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AVS COAVS CO22 Project Project & MISO Update& MISO Update

August 18, 2011August 18, 2011August 18, 2011August 18, 2011

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Dale NiezwaagDale NiezwaagBasin Electric Power CooperativeBasin Electric Power Cooperative

Central MontanaCentral MontanaCentral MontanaCentral Montana Upper Upper MissouriMissouri

Upper Upper MissouriMissouri

Central Central PowerPowerCentral Central PowerPower

District 9District 9District 9District 9

East East RiverRiverEast East RiverRiverRushmoreRushmoreRushmoreRushmore

Powder Powder RiverRiver

Powder Powder RiverRiver L & OL & OL & OL & O

TriTri--StateStateTriTri--StateState

Corn Belt Corn Belt PowerPower

Corn Belt Corn Belt PowerPowerNIPCONIPCONIPCONIPCO

Basin Electric Basin Electric MembershipMembership

AreaArea

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BOILERBOILER

AVS COAVS CO22Demonstration ProjectDemonstration Project

SCRUBBERSCRUBBER BAGHOUSEBAGHOUSE

COCO22COCO2285%85%85%85% 99+%99+%99+%99+%

SOSO22SOSO22

TURBINETURBINE

85%85%85%85% 99+%99+%99+%99+%99% 90%

COCO221 Million Tons1 Million Tons

COCO221 Million Tons1 Million Tons

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AVS Carbon Capture ProjectAVS Carbon Capture ProjectRequirements:Requirements:• Technology• Oil Company CO2 Sales Contract and

Transport• Environmental Assessment (NEPA)

• Technology• Oil Company CO2 Sales Contract and

Transport• Environmental Assessment (NEPA)• FEED Study• Financing• FEED Study• Financing

Capital Cost EstimateCapital Cost Estimate

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Doosan Estimate Did Not IncludeDoosan Estimate Did Not Include•• Costs to modify the boiler and turbineCosts to modify the boiler and turbine•• Cost of COCost of CO22 sequestrationsequestration•• Cost for environmental permittingCost for environmental permitting•• Costs for project contingency and riskCosts for project contingency and risk•• Interest during constructionInterest during construction•• Project management and engineeringProject management and engineering

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Total Cost To CaptureTotal Cost To Capture

D ti t dD ti t d $50$50 $60 t CO$60 t CODoosan estimatedDoosan estimated($282.5 million)($282.5 million)

All inclusive costAll inclusive cost($500 million)($500 million)

$50 $50 -- $60 per ton CO$60 per ton CO22

$65 $65 -- $75 per ton CO$75 per ton CO22

($ )($ )

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Current StatusCurrent Status• Project on Hold• Project on Hold

–– Lack of regulation developmentLack of regulation development–– Present economic conditionsPresent economic conditions–– Full cost of the project Full cost of the project

•• Too difficult to develop a compelling Too difficult to develop a compelling business casebusiness case

–– Lack of regulation developmentLack of regulation development–– Present economic conditionsPresent economic conditions–– Full cost of the project Full cost of the project

•• Too difficult to develop a compelling Too difficult to develop a compelling business casebusiness casebusiness casebusiness case

•• Dec. 2010 Basin Board placed the Dec. 2010 Basin Board placed the project on hold until further notice.project on hold until further notice.

business casebusiness case•• Dec. 2010 Basin Board placed the Dec. 2010 Basin Board placed the

project on hold until further notice.project on hold until further notice.

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Knowledge Gained & SharedKnowledge Gained & Shared•• Identified viable approach to technical Identified viable approach to technical

h llh llchallengeschallenges•• Developed Capital and O&M cost est.Developed Capital and O&M cost est.•• Refined known economic challengesRefined known economic challenges•• Utilities able to understand impacts to Utilities able to understand impacts to

their station if this technology is appliedtheir station if this technology is appliedtheir station if this technology is appliedtheir station if this technology is applied

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TransmissionTransmissionTransmission Transmission UpdateUpdatepp

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North Dakota Area TransmissionNorth Dakota Area TransmissionOwnership

72.3%

15.5%12.2%

ISMISOOthers

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Current ActivitiesCurrent Activities• Placing some generation & load into

th MISO t• Placing some generation & load into

th MISO tthe MISO system• Studying several options

– Stay independent– Join MISO or SPP– Develop Hybrid Type of System

the MISO system• Studying several options

– Stay independent– Join MISO or SPP– Develop Hybrid Type of System– Develop Hybrid Type of System

• Discussing with members• Monitoring cost allocation debate

– Develop Hybrid Type of System• Discussing with members• Monitoring cost allocation debate

Protest of MISO FilingProtest of MISO Filing• Members of the Integrated System (IS)

d t t iff h b MISO• Members of the Integrated System (IS)

d t t iff h b MISOopposed recent tariff changes by MISO before FERC

• If MISO & Customer have path to same entity, each partner may use the others contract path capacity

opposed recent tariff changes by MISO before FERC

• If MISO & Customer have path to same entity, each partner may use the others contract path capacitycontract path capacitycontract path capacity

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Protest of MISO FilingProtest of MISO Filing• Allows MISO to use a path that it has

i ht f ith t i• Allows MISO to use a path that it has

i ht f ith t ino rights for without paying any compensation

• FERC approved MISO’s request• IS partners are exploring options

no rights for without paying any compensation

• FERC approved MISO’s request• IS partners are exploring options

RecentRecentRecent Recent Construction Construction

ActivitiesActivitiesActivitiesActivities1616

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GenerationGeneration

WillistonWillistonWillistonWilliston

Oil/Gas/CoalOil/Gas/Coal

PowderPowderRiverRiverBasinBasin

PowderPowderRiverRiverBasinBasin

BasinBasinBasinBasin

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Williston Williston -- TiogaTioga

Western NDWestern NDBuild Out PlanBuild Out Plan

Charlie Creek Charlie Creek ––Williston UprateWilliston Uprate

Belfield Belfield -- RhameRhame

Transmission “Loop”Transmission “Loop”

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Long Term:Long Term:Beef Up LoopBeef Up Loop

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Questions?Questions?

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