INTEGRATED RESOURCE PLAN -...
Transcript of INTEGRATED RESOURCE PLAN -...
RSH 11/19/03
Los Angeles Department of Water and Power
INTEGRATED RESOURCE PLAN
Presented to: Senate Energy, Utilities and Communications Committee
November 19, 2003
Los Angeles Department of Water and Power
INTEGRATED RESOURCE PLAN
Presented to: Senate Energy, Utilities and Communications Committee
November 19, 2003
RSH 11/19/03
OverviewOverview
• LADWP Power System Background• Goals and Achievements of LADWP
Integrated Resource Plan• Risk Management and IPP Unit 3• Considerations of Renewable Portfolio
Standard for LADWP• LADWP Future Outlook
• LADWP Power System Background• Goals and Achievements of LADWP
Integrated Resource Plan• Risk Management and IPP Unit 3• Considerations of Renewable Portfolio
Standard for LADWP• LADWP Future Outlook
RSH 11/19/03
LADWP SystemLADWP System• Largest municipal utility in US• 465 sq. mile service territory:
LA & Owens Valley• 3.8 million residents• 7000 MW generation capacity:
hydro, coal, natural gas, nuclear, and renewables
• 25,000 GWH production• Extensive transmission &
distribution network
• Largest municipal utility in US• 465 sq. mile service territory:
LA & Owens Valley• 3.8 million residents• 7000 MW generation capacity:
hydro, coal, natural gas, nuclear, and renewables
• 25,000 GWH production• Extensive transmission &
distribution network
Goals and Achievements of LADWP Integrated
Resource Plan
Goals and Achievements of LADWP Integrated
Resource Plan
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The Integrated Resource Plan (IRP)
The Integrated Resource Plan (IRP)
• IRP is a blueprint that defines future resource plan and development activities of a utility and is developed through a comprehensive planning process.
• In August 2000 the City Council adopted the LADWP’s 2000 IRP.
• The 2000 IRP is the basis for the ongoing LADWP resource development activities.
• IRP is a blueprint that defines future resource plan and development activities of a utility and is developed through a comprehensive planning process.
• In August 2000 the City Council adopted the LADWP’s 2000 IRP.
• The 2000 IRP is the basis for the ongoing LADWP resource development activities.
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LADWP Strategic Objectives
LADWP Strategic Objectives
Electric RateFinancial Stability
Contribution to CityEconomic DevelopmentAir Quality
Water QualityFuel Diversity
Renewable ResourcesEnergy Efficiency
Distributed Generation
Reliable Electric Service
Competitive Electric Rates
EnvironmentalLeadership
Service ObligationResource AdequacyReliability Standards
Energy Risk Management
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Integrated Resource Planning Process
Least Cost Plan
Supply-Side Alternatives
Demand-Side Alternatives
System Profile
External Influence
Risk/Environmental
Assessment
Financial/Rate
Analysis
Resource Plan
Integration
Transmission Alternatives
System Load Forecast
Situation Analysis/
Goal Setting
Historical & Forecasted Peak Demand Cases Sample
4000
4500
5000
5500
6000
6500
7000
7500
8000
1995 2000 2005 2010 2015 2020 2025
MW
Actual Weather Normalized Normal Case Cool 1-in-40
Hot 1-in-40 Hot 1-in-10 Hot 1-in-5
NPV Compaison
12 ,700 12 ,80 0 12 ,90 0 13 ,000 13 ,100 13 ,20 0 13 ,30 0
2 :50% MHV w/LEX+IPP3 490
4 :50 % MHV w/LEX+IPP3 4 90 + RPWR delay
8 :50 % MHV 2 005+IPP3 490
10 :50% MHV 20 05+IPP3 4 90 + RPWR delay
3 :50 % MHV w/LEX+IPP3 250
5:50% MHV w/LEX+IPP3 250 + RPWR delay
11:50 % MHV 2 00 5+IPP3 250 + RPWR delay
9 :50 % MHV w/LEX+IPP3 250
6 :50% MHV w/LEX + RPWR delay
1:50 % MHV w/LEX
13 :50% MHV w/LEX+IPP3 100
12 :50 % MHV 2 00 5 + RPWR delay
7:50% MHV 20 05
14 :50% MHV 2 005+IPP3 100
$(00
0,00
0)
NPV Compaison
12 ,700 12 ,80 0 12 ,90 0 13 ,000 13 ,100 13 ,20 0 13 ,30 0
2 :50% MHV w/LEX+IPP3 490
4 :50 % MHV w/LEX+IPP3 4 90 + RPWR delay
8 :50 % MHV 2 005+IPP3 490
10 :50% MHV 20 05+IPP3 4 90 + RPWR delay
3 :50 % MHV w/LEX+IPP3 250
5:50% MHV w/LEX+IPP3 250 + RPWR delay
11:50 % MHV 2 00 5+IPP3 250 + RPWR delay
9 :50 % MHV w/LEX+IPP3 250
6 :50% MHV w/LEX + RPWR delay
1:50 % MHV w/LEX
13 :50% MHV w/LEX+IPP3 100
12 :50 % MHV 2 00 5 + RPWR delay
7:50% MHV 20 05
14 :50% MHV 2 005+IPP3 100
$(00
0,00
0)
NPV Comparison NPV Comparison Sample
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IRP Goals (1)IRP Goals (1)
• Continue to be self-sufficient in serving the City’s customers (native load).
