CPS Energy Update. Alamo Heights Neighborhood Association November 2, 2010

Transcription

1 CPS Energy Update Alamo Heights Neighborhood Association November 2, 2010 Presented by: Jelynne LeBlanc Burley Executive Vice President & Chief Administrative Officer, Corporate Support Services

2 Agenda State of the Utility Challenges for the Industry and CPS Energy Capital/Operating Requirements and Recent Rate Adjustments Future Generation Resources Impact of Energy Efficiency and Conservation Programs and Renewables Overview of CIED Fund Focus on the City of Alamo Heights Electric Service, Reliability and Projects Green Power Community 2

3 Our Strengths Solid financial position CPS Energy is rated AA+, Aa1 and AA by Fitch Ratings, Moody s Investor Services and Standard & Poor s, respectively. The ratings outlook from all three ratings agencies was also designated as stable. Diversified generation portfolio Nuclear, coal, gas and renewables Reliable electric and gas systems Low bills Customers combined energy bills rank among the lowest of the nation s 20 largest cities Talented and experienced employees 3

4 The Industry s Challenges Rising costs and increased need to build new and replace old infrastructure Changing technologies Regulatory and compliance requirements Balancing customers desires versus what customers are willing to pay Aging workforce 4

5 CPS Energy s Challenges Energy efficiency goal of 771 MW savings Replacement of aging generation plants will require decisions on new generation sources Funding a significant capital program Focus on sustainability Keeping a close eye on new and emerging technologies Responding to public desire for a more transparency in decision making processes 5

6 FY 2011 Capital Budget by Program Category FY 2011 / $523M Enhancement Projects, 11.9% System Expansion, 13.1% Infrastructure Modernization, 22.2% Spruce 2 & Peakers, 22.4% Customer Connect, 14.2% Civic Improvement, 2.3% Environmental & Regulatory, 13.9% Approximately 90% of CPS Energy s proposed capital budget will be used to: Complete strategic projects in progress, Spruce 2 Braunig Peakers, Connect new customers, Respond to civic improvement requests, Meet environmental/regulatory mandates, and Maintain safety & reliability through system expansion or replacement of aging infrastructure. 6 6

7 FY 2011 Operating Budget by Program Category FY 2011 / $1,190.5M Electric Fuel & Purchased Power, 41.7% Distribution Gas, 10.6% CPS Energy, Non Fuel O&M, 30.9% Regulatory & Other, 4.4% STP Non Fuel O&M, 12.4% Approximately 70% of CPS Energy s Operating Budget is comprised of fuel, purchased power, owner costs and regulatory costs. Approximately 30% of CPS Energy s Operating Budget is comprised of internal non fuel expenditures such as labor, materials & services. 7

8 Electric: Revenue Requirement Drivers for FY 2011 New Generation (Spruce 2, Braunig Peakers) Environmental / Regulatory Requirements Maintain Safety & Reliability Cover Operating Costs Support Customer Growth Gas: Required Civic Improvements (State, County, City) Maintain Safety & Reliability 8

9 Rate Adjustments On February 18, 2010 the San Antonio City Council approved the following rate adjustments: Average Residential Bill System Est. Res. BASE Rate BILL IMPACT BILL % Electric 7.5% $3.52* 3.4% Gas 8.5% $2.05 N/A Electric & Gas N/A $ % *Includes annualized fuel benefit associated with Spruce 2 after it comes on line 9

10 Support for our Customers Residential Energy Assistance Partnership Helps elderly, disabled or low income customers pay their electric and gas bills. Public and community organizations that provide emergency funds to pay electric bills. Budget Payment Plan Average your bill and pay the same amount every month. Critical Care Program Minimize risk for losing power to critical medical equipment. Residential Disabled Citizens Billing Program Eligible citizens can request additional time to pay their bill. Senior Citizens' Billing Program Extend the payment period for your monthly bill if you are age 60 years and older. Temporary Hardships Request additional time to pay your bill to avoid disconnection. 10

11 Next Generation Resource Decision Integrated Resource Plan updated annually We are actively evaluating the optimal time to select our next generation resource option Considerations will include: Impact of Energy Efficiency and Conservation Programs Carbon Legislation Emerging Technologies Availability and Pricing of Fossil Fuels Impact of Energy Efficiency and Conservation The San Antonio Economy 11

12 CPS Energy Native Load 2010 Capacity Projected 2010 Generation Renewable 13% Renewable 11% Purch Pwr 1% Gas 4% Nuclear 15% Natural Gas 40% Coal 44% Nuclear 40% Coal 32% Total Capacity = 6945 MW Total Generation = 21,167,000 MWh 12

