Renewables Review. Operations Committee December 9, 2015

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1 Renewables Review Operations Committee December 9,

2 Presentation Intro to resource planning Decades review (1990s, 2000s, 2010s) Resource planning Historical perspective Evaluations, engineering & projects Grants Renewable options under consideration Resource future and costs 2

3 Resource Planning A resource plan is how to reliably serve members at the lowest reasonable cost consistent with risk management and environmental responsiveness. Reliability Standards Cost and Risk Serve the Load Resource Evaluation and Plan Environment 3

4 1990s Resource Planning Traditional Utility Power Supply Planning: Build Generation to Meet Load Annual Resource Plan Updates Example: 1989 Financial Forecast Bradley Lake to be online in MW additional at IGT MW additional at IGT

5 1990s Historical Perspective Long-term gas supply contracts Bradley Lake came on line September 1, 1991 Alaska Power Authority restructured Emerging alternative technologies Competition on the horizon? Interest in differentiation Staff-led studies of renewables/alternative energy 5

6 1990s Renewable Evaluations, Engineering & Projects Preliminary wind evaluations Beluga-Pt Mac, Knik River-Palmer Butte, Turnagain Pass, Whittier, Portage, Bird Point, Arctic Valley Proposed Cooper Lake capacity increase Combined heat & power (CHP) evaluations (clean energy) Fuel cells Microturbines Other combined heat, water & power options 6

7 1990s Grants/Funding National Guard Armory fuel cells $520,160 State of Alaska $203,773 ONSI Corporation $316,397 Airport Post Office fuel cells USPS $1,665,000 (prepayment for power) 7

8 2000s Resource Planning Evaluate Renewable and Alternative Generation to Meet Load Railbelt Energy Study Chugach Integrated Resource Plan Chugach Generation Plan Update AEA Railbelt Integrated Resource Plan 8

9 2000s Historical Perspective Railbelt Energy Fund proposals; disbursement REAP formed Creation of the Renewable Energy Fund Cooper Lake relicensing HEA and MEA each gave notice Board decision on Fire Island Joint Action Agencies created Natural gas supply concerns 90/10 to 10/90 long-term vision Renewed interest in large Railbelt hydro projects GRETC legislation introduced (Greater Railbelt Energy & Transmission Company), but did not pass 9

10 2000s Renewable Evaluations, Engineering & Projects Wind Hydro Fire Island wind studies & engineering Cooper Lake units upgraded Chakachamna evaluation Glacier Fork evaluation Airport Post Office fuel cell operational Residential fuel cell study Commercial customer combined heat & power project Mt Spurr geothermal Energy storage evaluation Amended wholesale contracts to enable small renewables 10

11 2000s Grants National Guard Armory fuel cells $152,770 State of Alaska $101,512 ONSI Corporation $51,258 Airport Post Office fuel cells $85,000 USPS $85,000 YMCA fuel cell $275,229 NRECA/CRN $275,229 Fire Island wind $1,400,000 Denali Commission $750,000 Denali Commission $650,000 11

12 2010s Resource Planning Evaluate Renewable Generation to Meet Load SPP completed Eva Creek (GVEA) Kenai Wind Project (Apex) Fire Island Wind Contract Susitna-Watana Renewable RFPs 12

13 2010s Historical Perspective ARCTEC created Chugach legislative support for Ormat s geothermal project RCA approval of Fire Island cost recovery Chugach begins selling RECs (Renewable Energy Credits) Gas supply picture improves Ups & downs of the State budget EPA s 111(d) rule RCA docket USO & Transco efforts Continued impact of energy efficiency & conservation 13

14 2010s Renewable Evaluations, Engineering & Projects SPP Plant and units sized to accommodate renewables Geothermal Mt Spurr transmission study Wind Fire Island integration Hydro Stetson Creek diversion project Cooper Lake pumped storage evaluation 4 th of July Creek run-of-river evaluation Bradley Lake dynamic scheduling implemented Other possible run-of-river projects Including: Ship, Lowell, Japanese and Hunter creeks Integration of renewables flywheel/battery Waste-to-energy evaluation 14

15 2010s Grants Fire Island wind transmission line State of Alaska $25,000,000 Other renewables REF (Stetson Creek diversion) $576,000 REF (Battle Creek diversion) $500,000 REF (T-line to renewables) $600,000 REF (Stetson Creek diversion) $3,453,900 State of Alaska (Stetson Creek) $5,825,000 Integration of renewables EETF (Flywheel/battery) $720,000 Total of 14 grant applications by Chugach 15

16 Renewable Options Under Consideration Generation Energy (MWH) Capacity (MW) Timeline Dispatchable Chugach Capital ($M) Chugach Cost ($/MWH) Status Battle Creek 12,000 N/A 3 yr. Yes $15 $65 Ongoing Watana 840, yr. Yes $1,860 $80 Ongoing Waste to 165, yr. Yes $180 $115 Ongoing Energy 4 th of July 55, yr. Yes $125 $120 Ongoing Geothermal 420, yr. Yes $300 $130 Abandoned Chugach 24, yr. No PPA $230 Proposal Solar FIW , yr. No PPA Avoided Cost Rate, October 1, 2015 filed and approved by the RCA is $38 per MWh 16

17 Future Renewable Power Supply Opportunities Renewable Power Supplies such as hydroelectric can lower cost over the long-term 17

18 Discussion 18