Resource & Climate Protection Plan To 2020 Recommendations, Plan and Update

8/14/2019 Resource&ClimateProtectionPlan To2020 Recommendations,PlanandUpdate

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1January 28, 2010

Resource&ClimateProtectionPlanto2020

Recommendations,Plan

and

Update

AustinEnergy

RogerDuncan,GeneralManager

January 28, 2010 1


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2January 28, 2010

AGENDA

Resource&ClimateProtectionPlanto2020

2


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3January 28, 2010

Agenda

AustinEnergyMissionStatement

AustinClimate

Protection

Plan

PublicParticipationProcess

StaffRecommendation

OtherScenarios

GenerationTask

Force

Recommendation

StaffResponse


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4January 28, 2010

MissionStatementTodeliverclean,affordable,

reliableenergyand

excellentcustomerservice.


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6January 28, 2010

KeyPlanningRequirements

Reliablymeetdemandandenergyrequirements

MeetCouncil

goals

30%renewablesby2020

100MWsolarby2020

700MW

efficiency

by

2020

Executeexistinggenerationcontracts(solar&

biomass)

Noretirementofexistingpowerplantsbefore2020

6


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7January 28, 2010

CurrentResourcesvs.LoadForecasts

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Nuclear Coal Nat. Gas

Biomass Wind SolarPurch.Pwr 2009 Peak Load Forecast 2008 Peak Load Forecast

Capacity(M

W)

DEPENDABLE GENERATING CAPACITY AT PEAK

7


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8January 28, 2010

Fayette Power Plant = Nearly of Power Plant CO2 Emissions

AustinEnergyCO2

EmissionsProfile,2007

8


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9January 28, 2010

PUBLICPARTICIPATIONPROCESSResource&ClimateProtectionPlanto2020

9


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10January 28, 2010

PublicParticipationProcess

10

TenTownHallMeetingsheldinAustinEnergysserviceterritoryfromOctober2008throughSeptember2009

Oneononemeetingswith30stakeholdersoccurredinparallelwithTown

Hall

meetings

FouremployeeTownHallmeetingsheld

FourteenStakeholderMeetingsreachedapproximately600stakeholders

AustinSmartEnergy.com

websitehits:over570,000

Surveys

submitted:

1,016 LaunchedChangeYourGeneration

onlineenergygame


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11January 28, 2010

PubliclyStatedPreferences

Broadsupportforefficiency

Moresolar

Morewind

Less

coal Splitonnuclear

Strong

appetite

for

information

on

costs

11


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12January 28, 2010

Citizens

Priorities

Costs

Acrossthe

board

support

for

energy

efficiency

Environmentalgroups

say

this

is

the

time

to

stopusingcoal

Transparencyisstronglydesired,and

sometimeshardtosatisfy

Continuingopportunitiestoparticipateinthe

process12


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13January 28, 2010

AUSTINENERGYSRECOMMENDATIONResource&ClimateProtectionPlanto2020

13

d


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14January 28, 2010

AustinEnergyRecommendation GenerationResourcesinMW

* Wind contracts expire.

Year Coal/Nuclear Gas Biomass Wind Solar

Renewable

Portfolio

2009 1,029 1,444 12 439 1 12.6%

2010 100 30 12.5%

2011 (77)*/ 200 17.7%

2012 100 22.2%

2013 150 26.2%

2014 30 26.4%

2015 200 100 28.7%

2016 50 20 31.6%

2017 (126)*/ 200 30 35.0%

2018 20 33.6%

2019 30 33.7%2020 115 40 36.7%

Total 1,029 1,744 162 1001 201

14


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15January 28, 2010

AustinEnergyRecommendation GenerationResources&LoadForecast

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Nuclear Coal Nat. Gas

Biomass Wind SolarPurch.Pwr 2009 Peak Load Forecast 2008 Peak Load Forecast

Capacity(MW)

DEPENDABLE GENERATING CAPACITY AT PEAK

15


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16January 28, 2010

AustinEnergyRecommendation

Energy

Mix

2009

vs.

2020

16

NuclearNuclear

CoalCoal

WindWind

NaturalGasNaturalGas


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17January 28, 2010

AustinEnergyRecommendation CO2

Emissions

4,000,000

4,500,000

5,000,000

5,500,000

6,000,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

2005 CO2

Projected AE CO2

withRecommendation

Waxman-MarkeyLegislation

Tonnes

17


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18January 28, 2010

AustinEnergyRecommendation

GoalsSummaryProposed2020Goals

Increaserenewable

energy

goal

to

35%

Increaseenergyefficiencygoalby100MWto

800MW CO2

reductiontargetof20%below2005level

18


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19January 28, 2010

AustinEnergyRecommendation EstimatedRateImpactsNorateimpactforatleastthreeyears

Estimatedimpactsassociatedwithincreased

generationrequirements,

in

2020.

