MATANUSKA ELECTRIC ASSOCIATION, INC. M A Y O R S E E N E R G Y T - - PowerPoint PPT Presentation

MATANUSKA ELECTRIC ASSOCIATION, INC.

M A Y O R ’ S E E N E R G Y T Y T A S K F F O R C E U P D A T A T E - F A L L 2 2 0 1 4 0 1 4

JOE GRIFFITH, GENERAL MANAGER

OCTOBER 21, 2014

MATANUSKA ELECTRIC ASSOCIATION, INC.

• Over 60,000 accounts

(47,320 members)

• 22 substations
• Over 4,200 miles of power

lines

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Transmission , 125 miles Overhead distribution, 2,227 miles Underground distribution, 1,832 miles

MEA POWER PORTFOLIO (CAPACITY)

3

80% 20% 80% Natural Gas (Currently Chugach Electric - Transition to EGS in 2015) 20% Hydro (Bradley Lake, Eklutna Hydro, Southfork

• f Eagle River, McRoberts

Creek in Palmer)

Eagle River Palmer Wasilla Matanuska Glacier Point MacKenzie Denali State Park Talkeetna

Matanuska Electric Association Service Territory (Certificate 18)

Honolulu Creek >100 M Miles ~100 M Miles

SERVICE AREA CHALLENGES

• Over 4200 miles of power lines covering only 59,000

customers

• Service area the size of West Virginia
• Challenging terrain and narrow rights-of-way
• Growing demand
• Aging and inadequate infrastructure

5

MEA’S GROWING LOAD

Driving s significant upgrades t to

• ou
• ur sys

ystem to

• me

meet memb mber d demand

80 8000 000 90 9000 000 10 1000 0000 00 11 1100 0000 00 12 1200 0000 00 13 1300 0000 00 14 1400 0000 00 15 1500 0000 00 16 1600 0000 00

Year 20 2011 11 20 2006 06 20 2001 01 19 1996 96 19 1991 91

TRANSMISSION UPGRADES – EGS TO WASILLA

• Provides reliable power f

from

• m EGS t

to t

• the h

heart

• f our s

servi vice area

• Supp

upports s significant c commercial and nd residential g growth h

• Provides r

reliability a y and redund ndanc ncy t to vulnerable s sys ystem

MEA TRANSMISSION UPGRADES

8

Pha hase 1 1: : EGS

GS t to H Hospi pital

• Poles in place
• Lines connected from EGS
• Completion anticipated this week
• Tie to Eklutna Hydro Project

transmission line halted by EOC.

Wasilla

Hospital Substation

Palmer EGS

MEA TRANSMISSION UPGRADES

9

Pha hase 2 2: : Hospit

ital al S Substat ation t n to He Hernin ing (Wasill lla)

• Supports significant commercial and

residential growth in Wasilla

• Progress stalled due to Wasilla Planning

Commission decision

• Interim step – build transmission to

LaZelle substation

• MEA working with stakeholders on

alternate overhead routes Wasilla

Hospital Substation

Palmer EGS

Herning Substation

OTHER SYSTEM UPGRADES – A FOCUS ON RELIABILITY

Subst station i imp mproveme ments –

• Reduce o
• utag

ages, i improve p power q quali lity, accou

• unt for g

growth

• 5 substat

ations c currently ly u undergoi

• ing u

upgrad ades, inclu luding Parks (C (Chugiak) Clear aring t to reduce o

• utag

ages

• Chugiak

ak/Birchwoo

• od
• Wil

illow t to

• Talk

lkeetna New m meters

• More a

accurat ate b bills lls

• Reduce o
• utag

age t time

• Improve effici

ciency o y of w workf rkforce

MEA LONG RANGE PLANNING

Devel elopmen ent o

• f a

a comprehen ensive gr e growt wth an and mai mainten enan ance p e plan an

• Proactive assessment o
• f cur

urrent system compa pared t to pr projected growth

• Coordina

nation w n with ot

• ther planni

nning ng efforts a at MoA an and M Mat at-Su Borough

• Several new substation
• ns identified,

, including Powder R Reserve (N Eagle River)

• Will l

likely r result i in n the pur purchase of corridors a and nd sub ubstation pr property for fut uture us use

• Target

et comp mpletion: S Summer er 2 2015

EKLUTNA GENERATION STATION

Online Early 2015

DECISION FACTORS LEADING TO EKLUTNA GENERATION STATION (EGS)

13

• 2004: 10

10-ye year notice t e to Chugach t that M MEA w would not b be c cust stomer a after D

• Dec. 3

31, 2 , 2014

• MEA Int

ntegrated R Resour urce Pl Plan, n, MEA po power s suppl pply s y studies, Technolo

• logy E

Evalu aluat ation

• n R

Repor

• rt
• Finan

ancial a al and hourly ly d dispat atch m modeli ling

• Load

ad-flow st study, pooli ling st studies

• Conversat

ation

• ns w

with C Chugac ach a and M ML&P on

• n join

joint e effort Other c considerations

• Railbelt generation suite
• Lack of meaningful work between 2004 and 2009
• Cook Inlet fuel situation
• Pipeline configuration
• Air regulations
• Load characteristics

EKLUTNA GENERATION STATION DESIGN

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• 171mW Capacity (Ten 17.1mW engines)
• Dual-fuel (Natural gas & diesel)
• Reciprocating engines
• Efficiency over power range
• Why Wärtsilä?
• Industry leader
• 10 smaller engines to better follow our primarily residential load
• Proven and efficient technology
• Price

