Wyoming Energy Summit Gillette, Wyoming May 8, 2019 Jonathan - PowerPoint PPT Presentation

Wyoming Energy Summit Gillette, Wyoming May 8, 2019 Jonathan Weisgall Vice President, Government Relations Berkshire Hathaway Energy

Topics • Industry trends • Can Trump trump markets? • Regionalization update • Wildfires • Industry uncertainties 2

Industry trends

State-by-State Changes in Generation Mix

U.S. Electric Generation Sources 1949-2017

CO 2 Emissions Across U.S. Economy

CO 2 Emissions by Sector/Fuel Type

Electric Power Generation and Emissions

Electric Power Sector Generation and CO 2 Emissions 9

CO 2 Emissions — Electricity v. Transportation 10

Impact of Natural Gas on Emission Reductions 11

Limited Reach of Rooftop Solar (2017)

Can Trump trump markets?

Trump Administration Actions • 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 • Obama Clean Power Plan stayed by courts and then repealed • Proposed replacement (Affordable Clean Energy) weaker • Proposed withdrawal from the Paris Climate Accord • Proposed rulemaking to subsidize nuclear/coal •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 14

So Why Renewables? Other Drivers • 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

Corporate renewable deals 2014-2018

Regionalization update

North American Electric Power Grids

Regional Transmission Organizations 19

Western Interconnection Balancing Authorities 20

Western U.S.: 37 Fiefdoms RED M Beaumaris Castle, Wales

Initial EIM Footprint (PacifiCorp 2014, NV Energy 2015) 22

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 • April 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

EIM 2019 24

CA renewable energy production 4.29.18

Duck Curve 2019: oversupply and ramping

Renewable Energy Curtailment 2014-2018

Wildfires

Wildfires and Climate Change August 6, 2018 August 6, 2018 29

California Wildfire Risk

California Wildfire Risk (cont’d)

California Wildfire Risk Drivers

Tubbs (2017) and Hanly (1964) fires

Uncertainties

Uncertainties • 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? 35

Uncertainties (cont’d) • Customer choice • Disaggregation • Becoming more customer-centric • Subsidize uneconomic power plants? • No direct price on carbon • Can free energy markets work? 36

1912 EV charging station