Confidential
October 7, 2009
Integrating Wind Generation and the Impact on the Texas Power Grid
Mary Anne BrelinskyVice President, Texas Power
2
EDF Group and EDF Trading Overview
EDF Trading is a leader in the international wholesale energy markets.
EDF Trading has a pivotal role at the heart of the worldwide EDF Group. As EDF Group’s interface to the wholesale energy markets, EDFT uses large scale arbitrage and trading to optimize the energy positions and assets owned by EDF group.
EDFT sources, supplies, transports, stores, blends and converts physical commodities as well as trade in the financial markets.
An entrepreneurial culture, strong business platform and high caliber people combine to create a powerful business model that has driven EDF Trading to its leading position in Europe today.
EDF Group is Europe’s largest electricity producer.
EDF Group is Europe’s largest electricity supplier, contributing to the supply of energy and related services to more than 38 million customers.
EDF Group is involved in all areas of the energy value chain including generation, transmission, distribution, supply and trading, and is increasingly active in Europe’s gas markets.
EDF operates 66 Nuclear Power Stations worldwide (including British Energy).
Investment Grade Credit, EDF shares trade on the Euronext Paris index (EDF)
€64 BILLION 2008 sales
€23 BILLION in shareholder’s equity
€7.9 BILLIONIn 2008 operating profit
85% owned by the French government
164,000 Employees worldwide
126.7 GW installed generation capacity
€1 BILLION 2008 Operating profit
€1.6 BILLION in shareholder’s equity
700 Employees
100% owned by EDF Group S.A.
A3Moody’s Credit Rating
London Headquartered
3
Eagle Energy, a subsidiary of EDF Trading.
Wholesale Gas Trading and Supply:One of the top gas marketers in North America, marketing 4.4 Bcf a day of natural gas800,000 MMBtu/d of firm transportation in 40 pipelines primarily in the Eastern USArrangements for storage of gas in the Mid-Con, Mid-Atlantic, Gulf Coast and West regions with 5+ year term capacity on ANR, CGT, Centerpoint, and Kern River
Wholesale Power Trading and Supply:Market approximately 10,000 MW of third-party owned power generating assets in the US, dispatching ~8% of ERCOTOptimize the fleet via Day-ahead, intra-day, monthly, fixed and index productsWide regional presence: SERC, VACAR, SPP, FRCC, MISO, PJM, and ERCOT
Coal Offices in Denver and Baltimore
180 Employees in the United States and Canada
Eagle Energy Partners Overview
Gas Asset
Coal
Gas Transport
Power Asset
4
Eagle’s Power Footprint by Fuel Mix of Clients
West
North
South Houston
West
North
South Houston
West
North
South HoustonNorth
Houston
South
West
Zones
Power Regions
PJM
MISO
WEST
SERC
Portland
Calgary
Denver
Combined Cycle Gas
Legend
System OptimizationGas Peaking
CoalPetroleum Coke
Solar
650mw
150mw
550mw
188mw
2500mw
16mw
Demand Response
100mw
708mw
900mw
Baltimore
40mw
212mw
Load Served
136mw
648mw
290mw 212mw250mw 830mw
80mw
550mw
Wind
180mw
685mw
53mw
680mw
500mw
Atlanta
PittsburghChicago
San Francisco
EDFTNA Office600mwEDFTNA HQ
5
ERCOT Market Overview
6
Important Acronyms and Terms
CREZ – Competitive Renewable Energy Zone - an area where wind generation facilities will be installed throughout West Texas and the Panhandle and from which transmission facilities will be built to other areas of the state to deliver mostly renewable power to end-use consumers in the most beneficial and cost-effective manner.
ERCOT – Electric Reliability Council of Texas - certified by the Public Utility Commission of Texas as the Independent System Operator (ISO)
MCPC - Market Clearing Price for Capacity - highest price for a Settlement Interval for Ancillary Service capacity awarded for each of the Ancillary Services procured by ERCOT
MCPE - Market Clearing Price for Energy - highest price associated with a Congestion Zone for a Settlement Interval for Balancing Energy deployed
PGC - Power Generation Company
QSE – Qualified Scheduling Entity - Market Participant that is qualified by ERCOT to submit Balanced Schedules and Ancillary Services bids and settle payments with ERCOT
REP – Retail Electric Provider - A person or group that sells electric energy to retail Customers in ERCOT
TDSP - Transmission and Distribution Service Provider - Owns or operates for compensation in this state equipment or Facilities to transmit and/or distribute electricity, and whose rates for Transmission Service, distribution service, or both is set by a Governmental Authority
WGR - Wind-powered Generation Resource - A Generation Resource that is powered by wind.
