eco green group utility overview presentation final

“An Overview of our Utilities and how it relates to

sustainability”

ECO Green Group Thursday May 7, 2015by

Tony Green

Copyright @ Tony Green 2015

Agenda

1. Power Generation in California

2. Transmission and distribution to our homes

3. What are Deregulation, Wholesale Markets and CAISO?

4. Utilities in the State of California

5. What is the Renewable Portfolio Standard?

6. Grid Communication – getting Smarter with Smart Meters

7. Demand Response

8. Looking toward the FutureCopyright @ Tony Green 2015

“The Lights Must Stay On”


Source: http://www.nd.edu/~jstiver/FIN360/Lecture%20Slides/The%20US%20Power%20Grid.ppt


How is the energy we consumeproduced?


Photos Courtesy of dreamstime.com




46,486

13,5552,323

401

6,567

4,541

2,603

1,579

15,290

MW Generated Conventional and Renewable

Oil/Gas Hydro-electric Nuclear Coal Wind Solar Geothermal Waste to Energy (WTE)

Peaker Plants

http://www.willdecher.com/California-vs-The-Peaker-Plant


operating reserves (readily available generating capacity) to ensure a reliable supply of electricity.

Can be quickly put into service for contingencies such as another generator suddenly becoming unavailable or if demand for electricity is higher than usual.

TAKEAWAYS

Peakers' plants provide electricity when it's hot, but at the highest price

-AND-

Peaker plants are outdated, inefficient, coal-fired pollution factories

http://inside.edison.com/content/dam/inside/Images/nosearch/2012/10-12/gtk-10-12-map3-web.jpg

http://inside.edison.com/content/dam/inside/Images/nosearch/2012/10-12/gtk-10-12-map3-web.jpg

http://www.willdecher.com/California-vs-The-Peaker-Plant

Peaker Plants

http://inside.edison.com/g1012


Number of Plants (at

least .1 MW)1285

Total MW Online 78,055

Total MW Peaker 5,522

Number of Peaker

Plants48

Percentage MW of

Peaker7%

Peaker Plants in California

http://inside.edison.com/g1012

o Base Load plants are typically steam driven. They operate at 35% efficiency, but

must run at full capacity and are difficult to start up and shut down.

o Peak Load Plants usually use gas turbines. They operate at a lower efficiency,

but can be started up and shut down rapidly.

The Difference in Base Load and Peak Load


How is the energy we consumetransported?


Source: Presenters personal collection

Source: dreamstime.com

Source: Public Service Commission of Wisconsin Underground Electric Transmission Line

How is the energy we consumedproduced?

Source:

http://ww2.wapa.gov/sites/western/business/selling/Documents/Construction_Std_

Dwg_Part_One.pdf


Image: Presenter Personal Photo


Image: Courtesy of dreramstime.com



Image: Presenter Personal PhotoImage: Presenter Personal Photo


What is Deregulation? How did it come to pass?


In the past the transmission companies controlled the access to the power which went through its lines.

Deregulation allowed parties other than the transmission companies to have access to the power which went through its lines

Deregulation: The opening of a regulated industry to competition by legislative action.

What caused Deregulation?to occur?


Northeast Blackout (1965) and Three Mile Island (1979) damaged trust in the industry.

Oil Price Shocks (1973, 1979) and the Clean Air Act (1970) encouraged the more efficient use of fossil fuels and development of alternative energy sources

Technological improvement in power generation (combination power plants)

Large price discrepancy in electricity prices across the US suggested price discrimination in the industry

How does the Wholesale marketoperate?


There are three basic types transactions that take place on the

grid

Sale for Resale – Wholesale market

Retail Sale of Electricity or the Retail Market

Wheeling (3rd party charges for use of transmission lines)

How does the Whole sale marketOperate? The Power Exchange


What is the Grid?


Source: Plunkett Report U.S. Electric Grid Enhancements include a Smart Grid, Smart Meters and Flow Batteries Updated 03-13-2014 and Source: Smart Grid and You—The Consumer - NEMA

What is it? It’s electricity with a brain!

It listens, processes, and even responds. Bottom line, it’s all about adding “intelligence” to our aging electric

power infrastructure and delivery systems, from the power plant to the appliances inside your home.

The networks of electric lines that businesses and consumers depend on every day are connected with

and interdependent upon a national network of major lines collectively called “the grid.”

Unfortunately, much of this grid was designed and constructed with technology developed in the

1950s and 1960s, and it was never intended to carry the amazing amount of power that today’s electricity-hungry Americans consume. Simply put, much of the grid is out of date.

What is the SMART Grid?

What is CAISO and how did it come to be?


CAISO was created in 1998 when the state restructured its electricity markets at the recommendation of the Federal Energy Regulatory Commission (FERC), following the passage of the Federal Energy Policy Act of 1992

Removed barriers to competition in the wholesale generation of the electricity business.

The CAISO is regulated by the FERC because interstate transmission lines fall under the jurisdiction of federal commerce laws.

What are the major division ofCAISO?