• Provide sufficient generation reserves to meet system reliability requirements.
• Install quick-start natural gas combustion turbine units to support super peak energy uses.
• Enhance black-start capability to mitigate system blackout impacts.
• Continue to be self-sufficient in serving the City’s customers (native load).
• Provide sufficient generation reserves to meet system reliability requirements.
• Install quick-start natural gas combustion turbine units to support super peak energy uses.
• Enhance black-start capability to mitigate system blackout impacts.
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IRP Goals (2)IRP Goals (2)
• Meet 50% of load growth with conservation & energy efficiency, distributed generation, and renewable resources.
• Reduce CO2 emissions to 5 percent below 1990 levels by 2008-12.
• Support the City’s Climate Action Plan of 30% CO2 reduction by 2010.
• Install emission controls to reduce NOx in the LA Basin.
• Meet 50% of load growth with conservation & energy efficiency, distributed generation, and renewable resources.
• Reduce CO2 emissions to 5 percent below 1990 levels by 2008-12.
• Support the City’s Climate Action Plan of 30% CO2 reduction by 2010.
• Install emission controls to reduce NOx in the LA Basin.
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IRP Goals (3)IRP Goals (3)
• Repower Basin generation to increase generation efficiency by 30% and provide substantial emission reduction.
• Divest 158 MW of Mohave interest.• Maintain stable electric rate and transfer
to the City.
• Repower Basin generation to increase generation efficiency by 30% and provide substantial emission reduction.
• Divest 158 MW of Mohave interest.• Maintain stable electric rate and transfer
to the City.
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Meeting 50% of Load Growth withDSM, DG & Renewable ResourcesMeeting 50% of Load Growth withDSM, DG & Renewable Resources
0
100
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2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
MW
Renew able Resources
Distributed Generation
Demand Side Management
50% of Load Grow th Goal
DDR Achieved/Targeted
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700
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
MW
Renew able Resources
Distributed Generation
Demand Side Management
50% of Load Grow th Goal
DDR Achieved/Targeted
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Monthly Electric Bill Comparison
$0.00 $50.00 $100.00 $150.00 $200.00
1,000 kw h
500 kw h
SG&E SCE PG&E LADWP SMUD
Monthly Electric Bill Comparison
$0.00 $50.00 $100.00 $150.00 $200.00
1,000 kw h
500 kw h
SG&E SCE PG&E LADWP SMUD
Monthly Electric Bill ($/MW)Monthly Electric Bill ($/MW)
Low & Stable
Electric Rate
Low & Stable
Electric Rate
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
1980 1985 1990 1995 2000
SCE SDG&E LADWP
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
1980 1985 1990 1995 2000
SCE SDG&E LADWP
System Average Rate (cents/KWh)System Average Rate (cents/KWh)
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10
12
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20
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
CO
2 Em
issi
ons
(Mill
ion
tons
).
10
12
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1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
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2011
2012
CO
2 Em
issi
ons
(Mill
ion
tons
).