13 CPS Energy Renewables 2010 Renewable Capacity Solar 2% Landfill Gas 1% Projected 2010 Renewable Generation Solar < 1% Landfill Gas 3% Wind 97% Wind 97% Total Renewable Capacity = MW Total Renewable Generation = 2,241,000 MWh 13

14 Options To Meet Future Needs 2) Renewable 3) Demand Side Resources Storage 4) Distributed Generation 1) Traditional Generation 14

15 Inventory of Power Plants STP 1 Fuel Capacity (MW) Planned Retirement Date 2 Factor 2009 Capacity Unit 2 Nuclear % Unit 1 Nuclear % J.K. Spruce Unit 1 Coal % J.K. Spruce 2 Unit 1 Coal new Unit 1 Coal % J.T. Deely Unit 2 Coal % A. von Rosenberg Unit 1 Gas % O.W. Sommers V.H. Braunig Plant Unit 2 Gas / Oil % Unit 1 Gas / Oil % Unit 3 Gas / Oil % Unit 1 Gas / Oil % Unit 2 Gas / Oil % Leon Creek CT (4) Gas % Leon Creek Unit 4 Gas % W.B. Tuttle Unit 3 Gas % Leon Creek Unit 3 Gas % Braunig Peakers CT (4) Gas/Oil new Capacity: 6138 Generation Portfolio CF: 45.3% Base Load (3261 MW) Intermediate (2246 MW) Peaking (631 MW) Covel Gardens Landfill Gas /31/ % Cottonwood Creek Wind /30/ % Sweetwater 4 Wind /23/ % Desert Sky Wind /31/ % Papalote Creek 3 Wind /31/ % Penascal 3 Wind /30/ % Renewable Capacity: Renewable Portfolio CF: 30.2% Renewable Total Capacity: Total Generation Portfolio CF: 43.7% 1 In , CPS Energy's 28% share in STP accounted for 700MW of total capacity. In May 2005 CPS Energy's additional share of 12% added 325MW. In 2007, turbine upgrades increased CPS Energy's share to 1080 MW. STP 1 & 2 capacity factors are calculated based on the original unit capacity of MW. STP 1 & 2 retirement date is based on original 40 yr. operating license plus a 20 yr. extension. 2 Fossil plant retirements based on 55 yr. life. Renewable energy retirement date based on contract end date. 3 Penascal capacity factor based on 9 months of operation and Papalote Creek based on 3 months of operation. 15

16 Sustainable Energy Policy On June 8, 2010, the CPS Energy Board of Trustees reaffirmed the Sustainable Energy Policy providing for: A portfolio of conventional energy generation sources, including nuclear, coal, natural gas, renewable energy and energy efficiency and conservation, will begin to transition CPS Energy from centralized to distributed generation. Such a transition will be supportive of Mission Verde and in sync with the Strategic Energy Plan and Vision Greater San Antonio can become a national pacesetter, in the process of creating green jobs, jump starting new technology research and development and mitigating climate change. 16

17 What CPS Energy Looks like by 2020 By 2020, CPS Energy will have achieved: Consistently rank in Top 5 nationally JD Power & Associates for gas and electric customer satisfaction 15% participating in Windricity and Solartricity offerings Over 100,000 customers actively managing energy use through AMI and Home Area Network related products Residential rates remain below Texas competitive markets Community peak demand lower by 771MW through STEP Renewable capacity goal of 1500MW or ~20% of our total generation additional capacity beginning in FY 2013, with a move to a distributed generation model to bring renewables within CPS Energy s distribution system Low carbon emission baseload power generation Improved reliability and responsiveness to customer service needs Employee satisfaction reaching 90% levels Continuous improvement culture, including training for the future Transparent communications at all levels and across all levels 17

18 Energy Efficiency & Conservation Programs Residential Programs: Air Conditioner Rebates Air Flow Performance Rebates Peak Saver Thermostats Wash Right (in collaboration with SAWS) Compact Fluorescent Light (CFL) Instant Rebates (Coupons) Home Efficiency Rebates These include rebates for ceiling and wall insulation, spray foam insulation, Energy Star Windows, window films and screens, and cool roof applications. 18

19 Energy Efficiency & Conservation Programs Commercial Programs: Lighting Retrofit Programs Cool Roof Program HVAC Program Window Coating Program Efficient Motor Program Custom Measures This program provides a comprehensive platform for costeffective energy efficiency measures not addressed by other CPS Energy program offerings. A customized incentive is offered based on project performance. Commercial Demand Response 19

20 Solar Energy Programs: Energy Efficiency & Conservation Programs Photovoltaic (PV) Program Rebates available to both residential and commercial customers for PV systems at $3.00 per watt with a cap of $30,000 for residential and $100,000 for commercial customers. Solar Hot Water Rebates Rebates are calculated using the Solar Rating Certification Corporation (SRCC) calculated Annual kwh Energy Savings Performance table for San Antonio. The listed calculated savings for the system are multiplied by a rate of $0.60 with a cap of $2,