STRATEGIC LOCATION

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AK Railroad Enstar 20” Gas Pipeline

Eklutna Generation Station

EGS - Strategic Location

EGS POWER BLOCK CONTRACTOR AND MAJOR SUBS

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EGS PROJECT IMPACT

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• Nearly 300 jobs at peak of

construction

• 28 permanent O&M

positions filled – majority Alaska hire

• Estimate over $100M in

Alaskan economic impact to date

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Eklutna Generation Station – as of Summer 2014

EGS PROJECT UPDATE

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• Mechanical Substantially complete - equipment

placed, attached & plumbed in

• Connection to Enstar pipeline complete
• Wärtsilä finalizing engine prep – oil and coolant

filled

• Electrical cable pulls and terminations in

process

• Testing, flushing and commissioning plan

crafted and underway

EGS PROGRESS

20

% % Co Complete

Summer mer 2013 Fall ll 2013 Winter 2013 Sp Spri ring 2014 Summer mer 2014 Fall ll 2014 Winter 2014 Sp Spri ring 2015 EGS Switchyard 100 Field Erected Tanks 100 Administration Building 100 Warehouse 100 Power Block 90 - 95 Testing and Commissioning 20

2014 EGS CONSTRUCTION ACTIVITIES

Complete In Progress

Today

EGS COMMISSIONING PLAN

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• Com
• mmis

issioning a agent - Uni niversal Ene Energy, Inc Inc.

• Pla

Plan f for testing, verif rific icatio ion a and p power de deliv ivery

• Com
• mmis

issioning dispatch agr agreement w with Ch Chugac gach Electric s signed

• Filling o

g of liquid fue uel, oil, co , coolant, and and ammo ammonia tanks s schedu duled

• Goal

l -

• Four engines online December 31, 2014
• All 10 engines online Spring 2015

IMPORTANT COORDINATION WITH RAILBELT UTILITIES

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• Interim sales agreement with Chugach Electric signed for Q1 2015
• Coordination for power produced during commissioning
• Interconnection agreement necessary – EOC stop work order
• Complete control communications loop – Eklutna Hydro, EGS, Plant 2

(ML&P), Teeland Substation (Chugach)

• Agree to a plan to capitalize on new opportunities for economic

dispatch of power for significant savings

IMPACT TO MEMBERS

• EGS

GS t transforms t the e way we s e ser erve our mem members.

• Increa

eased ed c contr trol over d decisions that i t imp mpact t our memb mber ership. p.

• Allo

llows u ws us to more re clo lose sely a and efficiently s serve o

• ur

r lo load.

• Proje

jecting an an in init itial r rat ate in increase ( (15-20%) o %) over the next 1 18 months hs

• Largely driven by new, more expensive gas contracts
• Projections were for a similar increase with Chugach, but one year

later.

ROLE IN THE RAILBELT ENERGY PICTURE

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• 10 smaller engines for load following
• Dual-fuel in case of natural gas supply interruption
• Improves grid stability throughout the system
• Can help integrate variable power
• Component of a single transmission operator and

economic dispatch

• May help meet proposed EPA regs by offsetting less

efficient generation

CURRENT RAILBELT ISSUES

Infrastructure Problem

• Inadequate transmission systems
• Solution - Upgrade and construct new infrastructure

New generation facilities

• 5 new facilities on the Railbelt
• Solution - Single, economic dispatch of power

New organizational structure

• 6 vertically integrated utilities
• Solution - Single transmission operator (TRANSCO)

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RAILBELT UTILITY NATURAL GAS CONCERNS

27

• Current market is 200 bcf per year.

Too small to encourage exploration.

• Inadequacy of current gas

infrastructure

• Mismatch of supply delivery

infrastructure with demand centers

• Long and vulnerable distribution

system

• Limited and expensive storage
• Transport costs and ownership

ARCTEC – A CONSORTIUM OF RAILBELT UTILITIES

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Prio iorit itizi zing u upgrad ades t to frag agil ile Railb lbelt lt tran ansmis issio ion infrastr tructu ture

• Support for infrastructure development plan
• Funding options limited

TRANSCO/IS ISO deve velo lopment

• Goal – coordination of assets for benefit of the entire Railbelt
• Identify best model for Alaska
• Feedback from other stakeholders (Legislators, IPP’s)
• Legislative $250k to RCA at ARCTEC’s request

MEA IN THE COMMUNITY

• Involved in e

n event nts a and nd o

• rganizations throughout o
• ur

ur service a area

• MEA Chari

ritable F Foundation supports servi vice a area with h appr

• pprox. $125K a

annu nnually from Roun und U Up p fun unds

• Award $

$20,000 i in s n scholarships annu nnually t to area yout uth

ENERGY EDUCATION (K-12)

• The Ene

nergy Hog teaches o

• ur

ur yout uth a about ut e ene nergy efficiency.

• Safety Ci

City pr presentations e educ ucate yout uth on n safe pr practices aroun und electricity.

• MEA o
• ffers s

school v visits, t tour urs and nd pr presentations

• AK Ener

ergy gySmar art Curricu culum – Energy E y Efficiency l y lessons for

• r K-12.

12.

THAT’S ALL FOLKS.

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