Sixth Northwest Conservation

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Sixth Northwest Conservation Electric Power
Plan OM Planning Assumptionsfor Natural Gas
Resources

• Maury Galbraith
• Northwest Power and Conservation Council
• Portland, OR
• July 17, 2008

2
Sources of OM Expense Information

• FERC Form 1 Annual Report of Major Electric
  Utilities
• Utility Integrated Resource Plans
• Literature Review
• Industry Experts

3
Comparison of OM Expense Estimates Combined
Cycle Combustion Turbine (2x1)
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Comparison of OM Expense Estimates Simple Cycle
Aeroderivative Turbine (LM6000)
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Comparison of OM Expense Estimates Simple Cycle
Frame Turbine
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Comparison of OM Expense Estimates Internal
Combustion Engine
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FERC Form 1 Data

• Platts OM White Paper
• Piper, Steve and Jason LaDue, Estimation of
  Generating Unit OM Expenses Revisiting the
  80/20 Rule, Platts White Paper, June 15, 2007.
• Describes mapping of FERC Form 1 line items to
  fixed and variable OM expense categories.
• Provides indicative OM expenses
• Platts Generation Supply Curve Historic
  Database
• Contains FERC Form 1 OM expense data for
  2003-2006
• Requires Platts Energy AdvantageTM license

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Platts Mapping of FERC Form 1 Generating Plant
Statistics to Fixed and Variable OM
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Council Extract of FERC Form 1 OM Data

• OM Source FERC Form 1 Actual
• AND Plant Region WECC
• Number of Observations

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Limitation of FERC Form 1 Data

• Regulated utility reporting (no merchant plants)
• Accounting standards are subject utility
  interpretation (anomalously high and low cost
  data)
• Reporting by Plant/Prime Mover combination (masks
  unit level detail)

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Combined Cycle Combustion Turbines
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CCCTs (Continued)
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Aeroderivative Gas Turbines
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Frame Gas Turbines
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Frame Gas Turbines (Continued)
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Internal Combustion Engines
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Summary of FERC Form 1 Analysis
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Comments and Suggestions?
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Comparison of NPCC and Platts VOM Estimates
(2006/MWh)
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Platts Indicative OM Estimates (2006)