Projected Decrease in CO2Emissions
Projected Decrease in CO2Emissions
Historical Emissions Projected Emissions
1990 Baseline
Goal: 5% below baseline by 2008-2012
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0
1,000
2,000
3,000
4,000
5,000
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1990
1991
1992
1993
1994
1995
1996
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1999
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2003
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CALENDAR YEARS
NOX
EMIS
SIONS
(tons
)
Harbor
Valley
Scattergood
Haynes
RECLAIM ALLOCATION
Basin Generation NOx Emissions
Basin Generation NOx Emissions
- IRP resulted in 75% NOx reduction in 3 years- Overall 90% NOx reduction over 13 years
- IRP resulted in 75% NOx reduction in 3 years- Overall 90% NOx reduction over 13 years
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4,800 tonsNOx
NOx Emission ReductionNOx Emission Reduction
= 25,000 cars
19891989
4,800 tonsNOx
20022002
360 tonsNOx
Equivalent to Removing
230,000 Cars from the Road
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J.D. Power & Associates Award
J.D. Power & Associates Award
• LADWP ranks first in the Western U.S. in J.D. Power Mid Size Business Customer Satisfaction Study
• Second year in-a-row• LADWP ranked the highest in several key
areas, including: Power Quality and Reliability; Price and Value; Company Image; Billing and Payment; and Customer Service
• LADWP ranks first in the Western U.S. in J.D. Power Mid Size Business Customer Satisfaction Study
• Second year in-a-row• LADWP ranked the highest in several key
areas, including: Power Quality and Reliability; Price and Value; Company Image; Billing and Payment; and Customer Service
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$0
$10
$20
$30
$40
$50
$60
Jul-9
9
Aug
-99
Sep
-99
Oct
-99
Nov
-99
Dec
-99
Jan-
00
Feb-
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Mar
-00
Apr
-00
May
-00
Jun-
00
Jul-0
0
Aug
-00
Sep
-00
Oct
-00
Nov
-00
Dec
-00
Jan-
01
Feb-
01
Mar
-01
Apr
-01
May
-01
Jun-
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Jul-0
1
Aug
-01
$/M
MB
TU
$0
$10
$20
$30
$40
$50
$60
Jul-9
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Aug
-99
Sep
-99
Oct
-99
Nov
-99
Dec
-99
Jan-
00
Feb-
00
Mar
-00
Apr
-00
May
-00
Jun-
00
Jul-0
0
Aug
-00
Sep
-00
Oct
-00
Nov
-00
Dec
-00
Jan-
01
Feb-
01
Mar
-01
Apr
-01
May
-01
Jun-
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Jul-0
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Aug
-01
$/M
MB
TU
Fuel Price SensitivityFuel Price Sensitivity
Historical Coal Price History
0.00
0.20
0.40
0.60
0.80
1.00
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1952
1955
1958
1961
1964
1967
1970
1973
1976
1979
1982
1985
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1997
2000
$/M
MBT
UHistorical Coal Price History
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1949
1952
1955
1958
1961
1964
1967
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
$/M
MBT
U
Generation Capacity
Coal24%
Natural Gas46%
Large Hydro24%
Renewable1%
Nuclear5%
Generation Capacity
Coal24%
Natural Gas46%
Large Hydro24%
Renewable1%
Nuclear5%
Energy Production
Coal50%
Natural Gas24%
Renewable3%
Nuclear13%
Large Hydro10%
Energy Production
Coal50%
Natural Gas24%
Renewable3%
Nuclear13%
Large Hydro10%
Gas Prices (July 99 – August 01 )
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Natural Gas Risk Management Program
Natural Gas Risk Management Program
• Approved by City Council August 2002.• Purpose is to minimize exposure to price volatility
– Rate stability– City transfer
• Hedge up to 75 percent of annual gas requirements.– Financial hedges of up to $15 million/yr.– Physical gas
• Approved by City Council August 2002.• Purpose is to minimize exposure to price volatility
– Rate stability– City transfer
• Hedge up to 75 percent of annual gas requirements.– Financial hedges of up to $15 million/yr.– Physical gas
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Coal Resource Risk Management
Coal Resource Risk Management
• Uncertainty of Mohave generation station (158 MW)
• Uncertainty of IPP excess power contract recall (300 MW)
• Uncertainty of Mohave generation station (158 MW)
• Uncertainty of IPP excess power contract recall (300 MW)
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Consideration for IPP Unit 3Consideration for IPP Unit 3
• To extend existing contract beyond 2027 • Permanently set power recall level of the
excess power contract • Replace power loss from excess power
contract recall• Monetize existing “common facilities”• Establish equity position on Unit 3.
• To extend existing contract beyond 2027 • Permanently set power recall level of the
excess power contract • Replace power loss from excess power
contract recall• Monetize existing “common facilities”• Establish equity position on Unit 3.
Considerations of Renewable Portfolio Standard for LADWP
Considerations of Renewable Portfolio Standard for LADWP
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SB 1078 Renewable Portfolio Standard Program
SB 1078 Renewable Portfolio Standard Program
• IOU’s are required to supply 20% of their load from eligible renewable resources by year 2017 (Subject to funding availability)
• Funding for above market costs for renewables are limited to $135 million/year for the three major IOUs in the state
• SB1078 excludes municipal utilities from the 20% requirement
• IOU’s are required to supply 20% of their load from eligible renewable resources by year 2017 (Subject to funding availability)
• Funding for above market costs for renewables are limited to $135 million/year for the three major IOUs in the state
• SB1078 excludes municipal utilities from the 20% requirement
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SB 1078 RPS Program Municipal ApplicationSB 1078 RPS Program Municipal Application
• The bill does require the governing body to implement and enforce an RPS that “recognizes the intent of the legislature to encourage renewable resources, subject to other critical considerations, such as rates, reliability, financial resources and environmental improvements.”
