VIRGIN ISLANDS WATER & POWER AUTHORITY

Transcription

1 VIRGIN ISLANDS WATER & POWER AUTHORITY Gregory Rhymer, Chief Operating Officer 2013 ECONOMIC DEVELOPMENT SUMMIT 1

2 Government Owned Utility GENERAL BACKGROUND Primary Source of Water & Power Production & Distribution in the Territory Power Generation Capability (100 % fuel oil) St. Thomas/ St. John MW St. Croix MW Water Production Capability (R.O. & IDE) St. Thomas/ St. John 4.5 MGD St. Croix- 5.1 MGD Customers Water - 12,390 Electric 54,113 Territorial Peak Power - St. Thomas/ St. John 45 MW min. 88 MW max. (seasonal avg.) - St. Croix 30 MW min.- 55 MW max. (seasonal avg.) Fiscal Year 2012 Operating Expense - $334,140,273 -$242,968,463 - Fuel Oil Tax Incentive Pricing -73% Fiscal Year 2012 Operating Expense 2

3 INITIATIVES WAPA WORKING FOR YOU Achieving the Territory s mandate of a reduction in the use of fossil fuel by 60% by the year 2025, while simultaneously lowering utility (power & water) costs. Improving the power generating facilities & transmission systems, which includes upgrades, increased efficiency and reliability. Modernizing and expanding water production and distribution systems. Securing vulnerable infrastructure to minimize damage from hurricanes or natural disasters. Partnership with V.I Next Generation Network to utilize WAPA s existing infrastructure (fiber optic cable, T&D systems,) to advance the communications capability in the Territory. 3

4 Solar Power Sharing Our Success WAPA WORKING FOR YOU Signed power purchase agreements with industry leaders Toshiba International Corporation; Lanco Virgin Islands, LLC and Sun Edison, LLC will bring 18 MW of solar power to St. Thomas and St. Croix by the end of first quarter Wind Power As a component of the territory s Clean Energy Road Map and in partnership with the V. I. Energy Office, wind anemometers are currently collecting data to assist WAPA s release of an RFP for 5-10MW of wind power early Biomass Project Biogas from an anaerobic digestion process will be used to generate 7MW of renewable electricity utilizing a feedstock called giant king grass to be grown on 1000 acres on St. Croix. 4

5 Interconnection Grid Sharing Our Success WAPA WORKING FOR YOU Technical studies have confirmed that a transmission project to interconnect the electrical power systems of Puerto Rico, the U.S Virgin Islands and the British Virgin Islands is feasible. An environmental study is next. This project s potential has broad support including that of the Energy and Climate Partnership of the Americas and the Connecting the Americas 2022 initiatives. Global Information System and Global Positioning System (GIS/GPS) The integration of GPS technology into GIS activities now provides for asset data for all transmission and distribution circuits to link to the Customer Information System (CIS) and for better engineering decisions relative to system loss reduction. GIS/GPS also lays a foundation for the implementation of an Outage Management System (OMS), Automated Meter Reading (AMR-currently operating on water meters), and an Advanced Metering Infrastructure (AMI-smart grid) technology to come online within two years. 5

6 Energy Services Business Unit Sharing Our Success WAPA WORKING FOR YOU A grant of $600,000 from the U.S. Department of the Interior has led to the creation of the VIenergize Services and Network to assist customers with energy and water projects to reduce utility bills and lessen USVI dependency on fossil fuels. Education and training opportunities, technical consultation and financing for energy efficiency installations will be available. Underground Projects Underground electrical service in the downtown business areas of Charlotte Amalie, St. Thomas and Christiansted, St. Croix; with similar plans now in development stage for Frederiksted, St. Croix and Cruz Bay, St. John. Underground critical emergency government services, agencies & departments (i.e. hospitals, fire services, police, prisons, airports, seaports, electrical substations, other emergency management services and major banks). Redesign and reinforce electrical transmission & distribution infrastructure integrity, lending to expediting restoration of the systems after hurricanes or other natural disasters. Major conversion, expansion and rehabilitation of the water production & distribution systems Territory-wide, making potable water supply less expensive, reliable and available to residents. -Enhance the Territory s fire fighting & protection capabilities (increase numbers of fire hydrants). 6

7 Sharing Our Success WAPA WORKING FOR YOU Conversion to Liquefied Petroleum Gas (Propane) The utility is finalizing an agreement with an industry leading company to supply lower cost and cleaner burning liquefied petroleum gas (propane) for power generation, with an anticipated 30% reduction in fuel costs. Conversion to liquefied natural gas (LNG) is planned for the future. Generators will be converted to tri-fuel operation (LPG, LNG, diesel) to provide fuel source flexibility based on market prices. The LPG Project is expected to come on line August

8 $ per Million BTU Propane is the Best Near-term Option to Significantly Reduce the Cost of Fuel for Power Generation in the Territory Actual Cost of Fuel oil vs. Projected Cost of Propane $25 $20 $15 $10 $5 ~ 30% Fuel Cost Reduction $- Fuel Oil Propane Note: Estimate based on WAPA s actual price for fuel in February 2013; The propane cost considered above includes a 5 year amortization of the facilities capital expenditures (construction of new propane storage terminals, repair/upgrade of fuel transfer docks and conversion of WAPA s turbines in the St. Thomas & St. Croix Districts). After 5 years, propane costs will further be reduced. 8

9 $ Million per Year Switching to Propane Will Yield Significant Fuel Cost Savings for WAPA and the Territory Estimated Annual Fuel Cost Savings From Propane Switch $60 $50 $40 $30 $20 ~ $90 Million Total Fuel Cost Annual Savings For the Territory $10 $- St. Thomas St Croix Note: Estimates based on WAPA s current fuel consumption, actual fuel oil price, and propane price in February

10 EDIN & USVI GOAL VI Energize - Energy Revolution We are the Solution is a call to action for Virgin Islanders to join the movement towards changing how we use energy in the territory. This campaign facilitates the education and outreach component of the Energy Development in Island Nations-USVI (EDIN-USVI) initiative, a collaborative effort of many public and private sector groups led by VIWAPA and the V. I. Energy Office with the support of the U.S. Departments of Energy and Interior and the National Renewable Energy Laboratory (NREL). 10

11 CONCLUSION WAPA s success over the past three years, as well as planned developments and projects scheduled for commissioning in the next 18 months, will incentivize new business activity and be a stimulus to revitalize the Territory s economic growth. Lower Cost of Living Economic Growth Affordable Power and Water New Business Startups Lower Emissions 11

12 CONTINUED INFORMATION Visit to read more about these projects in the Energy Action Production Plan published by WAPA s governing board and in the USVI Energy Road Map: Charting the Course to a Clean Energy Future which explains how we will reach our goal. 12