The URL can be used to link to this page

Home My WebLink AboutMemo - Read Before Packet - 5/27/2014 - May 27 Work Session Item 1 - Platte River Power Authority Strategic PlanEstes Park Fort Collins Longmont Loveland Strategic Planning Update Jackie Sargent, General Manager/CEO Brad Decker, Strategic Planning Manager City of Fort Collins - Council Work Session May 27, 2014 Residential Small Business Large Business Generation Transmission Distribution Customers Estes Park Fort Collins Longmont Loveland Platte River Power Authority • Sole electricity supplier • Not for profit • Local governance • Joint Ownership Local Electric System Partnership Changing Boundaries 2 Platte River Focus – Balance Reliability Environmental Responsibility Competitive Price Safety Innovation & Sustainability 3 Approved by Board of Directors December 12, 2013 2014 Strategic Plan http://www.prpa.org/wp-content/uploads/2014/02/PRPA_SP14_Web.pdf 4 Strategic Initiatives Improved Collaboration & Communications Diversified Energy Supply Portfolio Safety Compliance Assurance Operational Excellence Financial Stability Exceptional Customer Service Technological Innovation & Sustainability Employee Goals for Each Engagement All Departments All Employees 5 • Woodward Project • Programs & Services: – Record performance for Common DSM programs in 2013 – New regional brand for services (“Efficiency Works”) – System wide Demand Response study – Fort Collins Solar Program support – Electric Vehicle stations at Platte River offices – System wide Solar Garden program study – FORTZED/CHP subcommittee/Net Zero Cities – Fiber Leases • Stakeholder Engagement: – Boards, Councils, Customers, Community groups – Strategic Plan development and Resource Planning – Listening sessions, webinar, meetings/presentations – Joint customer surveys Recent Activities www.efficiencyworks.CO 6 • Solar site evaluation study: – Initiated by City of Loveland – Fort Collins/Loveland airport, Rawhide & other sites – Interconnection feasibility, energy production & system cost • Medicine Bow Wind Project Life Extension/Upgrade: – New retrofit technology (first application in U.S.) – Increased generation output – Increase plant life from 20 years to 30+ years • Spring Canyon Wind Project: – New 32 MW wind project in NE Colorado – Will roughly double supply of wind energy to Municipalities – Construction started at wind site Recent Activities 7 New Wind Resource Medicine Bow Spring Canyon Silver Sage 8 New Wind Resource 9 Strategic Initiatives Improved Collaboration & Communications Diversified Energy Supply Portfolio Safety Compliance Assurance Operational Excellence Financial Stability Exceptional Customer Service Technological Innovation & Sustainability Employee Goals for Each Engagement All Departments All Employees 10 STRATEGIC PLAN DIRECTIVES/GOALS: • Investigate options to reduce our carbon footprint:  CO2 emissions – 20% reduction by 2020 as a guideline • Look at expanded use of renewable resources:  Colorado Standard (qualified sources) – 20% by 2020 as a guideline • Evaluate natural gas combined cycle generation:  Fuel diversity/reduced emissions/renewable source integration • Analyze benefits & costs of more distributed resources Maintain position as lowest cost wholesale supplier in Colorado Diversify Energy Supply Portfolio 11 Why conduct an IRP? Changing landscape of the energy generation and delivery business -2.9% 5.0% 0.0% 0.0% 13.2% -5.0% -3.0% -1.0% 1.0% 3.0% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% Coal & Petroleum Natural Gas Nuclear Hydro Renewables Change in U.S. Generating Capacity over the Past Decade Source: Energy Information Administration Future resource and financial responsibility → Satisfy owner and community needs → Strategic Plan objectives → Board directives 12 Preparing for future needs Phases of Planning at Platte River 1970’s-1980s 1980’s-1990’s Early 2000’s Current Phase Building: • Craig • Rawhide • Transmission Operations: • Craig • Rawhide • Transmission • Municipal sales • PSCo sale • Debt reduction Summer Peak: • Five new gas CTs • Transmission • End of PSCo sale • Hydro (drought) • Craig & Rawhide operations • Rate increases Flexibility: • Renewables • Demand response • Distributed generation • New technologies • Diverse member needs • Balancing multiple uncertainties & managing risks 13 • Platte River’s coal capacity is relatively high • Share of hydro and wind resources is higher than industry average • Platte River has a significant share of gas peaking capacity Current capacity resource mix Intermediate resources can improve Platte River’s asset mix, and provide flexibility to accommodate more renewables Coal Gas Peaking Hydro Wind 14 Supply Opportunities • Platte River is at the headwaters of U.S. fuel supply • Platte River has a favorable geographic location to access renewable resources 15 Geothermal Solar Wind Conventional Gas Coal Platte River is well-situated to access a diverse mix of energy resources The 2014 IRP focus • Based on the results of Platte River’s 2014 Strategic Plan • Pursue and deploy resource and market options that limit business and environmental risk through: Diversified resource mix Innovation Collaboration Carbon emissions Maintain position as low-cost provider …while maintaining safety and reliability 16 Platte River’s IRP analysis Platte River’s analytical process can be summarized by the “3 Ms” Models Methods Metrics The software and systems necessary to conduct an analysis to complete an Integrated Resource Plan The modeling assumptions, routines, and approaches used to evaluate a system of energy resources The mathematical relationships that convey the performance and behavior of a portfolio of resources under varying assumptions 17 Models Platte River’s IRP modeling effort will draw upon a diverse set of industry experts for software and advisory services. All Energy Software Integration EEC Enchantment Energy Market Resource Options Economic and Market Analysis Plant Engineering Services Conservation, Distributed Generation, and Renewables 18 Methods • Modeling will be performed at the system level, with all municipal loads, surplus sales and resources combined. • 40-year planning horizon • 20-year decision horizon • Resources—mature vs. evolving • Modified coal operations/retirements • Demand-side resources • Distributed resources • GHG reduction guidelines AURORAxmp will use a 20- year modeling horizon Normal retirements are between 2040 and 2050 Existing technologies will be the primary focus PR—20%/2020; 80%/2050 FC—80%/2030; 100%/2050 • DSM will act as an adjustment to load • DG will act as a dispatchable resource 19 Metrics Evaluation of scenarios will be based on two primary factors: cost and risk Low Capital High Fuel High Capital Low Fuel Least-cost planning alone is not ideal for optimizing Platte River’s long-term portfolio Risk Cost Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Case 8 20 Schedule Staffing & Support Software and Systems Modeling/ Analysis Communication Jan-Mar Apr-Jun Jul-Sep Oct-Dec New Staff Additions Software Acquisition and Deployment Listening Sessions Modeling Plan Development Consulting Selections Data Collection Decision Analysis Stakeholder Communications/ Draft Report Consultant Reports Final Report Survey Reporting Customer Surveys Drafting IRP Fort Collins Climate Action Plan Jan-Mar ‘15 21 Analysis for the City of Fort Collins • Council approved Resolution 2014-028 on April 1, 2014 • Platte River is partnering with Fort Collins Utilities to develop a set of electricity resource planning scenarios to support Fort Collins’ Climate Action Plan • An Intergovernmental Agreement is being developed – Will be proposed to City Council on June 3, 2014 22 The Value of Partnership Estes Park Fort Collins Longmont Loveland 23