calpine february 23, 2005 california puc climate change en banc san francisco, ca pete cartwright...
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February 23, 2005
CALPINE
CALIFORNIA PUC CLIMATE CHANGE EN BANC
San Francisco, CA
PETE CARTWRIGHTPresident and Chief Executive Officer
CA PUC Climate Change
2
CALPINE
February 23, 2005
CALPINE OVERVIEW
Power Portfolio
Operation 26,500 mw
Construction 5,500 mw
Development 16,000 mw
TOTAL 48,000 mw
Fuel
Natural Gas 98%
Geothermal 2%
CA PUC Climate Change
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CALPINE
February 23, 2005
CALPINE U.S. POWER PORTFOLIO
In Operation – Gas-Fired (73 plants)In Operation – Geothermal (19 plants)Under Construction (11 plants)
WECC
MAPP
SPP
ERCOT
MAIN ECAR
SERC
FRCC
MAAC
NPCC-NY
NPCC-NENPCC-O
UK
not to scale
MEXICO
CA PUC Climate Change
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CALPINE
February 23, 2005
CALPINE IN CALIFORNIA
Power Portfolio
Operation 3,900 mw
Construction 2,000 mw
Development 3,800 mw
TOTAL 9,700 mw
Fuel
Natural Gas 92%
Geothermal 8%
CA PUC Climate Change
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CALPINE
February 23, 2005
CA PUC Climate Change
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CALPINE
February 23, 2005
CO2 EMISSIONS —COAL vs. NATURAL GAS
2,1631,995
1,307
832647
CO2 — Pounds per megawatt-hour
Old Coal New CoalOld Natural Gas New Natural GasNatural Gas Cogeneration
CA PUC Climate Change
7
CALPINE
February 23, 2005
CLIMATE CHANGE —WHAT CALPINE IS DOING
Board Low-Carbon Resolution
Concentration on Natural Gas
Efficiency Improvements
Cogeneration Program
Natural Gas Supply
Geothermal and Renewables
Solid Fuel Gasification and Sequestration
CA PUC Climate Change
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CALPINE
February 23, 2005
WHAT THE UNITED STATES CAN DO
Modernize its Power Plant Fleet
Shut Down Half of Old Coal-Fired Plants —442.6 Million mwh
Shut Down All Old Gas-Fired Plants —169.2 Million mwh
Replace With New Gas-Fired Plants +611.8 Million mwh
CA PUC Climate Change
9
CALPINE
February 23, 2005
ECONOMIC CONSEQUENCES
Gas Consumption Increases by ~ 2.5 tcf/Year
Cost of Electricity Roughly Unchanged
Fuel Cost: +$3.6 Billion Per Year
CO2 Offsets: —$3 Billion Per Year
Adequate Gas-Fired Generation is Available
CA PUC Climate Change
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CALPINE
February 23, 2005
326 Million Tons Per Year
ENVIRONMENTAL CONSEQUENCES
% Reduction of Power Sector Emissions (2002)
NOX 33.8%
SO2 26.5%
Hg 40.3%
PM 19.8%
CO2 13.0%
CA PUC Climate Change
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CALPINE
February 23, 2005
IMPACT OF CO2 REDUCTION
326 Million Tons Per Year
Equals Emissions From 57 Million Cars
87% of Bush’s 2012 Goals
35% of McCain-Lieberman 2010 Goals
15% of Kyoto 2010 Goals
CA PUC Climate Change
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CALPINE
February 23, 2005
WHAT CALIFORNIA CAN DO
Encourage:
Energy Efficiency
Renewables
Encourage Natural Gas Generation
Shut Down Old Gas-Fired Plants
Eliminate Reliance on Out-of-State Coal Plants
Build LNG Terminals
Promote Open Competitive Markets
CA PUC Climate Change
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CALPINE
February 23, 2005
WHAT CALIFORNIA CAN DO (continued)
Shut Down Old Gas-Fired Plants —40.8 Million mwh
Stop Importing Coal-Fired Power —59.0 Million mwh
Additional Renewables to Meet 20% Goal +26.6 Million mwh
Add Modern Gas-Fired Plants +73.2 Million mwh
CO2 Reduction Potential — 60 Million Tons Per Year
February 23, 2005
CALPINE
CALPINE