Title: Energizing the Northwest Today and Tomorrow September 28, 2004
1Energizing the NorthwestToday and Tomorrow
September 28, 2004
Joseph Desmond Deputy Secretary of Energy State
of California
2Californias Energy Plan
- Resource Adequacy
- New Generation
- Repower/retrofit Existing Plants
- Transmission
- Wholesale Market Reform/Competitive Procurement
- Rate Relief
- Increasing Natural Gas Supplies
- Retail Choice (Core/Non-core)
- Renewable Energy
- Energy Efficiency
3(1) Resource Adequacy
- Require minimum 15 reserves margins by all
sellers of electricity to avoid energy shortages.
- Governor called upon CPUC in April to accelerate
implementation by two years (from 2008 to 2006) - CPUC responded with new requirements adopting the
Governors plan - CPUC now implementing details of resource
adequacy rules - Rules account for all required generation and
demand side resources to meet maximum demand - Other Administration efforts earlier this summer
secured an additional 320 MW in 90 days Energy
task force working to ensure short term supplies
available for summer 2005 major new generation
projects approved by CPUC
4(2) Transmission
- Pursue all opportunities to enhance and expand
the transmission system to reduce congestion
costs, improve reliability and access new
generation resources. - Streamline transmission project siting and
approval through a transmission Executive Order - CPR recommendation - Move responsibility for
transmission siting from CPUC to the CEC - Implement policies and rules to enable access to
distant renewable resources (both in and out of
state) - Transmission watch list the top priorities
- Other More than 2700 MW of new transmission
capacity is being added in 2004
5(3) Wholesale Energy Procurement
- An open, competitive procurement process ensures
the best possible deal for ratepayers in terms of
price, risk, reliability and environmental
impact. - Procurement is the means by which a utility
buys the power it needs to serve its customers.
- Competitive procurement ensures that utilities
will purchase the lowest cost power available in
the market. Long-term contracts result in
reduced reliability on the spot market and stable
prices. - Fixes one of the fundamental flaws that
contributed to the Energy Crisis (ie. the
prohibition of long-term contracts) - Plan prioritizes energy efficiency, demand
response and renewable resources before fossil
generation procurement - Cost Recovery - By following an approved
procurement process, utilities are assured a
return on their investment - CPUC is implementing rules final Commission
decision expected by December, 2004
6(4) Rate Relief
- Every effort is being made to reduce energy costs
for all California consumers - FERC refund settlement being aggressively
pursued recent favorable court ruling increases
likelihood of higher refunds - DWR contracts are being renegotiated to lower
costs new contract terms provide greater
flexibility and savings - CPUC directed to implement fair and equitable
rate design
7(5) Increasing Natural Gas Supplies
- Ensure adequate supplies of competitively priced
natural gas by pursuing increased in-state gas
production, pipeline expansion and permitting of
new liquefied natural gas (LNG) import terminals - Interstate LNG Working group formed coordinating
review efforts across agencies for LNG permit
applications - Community education and outreach effort on LNG
safety and environmental issues being rolled out - Working with PUC to ensure Baja LNG will flow to
Ca
8(6) Retail Choice (Direct Access)
- Support large customers right to choose their
energy supplier - Competition lowers prices drives innovation
improves customer service - Prerequisites No cost-shifting between small and
large users no stranded investment - Reestablishment of Direct Access requires
statutory repeal of ban - Governor offered amendment to AB2006 that would
enable Direct Access - Will continue to work with legislature to repeal
the ban on Direct Access.
9(7) Renewable Energy
- Implement policies and programs to achieve a 20
renewable energy mix by 2010 - Governor called on PUC to accelerate 20
renewable goal to 2010 rather than 2017. PUC
complied and has established as new State policy - Million solar system initiative launched for
residential and commercial photovoltaic systems - Western Governors Association resolution calls
for development of 30,000 MW of new, clean energy
sources western renewable tracking system
(WREGIS) under development by Energy Commission - Other New CPUC Renewables Advisor position
created to manage progress on renewable goals
10(8) Energy Efficiency
- Pursue all cost-effective energy efficiency
opportunities - Governor called for utility procurement plans to
prioritize energy efficiency before purchasing
new fossil fuel power plants - A total of 656 million spent on energy
efficiency in 2003 amount the IOUs. - Green Buildings Executive Order (coming soon)
will have State lead by example on energy
efficiency - Western Governors Association resolution calls
for 20 improvement in efficiency by 2020 - Developing new Zero-Energy New Home (ZENH)
initiative in concert solar systems - Other New Flex Your Power Now! campaign
launched new building codes (Title 24) and new
appliance standards implemented
11Additional Energy Priorities
- FERC Refund Settlement
- DWR Contract Renegotiation
- Energy Agency Consolidation
- Dynamic Pricing/Advanced Metering
- Distributed Energy
- Research Development
- Updating bi-annual Integrated Energy Policy
Report (IEPR) - Aging Power Plants
12Statewide Outlook
13Electricity Demand Trends
2
14Statewide OutlookAdjusted for increased Demand
This Outlook does not replace CEC staffs
previous Outlook. A new Demand Forecast will be
completed for the 2005 Integrated Energy
Policy Report and published in Spring 2005.
15Statewide Operating ReserveNot including
emergency response and accelerated programs
This Outlook does not replace CEC staffs
previous Outlook. A new Demand Forecast will be
completed for the 2005 Integrated Energy
Policy Report and published in Spring 2005.