Totalcapitalexpendituresto2020of$2.67billion

Residential GeneralService Industrial

Demand/Energy

Used1,000

kWh 100

kW/

43,800

kWh 5,000

kW/3,300,000

kWh

Increaseover2009 22.0% 19.2% 11.7%

BillImpact $21

($0.02/kWh)

$717

($0.016/kWh)

$24,684

($0.007/kWh)

19


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20January 28, 2010

PLANCOMPONENTSResource&ClimateProtectionPlanto2020

20


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21January 28, 2010

EnergyEfficiency 1

st

priorityformeetingnewloadgrowth Increase700MWGoalby2020establishedin2007to800MWby

2020

Continue

building

code

changes

for

Zero

Energy

Capable

Homes

(ZECH)homesby2015

Conductcombinedheatandpowerpotentialstudy Developplanfordistributionsystemefficiencyimprovements

Implementinnovative

rate

design

changes

for

energy

efficiency,

includingdynamicpricing

Refocusonbaseloadefficiencyprogramsthatreducecarbon Conductnewenergyefficiencypotentialstudy

Developplan

for

local

contractor,

M/WBE

contractor,

and

veterans

opportunities

AnalyzeimpactsandopportunitiesresultingfromEnergyConservationandDisclosureOrdinance

21


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22January 28, 2010

Wind

Increasewindcapacityto1,000MWby2020

Seekownership

of

wind

resources

Pursuecompressedairenergystorage

Support

increased

transmission

capacity

in

ERCOT

Investigateotherwindenergydeploymentand

storagestrategies

22


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23January 28, 2010

Solar

DoubleSolargoalto200MWby2020

Developaportfolio

approach

to

siting,

financing

andownership

Promotesolarthermalhotwateruse

Developincentives

and

strategies

for

local

manufacturingcapacity

Developsolarenergystoragestrategy

PlanfordevelopmentoffullonsitesolarenergypotentialinAustin

23


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24January 28, 2010

Biomass

Add50MWbiomasscapacityby2020

Studysmall

facility

options

Continuetoinvestigatebiomasscofiringat

FayettePower

Plant

24


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25January 28, 2010

NaturalGas

Maintaincurrentgasunitsof1,544MW Add200MWcombinedcyclegasturbine(CCGT)

atSand

Hill

UsereclaimedwaterforcoolingnewCCGT

Utilizesexistingexpansionoption

Moreefficient

plant

offers:

Fuelsavingsofapproximately$130Mby2020

CO2

reductionsofapproximately1milliontonnes

by

2020 Dispatchability balancesvariablerenewableandenergyefficiencyresources

25


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26January 28, 2010

Coal

GenerationplanshouldreduceFayettePower

Plantcapacity

factor

to

60%

by

2020

Setsstageforeventualmodification,closure,or

sale

ContinuetoinvestigatecofiringatFayette

PowerPlant

InvestigatefurtherNOx reductionsandcarbon

captureandstorageretrofits

26


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27January 28, 2010

Nuclear

ContinueparticipationinSTPUnits1and2

Noparticipation

in

STP

Units

3and

4

Evaluatenuclearpowerpurchaseagreements

if

offered

27


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28January 28, 2010

Geothermal&Other

Investigategeothermalresourceacquisition

Assessnon

solar

renewable

resources

in

servicearea

28


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ComplementaryStrategies

EnergyStorage Developacomprehensiveenergystoragestrategy SmartGrid&PecanStreet Acceleratedevelopmentanddeploymentofsmartgrid Electric

Transportation Continuedevelopmentofelectricvehicleincentivesandutilityintegrationfor

storageandotheropportunities

Economic

Development Developandimplementgreencollarjobinitiativestogrowandstrengthen

thelocalworkforce

29


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CLIMATEPROTECTIONPLANResource&ClimateProtectionPlanto2020

30


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31January 28, 2010

ClimateProtectionPlan CO2

Plan

ReduceCO2

emissionsto20%below2005levelby2020

AustinEnergy

Recommendation

is

aplan

that

will

reducestackemissionsunderAustinEnergyscontrol

AustinEnergymaybelimitedinitsabilitytoreduce

emissionsat

the

power

plants

AustinEnergyRecommendationmaynotbethelowest

costwaytoreduceCO2

footprint

31


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DirectEmissionsReductions

AustinEnergyRecommendationisaplanthatwillreducestackemissionsunderAustinEnergyscontrol

