Southwest Power Pool Today And In The Future

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Transcript of Southwest Power Pool Today And In The Future

  • 1.

2. SPP, Wind, and Transmission Expansion Oklahoma Clean Energy Independence Commission February 25, 2010 Les Dillahunty, Senior Vice President, Engineering and Regulatory Policy 3. Introduction 4. Our Beginning

  • Founded 1941 with 11 members
    • Utilities pooled resources to keep Arkansas aluminum plant powered for critical defense
  • Maintained after WWII for reliability and coordination

5. 3 Interconnections / 8 NERC Regions 6. Operating Region

  • 370,000 squaremiles serviceterritory
  • 50,575 miles transmission lines:
  • 69 kV 16,182 miles 115 kV 10,041 miles 138 kV 9,284miles 161 kV 4,469miles 230 kV 3,831miles 345 kV 6,662miles 500 kV 106miles

7. Members in nine states: Arkansas Kansas Louisiana Mississippi Missouri Nebraska New Mexico Oklahoma Texas 8. 56 SPP Members 9. Quick Statistics

  • 66,175 megawatts capacity resources
  • 847 plants 6,079 substations

Fuel Type Percentage Capacity Coal 40%Gas/Oil 42%Nuclear 3%Hydro4%Wind4%Other 7% 10. Wind Integration andTransmission Expansion 11. 12. Wind In Service: 2001 Source: NREL 2009 13. Wind Installed by Year (2002-2009) Source: SPP 14. Renewable Energy Standards By State Source: SPP 15. 16. w/ HVDC Proposals 17. Generation Interconnection Requests 18. Generation Interconnection Clusters andMajor Cities 19. To Scale Height Comparison Produced by Midwest ISO 500 kV-DC 116 800 kV-DC 138 765 kV-AC 133 345 kV-AC 88 500 kV-AC 103 50m Wind Turbine 164 92 80m Wind Turbine 262 151 100m Wind Turbine 328 164 Made by JT 20. Correlation Between Wind and Load 21. Wind Status in Oklahoma

  • 865 MW installedthrough 3Q 2009
  • 3% windgeneration in 2008
  • Ranks 12 thtotal wind installation

Source: AWEA, NREL Installed Wind Online Manufacturing 22. Oklahoma Weatherford Wind Energy Center

  • $300,000 in annuallease payments tolandowners
  • $17 million in propertytaxes over 20 years
  • 147 MW
  • 150 workers duringconstruction peak;6 full-time O&Mpositions

Source: NREL 23. Oklahoma CPV OU Spirit project

  • Annual allocations from additionof 2.3 MW Siemens turbines
    • $1,057,000 in new tax dollars for two school districts
    • CareerTech allocation from county revenue will increase by $227,000
    • County general funds will increase by $190,000 will assist with building new jail
    • EMS services will receive $57,000 increase
    • County Heal services will receive $20,000 increase

Source: Woodward County Assessor 24. Oklahoma, Wind, and Economic Development

  • Economic benefit of 1,000 MW = $1.25 billion
    • 5,530 construction jobs, 215 permanent jobs
  • Average wages in component manufacturing industry = $40,709- 15% higher than average state wage
  • Strong correlation between Western OK counties that have lost population in recent decades with counties that have significant wind resources
  • In many cases, land suited for wind development has lower per-acre returns for agricultural use
  • Sooner Survey of 600 registered voters:
    • 72% of Oklahomans willing to pay more for wind-generated electricity
    • 91% approve of further development of wind farms

Source: NREL; Cole, Hargrave Snodgrass, and Associates;Oklahoma Department of Commerce 25. Component Manufacturing-Oklahoma, Kansas

  • Bergey WindPower(Oklahoma)
    • Employs 42, manufactures one turbine per day
  • DMI Industries(Oklahoma)
    • Employs 215
    • Siemens(Kansas)
      • Broke ground September 2009
      • Will invest $50 million in new facility
      • Expected to employ 400 workers by2012 @ >$16/hour
      • Planned annual output = 650 nacelles

