Buying Electricity and Natural Gas for a BIG User
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Buying Electricity and Buying Electricity and Natural Gas for a BIG UserNatural Gas for a BIG User
Joan KowalJoan KowalEnergy Manager, Energy Manager, UMCPUMCPMarch 6, 2012March 6, 2012Sustainable Sustainable Tuesdays Speaker Tuesdays Speaker SeriesSeries
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Retail Electric CompetitionRetail Electric Competition
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The Electric Utility IndustryThe Electric Utility IndustryThe electric utility industry consists of three
functions needed to deliver power to customer loads:– Generation– Transmission– Distribution
It consists of many entities. Most notable are:– Generators (Fossil, Nuclear, and Renewable)– Regional Transmission Organizations (PJM)– Distribution Companies (PEPCO, BGE)– Load Serving Entities or Suppliers (Constellation,
Washington Gas Energy Services, Pepco Energy Services)
– Government Regulators (FERC, PSC)– End-users (UMD, homeowners, retail stores)
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Typical Electrical SystemTypical Electrical System
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Electric Supply at UMCPElectric Supply at UMCP
The electric needs on campus are met through:– On-site production from a natural gas,
combined heat and power plant– Purchased energy delivered at the
Mowatt substation (building located by Architecture.)
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Campus Electric ConsumptionCampus Electric Consumption
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UMD Combined Heat and Power PlantUMD Combined Heat and Power Plant
• 27.5 MW natural gas, CHP plant installed at the College Park Campus– Doubled steam efficiency from 35% to
nearly 70% – Energy Star award for 2005– Annual CO2 reductions of 53,000 tons– Also produces chilled water for air
conditioning using steam in summer
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ChilledWater
How System Works:How System Works:
Heating Steam
BackPressureSteam
Turbine625 PSISteam
2 Heat Recovery
SteamGenerators
ExhaustHeat
6250 F
2 Combustion Turbinesand Generators
Electric Power22 MW
FuelGas or Oil
ElectricPower5MW
70% of Condensate Returns to CHP
125 PSISteam
AuxiliaryBoilers
Make UpWater
Steam DrivenChillers on
Campus
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Energy ProcurementEnergy Procurement
Electricity– Supplier – WGES– Distribution Company – PEPCO– Contract Structure (main campus)
• Block and Index
• Fixed Supplier Fee
• All other costs are a pass-through
– Term is 3 years with two, 1 year options
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Electric Contract (cont’d)Electric Contract (cont’d)
Block and Index Contract– Advantages
• Reduces risk premiums from supplier
• Allows UMD to reduce costs by reducing load in high priced hours
• Allows rate to more closely reflect market over term of contract in lieu of locking in fixed-price for entire term on one day
– Disadvantages• Reduced price certainty
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Electricity ProcurementElectricity ProcurementBlock and IndexedBlock and Indexed
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Natural Gas ProcurementNatural Gas ProcurementSupplier – Pepco Energy Services/WGESDistribution Company – Washington
Gas LightContract Structure
– Fixed Price for small accounts– Block and Index contract for CHP supply– Large account is interruptible; oil used as
back-up fuel
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Natural Gas ProcurementNatural Gas ProcurementBlock and IndexedBlock and Indexed
53,000
54,000
55,000
56,000
57,000
58,000
59,000
60,000
61,000
62,000
63,000
64,000
06/01/11 06/06/11 06/11/11 06/16/11 06/21/11 06/26/11
Th
erm
s
June Natural Gas Use vs Block PurchaseUsage
BlockPurchase
Buying in the Daily Market at Index
Selling in the Daily Market
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MD Renewable Energy MD Renewable Energy
State has a renewable portfolio standard (RPS) that requires electric suppliers to meet certain standards:– In 2012, 6.5% from Tier 1 renewable sources
(including at least .1% from solar); and 2.5% from Tier 2 resources
– In 2022, 20% from Tier 1 renewable sources (including at least 2% from solar); and 0% from Tier 2 resources
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RPS Definitions – Tier IRPS Definitions – Tier I (1) solar energy including PV and solar hot water heating; (2) wind; (3) qualifying biomass; (4) methane from the anaerobic decomposition of organic
materials in a landfill or wastewater treatment plant; (5) geothermal; (6) ocean, including energy from waves, tides, currents, and
thermal differences; (7) a fuel cell that produces electricity from a Tier 1 renewable
source under item (3) or (4) of this subsection; (8) a small hydroelectric power plant of less than 30 megawatts (9) poultry litter-to-energy (10) waste-to-energy; and (11) refuse derived fuel.
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RPS Definitions – Tier II RPS Definitions – Tier II
Hydroelectric power other than pump storage generation
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On-site Renewable EnergyOn-site Renewable Energy
Solar hot water heating system installed at Ellicott Dining Hall and to be included at the University House
Solar photovoltaic at Cole Field House – 5.25 kW
Installation of geothermal heat pumps at the new Shuttle Facility; two renovated Sorority Houses; and new University House
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Project SunburstProject Sunburst DOE American Recovery and Reinvestment
Act of 2009 funds allocated to Renewable Energy in MD
UMCP was awarded a grant of $1000/kW of installed solar capacity
Competitive solicitation awarded to WGES and Standard Solar for a 630kW installation at Severn
Commercial Operation June, 2011 Estimated output of 792 MWh annually
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Aerial View of Severn with Aerial View of Severn with 2,300 Solar Panels2,300 Solar Panels
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Off-Site Renewable EnergyOff-Site Renewable Energy Executed three long term
power purchase agreements (PPAs)– Two land based wind with total
capacity of 65 MW
– One solar project with capacity of 13MW
Aggregation of University System of Maryland Institutions with state and local agencies
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Buying Off-Site RenewablesBuying Off-Site Renewables
• Bundled RECs through PPAs• Long term commitment to buy power and RECs• If buyer doesn’t buy RECs, power cannot be
counted as renewable energy
• Unbundled RECs• Green attributes associated with power
generation
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Bundled RECs through PPAsBundled RECs through PPAs
1 MW
h
Elect.1 MW
h RECLoad Serving Entity
Electricity and RECs bundled together
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Unbundled RECsUnbundled RECs
1 MWh Elect.
1 MWh REC
1 MWh Elect.
Electricity and RECs sold separately
Can’t claimrenewable energy
Can claimrenewable energy
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Renewable PPA Contracts – Renewable PPA Contracts –
Project
Nameplate Capacity -(expected
annual MWh)
UMCP’s Share
% of Annual
Electricity Use
Technology Location On-line Date
Roth Rock Phase II
10 MW – (30,605) 10% 1.53% Land-based
wind MD – Garrett County 8/11
Pinnacle Project
55 MW – (174,542) 10% 9%
Land-based wind
WV - Mineral County 1/12
Constellation’s Mount St. Mary’s Solar Project
13MW – (22,291) 10% 1% Solar MD -
Emmitsburg 6/12
WGES’ Severn Solar Installation
630kW (792)
100% 0.40% Solar Severn 6/11
Total 11.77%
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ReferencesReferences
eia.doe.gov/www.ferc.gov/www.eei.org/www.energy.state.md.us/