HOOVER POWER ALLOCATION ACT Public Utilities Board January 6, 2012

Transcription

1 HOOVER POWER ALLOCATION ACT 2011 Public Utilities Board January 6, 2012

2 Hoover Dam Located in Black Canyon of the Colorado River near Boulder City, NV Second tallest dam in the U.S. at 726 feet. Impounds Lake Mead, largest US Reservoir Crosses the Nevada-Arizona State border.

3 History Boulder Canyon Project Act of 1928 (50 years ) Mitigated periodic major flooding events Authorized construction of the Dam and Power Plant Construction began in 1931 with first generator in 1936, and 11 in place by O&M by SCE and LADWP from 6/1/1937-5/31/1987 Hoover Power Plant Act of 1984 (30 years ) Renewed existing Schedule A Contractors Included an Uprating Program (additional 503 MWs) Uprating allocated to Schedule B Contractors (including SCPPA) Schedule B Contractors advanced project funds Included other significant costs (i.e., visitor center, parking, mitigation, etc.,) Created Schedule C Contractors for excess capacity O&M by the US Bureau of Reclamation (BOR) Marketed through the Department of Energy (DOE), Western Area Power Authority (Western or WAPA) Historically, strong congressional support to allocate Hoover power to public power entities in California, Nevada and Arizona

4 Capacity and Net Generation Two power plants The Arizona Wing and The Nevada Wing 17 Main Turbine Generators 9 on the AZ Wing 8 on the NV Wing 2 small station-service units provide power for plant operations Project Capacity Ratings 1936: operational - original nameplate capacity 1,344 MW 1983: capacity uprated to 1,488 MW 1984: current installed capacity is 2,078 MW (uprating pre-paid by Schedule B Contractors - including RPU through SCPPA) Currently effective rating is 1855 MW

5 Current Hoover Firm Power Customers California Municipalities Schd A 1,448 MW 1937 Schd B 503 MW Anaheim Azusa Banning Burbank Colton Glendale Los Angeles Pasadena Riverside Vernon 0 22 Nevada Municipalities Schd A Schd B MW MW 11 Boulder City 20 0 State Agencies Schd A Schd B MW MW 12 Arizona Power Authority Colorado River 13 Commission of Nevada Metropolitan Water 14 District of Southern California Investor Owned Utilities Schd A Schd B MW MW 15 Southern California Edison 278 0

6 RPU Entitlement SCPPA Entitlement: 5% of uprate (94 MW) RPU 31.9% of SCPPA (30 MW) Annual capacity 30 MW Annual energy in CY 2010 ~ 31,800 MWh (1.59% of RPU s retail sales) Hoover Benefits to RPU s Portfolio: Peaking resource Reliable but subject to drought impacts RPU s lowest cost resource (FY $25.73/MWh ) Stable price resource Very flexible use dispatched based on RPU retail needs Optimal for renewable integration and dynamic scheduling Zero emissions perfect carbon hedge Large Hydro not RPS eligible in California (???)

7 WAPA s Proposed Power Marketing Initiative (PMI) Western s initial PMI Proposal in 2009 Extend the the Hoover Power Plant contract another 30 years (2017 through 2047) New Schedule D Contractors Each A and B Contractor retains 90-95% of entitlement Creates power pool for new Schedule D Contractors No reimbursement to Schedule B Contractors for uprates Schedule D not funding multispecies studies (MSCP) Western s PMI Proposal Impact on Riverside Riverside contributes 5-10% of Schedule B Power to the Schedule D Pool. RPU entitlement from 30 MW to 27 MW Effective June of 2017 No reimbursement for advances for uprate or MSCP A&B Contractors requested WAPA defer PMI process to seek legislative solution at 5%

8 H.R Hoover Power Allocation Act of 2011 VERY SUCCESSFUL LEGISLATIVE EFFORT!!! H.R. 470 Legislative President Obama signed Hoover Power Allocation Act of 2011 on December year life extension (from 2017 to 2067) Approved Power Marketing Initiative A&B Contractors retain 95% of entitlement New pool for Schedule D Contractors Schedule D power pool--indian Tribes/ New allottees 2/3 allocated throughout Western 1/3 allocated equally to new contractors in NV, CA, and AZ New Contractors also fund Multispecies Studies (MSCP) New Contractors reimburse Schedule B Contractors for uprate program. H.R. 470 Impact on Riverside Riverside relinquishes only 5% (1.5 MW) of their Schedule B Power RPU entitlement becomes 28.5 MW Effective June of 2017 RPU MSCP s costs reduced RPU reimbursed for uprating costs

9 Hoover Resource Summary At end of new contract expiration in 2067: Only producing resource in existing portfolio Very low cost resource Stable prices Sustainable resource Flexible resource tailored for RPU load Zero emissions BUT 50 year benefit to ratepayers Some folks in the room won t enjoy Hoover s long-term benefit but our grandkids grandkids will. Hoover will be providing sustainable power to RPU households/businesses for the next 55 years.