Sources: NREL , Wichita Eagle 26. Arkansas Becoming Manufacturing Hub

  • LM Glasfiber
    • Employs 300 workers @ $12-$15/hour
    • Invested $95 million in Little Rock
  • Mitsubishi Power Systems
    • Announced October 2009
    • $100 million plant will bring 400 jobs in 2011
  • Nordex
    • Sept 2009 - Broke ground on $100 million plant
    • Expected to employ 700 by 2014
  • Emergya Wind Technologies/Polymarin
    • Plans to invest $16 M and create 830 jobs @ $15/hour

Installed Wind Existing Manufacturing Announced manufacturing Sources: NREL, AR Economic Dev. Commission, Nordex,Arkansas Business 27. SPP is Building Transmission 28. Transmission Expansion - Costs 29. Transmission Expansion - Miles 30. Draft EHV Overlay 31. Group 2 Priority Projects 32. Quantitative Benefits

    • Study quantified NPV benefits of $1.5 billion over 40 years
    • B/C Ratio of 0.74

Total $$ B/C Ratio APC $819 M 0.41 Losses $26 M 0.01 Wind Revenue* $266 M 0.13Fuel Diversity $399 M 0.20 Reliability $ -20 M (0.01) *(Adjusted down)$1.5 B 0.74 33. Qualitative Benefits Total (B/C at 20% of $$) $$ B/C Ratio Taxes (table 28):$34 M 0.00 Econ. Trans (table 27) $1,000 M 0.10 Wind Earning (table 5a) $560M 0.06Econ Operating (table 5a) $1,900 M 0.19 Wind Earning Construct (table 5a) $766M 0.08 Econ Construction (table 5a)$2,300 M 0.23 Total $6,500 B 0.66 34. Examples of Other Transmission Benefits 35. Larger Transmission Reduces Right of Way 36. Cost Allocation 37. RSC and CAWG Regional State Committee (RSC) Cost Allocation Working Group (CAWG) Arkansas Chairman Suskie Sam Loudenslager / Pat Mosier Kansas Commissioner Wright Tom DeBaun / Jim Sanderson Oklahoma Commissioner Cloud Bob Vandewater / Bill Reid Missouri Chairman Davis Adam McKinnie Nebraska Chairman Siedschlag Tim Texel New Mexico Commissioner King Craig Dunbar Texas Chairman Smitherman Richard Greffe / Bridget Headrick 38. Highway/Byway Cost Allocation Voltage Regional Zonal 300 kV and above 100% 0% 100 kV - 299 kV 1/3 2/3 Below 100 kV 0% 100% 39. Current and Future Markets 40. What kind of markets does SPP have now?

  • Transmission : Participants buy and sell use of regional transmission lines that are owned by different parties
    • 2009 transmission market transactions = $486 million
  • Energy Imbalance Service (EIS) : Participants buy and sell wholesale electricity in real-time
    • Market uses least expensive energy from regional resources to serve demand (load) first
    • SPP monitors resource/load balance to ensure system reliability
    • 2009 wholesale markettransactions = $1.14 billion

41.

  • Provides one-stop shopping for use of regional transmission lines
  • Consistent rates, terms, conditions
  • Independent
  • Process > 12,000 transactions/month
  • 2009 transmission market transactions = $486 million

Transmission Service a 1,621 page transmission tariff on behalf of our members and customers. As Sales Agents, we administer 42. Transmission Service 43. Transmission Service 44. EIS Market Operation

  • Monitors supply/demand balance
  • Ensures economic dispatch while meeting system reliability
  • Provides settlement data
  • 2009 wholesale markettransactions = $1.14 billion

and follows over 200 pages of market protocols. SPPs energy market islike the NYSE 45. Benefits of current real-time energy market 46. 47. SPP Pricing Zone Information 48. Impact of Congestion on Locational Prices 49. Impact of Congestion on Locational Prices 50. 51. 52. Why develop new markets?

  • SPP conducts complex cost-benefit studies before beginning any new market development
    • Under Regional State Committee oversight
    • 2005 Charles River and Associates (CRA) analysis of the EIS market:
      • Estimated benefit of $86 million for first year
      • Actual benefit of $103 million for first year
  • New markets will bring estimated averageadditional benefits of $100 million
    • According to 2009 Ventyx analysis

53. What type of new markets is SPP implementing?

  • Day Ahead : SPP determines what generating units should run the next day for maximum cost-effectiveness
  • Ancillary Services : Market to buy and sell reserve energy that:
    • Meets emergency needs
    • Regulates instantaneous load and generation changes