Electric Power Considerations in California · E: [email protected] Jason J. Shepard Managing Principal, Cresa MCS Average Density per Cabinet/Rack Cresa MCS Do The Math Cabinets

Jason J. ShepardMANAGING PRINCIPAL, CRESA MCS

Cell: 714‐925‐8539E‐mail: [email protected]

Electric Power Considerations in

California

2 | T: 714‐925‐8539E: [email protected]

Jason J. ShepardManaging Principal, Cresa MCS

Agenda

1. Data Center Trends

2. Electric Power Basics

3. “Grid” Reliability

4. Power Cost

5. Carbon & Renewable Power Regulations

6. Summary



Cresa MCS – Trends

The Great Consolidation

Virtualization

Blade Servers…



Average Density per Cabinet/Rack

Cresa MCS

Do The MathCabinets/Racks

kW per Rack

Total KW

10 3 = 3020 3 = 6030 3 = 9010 5 = 5020 5 = 10030 5 = 15010 7 = 7020 7 = 14030 7 = 21010 10 = 10020 10 = 20030 10 = 30010 15 =15020 15 = 300

Highest Concentrations per Cabinet – St. Louis (DCUG, Spring 2014)Now In Two (2) Years

1 2‐4 kW per cabinet (35%) 1 4‐8 kW per cabinet (33%)2 4‐8 kW per cabinet (33%) 2 8‐12 kW per cabinet (22%)3 8‐12 kW per cabinet (10%) 3 2‐4 kW per cabinet (15%)

Warm Warmer Hot Really Hot

Highest Concentrations per cabinet ‐ Dallas (DCUG, Fall 2013)Now In Two (2) Years

1 4‐8 kW per cabinet (37%) 1 4‐8 kW per cabinet (30%)2 2‐4 kW per cabinet (35%) 2 8‐12 kW per cabinet (30%)3 8‐12 kW per cabinet (14%) 3 12‐16 kW per cabinet (9%)

What department pays the power utility bill in your organization? (Uptime Institute, 2013 Data Center Industry Survey)

Facilities / Corporate Real Estate 80%



Electric Power Basics



NERC: Electricity Generation, Transmission & Distribution

BENEFITS to being located along/near the POWER LINES & SUBSTATIONS.

1. Generation 2. Transmission (Blue Above) 3. Distribution (Green Above)Power Plants• Subject to Regulation• Green Considerations

Sources• Fossil Fuel• Green & Renewable

Getting the electricity to the area.• Subject to Wide Area Disruptions

Transmission Line ExtensionsAbove Ground: ~$___/MileBelow Ground: ~$___/Mile

Your local power utility service.• Where do they stop?• Rates

Distribution Line ExtensionsAbove Ground: ~$___/MileBelow Ground: ~$___/Mile

Substation Construction Cost~$___ per MVA up to ___ MVA~$___ per MVA over ___ MVA



NERC: Electricity Generation, Transmission & Distribution

230 kV & 115 kV Lines Substation Transformers

Net Electricity Generation: #1 Source: Coal (38.57% )

(2012, US EIA)



Reliability



NERC Major Disturbances & Unusual Occurrences (2004 – 2013)

WECC: ___ MRO (MAPP): ___

SPP: ___

TRE (ERCOT): ___ FRCC: ___

NPCC: ___

SERC: ___

RFC (Formerly ECAR, MAAC, & MAIN): ___

Western: __%

ERCOT: __%

Eastern: __%

Total Number of Events: ___

Causes:1. Weather/Flooding Related: __% (__)

2. Electric System Related: __% (__)

3. Fire: __% (__)

4. Crash/Cyber Threat/ Vandalism: __% (__)

5. Earthquake: __% (__)



Power Cost



Step 1:1,000 Amps @ 480 Volts = ~___ kW

___ kW x 40% Load x 8,760 Hours (in a year) = ___ kW Hours

Step 2:___ kWhrs. X $0.01/kWhr. = $23,302 in Power Cost

Power Cost Analysis: Do The Math

Step 3. Adjust for Load Factor (i.e. percentage of time capacity is in use)40% 60% 80% 100%

~$23,302 for each 1¢/kWhr.

~$34,952 for each 1¢/kWhr.

~$46,603for each 1¢/kWhr.

~$58,254for each 1¢/kWhr.

Step 4:Identify the appropriate ¢/kWhr. and re‐calculate.



+9.8%

Rate Charts & Increases



Carbon Emissions & Green Considerations



Carbone Emissions Reductions• Reduction by 30% (average)

• By 2030• Target is Power Plants• CA: 23.1%

• Clean Air Act• Cap & Trade

29 States have Renewable Portfolio Standards• These are laws (not just goals)

Federal State

Federal vs. State Regulations

CO₂ accounts for 84% of GHG [Green House Gas] emissions in the U.S. with fossil‐fuel power plants being (by far) the largest emitter of GHGs. (Source: EPA, EPA‐542/R‐14‐002, June 2014)



Renewable Portfolio Standard (RPS) Policies by State – March 2013

RPS Policies:• CA: 33% x 2020 (highest nationally)• NV: 25% x 2025• AZ: 15% x 2025

Questions to Consider:• What is your power provider’s

current generation mix?

• Do they own that generation or buy it from third parties?

• Will your power bill go up as they try to reach the 33% RPS?

• Where can I go to find lower power costs?

• Should I consider other providers’ generation mixes & the state RPS policies too?



IOU: Investor‐Owned Utility

Data Source/Date Generation Mix Percent Renewable

Southern California Edison (SCE)

Edison InternationalAnnual Report (10K) 2013Filed: 02/25/14

Owned: 21%• 3% (of the 21%) of SCE owned generating capacity is solar.

Purchased: 79%

22%

San Diego Gas & Electric (SDG&E)

Sempra EnergySan Diego Gas & Electric Southern California GasAnnual Report (10K) 2013Filed: 02/27/14

Owned: 30%• Natural Gas

Purchased: 70%• Renewable: 44%

44%

Electric Power Generation Statistics by Southern CA IOU (2013)


T: 714‐925‐8539E: [email protected]

Cause for Concern?• IOU’s will often supplement their own power generation by purchasing power generation from third parties

such as Independent Power Producers (IPPs)/ Non‐utility Generators.

• If just 12% of power generated by IPPs comes from “Renewable Sources” (U.S. EIA), what type of impact should we expect on pricing as IOUs compete for those limited resources heading into 2020?• What downstream impact does this then have on publicly owned utilities?



Summary



• Renewable generation is now law in California.

• Challenges with electric transmission infrastructure.

• Power costs are going up.

• It’s not just industrial and data center users.

• Properties with substations = lower rates = benefit.

• Properties along power lines = access = benefit.

• Heavy power consumers may leave the state.

Summary



Q&A

Cresa MCS

Jason J. ShepardMANAGING PRINCIPAL, CRESA MCSCell: 714‐925‐8539E‐mail: [email protected]

Documents

Electric Power Considerations in California · E: [email protected] Jason J. Shepard Managing Principal, Cresa MCS Average Density per Cabinet/Rack Cresa MCS Do The Math Cabinets