The Grid At A Glance Past, Present & Future Arizona Power - - PowerPoint PPT Presentation

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The Grid At A Glance Past, Present & Future Arizona Power - - PowerPoint PPT Presentation

Sep 17, 2023 188 likes •461 views

The Grid At A Glance Past, Present & Future Arizona Power Authority September 7, 2018 Personal Background Electric Industry Dave Slick Resource Planning Transmission Planning Career Supply & Trading SRP: 31 Years

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SLIDE 1

The Grid At A Glance

Past, Present & Future

Arizona Power Authority September 7, 2018

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SLIDE 2

Personal Background

Career SRP: 31 Years APS: 11 Years Bechtel: 2 Years

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Electric Industry

  • Resource Planning
  • Transmission Planning
  • Supply & Trading
  • Regulatory Affairs
  • Contract Management
  • Industry Organization Groups
  • Nuclear Project Development

Dave Slick

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SLIDE 3

Tony Seba Presentation

  • Stanford University Futurist
  • Clean Disruption of Energy & Transportation
  • April 9, 2018 presentation
  • Disruption Attributes:

– Significant cost decrease – Low utilization factors – Multiple drivers or technologies – Adoption rate very high

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SLIDE 4

North American Electric Grid

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SLIDE 5

Arizona EHV Transmission

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5 Phoenix Metro Area System Tucson Area Kyrene Pinnacle Peak Liberty Glen Canyon Navajo Four Corners Moenkopi Mead Cholla Vail South Saguaro McCullough El Dorado

Voltage 500 kV 345 kV Owners APS SRP TEP USBR SCE Jointly Owned

“Then”

San Juan Westwing

“Then” = 1975

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SLIDE 6

Arizona EHV Transmission

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6 Phoenix Metro Area System Tucson Area Kyrene Pinnacle Peak Westwing Liberty Browning Rudd Glen Canyon Navajo Four Corners Moenkopi Morgan Palo Verde Hassayampa Mead Cholla Coronado Springerville Vail South Saguaro Tortolita Pinal Central Pinal West Duke North Gila McCullough El Dorado Jojoba Gila River

Voltage 500 kV 345 kV Owners APS SRP TEP WAPA SCE Jointly Owned

“Now”

San Juan

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SLIDE 7

Perspectives in Viewing the Electric Utility Business

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  • Customer
  • Economic
  • Employee
  • Environmental
  • Financial
  • Legal
  • Regulatory
  • Reliability
  • Shareholder
  • Stakeholder
  • Technological Innovation
  • Other
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SLIDE 8

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Other Utilities Utility Owned Generation Utility Owned Transmission Distribution Retail Customer

Energy Business Framework

Vertically Integrated Utility

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SLIDE 9

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Merchant Generation Merchant Transmission Other Utilities Utility Owned Generation Utility Owned Transmission Distribution Retail Customer

Energy Business Transformation – 1

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SLIDE 10

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Merchant Generation Merchant Transmission Other Utilities Utility Owned Generation Utility Owned Transmission Distribution Retail Customer

Centralized Market Mechanisms (RTO, ISO, EIM)

Energy Business Transformation – 2

Customer Owned Generation

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SLIDE 11

Community Choice Aggregators

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Merchant Generation Merchant Transmission Other Utilities Utility Owned Generation Utility Owned Transmission Distribution Retail Customer

Centralized Market Mechanisms (RTO, ISO, EIM)

Generation Electric Consumption Micro Grids

Energy Business Transformation – 3

Customer Owned Generation Customer Owned Storage Community Choice Generation

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SLIDE 12

Federal Regulation

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Federal Energy Regulatory Commission Imposes mandatory reliability standards on the bulk transmission system

FERC NERC WECC Peak

North American Electric Reliability Corp Ensures the reliability of the North American bulk power system Western Electricity Coordinating Council Monitors and enforces compliance with mandatory reliability standards in the Western Interconnection Peak Reliability Provides reliability coordination service, tools and analysis in the Western Interconnection

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SLIDE 13

Regulated by FERC?

