Maine Public District MPD 2018 Transmission Filing MPD OATT: Open - PowerPoint PPT Presentation

JUNE 27, 2018 Maine Public District MPD 2018 Transmission Filing

MPD OATT: Open Customer Meeting This meeting is scheduled per the MPD OATT Open Access Transmission Tariff Attachment J – Section III B1. “Between 45 Days and 60 Days after the Publication Date, Transmission Provider will hold an open meeting to discuss the Annual Update (“Customer Meeting”).” 2

Open Customer Meeting Agenda Wednesday, June 27, 2018 (9:30 AM to 10:30 AM)  Emera Maine Services  2018 Transmission Rate - Major Change Drivers  Historic Comparison  Five Year Outlook  Other July 1 Rate Changes (D, SC, DSM)  Discussion / Questions 3

Safe and Reliable Electricity Delivery  Operations and Controls  Maintenance and Construction  Restoration 4

Two Districts – BHD and MPD  Emera Maine serves two separate districts:  Maine Public District (MPD)  Bangor Hydro District (BHD)  Each district has different transmission rates  The two districts are connected to separate transmission grids 5

Transmission and Distribution 6

Rates and Cost of Service Formula Capitalized Cost of Grid Operating Annual Revenue X Expense Requirement W.A.C.C. 7

Service Rate Making Capitalized Cost of Grid Operating Annual Revenue X Expense Requirement W.A.C.C.  Distribution Rates (MPUC)  Stranded Cost (MPUC)  Conservation or DSM (MPUC)  Transmission (FERC) 8

Today’s Agenda  Welcome  Overview of EM Transmission Service  Major Change Drivers  Transmission Rate Changes  Five Year Outlook  Other Rate Changes  Discussion / Questions 9

Major Transmission Rate Change Drivers  2017 Retail Settlement Expired  Transmission Investment • Completed projects in 2017 • Cost of 2017 operations  Transmission Formula Changes • 2018 Federal Income Tax Rate Change from 35% to 21% 10

Transmission Rate Bill Impact July 1 Rate Change Monthly Bill Rate Impacts Customer Class Sample Usage 2018 Change Residential 500 kWh $ 2.12 Medium (ES) 0.25 mW / 91.25 mWh $ 170.00 Large (EP-T) 1.175 mW / 450 mWh $ 2,573.25 Large (ES-T) 0.600 mW / 300 mWh $ 1,830.00 Trans (ST) 2.0 mW / 800 mWh $ 3,780.00 11

2018 Active and Planned Work  Completion of protection upgrades and relay work for 6901 Rebuild  Emergency structure replacements at river crossing in Madawaska – complete; $1M  Targeted Rebuild of Line 6913  Mapleton – 0.8 miles; complete; $814K  Roadside section – started; $408K  Right-of-Way section – fall; $538K  Line 4407 maintenance - continued structure replacements due to woodpecker damage  Phase 3 – this fall; $1.2M 12

6905/6909 Riverbank Erosion 13

Lines 6905/6909 After Stabilization 14

Line 4407 Woodpecker Damage 15

Condition Inspections EXTERNAL SHELL ROT BROKEN CROSS ARM WOODPECKER DAMAGE EXCESSIVE INTERNAL DECAY / HEART ROT 16

2017 - 2018 Projects Emera Maine - Maine Public District 2017 - 2018 Plant Additions In Rate Project Name Spend Through 2017 2018 Forecast In Service Date Base Line 6901 Rebuild (2238) $8,898,699 $0 December 2016 2017 Line 6901 Protection Upgrades (125B) $649,728 $97,000 Summer 2018 2018 Line 6901 ReEnergy Tap (388B) $55,808 $0 December 2017 2017 Line 4407 Structure Replacement Phase 1 (750A) $540,457 $0 January 2017 2017 Line 4407 Structure Replacement Phase 2 (784A) $1,862,608 $0 December 2017 2017 17

2017 - 2018 Projects (continued) Emera Maine - Maine Public District 2017 - 2018 Plant Additions In Rate Project Name Spend Through 2017 2018 Forecast In Service Date Base Line 4407 Structure Replacement Phase 3 (844B) $0 $1,185,000 December 2018 2018 Line 6910 Rebuild Phase 2 (157B) $5,689,632 $0 December 2016 2017 Line 6910 Rebuild Phase 3 (256B) $4,292,352 $12,840 December 2017 2018 18

2017 - 2018 Projects (continued) Emera Maine - Maine Public District 2017 - 2018 Plant Additions In Rate Project Name Spend Through 2017 2018 Forecast In Service Date Base Line 6913 Mapleton (2349) $178,110 $635,407 June 2018 2018 Line 6913 Right-of-Way Rebuild (200C) $0 $537,782 December 2018 2018 Line 6913 Roadside Targeted Rebuild (845B) $0 $407,666 December 2018 2018 Line 6905 / 6909 Structure Replacements (789B) $678,635 $335,136 June 2018 2018 19

