Utah Associated Municipal Power Systems Kaysville City June

  • Slides: 67
Download presentation
Utah Associated Municipal Power Systems Kaysville City June 21, 2018

Utah Associated Municipal Power Systems Kaysville City June 21, 2018

UAMPS Overview � A political subdivision formed under the Utah Interlocal Cooperation Act in

UAMPS Overview � A political subdivision formed under the Utah Interlocal Cooperation Act in 1980. � Organized to develop, finance and operate projects for generation, transmission and energy services. � A member based organization that provides electric services on a non-profit basis. � Project-based organization which currently operates 16 separate projects. � Projects provide services more economically and efficiently by providing economy of scale. � Each project operates independent from one another under the UAMPS umbrella.

UAMPS Overview (cont. ) �Not an “all requirements provider” which means members are not

UAMPS Overview (cont. ) �Not an “all requirements provider” which means members are not required to purchase their resource needs from UAMPS. �Members determine whether to participate in projects. and are not obligated to participate in any particular project. �Each member has chosen to participate in some or all of UAMPS’ projects. �Each Member has entered into the UAMPS Joint Action Agreement (JAA) which governs the organization.

UAMPS JAA– Basic Intent �JAA allows members to enter into projects through an experienced

UAMPS JAA– Basic Intent �JAA allows members to enter into projects through an experienced and successful organization. �Permits a project of one. �Allows each member to individualize the projects or services they participate in to meet community demands; providing member autonomy. �Each project or service is governed by a contract that outlines the Members rights and obligations. �No cross subsidies or defaults from one project to another.

Contractual Relationship

Contractual Relationship

Contractual Relationships � Members that elect to participate in a project enter into a

Contractual Relationships � Members that elect to participate in a project enter into a contract that specifies the services to be provided and the payments to be rendered. � If UAMPS issues debt the contractual relationship entered into is a “take-or-pay” sales contract with a revenue rate covenant obligating each Participant to pay its share of debt service, O&M, and wheeling costs regardless of output. � Participants may elect to bring their own money in lieu of all, or part of the debt to finance the Project. Bond credit rating is determined by the credit of the Participants in the project. � Sales contracts remains in effect until; 1) the date the bonds have been paid in full; or 2) the facility is terminated and all costs have been paid in full.

Budgetary Process

Budgetary Process

Budgetary Process � UAMPS prepares separate annual budgets for each of its projects. �

Budgetary Process � UAMPS prepares separate annual budgets for each of its projects. � In advance of the annual budgetary process, the Board adopts a budget policy that set forth the assumptions and standards to be used by management in the preparation of the budget with regard to projects’ operations and costs, the allocation of administrative and general costs and other matters. � A Budget Committee comprised of the executive committee and the chair of each project oversees the preparation of the annual budget. � The project budgets are then reviewed by the individual Project Committees and recommended to the Board for approval. � The Project Board reviews and approves the annual budget for its project which is consolidated into an overall comprehensive UAMPS budget.

UAMPS Governance

UAMPS Governance

UAMPS Governance �Each member appoints a Member Representative to act on their behalf through

UAMPS Governance �Each member appoints a Member Representative to act on their behalf through governing board resolution. �Members elect to participate in Projects �Each Project is controlled by the participants in the project through the Project Management Committee (PMC). �Each participant in the project has a vote on the PMC.

UAMPS Governance (cont. ) �PMC’s makes recommendations to the Project Board of Directors comprised

UAMPS Governance (cont. ) �PMC’s makes recommendations to the Project Board of Directors comprised of no more than 11 Member Representatives representing the project. �If there are eleven or few participants in a project, then all Member Representatives are deemed elected. �If there are more than eleven participants in a project. �Four Members Representatives with the largest entitlement shares are automatically deemed elected. �Seven are elected from remaining Members Representatives participating in the specific project. �Project Boards can only approve or reject PMC recommendations. If rejected, the topic is returned to PMC for reconsideration.

UAMPS Governance (cont. ) �All Project Board make up the UAMPS Board of Directors.

