evaluation of epri’s annual...

Evaluation of EPRI’s Annual Portfolio

Lamar LarrimoreSouthern Company

© 2006 Electric Power Research Institute, Inc. All rights reserved.

Southern Company Advisory Positions in EPRI

Ed Holland

Board ofDirectors

David King

CorporateCommunications

Charles Goodman

Research Advisory& Strategic R&D

Market Sector Councils

Market Sector Managers

Nuclear PowerLou Long

Albert Jones

Program and Project Advisors

Environment

Chris HobsonCharles Goodman

Bryan Baldwin

Bryan BaldwinBrad BurkeDonna Hill

John JansenLeeAnn KozakDavid MorrisMike ParrisDan Patel

Jim RedwineDan Warren

Charles BoohakerDoug BoylanWayne Elkins

Fred EllisPat EvansDale Evely

Keith HarrisonWallis HarrisonRandy JonesEd Knowles

Lamar LarrimoreLarry MonroeFrank MortonRussell NobleRonnie PateJohn Sorge

GenerationJerry Stewart

Steve Wilson

Power Delivery& MarketingRobin Hurst

Kerry Bowers

Dave BryanBob HawkinsBoyd NationBill Norton

Ron RhodesJoe SchatzPerry Stowe

Pradeep VittaChuck Wallis

Lamar Larrimore

TechnologyDelivery / METT

Randy BuntBill Burns

David CrawleyRobin DyleJeff Gasser

Randy GlissonBrian GrinerAlvin Harris

Forrest HundleyRichard Loftin

Lou LongMike MacfarlaneChalmer Myer

Dennis RickertsenBobby Shewmake

Dennis SwannAshfaq TaufiqueKeith Turnage

Todd Youngblood








Todd Youngblood


Southern Company R&D Organization

VP

R&EA

Generation

R&D

Marketing

R&D

Power Del.

R&DPSDF

CPO CMO CTO


Key Features in R&D Structure

• Dedicated budgets for research• R&D business plan• Dedicated staff


Credibility

• Working relationship (and dotted-line reporting) from R&D managers to counterpart company executives

• Identify and implement highest priority projects that address executive concerns

• “Bottom-up” approach with consensus• Development of highly qualified staff who actually work on

these projects

EPRI 2007 Membership Decision Meeting

Steve WilsonDirector, Research & Technology Management


Meeting Objectives

• Understand EPRI programs and 2007 offering• Begin 2007 evaluation• Provide feedback to EPRI• Challenge our advisors


SoCo Advisors to EPRI

David King

CorporateCommunications

Market Sector Councils

Nuclear PowerLou Long

Albert Jones

EnvironmentChris Hobson

Bryan Baldwin

Bryan BaldwinBrad BurkeDonna Hill

John JansenLeeAnn KozakDavid MorrisMike ParrisDan Patel

Jim RedwineDan Warren

Mark BerryCharles Boohaker

Fred EllisPat EvansDale Evely

Keith HarrisonJeremiah Haswell

Tom JohnsonRandy Jones

Lamar LarrimoreJim Lofe

Larry MonroeLarry Moore

Frank MortonRussell NobleRonnie PateJohn Sorge

GenerationJerry Stewart

Steve Wilson

Power Delivery& Marketing

Robin Hurst

Steve Wilson

Danny BatesAlton ComansCedric DanielsAlan HollomanShih-Min HsuDavid MitchellBoyd NationBill NortonRod Sauls

Paul ShahanJoe SchatzPerry StoweJack Varner

Pradeep VittaChuck Wallis

Ed WadeTony Wu

Lamar Larrimore

TechnologyMgt / METT








Todd Youngblood








Todd YoungbloodRed indicates chair positions

Sue Ellen Summers

Contracting

Ed Holland / Paul Bowers

Board of Directors

Charles Goodman/Chris Hobson

Research Advisory& Strategic R&D

Market Sector Managers

Program and Project Advisors


EPRISegment

EPRI Dues

Marketing1

Nuclear Power

Generation2

Power Delivery

Environment

TOTAL

1994 1998 2005

EPRI Sector ParticipationCost History

2006

1 - Includes Distributed Resources and Power Quality2 - Includes Wholesale Power Markets

EPRI Decision Process

Lamar LarrimoreManager, EPRI Technology Transfer (METT)


• Master Agreement and Research Portfolio Agreement• Consolidation of:

– Membership Agreement– Master Utility License Agreements– TC Agreements – basic terms– Cofunding Agreements – basic terms

• Cost savings:– Greater discount for PDM and Generation– Credit pool for access to past products