• The bill does require the governing body to implement and enforce an RPS that “recognizes the intent of the legislature to encourage renewable resources, subject to other critical considerations, such as rates, reliability, financial resources and environmental improvements.”
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LADWP Renewable Resource Investments (1)
LADWP Renewable Resource Investments (1)• Installed 6.7 MW of Photovoltaics, 1.9 MW
of microturbines, and 0.95 MW of fuel cells in 2000-2003
• Modernizing the San Francisquito Power Plant 2, a 17 MW hydro plant to be in-service by 2005
• Developing 120 MW of wind power
• Installed 6.7 MW of Photovoltaics, 1.9 MW of microturbines, and 0.95 MW of fuel cells in 2000-2003
• Modernizing the San Francisquito Power Plant 2, a 17 MW hydro plant to be in-service by 2005
• Developing 120 MW of wind power
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LADWP Renewable Resource Investments (2)
LADWP Renewable Resource Investments (2)• Processing a power purchase agreement for 40
MW from a biomass (energy generation from digestion/biogas) facility
• Assessment of 30 MW of geothermal resource• Conducting feasibility assessment for 4 MW of
small hydro in the LADWP water system• 10 year, $150 million commitment for solar
(photovoltaic) programs
• Processing a power purchase agreement for 40 MW from a biomass (energy generation from digestion/biogas) facility
• Assessment of 30 MW of geothermal resource• Conducting feasibility assessment for 4 MW of
small hydro in the LADWP water system• 10 year, $150 million commitment for solar
(photovoltaic) programs
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JFB INSTALLED PHOTOVOLTAIC PANELS
LADWP Renewable Resource Investments (3)
LADWP Renewable Resource Investments (3)
LOPEZ CANYON MICROTURBINES USING LANDFILL GAS
PINE TREE WIND DEVLOPMENT PROJECT – UNDER DEVELOPMENT
BIOCONVERTER BIOGAS PROJECT – UNDER DEVELOPMNET
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LADWP Actions to Achieve Emission Reductions (1)
LADWP Actions to Achieve Emission Reductions (1)• Divestiture of Colstrip generating station
contract for 105 MW• Divestiture of 50% of LADWP’s
ownership in Mohave totaling 158 MW• Reduction of over 150 MW of peak load
demand through conservation and energy efficiency programs since 2000
• Installation of 280 MW of peaking units
• Divestiture of Colstrip generating station contract for 105 MW
• Divestiture of 50% of LADWP’s ownership in Mohave totaling 158 MW
• Reduction of over 150 MW of peak load demand through conservation and energy efficiency programs since 2000
• Installation of 280 MW of peaking units
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LADWP Actions to Achieve Emission Reductions (2)
LADWP Actions to Achieve Emission Reductions (2)• Installed four Selective Catalytic Reduction
devices on our large in-basin units• Four repowering projects to replace 10 in-basin
generating units• The first two repowerings will be in service in
early 2004 and 2005• Repowering will creating over 1000
construction jobs• “Trees for a green LA” program, with a goal of
planting 200,000 trees
• Installed four Selective Catalytic Reduction devices on our large in-basin units
• Four repowering projects to replace 10 in-basin generating units
• The first two repowerings will be in service in early 2004 and 2005
• Repowering will creating over 1000 construction jobs
• “Trees for a green LA” program, with a goal of planting 200,000 trees
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LADWP Actions to Achieve Emission Reductions (3)
LADWP Actions to Achieve Emission Reductions (3)• Modernization of Castaic pumped hydro power
plant to increase efficiency and reliability• Modernization of the Sylmar converter station
to improve reliability and access to hydro and other renewable energy from the Pacific Northwest
• Initiated Alternative Maritime Power (AMP) Program to reduce emissions from container vessels docked in the Los Angeles Harbor
• Modernization of Castaic pumped hydro power plant to increase efficiency and reliability
• Modernization of the Sylmar converter station to improve reliability and access to hydro and other renewable energy from the Pacific Northwest
• Initiated Alternative Maritime Power (AMP) Program to reduce emissions from container vessels docked in the Los Angeles Harbor
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Combustion Turbine Peaker Units
Combustion Turbine Peaker Units
VALLEY PEAKER
HARBOR PEAKERS
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Next StepsNext Steps
• Develop RPS• Update IRP with inclusion of RPS• Approval updated IRP by Board and
City Council• Issue RFP for procurement of new
renewables
• Develop RPS• Update IRP with inclusion of RPS• Approval updated IRP by Board and
City Council• Issue RFP for procurement of new
renewables