7
ERCOT in the National Picture
ASCC - Alaska Systems Coordinating CouncilERCOT - Electric Reliability Council of TexasFRCC - Florida Reliability Coordinating CouncilMRO - Midwest Reliability Organization NPCC - Northeast Power Coordinating CouncilRFC - ReliabilityFirst Corp.SERC - Southeastern Electric Reliability
Council. SPP - Southwest Power PoolWSCC - Western Systems Coordinating Council
North American Electric Reliability Council Regions
8
Texas Pre-Deregulation: 10 Control Areas
TNMP
CSW
LCRA
HLP
CPS
TXU
TXU
PUB
STEC
TMPP
AE
TNMP
CSW
LCRA
HLP
CPS
TXU
TXU
PUB
STEC
TMPP
AE
Former ERCOT Control Areas
HLP Houston Lighting and PowerTU Texas UtilitiesLCRA Lower Colorado River Authority STEC South Texas Electric CoopPUB Public Utilities BoardTMPP Texas Municipal Power PoolTNMP Texas New Mexico PowerCPS City Public ServiceCSW Central South WestAE Austin Energy
9
Senate Bill 7 and the Renewable Energy Mandate
On January 1, 2002, retail competition in Texas was initiated for all customers of investor-owned utilities in ERCOT
Prior to Senate Bill 7 (SB 7), all retail electric customers were served by utilities, electric cooperatives, or municipally owned utilities and few customers had a choice of where or from whom they bought their power
Prices for the production and sale of electricity to both wholesale and retail customers are now dictated by market forces
Customers with peak demand of one megawatt or less had a regulated “price to beat”, provided by the REP affiliated with the traditional utility service area until 2007
Retail prices are not subject to Commission regulation or oversight, and customers are free to choose among the variety of options available from competitors in the marketplace
Transmission and distribution facilities remain regulated by the Commission
Renewable Energy Mandates encouraged the construction and operation of new renewable energy projects in Texas to reduce air pollution associated with the generation of electricity using fossil fuels
10
Texas Uses a Stakeholder Process
Rules are made using a “Stakeholder” process
Changes to market rules are made and implemented by elected stakeholders
Market participants fall into the following categories:
– Independent Power Marketers
– Independent Generators
– Municipal Utilities
– Electric Cooperatives and River Authorities
– Consumers
– Independent REPs
– Investor Owned Utility
11
ERCOT’s Role In Texas
ERCOT’s primary role is to ensure Reliability; they do this by:– Resource capacity planning
– Real-time transmission management
– Procure balancing energy
– Issue deployment instructions to units, as needed
– ERCOT is similar to an Air Traffic Controller
ERCOT’s main roles include:
1. Ensures the grid can accommodate scheduled energy transfers
2. Maintain grid reliability
3. Oversees retail transactions
12
ERCOT Market Participant Structure
Eagle QSE
SCADA Data Customer Meter Reads
Loss Information
TDSP
Other QSEs
Balanced SchedulesAncillary Service Bids
Load Schedules
Client Generation
Resource SchedulesResource Bids
Other REPs
Other PGCs
Client Load Resources
ResidentialCustomers
Commercial & IndustrialCustomers
Eagle REPWind Only QSE
Client Wind Resources
13
Qualified Scheduling Entity (QSE)
QSEs are market participants that are qualified by ERCOT to:
– Submit Balanced Schedules to ERCOT– Submit Ancillary Services Bids and
Schedules to ERCOT– Clear all financial settlement with ERCOT– Staff a 7x24 Real Time Desk to handle
operational changes– All Resources and Load Serving Entities
(LSEs) must be represented by a QSE– To provide ancillary services in ERCOT a
QSE must be a Level 4 certified QSE
14
Retail Electric Provider (REP)
Retail Electric Power providers serve all end use consumers of electricity in ERCOT
To serve load in ERCOT a REP must know:
– ESID (Electric Service Identifier of the Meter) and address of Facility
– ERCOT Congestion zone– Weather zone– Meter type (scalar or IDR)– Load (historical consumption pattern)– Transmission Distribution Service Provider– Contract for the wholesale supply of electricity– Contract for the wholesale supply of Ancillary Services– Financially settle with their QSE
Eagle Industrial Power Eagle Industrial Power ServicesServices
15
Power to Choose Website
http://www.powertochoose.org/
16
ERCOT Transmission Grid
The ERCOT Grid
$30 Billion Market
6 million customers with right to choose
72,820 MW generation
Peak Load of 63,453 MW set on July 13, 2009
8,000 miles of 345 kV lines
16,000 miles of 138 kV lines
Over 38,000 miles of total transmission lines, over 1.5 times the circumference of the earth!!!
