 10 = kilowatt (1000 watts) (if operated for 1 hour = 1 kilowatt-hour) A megawatt = 1 million watts An average home in Nebraska uses approximately 15,000 kilowatt hours per year A microwave oven requires 1,200 to 1,500 watts to operate A small clock uses approximately 2 to 5 watts to operate The air conditioning unit in a residential home might require 3.5 kilowatts of power

13 Three Major Components of Electric Industry 1 GENERATION Fossil Fuels Nuclear Renewable COAL NATURAL GAS OIL SOLAR WIND HYDRO (WATER) 2 TRANSMISSION 3 DISTRIBUTION

14 Transmission 115, ,000 Volts Sub-Transmission 34,500-69,000 Volts Distribution 4,160-12,500 Volts Load 120/240/480 V and Higher

15 Types of Generation Baseload (higher capital costs but lower operating costs) Nuclear - runs full power continuously, except for planned outages Coal Large Hydro Some Natural Gas Intermediate Natural Gas More likely to follow load Peaking (low capital costs but high operating costs) Natural Gas Oil Certain Hydro Other (potentially not available when customer needs electricity) Wind Solar

16 U.S. Electricity Fuel Mix The fuel mix is changing rapidly. Wind, Solar & Natural Gas Coal & Nuclear Fuel choices vary dramatically by region. Powder River Basin Coal (Wyoming) has low-sulfur and low-cost compared to eastern coal Great Plains is wind rich. Natural gas is currently low-cost and plentiful for the near term, but history has shown price to be volatile/supply unpredictable. Coal is still cheaper than natural gas in Nebraska Fracking regulations? Pipeline capacity

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18 Electric Industry Resource Challenges Long-Term Planning years of life for infrastructure Capital Intensive Market & Fuel Price Volatility Regulatory Uncertainty Utility Policy Monopolies Competition Technology Uncertainty Economic Uncertainty How will local economy fare? Impact of global economy Environmental Policy Air Water Climate Renewable Energy Mandates

19 Putting it on the Lines NPPD is a member of Southwest Power Pool SPP is a Regional Transmission Org. Members in 14 states SPP is a North American Electric Reliability Corporation Regional Entity SPP operates an organized energy market among its members NPPD s generation resources are generally dispatched on a least cost basis NPPD resources compete with other SPP resources NPPD load is served from the market

20 NPPD s Regulatory World FERC Federal Energy Regulatory Commission Assist consumers in obtaining reliable, efficient and sustainable energy services at a reasonable cost through appropriate regulatory and market means. NERC North American Electric Reliability Corporation Not for profit international regulatory authority whose mission is to assure the reliability of the bulk power system in North America. EPA Environmental Protection Agency Mission is to protect human health and the environment. NDEQ Nebraska Department of Environmental Quality Protect the quality of Nebraska s environment air, land, and water resources PRB Power Review Board (Nebraska) Regulate Nebraska's publicly owned electrical utility industry

21 Summary of Regulatory Initiatives (Dates are approximations and subject to change) 21 Transport Rule proposal issued (CAIR Replacement) SO2 Primary NAAQS NO 2 Primary NAAQS Ozone (O 3 ) Final CSAPR Issued (Transport Rule) (CAIR Replacement) CO2 Regulation (PSD/BACT) SOX/NO 2 Secondary NAAQS CSAPR Stayed Effluent Guidelines proposed rule expected SO 2 /NO 2 CSAPR Vacated Proposed CO2 Clean Power Plan 316(b) final rule released CAIR/Transport/CSAPR Effluent Guidelines Final rule expected CSAPR Reinstated Phase I Begins Regional Haze Compliance SO2 NAAQS Designations CSAPR Phase II Reductions Water Effluent Guidelines Compliance 3-5 yrs after final rule Regional Haze Phase II Expected 316(b) Compliance Deadline ' Proposed Rule for CCRs Management 316(b) proposed rule released MATS proposed rule MATS final rule released PM-2.5 NAAQS Revision GHG NSPS Proposal Ozone NAAQS Revision Final Rule for CCRs Mgmt MATS Compliance 3 yrs after final rule Final CO2 Clean Power Plan Rule (Rule Stayed) CSAPR II (Seasonal Ozone Only) Begin Compliance Requirements under Final CCR Rule CSAPR III (Annual Ozone Only) PM-2.5 NAAQS Compliance Clean Power Plan Supreme Court Decision Expected PM/PM2.5 CCRs Hg/HAPS CO2

22 Electricity Use by Residences

23 Electricity Use By Businesses

24 The Future U.S. electricity use is projected to grow slowly U.S. electricity consumption declined in only three years between 1950 and However, it declined in five of the years between 2008 and 2014, with the largest drop (about 4%) occurring in One contributing factor was the economic downturn that took place in late 2007 through Other factors, such as efficiency improvements associated with new appliance standards in the buildings sectors and overall improvements in the efficiency of technologies powered by electricity, have slowed electricity demand growth and may contribute to slower future growth. In the Annual Energy Outlook 2015, Reference case, total U.S. electricity use grows by an average of less than 1% per year from 2014 to 2040.

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