ELECTRIC GENERATION AND TRANSMISSION ON THE RAILBELT Joe Griffith - - PowerPoint PPT Presentation

ELECTRIC GENERATION AND TRANSMISSION ON THE RAILBELT

Anchorage Mayor’s Energy Task Force November 6, 2013

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Joe Griffith General Manager, MEA Chief Executive Officer, ARCTEC

RAILBELT MAKEUP

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• Electrical utilities are all cooperatives or municipalities
• Anchorage Municipal Light & Power
• Seward Electric System
• Chugach Electric Association
• Golden Valley Electric Association
• Homer Electric Association
• Matanuska Electric Association

RAILBELT TRANSMISSION SYSTEM

• Connects utilities
• Facilitates economic dispatch
• Transfers power
• Shares Reserves

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RAILBELT ELECTRICAL GENERATION

1 – Eklutna Generation Station (EGS) 2 – Bradley Lake 3 – Soldotna 4 – Nikiski 5 – Fire Island 6 – SPP 7 – ML&P Plants 2 & 2A 8 – Beluga 9 – Mount Spurr Geothermal Project 10 – Watana 11 – Eva Creek 12 – Healy 2 (HCC) 13 – Battery Energy Storage System (BESS) 14 – Zehnder 15 – North Pole

GENERATION

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• All utilities have or will soon have their own generation capability
• New generation cost is approximately $1 billion
• Utility balance sheets are stressed
• No additional debt-assuming capability

RAILBELT GENERATION SUITE

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• Chugach – Beluga, South Anchorage, IGT, Cooper Lake hydro, Eklutna hydro
• AML&P – Plant 1, 2, & 2A (soon to be built), Eklutna hydro
• GVEA – North Pole, Eva Creek Wind, Healy 1 & 2, Aurora (IPP), BESS, Zehnder
• MEA – Eklutna Generation Station, Eklutna hydro, + 2 small IPPs
• HEA – Nikiski combined cycle, Soldotna, Bernice Lake
• SES – Seward plant

Note: All above participate in Bradley Lake hydro (state-owned IPP)- 124 mW capacity

SITUATION

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• New generation system changes playing field due to transmission constraints
• Limits Bradley Lake power deliveries when needed most.
• Railbelt economy demands reasonably-priced power (as does the rest of Alaska)

AEA TRANSMISSION STUDY

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• Southern section upgrades proposed:
• Quartz creek to University (AC)
• Additional conductor from Quartz Creek to Daves Creek
• 230 kV upgrade from Daves Creek to University s/s
• DC tie line from Bernice Lake to Beluga
• 2nd 115kV line from Bradley Junction to Soldotna
• Anchorage battery
• Northern Upgrades
• 230 kV Lake Lorraine to Douglas upgrade
• Douglas to Healy upgrade

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Slater Consulting August 2013

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AEA TRANSMISSION STUDY – CASES MODELED

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• Scenario 1:

All transmission upgrades

• Scenario 2:

Southern transmission upgrades

• Scenario 3:

Northern transmission upgrades

• Scenario 4:

No transmission upgrades

AEA TRANSMISSION STUDY – NO TRANSMISSION UPGRADES

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• The system operates as a 5 separate utilities
• Each provides its own reserves
• The interface limit for Kenai North is 75 MW
• The transfer limit from Stevens (Talkeetna) to Cantwell is 75 MW
• North Pole CC is “must-run” Oct through Mar
• Bradley Spin is only 10 MW
• Commitment/Dispatch hurdles exist between all utilities
• Opportunity cost of over $100 million per year

ARCTEC 2014 REQUESTS

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• Unconstrain Bradley Lake
• Silvertip Creek to Hope Substation 115 kV transmission line 4,500,000
• Powerline Pass to Indian 115 kV transmission line

5,000,000

• Eklutna hydro transmission upgrade

4,000,000

• Battle Creek Diversion into Bradley Lake

$24,000,000

• 50/50 Shared cost between State of Alaska and utilities.

TOTAL REQUEST: $37,500,000

INDEPENDENT POWER PRODUCERS (IPPs)

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Assert they can solve the problem

• Federal law: Public Utility Regulatory Policies Act (PURPA)
• Avoided cost principle for Combined Heat and Power (CHP) utilities
• Must meet or beat avoided cost (2 types)
• Firm and non-firm
• Alaska RCA regulations mimic federal PURPA
• Rate of return: co-ops 3-5% / IPPs need 10%+
• IPPs have filed with the RCA to disuage regulations
• IPPs pushing for Alaska statute changes to force utilities to accept their power at the

expense of ratepayers

SHORT-TERM ENERGY DELIVERY MITIGATIONS

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• Decongest the transmission system to facilitate optimum use of Bradley Lake energy and

capacity

• Maintain Cook Inlet gas market
• Foster more exploration in Cook Inlet
• Import LNG and/or propane

AEA TRANSMISSION STUDY – VALUE OF PROPOSED UPGRADES

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• $140,000,000 per year

CONCLUSION

• Without a program to rectify transmission shortcoming asap
• Cost of electricity will continue to rise
• Possible savings will be forfeited
• Alaska will not achieve its alternative energy goal
• Railbelt will be captive to Cook Inlet natural gas pricing and supply issues

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DISCUSSION / QUESTIONS

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AEA TRANSMISSION STUDY – ALL TRANSMISSION UPGRADES CASE

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Base Case

• The system operates as a single pool with a single system reserve requirement
• The interface limit for Kenai North is 125 MW
• Anchorage battery is 25 MW
• Bradley spin is 27 MW

AEA TRANSMISSION STUDY – SOUTHERN TRANSMISSION CASES

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Case S1: Remove AC upgrades from Quartz Creek to University

• The system operates as a single pool with a single system reserve requirement
• The interface limit for Kenai North is 100 MW
• Anchorage battery is 25 MW
• Bradley spin is 27 MW

Case S2: Remove DC tie

• The system operates as a single pool with a single system reserve requirement
• The interface limit for Kenai North is 75 MW
• Anchorage battery is 75 MW
• Bradley spin is 27 MW

AEA TRANSMISSION STUDY – SOUTHERN TRANSMISSION CASES

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Case S3: Do both S1 and S2

• The system effectively operates as 2 pools
• Railbelt minus HEA
• Shared reserves
• HEA
• HEA provides its own reserves
• The interface limit for Kenai North is 75 MW
• Bradley spin is 27 MW
• Commitment/Dispatch hurdles exist between all other companies and HEA

AEA TRANSMISSION STUDY – SOUTHERN TRANSMISSION CASES

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Case S4: Case S3 + remove 2nd line from Bradley to Soldotna

• The system effectively operates as 2 pools
• Railbelt minus HEA
• Shared reserves
• HEA
• HEA provides its own reserves
• The interface limit for Kenai North is 75 MW
• Bradley spin is 10 MW
• Commitment/Dispatch hurdles exist between all other companies and HEA