17
2009 ERCOT Congestion Zones
Wholesale Market: Zonal Design Bilateral Market Zones are defined annually
Congestion: The situation that exists when scheduled power flows, when netted, are projected to exceed the capability of a Transmission element or set of elements.
Constraint: A transmission element or group of elements ratings that limit the free flow of energy. Constraints are typically thermal, voltage stability, and angular stability limitations. These constraints are the result of defined contingencies such as the trip of a generating unit or transmission circuit.
Commercially Significant Constraint (CSC): A constraint in the ERCOT Transmission Grid that is found to limit the free flow of energy a commercially significant degree. Solutions to the congestion are solved competitively.
18
Congestion in ERCOT
Two types of congestion:
Inter-zonal congestion– Determined by CSCs
(commercially significant constraints determined by ERCOT annually)
– Occurs between congestion zones– Resolved using Zonal Balancing
Energy (Merit Order)
Intra-zonal congestion– Occurs within a congestion zone– Cannot be resolved with Zonal
balancing energy– Unit-specific deployments and
OOM Energy are utilized– Cost is uplifted system wide to all
loads
NorthNorthWestWest
SouthSouthHoustonHouston
19
MCPE and MCPC Prices
MCPCs
MCPEs
20
Three Primary ERCOT Markets
Day Ahead Bilateral Markets
Day Ahead Ancillary Markets
Balancing Energy Markets
ERCOT uses three primary markets to manage generation, forecasted load, and the intraday volatility in system frequency:
Primarily over the counter energy hedges between generation, trading, and load counterparties
ERCOT purchased capacity used to maintain system reliability
Spot energy prices for the imbalance between scheduled generation and forecasted
load.
21
ERCOT’s Bilateral Market
In the ERCOT Bilateral Market:
Day Ahead Traders determine their position for tomorrow by evaluating load and generation resources for all participants in their Qualified Scheduling Entity (QSE)
If their aggregated portfolio position for tomorrow is long, short, or un-optimized the trader will step out into the bilateral market
Traders use ICE, Power Brokers, and direct contacts at other Power Marketers to facilitate trading
Power can be sold by Congestion Zone
Trades typically occur in 50 MW blocks:
– On-peak – Monday through Friday HE 7 through HE 22 (the 5x16)
– Weekend – Saturday and Sunday HE 7 through HE 22 (the 2x16)– Off-peak – Everyday HE 1-6 and HE 23-24 (the 7x8)
Day Ahead Bilateral Markets
22
Day Ahead Ancillary Services Market
What are Ancillary Services (“AS”)?
According to ERCOT, “Ancillary Services are those services necessary to support the transmission of energy from resources to loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice.”
Ancillary Service Products receive a Capacity Payment!
The four primary Day Ahead Ancillary Service Products are:
– Regulation Up (URS): Controls the power output in response to a change in system frequency, signal is sent every 2 seconds, 24 hours a day; all signals from ERCOT cause an increase in generation from baseline
– Regulation Down (DRS): Same as Regulation Up but all signals from ERCOT cause a decrease in generation from baseline
– Responsive Reserve (RRS): Provided by unloaded generation facilities on line, interruptible loads controlled by high set under-frequency relays, or DC tie response that stops frequency decay; RRS is usually a short term deployment
– Non-spinning Reserve (NSRS): Utilizes the portion of off-line capacity capable of being synchronized and ramped (or interrupted) to a specified output level within 30 minutes and is capable of running at specified output level for 1 hour
Day Ahead Ancillary Markets
23
ERCOT’s Balancing Energy Market
Balancing Energy is a “thin” pool of energy that allows ERCOT to acquire additional resources to correct imbalances between generation and load
ERCOT looks at the balance between supply and demand approximately 30 minutes prior to each 15-minute interval
ERCOT will deploy "balancing energy" on behalf of the market, ERCOT may increase or decrease generation
During the financial settlement process, ERCOT determines which REPs and generators incorrectly forecasted their schedule and charges them imbalance costs
Schedules can be changed by QSEs up to an hour before the operating hour
The Balancing Energy Market does NOT provide Capacity Payments
Balancing Energy market prices change every 15 minutes and you have different prices per zone when congestion occurs
Balancing Energy Markets
24
How has Wind Impacted ERCOT?