16Statewide Operating ReserveIncluding emergency
response and accelerated programs
This Outlook does not replace CEC staffs
previous Outlook. A new Demand Forecast will be
completed for the 2005 Integrated Energy
Policy Report and published in Spring 2005.
17Summer Peak Day OverviewPeak Demand and
Available Resources (Preliminary)
- Other 9/7/04 Details
- Interruptions included 200 MW of CPA Load
Response Program and 30 MW of SDGE Demand
Response programs. - Intra-zonal Congestion during hour of peak
1,275 MW - Northern Imports (including DC) 5,819 MW COI
fully loaded - Southwest Imports 3,041 MW Congestion limited
further imports. - San Diego experienced new all time peak of 3,977
MW.
Mary Jo Thomas, OE
18Total Electricity Use per Capita 1960-2000
19Emerging Renewables Programs Installed Solar
Inventory
20Natural Gas Consumption
21Energy Efficiency
22Efficiency Program Impact
23United States Refrigerator Use v. Time Annual
drop from 1974 to 2001 5 per year
2000
25
1800
1600
20
1978 Cal Standard
1400
Refrigerator Size
1980 Cal Standard
(cubic feet)
1200
15
Average Energy Use per Unit Sold (kWh per year)
1987 Cal Standard
Refrigerator volume (cubic feet)
1000
800
10
1990 Federal
Standard
600
Energy Use per Unit
1993 Federal
400
5
Standard
2001 Federal
200
Standard
0
0
1947
1949
1951
1953
1955
1957
1959
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
24Source David Goldstein
25Impact of Standards on Efficiency of 3 Appliances
75
60
25
Source S. Nadel, ACEEE, in ECEEE 2003 Summer
Study, www.eceee.org
26(No Transcript)
27GWH Impacts from Programs Begun Prior to 2001
40,000
14 of Annual Use in California in 2001
35,000
30,000
25,000
Utility Programs at a cost of 1 of Electric
Bill
GWH
20,000
15,000
10,000
Building Standards
5,000
Appliance Standards
0
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Public Interest Energy Strategies CEC 100-03-12F
28Transmission
29NTACNorthwest Transmission Assessment Committee
- Mission
- NTAC will be the open forum to address forward
looking planning and development for a robust and
cost effective NWPP area transmission system
30Current Status of NTAC Initiative
- Overall NTAC technical analysis effort is under
way - Alberta ISO has indicated that approximately 1500
MW of Tar Sands capacity will be available to
transfer to California - ISO has initiated the Canada California study
effort to assess AC and DC transmission
alternatives between Canada and California - While NTAC is not performing economic analysis at
this time, at the ISOs request the RMATS study
team has agreed to provide the ISO with an RMATS
type economic analysis for a Canada California
transmission alternative - NTAC information can be found at the following
web site - http//www.nwpp.org/ntac/
31CAISO Is Coordinating This Effort
32RMATS - Recommendation 1 Transmission Projects
33RMATS - Recommendation 2 Transmission Projects
Longer-term export options
Bell
Noxon
Great Falls
Taft
Ashe
Hot Springs
Broadview
Colstrip
Missoula
Ringling
Grizzly
This recommendation requires two 500 kV lines for
export
Midpoint
500 kV
Kinport
Ant Mine
345 kV
Dave Johnson
Option 1
Borah
Jim Bridger
LRS
Inc. DC
Ben Lomond
Naughton
Miners
Table Mtn.
Cheyenne Tap
Consistent with Rec 1
IPP
Mona
Ault
Option 2
Emery
Green Valley
Grand Junction
Tesla
Red Butte
Crystal
Option 3
Added Phase Shifter
Market Place
Adelanto
Option 4
Options 2-4
Option 1 Only
34Canada California Transmission Alternative
Alberta Tar Sands
Grizzly
AC or DC 500kV Line
Tesla
Midway
Vincent
35Looking to the Future
36Looking to the Future
- California is not an island. We are part of the
Western Grid. Policies will explicitly
incorporate a regional perspective. - We appreciate the energy imports and support from
our neighboring states - CA is not out of the woods, but has turned the
corner - The Future looks bright
- Energy efficiency, renewables and demand response
- Clean energy technologies
- Improved reliability
- Competitively priced energy
37Energy Efficiency as an Energy Resource
California and the Pacific Northwest Have
Aggressive Efficiency Programs That Are Meeting a
Substantial Portion of Their Demand
PNW 12 Energy Savings
CA 20 Peak Energy Savings
10,000 MW Avoided in Last 25 Years
2,600 aMW Avoided in Last 25 Years
Source Northwest Power and Conservation Council,
California Energy Commission and California State
and Consumer Services Agency
38Resurgence of Energy Efficiency
By 2004, Utilities in Many States Are Again
Running Various Energy Efficiency Programs
Sources ACEEE and NRDC
39Available Reports/Program Details
- Electric Industry CPUC Information and Programs
- http//www.cpuc.ca.gov/static/industry/electric
- CECs Integrated Energy Policy Report
http//www.energy.ca.gov/energypolicy/index.html - State of California Energy Action Plan
http//www.energy.ca.gov/2003_energy_action_plan/i
ndex.html - CECs Renewables Program http//www.energy.ca.gov/
renewables/index.html - CECs Public Interest Energy Research
http//www.energy.ca.gov/research/index.html - CECs Energy Efficiency Rebates and Demand
Reduction http//www.consumerenergycenter.org/reba
te/index.php