Indiana Energy Status

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1 Indiana Energy Status presented to Indiana Chamber of Commerce Conference on Energy Management June 19, 2008 presented by Doug Gotham State Utility Forecasting Group

2 Which sector uses the most electricity in Indiana? Residential Commercial Industrial

3 2006 Residential Electricity Sales (MWh) 140,000,000 TX 120,000, ,000,000 80,000,000 60,000,000 IL OH 40,000,000 KY IN MI 20,000,000 0

4 2006 Commercial Electricity Sales (MWh) 140,000, ,000,000 CA 100,000,000 80,000,000 60,000,000 40,000,000 MI OH IL 20,000,000 KY IN 0

5 2006 Industrial Electricity Sales (MWh) 140,000, ,000,000 TX 100,000,000 80,000,000 60,000,000 40,000,000 MI KY IL IN OH 20,000,000 0

6 2006 Total Electricity Sales (MWh) 400,000, ,000,000 TX 300,000, ,000, ,000, ,000,000 IL OH 100,000,000 KY IN MI 50,000,000 0

7 Which sector uses the most electricity in the U.S.? Residential Commercial Industrial

8 Approximately what percentage of electricity used in Indiana comes from coal? 85% 90% 95%

9 Fuel Sources for Electric Power in 2005 United States Indiana Coal 50 % 96 % Nuclear 20 % 0 % Natural Gas 15 % 3 % Petroleum 6 % 0 % Renewables 8 % 0.4 % Indiana numbers do not include out-ofstate generators that serve Indiana customers Cook (nuclear) in Michigan Madison (natural gas) in Ohio Trimble County (coal) in Kentucky

10 In Indiana produced 3.2 % of the electricity generated in the U.S. Indiana produced 6.2 % of the electricity generated from coal in the U.S. Indiana produced 0.3 % of the electricity generated from natural gas in the U.S.

11 What percentage of Indiana s coal-fired generating capacity is at least 30 years old? Less than 50% More than 50%

12 1940s 1950s 1960s 1970s 1980s 1990s MW ENERGY CENTER Coal-fired Generating Capacity by Decade Installed # of units MW 1940s s s s s s 2 289

13 MW ENERGY CENTER Projected Resource Requirements SUFG Required Resources Existing Resources Projected Demand w ith 15 Percent Reserve Margin 0 Year Source: Indiana Electricity Projections: The 2007 Forecast, State Utility Forecasting Group

14 Approximately what fraction of coal burned in Indiana is mined in Indiana? 1/3 1/2 2/3

15 Generation from which fuel source is being (or is proposed to be) added to the Indiana mix? Coal Natural gas Wind

16 Coal Developments IMPA share of Prairie State (IL), Trimble County (KY), and Thoroughbred (KY) Duke Energy integrated coal gasification unit at Edwardsport Proposed syngas facility

17 Natural Gas Developments Hoosier Energy Wabash Valley Power proposed purchase of Holland combined cycle facility (IL) NIPSCO proposed purchase of Sugar Creek combined cycle facility (IN)

18 Wind Developments Benton County Wind Farm Duke Energy and Vectren Fowler Ridge Wind Farm Indiana Michigan Hoosier Wind Farm Indianapolis Power & Light NIPSCO pending purchases (IA and MN)

19 Indiana ranks in the top 5 in terms of emissions of CO 2, SO 2, and NO x True False

20 2006 CO 2 Emissions (metric tons) 300,000, ,000,000 TX 200,000, ,000, ,000,000 MI KY IL IN OH 50,000,000 0

21 2006 NO x emissions (metric tons) 300,000 TX 250,000 OH 200,000 IN 150, ,000 MI IL KY 50,000 0

22 2006 SO 2 emissions (metric tons) 1,000,000 OH 900, ,000 IN 700, , , , ,000 IL MI KY 200, ,000 0

23 ENERGY CENTER Emissions Trends for Indiana 1.4 Electricity Industry (normalized to 1990 values) Generation CO2 SO2 NOX 0

24 According to EIA, a state has MWh of generation and MWh of sales: is this state an exporter or an importer? Exporter Importer Neither Both

25 According to EIA, Indiana has 130 MWh of generation and 106 MWh of sales: is Indiana an Exporter Importer Neither Both exporter or an importer?

26 Indiana ranks where in terms of lowest retail electricity rates? Top th or higher

27 ID WV WY KY UT NE WA ND MO IN OR SD VA KS MT TN MN SC AR IA IL AL OK NM NC CO GA OH WI MI AZ LA MS PA NV MD DE TX FL DC VT ME NJ CA AK NH RI CT NY MA HI ENERGY CENTER 2006 All Sector Electricity Retail Price (cents/kwh) 25 IN rank # U.S. average

28 ID WV WA KY ND NE MO OR UT WY TN SD IN KS MT IL VA OK MN AL AR GA CO SC NM NC LA OH AZ IA MS MD MI DC PA WI NV FL DE NJ TX VT ME CA NH AK RI MA CT NY HI ENERGY CENTER 2006 Residential Electricity Retail Price (cents/kwh) IN rank # U.S. average

29 2006 Commercial Electricity Retail Price (cents/kwh) 25 IN rank # U.S. average ID WV MO UT NE VA WY ND KY SD WA OR AR KS MN NC IN IA OK MT CO SC NM GA IL TN AZ AL WI OH MI PA LA MS TX FL NV DE MD DC NJ VT AK ME CA RI CT NH NY MA HI

30 2006 Industrial Electricity Retail Price (cents/kwh) IN rank # U.S. average ID WV WY KY UT WA NE MO IL VA SC SD OR AL IA IN ND MT TN KS NC AR MN GA OK NM OH AZ WI CO MS MI PA LA DE FL TX NV MD VT ME NY CA NJ AK NH CT RI MA DC HI

31 Extra Credit Take Home Essay Question What is happening to the price of coal and natural gas and why?

32 Coal Spot Price (from EIA)

33 Jun 10, 1994 Jun 10, 1995 Jun 10, 1996 Jun 10, 1997 Jun 10, 1998 Jun 10, 1999 Jun 10, 2000 Jun 10, 2001 Jun 10, 2002 Jun 10, 2003 Jun 10, 2004 Jun 10, 2005 Jun 10, 2006 Jun 10, 2007 Jun 10, 2008 ENERGY CENTER Natural Gas Futures ($/mmbtu)