Distribution Value Added

Transcription

1 Distribution Value Added Eng.. Carlos A. Pérez P MéndezM 1

2 CONTENTS 1. Introduction 2. How to calculate DVA 3. Costs by Voltage Levels 4. Required Revenue 5. NRV Optimization 6. Grid Operation Costs 2

3 1.- INTRODUCTION Rates paid by users for electricity service should reflect electric energy efficient production, transmission, and distribution costs. Hence, regulated rates have 2 basic components: the node price,, related to generation and transmission cost, 3

4 INTRODUCTION and the Distribution Value Added, which is the cost of taking electric energy from transmission or subtransmission networks and carrying it to industries, homes, businesses,, etc. 4

5 2.- HOW TO CALCULATE DVA The criterion followed consists of using demand- adapted efficient model businesses to determine distribution costs by voltage levels 5

6 2.- HOW TO CALCULATE DVA REFERENCE NETWORK MODEL Parameters CUSTOMERS Location Power QUALITY Slogans Unit COSTS Investment O&M Scope MINIMIZATION Investment Losses CONSTRAINTS Quality Results THEORETICAL GRID Substations TC s Lines FIXED INVESTMENTS O&M COSTS 6

7 2.- HOW TO CALCULATE DVA MODEL USE The reference network model is used by the regulator to: Assist in SETTING INITIAL DISTRIBUTION of compensation pool Measure the company s TECHNICAL EFFICIENCY EVOLUTION with time Starting with the reference grid for Year 0, demand is increased by the value expected in the next few years to get the needed grid increase and, hence, the required costs. 7

8 2.- HOW TO CALCULATE DVA DC MV DC LV Energy Extraction Node HV MV LV Customers HV : High Voltage DC MV : Medium Voltage Distribution Cost DC LV : Low Voltage Distribution Cost MV Customers MV : Medium Voltage LV : Low Voltage 8

9 2.- HOW TO CALCULATE DVA DVA includes: Distribution costs, or DC (MV, LV, and HP facility grid) Marketing expenses, or ME (Customer( Service and Metering Equipment) DVA is calculated for an electrical distribution service provider that operates in an efficient and wise manner: Investing in and managing a minimum cost network; Designing and managing a business structure geared to service quality and safety, valued at market prices, and adequately marketing its services 9

10 2.- HOW TO CALCULATE DVA Parameters taken into account are: Geographic characteristics of the area Demand Technical and policy constraints 10

11 2.- HOW TO CALCULATE DVA What is taken into consideration? CAPITAL ANNUITY GRIDS, METERING EQUIPMENT, CONNECTIONS, ETC. TECHNICAL OPERATION EXP. DIRECT ACTIVITIES + PART OF SUPPORT ACTIV. WORKING CAPITAL COSTS FINANCIAL COSTS OF CAPITAL UNCOLLECTIBILITY REFERENCE LEVEL $ DVA 11

12 2.- HOW TO CALCULATE DVA What is being compensated? DCMV DCLV ENERGY EXTRACTION NODE HV MV LV MV Customers LV Customers DC MV / LV = CapitalAnnuityC + OperationC PeakPower /12 12

13 3.- DETERMING COSTS BY VOLTAGE LEVELS. -Demand study and projection by typical (urban and rural) area. -Determining facilities New Replacement Value (NRV). -Calculation of efficient technical losses. -Efficient commercial costs. 13

14 4. REQUIRED REVENUE CALCULATION Grid replacement value cost study Cost- efficient NRV HV DC MV MV DC LV NRV optimized for optimal LV grid US$ / km NRV optimized for LV Customers optimal MV grid US$ / km NRV optimized for optimal MV/LV transformation TS US$ / kva 14

15 4. REQUIRED REVENUE CALCULATION Study on optimal Operation Maintenance costs by voltage level. & Optimal MV grid, MV/LV TS, and LV grid cost, US $ /KM. MV-Medium Voltage MV-LV Transformation LV- Low Voltage 15

16 4. REQUIRED REVENUE CALCULATION Study on commercial operation costs for efficient model company. -Commercial Office and Store Requirements. Efficient Company. -Provision of staff, equipment, and work means. Efficient Company. - Electric material requirements and others. -Administrative expenses. Efficient. 16

17 REQUIRED REVENUE CALCULATION What is compensated? Meter Reading Customer Service Billing and Mailing Collection Management Metering Equipment Costs ReadingC + BillingC + ServiceC CommercC CATEGORY = + Numb _ Customers /12 MeterC 12 ANNUITY 17

18 5. NRV OPTIMIZATION -Load flow run -Feeder load state and technical loss calculation MV Grid -Feeder selection by technology -Lowest cost feeder determination. Investment vs Losses Investments US $ Demand 18

