Florida Public Service Commission Renewable Portfolio Standards Workshop Tallahassee, FL July 26,...

Florida Public Service Commission

Renewable Portfolio Standards Workshop

Tallahassee, FLJuly 26, 2007

Francis A. FerraroVP, Public Affairs

From everyday collection to environmental protection, Think Green.® Think Waste Management.

Wheelabrator Technologies Inc. A Waste Management

Company

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Wheelabrator Technologies Inc.

– Wholly owned subsidiary of Waste Management Inc.

– Operate 21 energy facilities (19 renewable energy)

• 16 waste-to-energy plants• 5 Independent Power Production facilities

– Developed, built and operate the first commercially successful waste-to-energy plant in U.S.

• Saugus, MA 1975

– Total generating capacity 836 MW

Wheelabrator Technologies Inc. A Waste Management Company

Think Green.®

Independent Power Production facility

Waste-to-Energy facility

‘75 ‘83 ‘84 ‘85 ‘86 ‘87 ‘88 ‘89 ‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ’99 ‘03

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19

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17

16

13

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8

6

5

2

1

Year Completed

Nu

mb

er

of

Pla

nts

Lisbon

Ridge (Polk County)

Frackville, Norwalk

Falls

Spokane, South & North Broward

Concord, Gloucester

Bridgeport

Claremont, Millbury

N. Andover, Tampa, Baltimore

Westchester

Saugus

Shasta

Lassen

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21

Hudson Falls

Wheelabrator Technologies Facilities

4Wheelabrator Technologies Inc. A Waste Management Company

Think Green.®

Wheelabrator Technologies Inc.

– Own & operate 2 waste-to-energy facilities in Broward County

• 134 MW; 4,500 tons per day Municipal Solid Waste

– Built & operate City of Tampa’s waste-to-energy facility

• 22 MW; 1,000 tons per day Municipal Solid Waste

– Own & operate a waste wood/tires/landfill gas-to-energy facility in Auburndale

• 50 MW

FLORIDA

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Waste-to-Energy


Think Green.®

Waste-to-Energy is a modern, proven process for safe disposal of municipal solid waste and generation of clean, renewable energy from the heat released by the combusted waste.

Waste-to-Energy facilities are equipped with state-of-the-art air pollution control systems and are operated by professionals certified by US EPA and American Society of Mechanical Engineers.

South Broward (FL) facility

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Waste-to-Energy- U.S. -


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There are 89 waste-to-energy facilities in 27 states that:

Combust MSW to reduce its volume

Produce energy, usually as electricity

Recover ferrous and sometimes non-ferrous metals for recycling

McKay Bay (Tampa) facility

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Think Green.®

• Percentage of U.S. Waste Managed: 13%

• Disposal Capacity: 93,000 TPD

• Annual Disposal: 29 million tons

• People Served: 36 million

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• Power Generation Capacity: 2500 MW

• Annual Power Generation: 16 million MW-hours

• Homes served: 1.98 million

• Percentage of Total Renewable Energy (excluding hydropower):18%

North Broward (FL) facility

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Waste-to-Energy- Florida -

– 11 facilities

– ~496 MW of installed capacity

– > 17,500 tons per day municipal solid waste processing capacity


Think Green.®

Existing waste-to-energy capacity in Florida

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Renewable Portfolio Standards

– Lee County is completing an expansion– Hillsborough County is planning an expansion– Palm Beach County is considering an expansion– Others?


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“New” waste-to-energy capacity in Florida

-- Definite and anticipated near-term

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• Setting a Renewable Portfolio Standard

• 1. How should a renewable portfolio standard be set? – a. Based on a megawatt goal?– b. Based on a percentage of peak generation goal?– c. What renewable technologies should qualify toward

meeting the goal?

• 2. What vintage of renewable generating units should qualify toward meeting the goal?

• 3. What is a reasonable level for the goal? – a. What amount of renewable generation is achievable in

Florida?


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meeting the goal?


• 3. What is a reasonable level for the goal? – a. What amount of renewable generation is achievable

in Florida?


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Renewable Energy Sources that should be included in a Renewable Portfolio Standard

• Chapter 366– 366.91 -- "Renewable energy" means electrical energy produced from a method that

uses one or more of the following fuels or energy sources: hydrogen produced from sources other than fossil fuels, biomass, solar energy, geothermal energy, wind energy, ocean energy, and hydroelectric power. The term includes the alternative energy resource, waste heat, from sulfuric acid manufacturing operations.

• "Biomass" means a power source that is comprised of, but not limited to, combustible residues or gases from forest products manufacturing, agricultural and orchard crops, waste products from livestock and poultry operations and food processing, urban wood waste, municipal solid waste, municipal liquid waste treatment operations, and landfill gas.


