flexpower bundle update - cps energy...oct 28, 2019 · cps energy solar plants (ppas) 546 mw solar...
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FLEXPOWER BUNDLE UPDATE
October 28, 2019
I n f o r m a t i o n a l U p d a t e
P R E S E N T E D B Y :John Bonnin
VP, Energy Supply & Market Operations
INTRODUCTION BY:Dr. Cris Eugster
Chief Operating Officer (COO)
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• PROVIDE OVERVIEW OF FLEXPOWER BUNDLE COMPONENTS & HOW IT WILL MEET OUR CAPACITY NEEDS
• PROVIDE LOOK AHEAD & NEXT STEPS
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OBJECTIVES & TAKEAWAYS
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• CURRENT GENERATION PORTFOLIO
• PORFOLIO OVERVIEW: GAS STEAM UNITS
• FLEXPOWER BUNDLE OVERVIEW
• EXPECTED TIMING OF FLEXPOWER BUNDLE
• NEXT STEPS & LOOK AHEAD
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AGENDA
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DIVERSE GENERATION PORTFOLIO
AVR Plant492 MW
Gas
Spruce Plants1345 MW
Coal
Sommers Plants
830 MWGas
Braunig Plants
859 MWGas
Milton B Lee Plants
375 MWGas
Rio Nogales Plant
785 MWGas
CPS Energy Solar Plants (PPAs)
546 MWSolar
CPS Energy Wind Plants (PPAs)
1069 MWWind
Over 7000 MW of
Diverse Generation
to Serve our Community
South Texas Project1064 MWNuclear
• Our gas steam units are aging, built in the 60s & 70s
• Opportunity to strengthen reliability as we phase out older plants
• Our approach is to replace aging capacity with solar firmed up by battery storage & gas toll
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Today
Gas Steam Units
Nearly 1700 MW due to retire in the next
10 years
WHY: PORTFOLIO OVERVIEWAGING GAS STEAM UNITS
Sommers Plants
830 MWGas
Braunig Plants859 MW
Gas
2050 2060
VH Braunig 1 (217MW)
VH Braunig 2 (230MW)
OW Sommers 1 (420MW)
1960 1970 1980 1990 2000 2010
VH Braunig 3 (412MW)
OW Sommers 2 (410MW)
2020 2030 2040
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WHAT: FLEXIBLE PATH IN ACTIONMAJOR STEP FORWARD
Up to 900 MEGAWATTS (MW)
Up to 500 MEGAWATTS (MW)
Up to 50 MEGAWATTS (MW)
CPS ENERGY NEWSROOM, JULY 10, 2019
RIVARD REPORT, JULY 10, 2019
FLEXPOWER BUNDLE COMPONENTS FOR DISCUSSION
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FLEXPOWER BUNDLE OPTIMIZING RESOURCES
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Gas toll & rest of fleet provides around-the-clock reliability
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
San
An
ton
io E
ne
rgy
Use
Hour of the Day
Typical Summer Day
Wind
Customer Demand
Demand Response
Gas Toll & Rest of Fleet
Storage
Solar
Intermittent solar & wind need to be
firmed up by gas toll & storage
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FLEXPOWER BUNDLE PROTECTING OUR CUSTOMERS
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FlexPower Bundle protects our customers from high & volatile market prices
*Data in graph is based on 500 MW
*
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Pricing still needs to come
down
Lifecycle and capacities still
need to improve
ERCOT Market procedures are still in
development
BATTERY ENERGY STORAGE SYSTEMSWHY NOT ADD MORE NOW?
ECONOMICS TECHNOLOGY REGULATORY
We will continue to introduce battery energy storage systems in the future as economics, technology and regulatory status improves
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2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Solar (300 MW)
Battery Storage (25 MW)
Solar (400MW)
Battery Storage (10 MW)
Solar (200 MW)
Natural Gas-Based Power (250 MW)
Battery Storage (15 MW)
The proposal is to phase in solar, storage and gas toll over the next 4 years
PROPOSED TIMING FLEXPOWER BUNDLE
Natural Gas-Based Power (250 MW)
• Total Capacity: 1450 MW
• Effective Capacity: 845 MW at Summer Peak
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NEXT STEPS & LOOK AHEAD
We will continue to provide updates along the way
Complete Initial Customer
Feedback & Engagement
Release Solar + Battery Request
for Proposals
Begin Negotiating
Gas Toll
2019 2020
Receive Solar + Battery
Proposals
Execute FlexPower
Bundle
We are here
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WE HAVE A BALANCED APPROACHTHESE CONSIDERATIONS ARE IMPORTANT
As we work through the FlexPower Bundle, we will ensure that we keep our value pillars at the forefront
SECURITY
CUSTOMERAFFORDABILITY
RELIABILITY ENVIRONMENTALLY RESPONSIBLE
RESILIENCY SAFETY
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Thank You
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