25
So what happens when you add 9,000 MWs of Wind Generation to a 70,000 MW system?
Challenges posed by wind power include:Forecasting of output in term, daily, and real time is complex
Variability in the output of the facilities require additional ancillary services to manage fluctuations
Large wind related ramp events require complimentary output from traditional generation facilities
Wind generators do not currently provide primary frequency response
Benefits created by wind generation include:Lower spot market costs
Positive environmental impact
Job creation
26
Wind Energy in Texas
Wind Capacity Installed by Year
(as of August 31, 2009)
8,3
35
8,3
35
8,3
35
1,385
2,875
116 116
1,173977816
1,854
4,785
8,005
8,3
35
8,3
35
2,6
11
2,6
11
2,0
60
1,2
57
655
0
2,000
4,000
6,000
8,000
10,000
12,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Year
MW
Cumulative Planned (Signed Interconnection Agreement)
Cumulative MW Installed
8,990
9,592
10,395
10,946 10,946
System Planning Division Monthly Status Report August 2009
27
ERCOT Generation Stack by Fuel Type
ERCOT Installed Capacity Generation Stack with Forecasted Load
-2,5005,0007,500
10,00012,50015,00017,50020,00022,50025,00027,50030,00032,50035,00037,50040,00042,50045,00047,50050,00052,50055,00057,50060,00062,50065,00067,50070,00072,50075,00077,50080,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hour of Day
MW
Cap
acit
y
NG-CC
PetroleumCoke
COAL
WIND
HYDRO-HY
NUKE
ExpectedLoad Forecast
28
ERCOT Generation Stack by Fuel Type
ERCOT Generation Stack with Forecasted Wind and Forecasted Load
-2,5005,0007,500
10,00012,50015,00017,50020,00022,50025,00027,50030,00032,50035,00037,50040,00042,50045,00047,50050,00052,50055,00057,50060,00062,50065,00067,50070,00072,50075,00077,50080,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hour of Day
MW
Cap
acit
y
NG-CC
PetroleumCoke
COAL
WIND
HYDRO-HY
NUKE
ExpectedLoad Forecast
29
Long Term Impact of Wind on Spot Power Prices
Houston Zone vs. West Zone Monthly 7x24 MCPE
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
Jan 0
6F
eb 0
6M
ar
06
Apr
06
May 0
6Jun 0
6
Jul 0
6A
ug 0
6S
ep 0
6O
ct 06
Nov 0
6D
ec 0
6Jan 0
7F
eb 0
7M
ar
07
Apr
07
May 0
7
Jun 0
7Jul 0
7A
ug 0
7S
ep 0
7O
ct 07
Nov 0
7D
ec 0
7Jan 0
8F
eb 0
8M
ar
08
Apr
08
May 0
8Jun 0
8Jul 0
8A
ug 0
8S
ep 0
8O
ct 08
Nov 0
8D
ec 0
8Jan 0
9F
eb 0
9M
ar
09
Apr
09
May 0
9Jun 0
9Jul 0
9A
ug 0
9S
ep 0
9
MC
PE
in
$/M
Wh
r
Houston Zone
West Zone
30
Intraday Volatility Caused by Wind on the West Zone MCPE
West Zone MCPE PricesMarch 2009
($50.00)
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
$400.00
$450.00
$500.00
03/0
1/2
009
03/0
2/2
009
03/0
3/2
009
03/0
4/2
009
03/0
6/2
009
03/0
7/2
009
03/0
8/2
009
03/0
9/2
009
03/1
1/2
009
03/1
2/2
009
03/1
3/2
009
03/1
4/2
009
03/1
6/2
009
03/1
7/2
009
03/1
8/2
009
03/1
9/2
009
03/2
1/2
009
03/2
2/2
009
03/2
3/2
009
03/2
4/2
009
03/2
6/2
009
03/2
7/2
009
03/2
8/2
009
03/3
0/2
009
03/3
1/2
009
31
Fuel Type During System Peak
-2,5005,0007,500
10,00012,50015,00017,50020,00022,50025,00027,50030,00032,50035,00037,50040,00042,50045,00047,50050,00052,50055,00057,50060,00062,50065,00067,50070,00072,50075,00077,50080,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
32
How does ERCOT Forecast the Wind?