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meeting the goal?



in Florida?


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– A fixed MWhr requirement does not provide for concomitant growth of renewable energy along with electric load growth.

– A percentage requirement provides incentive for utilities to implement additional demand-side activities.


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Requirement should be set as a percentage of total, annual electric sales

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meeting the goal?



in Florida?


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• New renewable energy facilities– RPS must provide incentive for new renewable energy

generation

• Existing renewable energy facilities– RPS must help protect existing base of renewable energy

generation


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What vintage of renewable generating units should qualify toward meeting the goal?

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– RPS must provide incentive for new renewable energy generation

• Establish definition of “new”

– “New” renewable energy is capacity that is established after the effective date of the RPS rule

– Establish “age“ for transition from “new” to existing» e.g. 10 years after qualifying as a “new” facility


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New renewable energy facilities

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- New, “greenfield” facilities

- Increased capacity at existing facilities- Addition of new generating capacity

- Efficiency improvements that lead to increased generation


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“New” renewable energy is capacity that is established after the effective date of the RPS rule

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• Ambitious goals

• Alternative Compliance Payment– If utilities are unable to obtain required amount of

renewable energy


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“New” renewable energy is capacity that is established after the effective date of the RPS rule

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– At what level should ACP be set?» High enough to provide incentive for utilities to search

out and provide incentives for new renewable capacity

– Experience of other states with ACPs


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“New” renewable energyAlternative Compliance Payment

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– Experience of other states with ACPs» e.g., Massachusetts


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1.0% by 2003 1.5% by 2004 2.0% by 2005 2.5% by 2006 3.0% by 2007 3.5% by 2008 4.0% by 2009 an additional 1.0% each year afterward until DOER ends add’l

reqmnts

» 2007 ACP $57.12 /MWh

» Utilities have paid ACP every year since 2003

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– At what level should ACP be set?» High enough to provide incentive for utilities to search

out and provide incentives for new renewable capacity

– Experience of other states with ACPs

– Uses for ACP funds?» Development of new, promising technologies; seed

money for construction of new facilities; etc.


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• Set at current percentage of renewable generation

• Increase requirement as “new” capacity transitions to “existing” capacity


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RPS must help protect existing base of renewable energy generation

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meeting the goal?



in Florida?


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Current Renewable Generation in Florida– 1* - 2.5%

* Florida’s Energy Plan


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What is a reasonable level for the goal?

Goal: ?Governor’s goal – 20%Over what time period?How aggressive?

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Renewables Portfolio Standards

State Goal

? PA: 18%¹ by 2020

? NJ: 22.5% by 2021

CT: 23% by 2020

MA: 4% by 2009 + 1% annual increase

WI: requirement varies by utility; 10% by 2015 goal

IA: 105 MW

MN: 25% by 2025(Xcel: 30% by 2020)

TX: 5,880 MW by 2015

*NM: 20% by 2020 (IOUs)10% by 2020 (co-ops)? AZ: 15% by 2025

CA: 20% by 2010

? NV: 20% by 2015

ME: 30% by 200010% by 2017 goal - new RE

State RPS

? Minimum solar or customer-sited RE requirement* Increased credit for solar or customer-sited RE

¹PA: 8% Tier I / 10% Tier II (includes non-renewables); SWH is a Tier II resource

HI: 20% by 2020

RI: 15% by 2020

? CO: 20% by 2020 (IOUs)*10% by 2020 (co-ops & large munis)

? DC: 11% by 2022

DSIRE: www.dsireusa.org June 2007

? NY: 24% by 2013

MT: 15% by 2015

*DE: 10% by 2019

IL: 8% by 2013

VT: RE meets load growth by 2012

Solar water heating (SWH) eligible

*WA: 15% by 2020

? MD: 9.5% in 2022

? NH: 23.8% in 2025

OR: 25% by 2025 (large utilities)5% - 10% by 2025 for smaller utilities

*VA: 12% by 2022

MO: 11% by 2020

http://www.dsireusa.org/documents/SummaryMaps/RPS_Map.ppt

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Examples of other states


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New Jersey

2004 – 3.25%

2021 – 22.5%

Connecticut

2006 – 5%

2020 – 27% (includes customer-sited combined heat and power (CHP) systems; 2)

electricity savings from conservation and load management programs; and 3) systems that recover waste heat or pressure from commercial and industrial processes)

29Wheelabrator Technologies Inc. A Waste Management Company

Think Green.®

Florida Public Service Commission Renewable Portfolio Standards Workshop Tallahassee, FL July 26,...

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