Source: http://www.nd.edu/~jstiver/FIN360/Lecture%20Slides/The%20US%20Power%20Grid.ppt

U.S. Grid with Major Interconnections


How does CAISO operate?


Types of Utilities in California

There are 4 basic groups of Utilities Investor Owned Based (IOU) – These are the large utility which

serve thousands of customers, these are public companies which are owned by investors.

2. Municipals - These utilities service a small market area, often a town, city or county.

3. Cooperative/Rural - often serve smaller metropolitan markets or rural areas since not economical for large IOU or Municipals to supply,

4. Federal - These utilities are owned by the federal government.


Examples of each Types of Utility in California


Local Utilities in Silicon Valley


http://www.energy.ca.gov/maps/serviceareas/Electric_Service_Areas_Detail.pdf

California Utilities

Copyright @ Tony Green 2015 http://www.energy.ca.gov/maps/serviceareas/Electric_Service_Areas.pdf

67,091

10,572

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

IOU Municipal Other

Generation of power in MW by Utility Type

# of MW

Renewable Portfolio Standard

It is a commitment to make 33% all energy procured by energy retailers in California renewable by 2020

Who does this cover?

What is it?

Investor owned utilities, energy service providers, small and multi-jurisdictional utilities, and community choice aggregators.

Municipal utilities have a voluntary RPS obligation

The RPS also requires retail sellers to achieve intermediate RPS targets of 20% from 2011-2013 and 25% from 2014-2016.

Note: 20% obligation started in 2010 and continues indefinitely



Established in 2002 under Senate Bill 1078, accelerated in 2006 and expanded in 2011 - California's is one ofthe most ambitious renewable energy standards in the country.

How did it come to be?

Who owns this?

The California Public Utilities Commission (CPUC) and the California Energy Commission (CEC) jointly implement and administers RPS compliance rules for California’s retail sellers of electricity.



California's three large IOUs collectively served 22.7% of their 2013 retail electricity sales with renewable power.

How are we doing?

Source: http://www.cpuc.ca.gov/PUC/energy/Renewables/

Since 2003, 8,248 MW of renewable capacity achieved commercial operation under the RPS program. In 2014, 3529 MW of capacity reached commercial operation.


Image: Courtesy of dreramstime.comImage: Courtesy of fotolia.us

Renewable Portfolio StandardIOU progress towards 33% renewables, actual and forecasted by year


Reference: Renewable Portfolio Standard (RPS) Quarterly Report 4th Quarter 2014

Renewable Portfolio StandardRenewable resource mix, actual and forecasted by year


Reference: Renewable Portfolio Standard (RPS) Quarterly Report 4th Quarter 2014

Smart Meters – Starting from dumbAnd getting smarter all the time

http://extension.psu.edu/natural-

resources/energy/aec-

program/resources/real-time-pricing-

fact-sheet/download.


Source: Presenter’s personal collection


A smart meter is a device that can communicate with the utility as well as the consumer’s equipment and records and relays detailed consumption patterns to the utility.

http://extension.psu.edu/natural-resources/energy/aec-program/resources/real-time-pricing-fact-sheet/download

Smart Meters Operation



SMART METERS: Transmit use data to the

utilities Alert utilities to service

interruptions Display price fluctuations


Smart Meter Operation

http://www.centerpointelectric.com/staticf

iles/CNP/Common/SiteAssets/doc/92617

%20energy%20insight%20brochure.pdf

Data is transmitted from the meters to cell relays, which are wireless devices installed on distribution poles.

Cell relays pick up signals from meters in the vicinity and transmit the data via radio to a Take Out Point (TOP).

TOPs collect data from cell relays within a several-mile radius and deliver it to the data center via microwave or fiber optic cable.

Smart Metering


To keep in mind:

Smart metering does not refer to just the meter. It comprises an entire system capable of functionalities Example load control programs, demand response

Automatic meter reading (AMR) is the technology by which the power consumption data from the metering device is transferred to a central location for further analysis. ONE WAY

Advanced metering infrastructure (AMI)--paved the way for two way communication between the meters and the utility. This feature promises improved operational and energy efficiency, customer service, and environmental protection. TWO WAY

Demand Response

The terms “load management,” “peak load reduction,” and “curtailment” can all be used to describe Demand Response.

“reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives.”

Can applied to consumer and business, typically serviced by difference vendors.

Can be accomplished by a variety of methods: time-of-use pricing, critical peak pricing, variable peak pricing, real time pricing, and critical peak rebates


Demand Response

“What could cause a Demand Response?

Hot for days on end

Cold snap

Weather conditions

Generation facilities are closed


Sequence of a DemandResponse Event


Example of a DemandResponse Event


The Future?


I see the following technologies emerging: 1. Distributed Generation2. Small Modular Reactors (SMR)3. Direct Current Cable High Voltage Transmission4. Grid Storage5. “Overgen”

Summary

1. How a utility operates and what a SMART grid is2. Baseline load / what a peaker plant is3. Demand Response4. Smart Meter and Smart Grid5. What is the Renewable Portfolio Standard?6. What was deregulation?7. How electricity is sold in California8. Insight into Trends


Thank You!!!!!