Two forecasts are produced for each Wind Resource:
– Wind Generation Resource Production Potential (WGRPP) is an 80% probability of exceedence forecast
– Short-Term Wind Power Forecast (STWPF) is the most likely or 50% probability of exceedence forecast
– Each hour a new forecast is created for the next 48 hours
– Aggregate forecasts are also created and sent to ERCOT
Inputs into the ERCOT Wind Forecaster:– WGR site-specific MW and meteorological data
– Outage scheduler data
– Registration data
– Other (i.e. National or regional weather service data)
Aggregate Wind Power Forecasts:Red = STWPF, Green = WGRPP
Key Challenges to Reliability with Increased Wind Penetration, PUCT Project 37339 Workshop 8/20/09Dan Woodfin, Director, System Planning and John Dumas, Manager, Operations Planning
33
Chart to the right shows an example of forecasted expected Wind output versus actual output
On May 15, 2009 at 3:15 PM ERCOT models forecasted 6,000 MWs of wind during the off peak hours
Off peak wind output topped off at 3,000 MWs during the off peak hours
Large forecast error was caused by the over estimate of the power production as a cold front approached and passed through the region
Weather models overestimated the southerly wind speeds ahead of the front
To cover the shortage of wind output traditional generation is deployed by ERCOT
ERCOT Forecast and Observed Generation on 5/16
0
1000
2000
3000
4000
5000
6000
7000
8000
1 3 5 7 9 11 13 15 17 19 21 23
Hour of the Day (CDT)
Ge
ne
rati
on
(M
W)
Observed Forecasted
Key Challenges to Reliability with Increased Wind Penetration, PUCT Project 37339 Workshop 8/20/09Dan Woodfin, Director, System Planning and John Dumas, Manager, Operations Planning
Forecast Error Happens
MCPE Prices for May 16, 2009for Houston and West Zones
($50.00)
($25.00)
$0.00
$25.00
$50.00
$75.00
$100.00
$125.00
$150.00
$175.00
$200.00
$225.00
$250.00
$275.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Houston Zone
West Zone
34
Sometimes You Can Have Too Much of a Good Thing
34
Wind Output/Curtailments vs. Day Ahead Resource Plans for May 2009
Key Challenges to Reliability with Increased Wind Penetration, PUCT Project 37339 Workshop 8/20/09Dan Woodfin, Director, System Planning and John Dumas, Manager, Operations Planning
35
Managing the Wind Ramp
ERCOT utilizes an “ERCOT Large Ramp Alert System” (ELRAS) that employs the same data that is provided for the wind power forecasts.
ELRAS includes the following:– An estimation of the probability of a
defined ramp event (i.e. 1000 MW up ramp in a hour) beginning in a particular interval
– Information regarding the weather event which is most likely to cause the ramping event (i.e. a cold front)
– Additional attributes for each predicted ramp event including most likely start time, duration and maximum ramp rate
– Time variant graphics to provide additional situational awareness
ELRAS focuses on the next 6 hours into the future
Key Challenges to Reliability with Increased Wind Penetration, PUCT Project 37339 Workshop 8/20/09Dan Woodfin, Director, System Planning and John Dumas, Manager, Operations Planning
36
Causes of the Sixty Largest ERCOT Wind Power Ramps January 1 to April 20, 2009
Coid Front - Up Ramp
Low Level Jet - Up Ramp
Pressure Gradient Change - UpRamp
Daytime Mixing - Up Ramp
Dry Line - Up Ramp
Pressure Gradient Change - BehindCold Front - Down Ramp
Pressure Gradient Change - HighPressure - Down Ramp
Pressure Gradient Change - Other -Down Ramp
Nocturnal Stabilization - DownRamp
Low Level Jet - Down Ramp
Down Ramps Up Ramps
Ramp events have different meteorological causes which makes tracking and predicting them complex
Managing the Wind Ramp (cont.)
Key Challenges to Reliability with Increased Wind Penetration, PUCT Project 37339 Workshop 8/20/09Dan Woodfin, Director, System Planning and John Dumas, Manager, Operations Planning
37
Can we have our cake and eat it too?