Energyefficiency

and

renewable

resources

reduce

load

of

fossilfuelplants

CCGT,200MW

Willdisplacelessefficientgeneration

resources(e.g.,Decker)andprovidebalancingresourcesforrenewable

energy

generation

ExpectedtoreduceFayettePowerPlantcapacityfactorto60%by2020thisistheintendedresult,settingthestage

forclosure,

sale

or

modification

Designedtoaccomplishadirectemissionsapproachtocompliancewithlikelyfederalregulatoryrequirements

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OperationalConsiderations

AustinEnergymaybelimitedinitsabilityto

reduceemissions

at

the

power

plants

LCRAoptionsregardingFayettePowerPlant

operations

BothLCRA&ERCOThaveasayinFayette

PowerPlantclosure

ERCOTcan

dispatch

any

generator

for

grid

reliabilitypurposes

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FinancialConsiderationsofCO2

AustinEnergyRecommendationmaynotbethe

lowestcostwaytoreduceCO2

footprint

Abilitytobuy/sellCO2

allowancesoroffsets

Environmentaldispatchvs.economicdispatch

Mayforegooffsystemsalerevenues,withuncertainenvironmentalbenefits

Newtechnologies

(e.g.,

carbon

capture

and

sequestrationCCS)

34


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35January 28, 2010

WaterConsumption

AustinEnergyRecommendation expectedtoreducewateruseintensityfrom.72gal/kWhin2007to.57gal/kWh

in

2020

(total

consumption

in

2020

of

about

6

billiongal)

Energyefficiency,solarPV,andwindrequirenowater

Biomass,geothermal,andsolarthermalwillrequirewater

Natural

gas

units

are

more

efficient

and

use

reclaimed

water

ReducedcapacityfactoratFayettePowerPlant

reduceswater

consumption

35


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BusinessModel

Addressdeploymentofdistributedenergy

resources,

especially

self

generation Investigateunbundledratestructure

Movefromvolumetricpricingtomorefixedcostpricing

AddressfuelportionofGeneralFundTransfer

Developplan

for

future

GreenChoice offerings Prepareforratereviewin2012

36


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OTHERRECOMMENDATIONSResource&ClimateProtectionPlanto2020

37

Resource and Climate Protection Plan


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38January 28, 2010

ResourceandClimateProtectionPlan

Endorsement AustinGenerationResourcePlanningTaskForce

54voteinfavorofthefollowingResolution:

Resolved,thatthetaskforcerecommendstotheCityCouncilthe

adoptionoftheAustinEnergyStaffRecommendedGenerationPlanasthegenerationplanfortheutility,withtheprovisionthatAustinEnergyreviewtheplanintwoyearswiththetargetofacceleratingthe

phasedown

of

Fayette

plant

and

toward

its

eventual

closure

by

2020

if

economicallyandtechnologicallyfeasible.

ElectricUtilityCommission

51vote

in

favor

of

the

above

Resolution

ResourceManagementCommission

40vote

in

favor

of

the

above

Resolution

Strawman Summary


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Strawman Summary Baselinescenario IntroducedtoCouncilinJuly2008asabaselinescenarioto

meetCouncil

goals

Usedtostimulatediscussionduringpublicparticipationprocess

30%renewable

generation

by

2020

20%reductionincoaluseby2020

6%reductioninCO2

(from2005levels)by2020

15%expected

system

wide

increase

in

cost

of

electricity

by

2020(basedonAustinEnergyanalysis)

Task Force Scenario #1 Summary


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TaskForceScenario#1Summary Eliminatecoalscenario 1voteofsupportfromTaskForce 52%renewablegenerationin2020

Eliminateuse

of

coal

by

2014

61%reductioninCO2 33%expectedsystemwideincreaseincostofelectricityby


IssuesofConcern

Highrisks greaterexposuretomarketandmorerelianceon

naturalgas

Uncertaintywithassumptionstomeetdemand 750MWcustomerownedsolarPVat$1wattcosttoutility 300additionalMWDSM

Task Force Scenario #2 Summary


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TaskForceScenario#2Summary Lesscapitalintensivescenario 3votesofsupportfromTaskForce 30%renewablegenerationin2020

15%reduction

in

coal

use

14%reductioninCO2 19%expectedsystemwideincreaseincostofelectricityby


IssuesofConcern:

Lessrenewables,butonlymarginalcostsavings

Uncertaintywith

assumptions

to

meet

demand

266MWcustomerownedsolarPVat$1wattcosttoutility 300additionalMWDSM

ResourceandClimateProtectionPlanSummary


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42January 28, 2010

y AustinEnergyRecommendation Basedonnewinformation,analysisandpublicdebate

SupportedbymajorityofTaskForceandutilityoversight

committees 35%renewablegenerationby2020

Additional100MWofDSMand100MWsolar

25%reduction

in

coal

use

(to

60%

capacity

factor

at

FPP)