• Long term:– 5-year agreement for all sectors– Flexible opt out provisions

2006 EPRI Agreement Highlights


June 1

June 20

July 6

August 15

Sept 15

October

Nov & Dec

Mid-Dec

EPRI 2007 membership decision package received

Final Price Sheet available

EPRI 2007 membership decision meeting

Team leaders (Baldwin, Jones, Wilson) provide program recommendations to Lamar Larrimore

Integrated EPRI recommendation briefed to Southern Company executives

Preliminary response to EPRI

Negotiations with EPRI

Final commitment and RPA to EPRI

Schedule for EPRI 2007Membership Decision

Bringing EPRI Benefits Back to Southern Company

Paul BowersPresident, Southern Co Generation


Energy Research Investment

Southern Company Historical R&D Expenditure

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004*

Years

Annu

al R

&D

Exp

endi

ture

s, $

x 1

000

0.00%0.05%0.10%0.15%0.20%0.25%0.30%0.35%0.40%0.45%0.50%

R&D

Exp

endi

ture

s,

Perc

ent o

f Op

Rev

R&D Expenses Percent of OpRev ex. Mirant


• EPRI leverage (20 to 1) reduces research costs• EPRI results allow Southern to shape regulatory

proceedings that directly affect cost of business• Enabling science is developed to prepare Southern for its

next challenges (EPRI SS&T)• Technology enables Southern to address its most difficult

challenges: a characteristic important to investment and stakeholder groups

• EPRI products are deployed throughout Southern• The value derived from EPRI R&D greatly exceeds

Southern’s cost of participation

Summary: EPRI Value and Benefits


EPRI Provides:

NewKnowledge

NewTechnology

NewExperience

Collaboration & Leverage

Bottom Line: Southern Company must increase the value it derives from these EPRI products.


Examples of EPRI Value

• Health-risk studies such as SEARCH and ARIES which provide sound science to regulators

• Environmental compliance technologies using existing infrastructure, such as mercury control solutions

• Long-time support for IGCC generation platforms• Materials research which has reduced the frequency of

outage inspections needed at nuclear plants• Low-cost energy efficiency and conservation solutions• Deployment of reliability analysis software and demo of

intelligent universal transformer in T&D systems


Responsibilities ofSouthern Company Advisors

• Ensure that Southern Company and industry needs are addressed by EPRI

• Be proactive and involved in EPRI Programs• Foster portfolio research management• Monitor, champion, and disseminate results• Represent Southern Company as a technology leader in

the industry


EPRI Product Information

EPRI Technology Development


EPRI - Mission Statement

EPRI provides science and technology-based solutions of indispensable value to global energy customers and to society.

Provides solutions that address:• Power supply vulnerability• Value of electricity services• Accelerated productivity• Energy / environment conflict • Global sustainability

http://epri.com/

http://epri.com/destinations/


EPRI Summary

• Annual Revenue• Members

• International Members• Programs• Location

$270 million337 utilities

(100% of nuclear, 70% of all)

11596

Palo Alto, Ca.


Board

RAC(Research Advisory Comm.)

SST (Strategic Science & Tech.)

Program Committees

Business Sector Councils

Nuc

lear

Sect

or

Envi

ronm

ent

Sect

or

Gen

erat

ion

Sect

or

Pow

er D

el.

& M

ktg.

Sect

or

19 3417 26

1 11 1

12%

88%

Funding from 337 Members = $270 M

EPRI Structure


1. Transmission capacity, control and stability2. Infrastructure for digital society3. Robustness and security of electricity infrastructure4. Value of energy storage technology5. Transforming electricity markets6. Electricity-based transportation markets7. High-efficiency end-use technologies8. Advances in enabling technologies9. Strengthened portfolio of generation technologies10. Universal global electrification11. Carbon capture and storage12. Ecological asset management13. Improving water availability and quality14. Environmental science

EPRI Technology Roadmap


Environment

♣ Air Quality♣ Global Climate Change♣ Land & Groundwater♣ Water, Watershed, and

Ecosystems♣ EMF Health

Assessment and RF Safety

♣ Occupational Health

Power Delivery and Markets

♣Power Markets♣Grid Reliability & Security♣Power Delivery Mgmt♣Transmission♣Substations♣Distribution♣Power Quality♣Market Data and

Intelligence♣Electric Transportation♣Customer-Driven

Technologies

Generation andDistributed Resources

♣ Production Availability and Cost Control

♣ Environmental Controls♣ Strategic Generation

Options

Nuclear Power

♣ Component Reliability and Safety

♣ Nuclear Operations and Asset Management

♣ Nondestructive Evaluation

♣ Plant Technology

EPRI Technical Research Programs


• eTip Profiles• Project Reports• Technical

Conferences• Program Committee

Meetings• EPRIWeb

EPRI Technology Transfer Opportunities

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