38
Interconnection Requests for Generation
0
20,000
40,000
60,000
80,000
100,000
120,000
Jan-0
6
Feb-0
6
Mar-
06
Apr-
06
May-0
6
Jun-0
6
Jul-06
Aug-0
6
Sep-0
6
Oct-
06
Nov-0
6
Dec-0
6
Jan-0
7
Feb-0
7
Mar-
07
Apr-
07
May-0
7
Jun-0
7
Jul-07
Aug-0
7
Sep-0
7
Oct-
07
Nov-0
7
Dec-0
7
Jan-0
8
Feb-0
8
Mar-
08
Apr-
08
May-0
8
Jun-0
8
Jul-08
Aug-0
8
Sep-0
8
Oct-
08
Nov-0
8
Dec-0
8
Jan-0
9
Feb-0
9
Mar-
09
Apr-
09
May-0
9
Jun-0
9
Jul-09
Aug-0
9
MW
Cap
acit
y
0
50
100
150
200
250
300
Pro
ject
Co
un
t
MW Natural Gas MW Nuclear MW CoalMW Wind MW Solar * MW Biomass *MW Other Total # Projects # Projects Cancelled
* Prior to September 2008, Category "Other" included "Solar" and "Biomass" Projects in all phases of interconnection study are reflected in this graph Project cancellation tracking by month began in March 2008
39
Wind Installed Capacity and Interconnection Requests
ERCOT is currently tracking 230 active generation interconnection requests totaling over 83,000 MW
ERCOT is currently managing almost 48,000 MWs of wind generation interconnection requests
Transmission Projects energized in 2009 total about $416 million
To find the list of projects go to the ERCOT web at:
www.ercot.com/content/meetings/ros/keydocs/2009/0910/10._August_2009__ROS_final.pdf
40
Ancillary Service Methodology
Wind Ancillary Services study was performed by General Electric consulting group with input from ERCOT staff
Study looked at the need for additional or modified ancillary services to meet reliability requirements given the large increase in wind generation in ERCOT
Study found that ERCOT needed to implement state-of-the-art wind power production forecast to protect against variability of the wind
The study predicted that with 15,000 MWs of wind installed, the amount of Regulation would go up by 23%. ERCOT experience has shown that the incremental Regulation required is greater.
– ERCOT procures Regulation to ensure that reserves are sufficient to cover 98.8% of the intervals
– Calculated based on previous 30 days and same month last year– Accounts for the expected increase in installed Wind Generation for the upcoming
month – Provision to increase regulation requirements if the last 30 day average CPS1
score falls below 100
41
CREZ Transmission Solution
The Public Utility Commission of Texas (PUCT), under Docket 33672, designed five zones as the Competitive Renewable Energy Zones (CREZs).
The PUCT asked ERCOT to develop transmission plans that would cost-effectively collect wind from the five CREZ areas and move it to load centers.
ERCOT evaluated four scenarios and in January of 2009 the PUC approved Scenario 2.
DFW
SA/AUS
5,600 MWs
10,300 MW
2,600 MW
42
Competitive Renewable Energy Zones (CREZ)
43
Actual Summer Week Generation by Fuel Type
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Nuclear Coal CombCycle GasSteam PrivateGas GasTurbine Wind Other
Sunday 07/12/09
Monday 07/13/09
Tuesday 07/14/09
Wednesday 07/15/09
Thursday 07/16/09
Friday 07/17/09
Saturday 07/18/09
44
Actual Spring Week Generation by Fuel Type
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Nuclear Coal CombCycle GasSteam PrivateGas GasTurbine Wind Other
Sunday 04/19/09
Monday 04/20/09
Tuesday 04/21/09
Wednesday 04/22/09
Thursday 04/23/09
Friday 04/24/09
Saturday 04/25/09
45
Forecasted 2013 High Wind Week Generation by Fuel Type
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Nuke Coal Combined Cycle Gas Steam Private Gas Turbine Wind Other
Monday 03/11/13
Tuesday 03/12/13
Wednesday 03/13/13
Thursday 03/14/13
Friday 03/15/13
Saturday 03/16/13
Sunday 03/17/13
46
The Costs and Benefits of CREZ
Estimated cost of the CREZ project is over $4.93 B – Cost to average rate payer in Texas is $4/month
Economic and environmental benefits are significant– Roughly $1.2 B in royalty payments to landowners– Estimated $3.32 B in tax payments to state and local governments
over 10 years– Creation of construction & permanent jobs ($900 MM)
– Reduction of 193 MM tons of CO2 per year
– Reduction of 93 k tons of NOx per year
– Reduction of 17 B gallons of H2O usage per year
CREZ will add 2,334 miles of new 345-kV transmission lines capable of handling 18,456 MWs (11,553 MWs of incremental capacity above the 6,900 MWs of base case generation)Utilities participating include AEP Texas Central, AEP Texas North, Electric Transmission Texas, LCRA, Oncor, Sharyland Utilities, South Texas Electric Cooperative, and Texas-New Mexico Power CompanyAs a fast track project, completion is targeted for 2013
47
Questions?