20%reductioninCO2

(from2005levels)by2020

22%reductionbasedoninternalAustinEnergyanalysis

20%expected

system

wide

increase

in

cost

of

electricity

by

2020

MorerenewablesthanStrawman,betterbalancesrisks


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Austin Energy Response to Specific Additional


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AustinEnergyResponsetoSpecificAdditionalTaskForceRecommendations

AustinGenerationResourcePlanningTaskForcemade33majorrecommendations(some

recommendationshadnumeroussubparts)

AustinEnergyrecommendsthatCityCouncil

adopt21

of

the

Task

Force

recommendations

as

written

Austin

Energy

recommends

that

City

Council

adopt12oftheTaskForcerecommendations

onlywithspecificmodifications

AustinEnergyProposedModificationstoTask


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ust e gy oposed od cat o s to as

ForceRecommendations TaskForceRecommendation1.a.

AustinEnergywillincreaseitsenergyefficiencyandconservationgoalto800

MWof

total

savings

between

2007

and

2020.

Austin

Energy

will

conduct

anenergyefficiencypotentialstudy,andifwarrantedbytheresultsofthestudy,willincreaseitsenergyefficiencygoalto1000MWinsavingsoverthesameperiod.

TaskForce

Recommendation

1.c.(ii)

AustinEnergywillconsiderinitiatingapilotprojecttomeasureandcommunicatetoownersandtenantsofrentalpropertiesthebenefitsofenergyefficiencyupgradesinrentalhousing,andtheutilizationof

theresults

of

the

pilot

to

develop

aprogram

that

will

realize

energy

efficiencysavingspotentialinbothcommercialandrentalproperty,aswarrantedbytheresultsofacomprehensiveenergyefficiencypotentialstudy.



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AustinEnergyshouldattempttosubstitutelow

orzerocarbonemissionsgenerationresourcesfor

carbonemitting

resources

whenever

such

substitution

is

also

consistent

with

the

achievement

of

economic,financial,operational,reliability,andriskobjectives.

TaskForceRecommendation2.b.

AustinEnergy

will

study

and

report

on

the

potential

for

establishing

adistributed

renewable

energy

goalandanassociateddistributedrenewableenergygenerationdevelopmentprogram.

TaskForceRecommendation2.b.(iv)

Austin

Energywillmonitorandreportonthedevelopmentofthedistributedrenewableenergy

generationsectorinAustin,includingprojectsdevelopedindependentlyofAustinEnergyprogram

support.



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ForceRecommendations TaskForceRecommendation3.

AustinEnergywilladoptanaffordabilitygoalforratesandservicesforall

classesofcustomers.

TaskForceRecommendation3.a.

AustinEnergywillcoordinatewithitsoversightcommissionsand

otherbodies

designatedbyCounciltoperiodicallyandpubliclyreassessitsResourceand

ClimateProtectionPlantoaddress:(i)performanceagainstgoals,(ii)an

evaluation

of

operating

expenses,

capital

expenses,

and

environmental

complianceexpenses,(iii)changesinlegislation,technology,marketsand

economicconditions,and(iv)whetheranygoalscontainedinthe

plan

shouldbechanged.



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ForceRecommendations TaskForceRecommendation3.b.

PublicreassessmentoftheResourceandClimateProtectionPlanshouldbe

consistentwithsoundandefficientmanagementandoversight,and

should,totheextentpracticable,include...[AustinEnergyproposesthat

CounciladoptthebalanceofTaskForceRecommendation3.b.]

TaskForceRecommendation3.c.

AstheResourceandClimateProtectionPlanisexecuted,AustinEnergywill

publish

the

anticipated

impact

of

every

proposed

major

resource

acquisitionorcontractexecution.



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Priortotakingactiontoacquirearesourceofacapacityof10

ormoremegawattsunderthe

Resource

and

Climate

Protection

Plan

(whether

by

purchase

agreement

or

direct

investment)

AustinEnergywill,totheextentpracticableandconsistentwithsoundmanagementand

financialresponsibility,presentsuchactionforapprovalatleastoncetoeachapplicable

commissionandtwicetoCityCouncil.

TaskForce

Recommendation

7.c.

AustinEnergywillperiodicallypublishsuchobjectivelyreliableandvalidcomparisondataonits

residential,commercialandindustrialratesascanbereasonablyobtained.

TaskForceRecommendation7.d.

AustinEnergywillannuallypublishasummationofthecostcategoriesofthefuelcharge.

Resource & Climate Protection Plan To 2020 Recommendations, Plan and Update

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Transcript of Resource & Climate Protection Plan To 2020 Recommendations, Plan and Update