19 LV grid optimization 5. NRV OPTIMIZATION Topological Maximum Service Geographical alternatives Voltage Quality demand distribution Geographic & environmental characteristics & constraints General GRID GEOMETRIC MODELING DESIGN CURRENT CALCULATIO Drops ECONOMIC SECTION CALCULATION Limits SERVICE QUALITY CONTROL Alternative n Alternative 1 Total Cost MINIMUM COST ALTERNATIVE: Transformation modules Grid length and sections Technical losses design N parameters Economic Data and Costs 19

20 6. GRID OPERATING COSTS Distribution company costs related to grid operation, maintenance, and expansion components may be grouped into: Investment Costs associated to Grid expansion Capital costs related to interests and asset depreciations Operating costs, including grid losses and maintenance. 20

21 6. GRID OPERATING COSTS General administrative and fixed costs New supply connection costs Reading and billing costs related to grid use. 21

22 Operating Expense Calculation Chart Facilities TECHNICAL STAFF AND Market Compensations Geographic Distribution ORGANIZATION DESIGN Technical Operations Commercial Operations SERVICES STRUCTURE Contractor Involvement SUPERVISIO N AND SUPPORT STRUCTURE OPTIMIZED OPERATING EXPENSE BY ACTIVITY Staff Expense Hired Service Expense Operation Supply Expense Customers COMMERCIAL STAFF AND Geographic ORGANIZATION SERVICES Distribution DESIGN STRUCTURE Operation Materials Costs 22

23 Item Results Annual Requirements in US$ DISNORTE & DISSUR Capital Annuity Technical Operating Costs Commercial Operating Costs Support Activity Operat.ing Costs 7.25 Working Capital Cost & Uncollectibles 7.14 Total Distributor DVA Note: Year 2003 costs DVA Unit Value: US$44.2 /MWh/ 23

24 DVA CALCULATION PROCEDURE Grid Capital Cost Annuities Distribution Network Standard Investment, Maintenance, and Operating Costs DVA Distribution network amortization, administrative, and financial costs Standard losses at different stages of Distribution Network User-Related Costs Profit 24

25 MEAN TRANSMISSION COST-MTC It is based on annual compensation to the national transmission company and has three basic components: 1) General Annual Compensation (GAC): made up of recognized investment (RIn( RIn) ) annuity, considering a 30-year useful life and the discount rate, plus recognized O&M costs (ROMC). 2) ParticularAnnual Compensation (PAC): consisting of NTS expansions made through agent initiatives and secondary system expansions. 3) Annual NLDC Operating Cost (ADC). 25

26 MEAN TRANSMISSION COST-MTC It is computed through a Demand Economically Adapted System EAS: electric energy transportation at the lowest installation and operation cost c for transmission and transformation facilities in the system. Typical load states with different TS use condition situations Maximum and minimum demand Maximum and minimum power plant production Load states including contingencies with higher occurrence probability M o d e ll i n g Load flows to determine Pmax. Transmitted on lines or transformer (Max. Load) Max. Load vs Nominal Load Comparison Nominal line capacity w/o max. transportation limit is determined as minimum value of conductor thermal limit, transient & dynamic stability limit 26

27 Calculation Chart: MEAN TRANSMISSION COST-MTC 1) 30-YEAR USEFUL LIFE UNIT COSTS 2) CAPITAL RECOVERY FACTOR ROMC LINE & SUBSTATION DATA FACILITIES VALUATION RIn CALCULATION GAC MEAN TRANSMISSION COST (US$/MWh) Note: RIo, recognized investment capital cost. ADC 27

28 HV Equipment & Accessories UNIT COSTS + ASSEMBLY Substation NRV kv SUBSTATIONS SWITCHGEAR AREA LINE FIELD HV/MV Transform. UNIT COSTS + ASSEMBLY TRANSFORMER FIELD COUPLING FIELD CONTROL BUILDING OVERHEAD + CAPITALIZED INTERESTS Substation NRV calculation Command, signalling, alarm, and protection equipment COMMAND PANEL PROTECTION PANEL UNIT COSTS + ASSEMBLY SIGNALLING & ALARM PANEL Building & Land AC/DC ANCILLARY SERVICE PANEL 28

29 HV Line NRV POLES UNIT COSTS + ASSEMBLIES CONDUCTOR UNIT COSTS + ASSEMBLIES 230 Kv LINE S / D TERNARY INSULATORS & ACCESSORIES 138 kv LINE S / D TERNARY OVERHEAD + CAPITALIZED INTERESTS Substation NRV calculation UNIT COSTS + ASSEMBLIES 69 Kv LINE S / D TERNARY EASEMENT COST 29

30 MTC Value MTC, based on transportation system toll, is determined as a summation of capital, operation and maintenance, NLDC operation cost, divided by projected base energy demand. ( CC + ROMC ADC ) + MTC = Demand x 10 3 $ / year ) MTC (For 2003 ) = US $ / MWh 30