UAMPS Governance (cont. ) �All Project Board make up the UAMPS Board of Directors. �The Board runs the general aspects of UAMPS such as policy and leadership. �Board Committees are established via the JAA and Member Representatives are appointed by the UAMPS chairman such as the executive, audit and budget committees �Officers are elected yearly for one-year term and cannot serve more than three consecutive terms.

Projects

Projects

Hunter 2 Project � First UAMPS project acquired in 1980. � Hunter 2 has

Hunter 2 Project � First UAMPS project acquired in 1980. � Hunter 2 has been in commercial operation since June 1980. � Hunter 2 is a coal fired generating unit located in Emery County, Utah. � Hunter 2 Project consists of 14. 582% undivided ownership interest in the Hunter 2 unit providing 65 MW. � Hunter 2 is operated by Pacifi. Corp pursuant to an Ownership and Management Agreement among the coowners. � Twenty-three Members

San Juan Project � San Juan Project was acquired in 1994. � San Juan

San Juan Project � San Juan Project was acquired in 1994. � San Juan Unit 4 is coal fired generating unit located near Farmington, New Mexico. � San Juan Project consists of a 7. 028% undivided ownership interest in San Juan Unit 4 providing approximately 35 MW. � Unit 4 has been in commercial operation since 1979. � Unit 4 is operated by Public Service of New Mexico pursuant to the Amended and Restated San Juan Project Participation Agreement. � Sixteen Member participate in the Project.

IPP Project � The Intermountain Power Project � � (IPP) is owned by Intermountain

IPP Project � The Intermountain Power Project � � (IPP) is owned by Intermountain Power Agency (IPA) and operated by the City of Los Angeles Department of Water (LADWP). IPP consists of two 900 MW coal fired generating units located in Delta, Utah. Because the capability of IPP purchased by the members was in excess of their needs, they entered into an Excess Power Sales Agreement (EPSA) to layoff their IPP power to four California Purchasers (LADWP, Burbank, Glendale and Pasadena). UAMPS administers the ESPA for the benefit of the Utah Purchasers as to the call-back and put-back of IPP power. Twenty-three Members participate in the Project.

CRSP Project � The Colorado River Storage Project (CRSP) and is owned by the

CRSP Project � The Colorado River Storage Project (CRSP) and is owned by the United States of America and operated by United States Bureau of Reclamation. � CRSP is the production of hydroelectric capacity and energy (output includes Glen Canyon Dam, Flaming George Dam and other smaller projects in Utah, Wyoming, Colorado and New Mexico). � Western Area Power Administration (Western) is responsible for the marketing and transmission of the federal power in 15 western and central states. � Each member has entered into an Integrated Contract for Electric Service with Western. � UAMPS acts as the single purchasing agent and schedules purchases of CRSP energy for the members. � The CRSP Contract term was just

Firm Power Project � The Firm Power Project was established to provide for the

Firm Power Project � The Firm Power Project was established to provide for the acquisition of firm power supplies from third parties. � The Firm Power Project agreements are master agreements that can accommodate multiple power supply transactions and provide flexible terms for the purchase and sale of firm capacity and energy. � Two transactions: �Purchases 15. 675 MW of wind generation from the Pleasant Valley Wind Energy Facility in Uinta County, Wyoming. �Forward market purchase longer than one year in

Payson Project (Nebo Plant) � The Payson Project is a 140 MW combined cycle,

Payson Project (Nebo Plant) � The Payson Project is a 140 MW combined cycle, natural gas-fired generating facility located in Payson, Utah. � 70 MW Minimum. � 112 MW Sweet Spot. � 140 MW Maximum. �Economics change for each configuration. � The Payson Project includes approximately six miles of gas pipeline and ten miles of 138 k. V and 46 k. V transmission lines. � The Payson Project has been in commercial operations since June 2004. � The project is operated by UAMPS.

Horse Butte Wind Project � The Horse Butte Project consists of � � �

Horse Butte Wind Project � The Horse Butte Project consists of � � � 57. 6 MW of wind generation. The Facility is located in Bonneville County, Idaho and consists of 32 Vestas V 100 1. 8 MW Wind Turbine. The Facility went commercial on August 2012. The size of the Facility may be increased up to 99 MW. UAMPS entered into a Power Purchase Agreement with Horse Butte Wind I LLC to purchases all Facility output and environmental attributes until all of the tax credits were exhausted. UAMPS exercised its early buyout option effective in August 2018. Twenty-three Members participate in the Project.