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Mostly Yes

Shareholders

Investor Owned Utilities Wind Developers Solar Developers Merchant Generators Merchant Transmission

Profit Non Profit

Public Power Utilities Consumer Owned Entities Rural Cooperatives Municipal Utilities Irrigation Districts Electrical Districts Joint Action Agencies Indian Tribes Federal Power Marketing Administrations BPA SEPA SWPA WAPA

Customers Customers Wholesale Power Customers

Mostly No

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SLIDE 14

State Regulation

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  • Arizona Corporation Commission (ACC)

– Transmission line siting (115 kV and above) – Generation siting (100 MW and above)

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Transmission Concepts

  • Ownership
  • Capability
  • Reservations / Rights
  • Schedule
  • Flow
  • Congestion
  • Pancaking
  • Losses

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Ownership & Capability

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A B

Transmission Line Rating or Maximum Capability

  • May be referred to as Total Transfer Capability (TTC)
  • Established by transmission planning studies
  • May be subject to a WECC approval process
  • Continuous & emergency ratings are directional
  • Maximum capability rating may persist for years
  • Inside centralized markets: revisited more frequently / more seasonally

Line Rating or Maximum Capability: 1,000 MW Ownership: Entity A: 500 MW Entity B: 500 MW Total 1,000 MW

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Reservations / Rights

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A B

Transmission Reservations / Rights

  • The “contract path” world
  • A result of FERC 888
  • Implementation via OASIS
  • Path, quantity, direction, time and

price specific

  • Long term reservations may be

renewable

  • Not reserved may be referred to as

Available Transfer Capability (ATC)

Maximum Capability: 1,000 MW Reservations: Entity A: 400 MW Entity B: 300 MW Entity C: 200 MW Total 900 MW Not Reserved: 100 MW

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SLIDE 18

Schedule

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A B

Transmission Schedule

  • Applies to a specific future

period of time

  • Usually arranged one or

more days in advance

Schedule: Entity A: 200 MW Entity B: 200 MW Entity C: 100 MW Total 500 MW Maximum Capability: 1,000 MW Reservations: Entity A: 400 MW Entity B: 300 MW Entity C: 200 MW Total 900 MW Not Reserved: 100 MW

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Flow

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A B

Actual Flow

  • Likely distinct for each point in time
  • Actual flow is a function of many

factors, including generation status and transmission system physics

Schedule: Entity A: 200 MW Entity B: 200 MW Entity C: 100 MW Total 500 MW Actual Flow: 600 MW Maximum Capability: 1,000 MW Reservations: Entity A: 400 MW Entity B: 300 MW Entity C: 200 MW Total 900 MW Not Reserved: 100 MW

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What Does A Transmission System Problem Look Like?

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Congestion

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A B

Schedule: Entity A: 200 MW Entity B: 200 MW Entity C: 100 MW Total 500 MW “Congestion” May Refer to Either of These Maximum Capability: 1,000 MW Actual Flow: 600 MW Reservations: Entity A: 400 MW Entity B: 300 MW Entity C: 200 MW Total 900 MW Not Reserved: 100 MW

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One Way to Understand Transmission Congestion

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Transmission Restaurant Actual Flow

  • The maximum capability of

a transmission line has been determined

  • Actual electricity flowing on

the line exceeds maximum capability

  • Go to our favorite

restaurant on a Saturday night

  • People are standing around

because there aren’t enough tables for everyone Contract Path

  • Attempt to reserve

transmission rights on a particular path

  • No transmission rights are

available for the time period of interest

  • Attempt to make

reservation at a favorite restaurant on the day before Mother’s Day

  • No tables are available at

any time the next day

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Pancaking

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Transmission Owner: Line A-B Transmission Service Rate: $A / kw-yr Transmission Loss Rate: C%

A B C

Pancaking is the payment of multiple transmission service rates and losses for the delivery of a resource. In this example, a resource owner

  • r purchaser has a resource at Point A that needs to be delivered to

Point C, and the only existing transmission is displayed below. When sufficient ATC exists on path A-B and path B-C, then the resource owner / purchaser can achieve the desired delivery by paying $A+B / kw-yr for transmission service and C+D% for transmission losses. Transmission Owner: Line B-C Transmission Service Rate: $B / kw-yr Transmission Loss Rate: D%

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Losses

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A B

Transmission Losses

  • Causes include conductor heating, radiation losses, dielectric

heating and coupling losses

  • Past practice: often paid in quantities of energy
  • Future practice: often paid financially

A 100 MW resource is located at Point A A 5% loss rate exists

  • n Line A-B

95 MW arrive at Point B

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SLIDE 25

WECC Transmission Jan 1, 2017

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Closing Remarks

  • The transmission system in Arizona has expanded

significantly during the past 40 years.

  • The electric utility business framework is

continuing to be significantly transformed.

  • Federal & state regulation impact transmission

business activity.

  • Foundational transmission business concepts can

be distinguished and understood.

  • The WECC grid represents a “clean disruption”
  • pportunity for the future.

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