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

Maine Public District MPD 2018 Transmission Filing

JUNE 27, 2018

MPD OATT: Open Customer Meeting

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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”).”

Open Customer Meeting Agenda

Wednesday, June 27, 2018 (9:30 AM to 10:30 AM)

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• Emera Maine Services
• 2018 Transmission Rate - Major Change Drivers
• Historic Comparison
• Five Year Outlook
• Other July 1 Rate Changes (D, SC, DSM)
• Discussion / Questions

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Safe and Reliable Electricity Delivery

• Operations and Controls
• Maintenance and Construction
• Restoration

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• 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

Two Districts – BHD and MPD

Transmission and Distribution

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Rates and Cost of Service Formula

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Capitalized Cost of Grid X W.A.C.C. Operating Expense Annual Revenue Requirement

Service Rate Making

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Capitalized Cost of Grid X W.A.C.C. Operating Expense Annual Revenue Requirement

• Distribution Rates (MPUC)
• Stranded Cost (MPUC)
• Conservation or DSM (MPUC)
• Transmission (FERC)

Today’s Agenda

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• Welcome
• Overview of EM Transmission Service
• Major Change Drivers
• Transmission Rate Changes
• Five Year Outlook
• Other Rate Changes
• Discussion / Questions

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• 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%

Major Transmission Rate Change Drivers

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Transmission Rate Bill Impact

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

July 1 Rate Change Monthly Bill Rate Impacts

2018 Active and Planned Work

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• 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

6905/6909 Riverbank Erosion

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Lines 6905/6909 After Stabilization

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Line 4407 Woodpecker Damage

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Condition Inspections

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

2017 - 2018 Projects

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Emera Maine - Maine Public District

2017 - 2018 Plant Additions

Project Name Spend Through 2017 2018 Forecast In Service Date In Rate 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

2017 - 2018 Projects (continued)

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Emera Maine - Maine Public District

2017 - 2018 Plant Additions

Project Name Spend Through 2017 2018 Forecast In Service Date In Rate 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

2017 - 2018 Projects (continued)

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Emera Maine - Maine Public District

2017 - 2018 Plant Additions

Project Name Spend Through 2017 2018 Forecast In Service Date In Rate 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

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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

Today’s Agenda

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• Welcome
• Overview of EM Transmission Service
• Major Change Drivers
• Transmission Rate Changes
• Five Year Outlook
• Other Rate Changes
• Discussion / Questions

Revenue Requirement

22 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000

2013 2014 2015 2016 2017 2018 Revenue Requirement ($)

2018 MPD Transmission Revenue Requirement

(2017 Discount shown in RED)

$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Estimated Revenue Requirement ($)

2018 MPD Retail Transmission Revenue Requirement Investment & Refund

Outlook: Retail Revenue Requirement

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• 30.00%
• 20.00%
• 10.00%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%

2018 2019 2020 2021 2022 Estimated

MPD Projected Year-Over-Year Transmission Rate Changes (Pricing based on Medium Secondary at 250kW and 91,250 kWh

Outlook: Yearly Rate Changes

24 $0.009/kWh $0.020/kWh $0.018/kWh $0.022/kWh $0.015/kWh

Yearly Transmission Cost Increases

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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

Today’s Agenda

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• Welcome
• Overview of EM Transmission Service
• Major Change Drivers
• Transmission Rate Changes
• Five Year Outlook
• Other Rate Changes
• Discussion / Questions

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• 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

Distribution Rate Adjustment

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• 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.

Conservation Rate Adjustment

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• 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.

Stranded Cost Rate Adjustment

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Total Rate Bill Impact

Customer Class Sample Usage 2018 Change Residential

Impacted by T, D, SC & DSM

500 kWh $ 3.57 Medium (ES) Impacted by T, D, SC & DSM 0.25 mW / 91.25 mWh $ 259.29 Large (EP-T)

Impacted by T, D, SC & DSM

1.175 mW / 450 mWh $ 2,921.28 Large (ES-T)

Impacted by T, D, SC & DSM

0.600 mW / 300 mWh $ 2,058.84 Trans (ST)

Impacted by T, D & SC

2.0 mW / 800mWh $ 4,983.53

July 1 Rate Change Monthly Bill Rate Impacts

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$0.058 $0.057 $0.056 $0.055 $0.056 $0.058 $0.057 $0.058 $0.059 $0.005 $0.007 $0.007 $0.008 $0.010 $0.008 $0.008 $0.007 $0.007 $0.026 $0.025 $0.013 $0.013 $0.011 $(0.004) $(0.004) $(0.003) $(0.001) $0.002 $0.002 $0.002 $0.002 $0.001 $0.001 $0.002 $0.004 $0.003 $0.094 $0.081 $0.077 $0.076 $0.081 $0.086 $0.084 $0.070 $0.072

$(0.02) $- $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 $0.20 2010 2011 2012 2013 2014 2015 2016 2017 2018 $/kWh

Emera Maine - Maine Public District Rate Components for Basic Residential Service 2010-2018 Calendar Years

(amounts expressed in 2016 real dollars)

Distribution Transmission Stranded Costs Conservation Supply

Today’s Agenda

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• Welcome
• Optional: Overview of EM Transmission Service
• Major Change Drivers
• Transmission Rate Changes
• Five Year Outlook
• Other Rate Changes
• Discussion / Questions