Veyo Heat Recover Project � The Veyo Heat Recovery Project uses waste heat to

Veyo Heat Recover Project � The Veyo Heat Recovery Project uses waste heat to power a 7. 8 W energy recovery generation system. � The project is located adjacent to the existing Veyo Compressor Station which is owned by Kern River. � UAMPS has entered into a contract with the City of Santa Clara for the operations and maintenance of the project. � The project began commercial operations in May 2016. � Seven Members participate in the project.

Resource Integration & Scheduling

Resource Integration & Scheduling

Resource Integration � Each hour, UAMPS schedules the projects’ output and makes purchases or

Resource Integration � Each hour, UAMPS schedules the projects’ output and makes purchases or sales to match members’ aggregate load to the best overall economic benefit to all members. � Individual members’ loads and resources are accounted for through the Pool. � In turn, members with excess resources are matched with those who are deficit resources on an hourly basis. � The dispatcher buy/sell for the next hour based on system parameters. �Balancing. �Shortage - long position. �Unit availability. �Transmission. �Ancillary Services.

Resource Scheduling (cont. ) �UAMPS uses a rolling seven day scheduling system. �Resources, transmission,

Resource Scheduling (cont. ) �UAMPS uses a rolling seven day scheduling system. �Resources, transmission, and reserves are included in the schedule. �UAMPS pre-schedules balance resources to load and then the resource to load is rebalanced on a real-time basis. �Member Internal Generation (MIGs)schedules must be scheduled and coordinated through UAMPS with Pacifi. Corp Balancing Authority. �At any given time UAMPS is scheduling with seven different Balancing Authorities. �Pacifi. Corp, NV Energy (SPPC, NEVP), IPC, PNM, AZPS, WACM (WAPA), and BPA.

Pool Project – Delivery of Energy

Pool Project – Delivery of Energy

Mr. Watt

Mr. Watt

Non-Pacifi. Corp System

Non-Pacifi. Corp System

Hunter Budget Rate $20. 68 Energy Price San Juan Budget Rate $28. 70 $20.

Hunter Budget Rate $20. 68 Energy Price San Juan Budget Rate $28. 70 $20. 68 $28. 70

Energy Price CRSP Contract Rate (also Capacity Charge) PV Wind Contract Rate $48. 11

Energy Price CRSP Contract Rate (also Capacity Charge) PV Wind Contract Rate $48. 11 $12. 19 $12. 19

Energy Price Member Contracts No Charge (Billed Directly) $0. 00 $0. 00

Energy Price Member Contracts No Charge (Billed Directly) $0. 00 $0. 00

Energy Price Hourly Purchases Market Price Hour 2 $32 Hour 5 $30 Hour 8

Energy Price Hourly Purchases Market Price Hour 2 $32 Hour 5 $30 Hour 8 $40 Hour 11 $54 Hour 14 $62 Hour 17 $68 Hour 20 $60 Hour 23 $45

Energy Nebo Price Calculated Price (MMBtu * Index gas price) / MWh generated +

Energy Nebo Price Calculated Price (MMBtu * Index gas price) / MWh generated + $1 O&M July 1 st $30. 07 July 10 th $33. 86 July 20 th $33. 13 July 30 th $30. 26

Delivery Charges Transmission Pacifi. Corp $6. 05 Delivered $0 Scheduling UAMPS $1. 04 Off-System

Delivery Charges Transmission Pacifi. Corp $6. 05 Delivered $0 Scheduling UAMPS $1. 04 Off-System $1. 04 MIG/CRSP $0. 35 Reserves Load $0. 302 Generation $0. 302 Delivered $0 Pacifi. Corp 4. 45% WAPA 6. 383% Meter ___% Losses

