SLIDE 1 Wyoming Energy Summit Gillette, Wyoming May 8, 2019
Jonathan Weisgall
Vice President, Government Relations Berkshire Hathaway Energy
SLIDE 2
- Industry trends
- Can Trump trump markets?
- Regionalization update
- Wildfires
- Industry uncertainties
Topics
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SLIDE 3
Industry trends
SLIDE 4
State-by-State Changes in Generation Mix
SLIDE 5
U.S. Electric Generation Sources 1949-2017
SLIDE 6
CO2 Emissions Across U.S. Economy
SLIDE 7
CO2 Emissions by Sector/Fuel Type
SLIDE 8 Electric Power Generation and Emissions
SLIDE 9 Electric Power Sector Generation and CO2 Emissions
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SLIDE 10 CO2 Emissions—Electricity v. Transportation
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SLIDE 11 Impact of Natural Gas on Emission Reductions
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SLIDE 12
Limited Reach of Rooftop Solar (2017)
SLIDE 13
Can Trump trump markets?
SLIDE 14
- Going after renewables? Or promoting fossil fuels? Or both?
- Obama Clean Power Plan stayed by courts and then repealed
- Proposed replacement (Affordable Clean Energy) weaker
- Proposed withdrawal from the Paris Climate Accord
- Proposed rulemaking to subsidize nuclear/coal
- Proposed elimination of Obama fuel efficiency standards
- 2017 tax bill: Proposed elimination of wind/solar credits
- Proposed 65% and more cuts to DOE’s renewables budgets
- Trump’s personal hostility to wind and solar
Trump Administration Actions
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SLIDE 15
- Lower costs for renewable energy
- Customers want renewables
- Aggressive state and city policies
- Federal tax credits (PTC/ITC) still in place
- Hedge against fossil prices
- Long-term assurance of stable prices
So Why Renewables? Other Drivers
SLIDE 16
Corporate renewable deals 2014-2018
SLIDE 17
Regionalization update
SLIDE 18 North American Electric Power Grids
SLIDE 19 Regional Transmission Organizations
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SLIDE 20 Western Interconnection Balancing Authorities
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SLIDE 21 Western U.S.: 37 Fiefdoms
RED M
Beaumaris Castle, Wales
SLIDE 22 Initial EIM Footprint (PacifiCorp 2014, NV Energy 2015)
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SLIDE 23 EIM 2016
- Nov. 1, 2014: PacifiCorp
- Dec. 1, 2015: NV Energy
- Oct. 1, 2016: Arizona Public
Service, Puget Sound
- Oct. 1, 2017: PGE
- April 1, 2018: Idaho Power,
Powerex
1, 2019: BANC (for SMUD portion of BA)
- April 2020: Seattle City Light
- Also in talks:
- CENACE, Baja, California
- LADWP
- Salt River Project
- Northwestern Energy
SLIDE 25 CA renewable energy production 4.29.18
SLIDE 26 Duck Curve 2019: oversupply and ramping
SLIDE 27 Renewable Energy Curtailment 2014-2018
SLIDE 28
Wildfires
SLIDE 29 29
August 6, 2018
Wildfires and Climate Change
August 6, 2018
SLIDE 30
California Wildfire Risk
SLIDE 31
California Wildfire Risk (cont’d)
SLIDE 32
California Wildfire Risk Drivers
SLIDE 33
Tubbs (2017) and Hanly (1964) fires
SLIDE 34
Uncertainties
SLIDE 35
- De-carbonization without tax credits
- Cybersecurity threats
- Integrating intermittent resources into the grid
- Minimal growth but investment needs
- Federal-state conflicts
- Impact of PG&E bankruptcy
- Utilities: monopolies or deregulated?
Uncertainties
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SLIDE 36
- Customer choice
- Disaggregation
- Becoming more customer-centric
- Subsidize uneconomic power plants?
- No direct price on carbon
- Can free energy markets work?
Uncertainties (cont’d)
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SLIDE 37
1912 EV charging station
SLIDE 38