System Improvements Proposed or Under Consideration for Years 2019 - 2022 Line 6901 Rebuild – Fort Fairfield Tap (Proposed for 2019)  1.2 miles of 69kV in ROW; $500K - $700K Line 6903 Rebuild – Otter Creek to Limestone (Proposed for 2019)  9.8 miles of 69kV roadside construction; $4.9M - $6.9M Line 6930 Rebuild – Dow Siding to Maysville Siding (Proposed for 2019)  3 miles of 69kV in ROW; $1.5 - $2.0M Line 6930 Rebuild – Maysville Siding to Washburn (Proposed for 2020)  8.4 miles of 69kV in ROW over two years; $4.5M - $6.0M Line 1176 Rebuild – Presque Isle to Easton (Conceptual 2021)  11.9 miles of 138kV in ROW; $6.0M - $8.5M Line 6915 Rebuild – Flo’s Inn to North Presque Isle (Conceptual 2022)  11.9 miles of 138kV in ROW; $6.0M - $8.5M Line 6930 – Washburn to Ashland (Conceptual 2022)  3 miles of 69kV in ROW; $1.5 – $2.0M Line 6950 – Westfield to Mars Hill (Conceptual 2022)  3.4 miles of 69kV in ROW; $3.0M - $3.5M 20

Today’s Agenda  Welcome  Overview of EM Transmission Service  Major Change Drivers  Transmission Rate Changes  Five Year Outlook  Other Rate Changes  Discussion / Questions 21

Revenue Requirement 2018 MPD Transmission Revenue Requirement (2017 Discount shown in RED) $7,000,000 $6,000,000 Revenue Requirement ($) $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2013 2014 2015 2016 2017 2018 22

Outlook: Retail Revenue Requirement 2018 MPD Retail Transmission Revenue Requirement Investment & Refund $14,000,000 Estimated Revenue Requirement ($) $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 23

Outlook: Yearly Rate Changes MPD Projected Year-Over-Year Transmission Rate Changes ( Pricing based on Medium Secondary at 250kW and 91,250 kWh $0.015/kWh $0.022/kWh $0.018/kWh $0.020/kWh $0.009/kWh 70.00% Estimated 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2018 2019 2020 2021 2022 -10.00% -20.00% -30.00% 24

Yearly Transmission Cost Increases Projected MPD Transmission Rate Changes Yearly Bill Impacts Customer Class Sample 2018 2019 2020 2021 2022 Residential 500 kWh $57 $94 $143 $119 $126 Medium (ES) 0.25 mW / 91.25 mWh $9,690 $16,019 $24,263 $20,218 $21,401 Large (EP-T) 1.175 mW / 450 mWh $55,554 $91,841 $139,104 $115,912 $122,697 Large (ES-T) 0.600 mW / 300 mWh $34,200 $56,539 $85,635 $71,357 $75,534 Trans (ST) 2.0 mW / 800 mWh $81,120 $134,106 $203,120 $169,254 $179,162 25

Today’s Agenda  Welcome  Overview of EM Transmission Service  Major Change Drivers  Transmission Rate Changes  Five Year Outlook  Other Rate Changes  Discussion / Questions 26

Distribution Rate Adjustment  2018 MPD Distribution Rate Adjustment • An increase from 5.92 cents per kWh -> 6.23 per kWh • Average residential customer using 500 kWh per month will see an increase about $1.58 cents on their monthly bill 27

Conservation Rate Adjustment  Emera Maine collects funds on behalf of Efficiency Maine  Amount collected based on a yearly assessment amount  2018 MPD Conservation Rate Adjustment • A decrease from 0.365 cents per kWh -> 0.243 per kWh • Average residential customer using 500 kWh per month will see a reduction of about 61 cents on their monthly bill  The Conservation Charge is rolled into the Distribution Rate on the MPD bill. 28

Stranded Cost Rate Adjustment  Stranded Costs originally recovered the cost of long term electricity supply contracts  It also includes new long term contracts as a result of State policy, settlements, and other adjustments.  2018 MPD Stranded Cost Rate Adjustment • Decrease in Maine Yankee Refund this year • Refund reduced from 0.200 cents per kWh -> 0.105 cents per kWh • Average residential customer using 500 kWh per month will see an increase of about 48 cents on their monthly bill  The Stranded Cost Rate is rolled into the Distribution Rate on the MPD bill. 29

Total Rate Bill Impact July 1 Rate Change Monthly Bill Rate Impacts Customer Class Sample Usage 2018 Change Residential 500 kWh $ 3.57 Impacted by T, D, SC & DSM Medium (ES) 0.25 mW / 91.25 mWh $ 259.29 Impacted by T, D, SC & DSM Large (EP-T) 1.175 mW / 450 mWh $ 2,921.28 Impacted by T, D, SC & DSM Large (ES-T) 0.600 mW / 300 mWh $ 2,058.84 Impacted by T, D, SC & DSM Trans (ST) 2.0 mW / 800mWh $ 4,983.53 Impacted by T, D & SC 30