Utilities as Transportation Fuel Providers Wisconsin Public Utility Institute Institute Seminar, July 14, 2011 Peter Taglia Energy and Environmental Consulting, LLC and Merlin Raab, Renewable and Alternative Policy Senior Consultant, Wisconsin Public Service Corporation
Institute Seminar Introduction Introduction: Midwest Fuel Background Economic and Environmental Implications Utility Perspective Seminar Overview: National Perspective: Electric and Natural Gas Vehicles Wisconsin s Status and Opportunities Examples of Utility, Policy and Infrastructure Preparations Customer Rollout Final Panel with Responses and Reflections Housekeeping
IA IL IN KS KY MI MN MO ND NE OH OK SD TN WI Billions of Gallons Percent Ethanol Midwest Transportation Fuel Mix Petroleum is the dominant transport fuel in Midwest The Midwest produced about 8 billion gallons of ethanol, consuming almost 3 billion (~7% of sales) and exporting the rest. (WI produces approx. 500 million gals) 6.0 5.0 4.0 3.0 2.0 1.0 0.0 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Ethanol Gasoline % Ethanol Liquid biofuels are sold and distributed similar to petroleum, not utility fuels. All other fuels << 1% of total Region CNG LNG Electric E85 Hydrogen LPG PADD 2 12,224 33 625 10,933 0 51,409 Midwest 9,981 28 467 9,045 0 38,132 US Total 166,878 22,409 5,219 38,074 25 188,171 Gallons of gasoline equivalent Source: EIA 2005 Midwest Conventional and Alternative Fuel Use in 2005 Sources: EIA, RFA [1] http://www.eia.doe.gov/cneaf/alternate/page/atftables/afv_hist_data.html
Liquid Fuel Markets The sources, distribution, price, and regulation of liquid fuels in the Midwest are dramatically different from natural gas and electricity Petroleum is a globally traded fungible commodity; very little is used for electric generation in the U.S. Utility fuels are more diverse and less fungible $U.S. natural gas << $ Global LNG Transportation is a major price component of coal What Drives Crude Oil Prices? Source: EIA
Liquid Fuels in the Midwest Crude oil and finished transportation fuels are shipped in pipelines across the Midwest and U.S. Major Midwestern Refineries (bbs/day and 2011 U.S rank): BP Whiting (IN) 405,000 (#6) WRB Wood River (IL) 362,000 (#7) Koch Flint Hills (MN) 280,000 (#16) Exxon Joliet (IL) 238,000 (#23) Marathon (IL) 206,000 (#32) Murphy Superior (WI) 34,000 (#106) Sources: EIA and Canadian National Energy Board
Utility Fuels: Electricity and Natural Gas Wisconsin is a regulated state with municipal, cooperative and investor owned utilities. Regulated prices set by the PSC Excess electrical capacity (24% reserve margin in 2011) due to recent expansions of coal, natural gas and wind and the economic slowdown. In the last 10 years: 3 new supercritical pulverized coal plants, 1,800 MW 2,400 MW of Natural Gas Combined Cycle 500 MW of wind 100 s of miles of 345 kv and interstate gas pipelines 2009 WI Electric Generation by Fuel Source: WI PSC 2011 SEA
The Midwest s Oil Supply OPEC 108,682 (18%) Other 19,328 (3%) Canada 476,860 (79%) Conven tional 53% Oil Sands 47% Midwest Oil Imports (Left) Canadian Imports by Resource (Right) Source: EIA imports for PADD2 (2009) and Canadian National Energy Board (2009) http://www.neb.gc.ca/clf-nsi/rnrgynfmtn/sttstc/crdlndptrlmprdct/crdlndptrlmprdct-eng.html The Midwest refines domestic and imported crude oil Conventional and light oil is decreasing Heavy crude imports increasing from Alberta s oil sands Bakken oil also increasing from North Dakota
Alberta s Oil Sands Alberta s estimated crude oil reserves are the second largest in the world (after Saudi Arabia) On a full lifecycle basis, gasoline from oil sands have a carbon footprint between 15% and 30% higher than conventional gasoline Conventional Oil Lifecycle Emissions Wisconsin is a major exporter of mining equipment to Alberta Confirmation: Lots of Btus (and carbon) in Canada
Lifecycle Emissions of Transportation Fuels Source: Argonne National Lab
Gasoline (Reformulated) Corn Ethanol (CA Average) Soy Biodiesel Sugarcane Ethanol (Average) Compressed Natural Gas Electricity (CA Average) Cellulosic Waste Ethanol Dairy Biogas CNG Carbon Intensity (grams/megajoule) Example Lifecycle Well-to-Wheels Analysis California Low Carbon Fuel Standard Lifecycle Carbon Footprint Analysis Results 120 100 80 60 40 20 0
Wisconsin Summary Wisconsin has no fossil fuel production but produces half a billion gallons of ethanol Wisconsin has one small refinery; most fuel is imported as a finished product. Total cost = $9 B Wisconsin has ample electricity (and natural gas capacity) for now. 2009 WI Energy Expenditures Source: Wisconsin Energy Stats http://energyindependence.wi.gov
Natural Gas Utility Questions CNG or LNG? Light, Medium or Heavy vehicles? Does the Midwest have the infrastructure for winter peak day? Are new utility tariffs needed to properly recover infrastructure and demand costs? Who will own the refueling infrastructure?
Electric Utility Questions 2012-2018 Strategic Energy Assessment: impacts on load factor/shape and gen. mix? Carbon-impacts & benefits, who pays/benefits? Utility PEV promotion: Customer service/education or load building? Mandatory TOU rates for PEVs or incentives for off peak charging? Impact on adoption rates? Residential demand rates for > level 1 charging? Who pays to develop public charging infrastructure? Resale of Electricity?