21 Advanced Metering Infrastructure (AMI) Program 2 Year Pilot ( ) AMI Vendor Contract (completed) Implement AMI Network and controlled pilot of approximately 40,000 meters for integration testing Implement Meter Data Management (MDM) system testing Perform AMI/MDM system acceptance testing Implement customer engagement pilots Begin the full deployment process Initial Go Live is scheduled for 2012 Goal is full, system wide implementation by

22 Renewable Energy Programs and Resources Solar demonstration projects Energy Management Center Institute of Texan Cultures Pearl Brewery R&D Project Partnered with Silver Ventures to install 200 kilowatt photovoltaic system; largest commercial solar project in Texas New Environmental Lab 4.06 kilowatt photovoltaic array Solartricity Producer Program Distributed Generation Windtricity with more than 7,000 residential customers and 1,300 business partners, including USAA, HEB, VIA and AT&T Center 22

23 Renewable Energy Programs and Resources SunEdison Partnership 25 Year Purchased Power Agreement (PPA) 3, 10 MW installations in San Antonio Area 40,000 tracking PV panels per site Specific locations currently in negotiation Partnership will include: Regional SunEdison presence in San Antonio area Educational Center at one of the installations Research collaboration with CPS Energy and institutions of higher learning Commercial Operation date scheduled for September

24 History of CIED Fund In 1993, the CPS Energy Board of Trustees established the Overhead Conversion Fund (OCF) Enhance aesthetic appeal of public areas Revenue is allocated annually to the Fund Based on one percent (1%) of the CPS Energy electric base rate revenue collected in the previous year In 2005, the Community Infrastructure and Economic Development (CIED) Fund was created out of the old Overhead Conversion Fund 24

25 CIED Fund Projects Three categories of projects can now be accomplished using the CIED Fund: Overhead / Underground Conversion Including Decorative Streetlights Economic Development Environmental Stewardship / Energy Efficiency Projects are selected by governing bodies of the Cities in which CPS Energy s Electric Distribution System is located 25

26 CIED Fund Projects Environmental Stewardship/Energy Efficiency: Projects designed to further our corporate energy efficiency objectives and reduce peak demand on the CPS Energy System Projects must meet a positive cost benefit analysis to CPS Energy Economic Development: Projects that add new kwh sales and incremental base rate revenues and must result in a positive cost benefit for CPS Energy 26

27 Alamo Heights Electric Service Recent Updates Circuits previously feeding Alamo Heights Terrell Hills Substation: 5 circuits Olmos Substation: 1 circuit New Exeter substation installed May 2010 All Alamo Heights electric service from the Terrell Hills Substation was transferred to Exeter Substation located on Austin Highway

28 Alamo Heights Electric Service Reliability Non storm outage records indicate system serving Alamo Heights is performing well Majority of Alamo Heights reliability issues are related to three storms during the 2010 calendar year The largest reliability impact to service continuity during these storm events are the outage contributions caused by trees and other vegetation.

29 Alamo Heights 2010 Storm Circuit Performance AH circuit performance during 2010 major storms. Date # of Outages Customers Affected Customer Hours Interrupted (1) Average Restoration Time (hours) June , August , September , (1) Customer hours interrupted is the sum total of all outages experience by all customers Two of three storms were classified as major events according to industry reporting guidelines

30 Impact of Summer Storms 2, 10 Year storms this summer June 2 Storm 231,696 customers impacted 164 circuits operated September 7 Storm 237,445 customers impacted 170 circuits operated

31 City of Alamo Heights Projects Recent Projects Completed: Completed overhead/gas adjustments to accommodate a civic project on Castano Street As part of the civic project, CPS Energy installed decorative pendant street lights that were funded through the CIED Fund 9 lights; approximately $ 66, Future Projects Near Alamo Heights: Broadway/Hildebrand Conversion is a City of San Antonio (COSA) Project that is just outside of Alamo Heights, but could impact traffic in the area Begins May 2011

32 Incarnate Word University CPS Energy Overhead to Underground Utility Conversion Hildebrand AT&T Broadway Broadway Condos Conversion Project is in coordination with COSA s Broadway Corridor Street & Drainage Project Begins May 2011 Indicates where Overhead utilities will be removed

33 City of Alamo Heights Green Power Community City of Alamo Heights has achieved the designation of Green Power Community (GPC) as determined by the Environmental Protection Agency and CPS Energy GPCs are towns, villages, cities, counties, etc. in which the local government, businesses, and residents collectively buy green power in amounts that meet or exceed EPA's Green Power Community purchase requirements. Recognition Ceremony scheduled for the November 8, 2010 City Council meeting