Transmission Pacifi. Corp System $6. 05 Transmission Scanner

Transmission Pacifi. Corp System $6. 05 Transmission Scanner

Transmission WAPA Energy $No Charge Transmission Scanner

Transmission WAPA Energy $No Charge Transmission Scanner

Reserves $0. 302 Delivered Reserv es $0. 302 $0. 0 s e v r

Reserves $0. 302 Delivered Reserv es $0. 302 $0. 0 s e v r e s e R nt e m s s e s s A

Scheduling Off-System $1. 04 $0. 35 CRSP to Load MIG $0. 35 (Member Internal

Scheduling Off-System $1. 04 $0. 35 CRSP to Load MIG $0. 35 (Member Internal Generation)

Losses (system) 4. 45% loss Before Pacifi. Corp System After

Losses (system) 4. 45% loss Before Pacifi. Corp System After

Losses (system) 6. 383% loss Before Western Area Power Administration After

Losses (system) 6. 383% loss Before Western Area Power Administration After

Losses (meter) City Limits __% loss Before Member Delivery After

Losses (meter) City Limits __% loss Before Member Delivery After

Member Load City Limits No Vacancy City 30 Miles

Member Load City Limits No Vacancy City 30 Miles

Resource Allocation Billing

Resource Allocation Billing

Sales to Unplanned Pool Billing (All-In Pool Net Shortage) Weighted Average = $60. 785

Sales to Unplanned Pool Billing (All-In Pool Net Shortage) Weighted Average = $60. 785 $64. 383 $65 Unscheduled Capability $46 $46 $46 Market Prices

Kaysville Load and Resource Portfolio

Kaysville Load and Resource Portfolio

resource ownership contract ends 2028 Average Day per Month shutdown ? 2027 -2030 ?

resource ownership contract ends 2028 Average Day per Month shutdown ? 2027 -2030 ? shutdown 2022 contract through resource

Kaysville Forecasted Load and Resources, April 2018 - March 2019 50, 000 45, 000

Kaysville Forecasted Load and Resources, April 2018 - March 2019 50, 000 45, 000 40, 000 PX San Juan 35, 000 Hunter IPP k. W 30, 000 Veyo CRSP 25, 000 Horse Butte 5 -Year 20, 000 Provo River PV Wind Nebo 15, 000 Other Generation 10, 000 Load 5, 000 0 Apr Apr May Jun Jul Aug Aug Sep Oct Nov Dec Jan Jan Feb Mar Month 4/20/2018

Kaysville Forecasted Load Compared to Resources, April 2018 - March 2019 20, 000 15,

Kaysville Forecasted Load Compared to Resources, April 2018 - March 2019 20, 000 15, 000 10, 000 k. W HLH Shortage HLH Surplus LLH Shortage LLH Surplus 5, 000 0 -5, 000 Apr Apr May Jun Jul Aug Aug Sep Oct Nov Dec Jan Jan Feb Mar Month 4/20/2018

Service Projects

Service Projects

Government & Public Affairs Project �The GPA Project was formed to allow UAMPS to

Government & Public Affairs Project �The GPA Project was formed to allow UAMPS to protect members’ interests by monitoring, influencing, suggesting legislation and educating governmental and regulatory agencies on a local, state and federal level.

Member Services Project � The Member Services Project was undertaken to address community needs.

Member Services Project � The Member Services Project was undertaken to address community needs. � The current services include: infrared camera, heat tracer gun, hazard hamlet, Power Factor Test Set, Pole Testers, Battery Test Set, OSHA training, APPA dues, IPSA dues, Platts subscriptions, and mutual aid agreements. � The Project owns a 1, 600 k. W mobile generator that is used to provide back-up, load control and emergency generation for the distribution systems of certain members. � Hurricane and Washington have used the Project to acquire and finance gas-fired generating units to provide peaking power and voltage support for their electric utility systems.

Resource Project � Through its Resource Project, UAMPS continually analyzes new projects and potential

Resource Project � Through its Resource Project, UAMPS continually analyzes new projects and potential generating options to further procure long term, stable energy supplies for its members both demand-side and supply-side. � The staff conducts, analyses and studies of new power supply projects. � Upon completion of analysis and studies, the Resource Committee votes to solicit participation to form a project, each participant has the right to subscribe (to all, some or none) to at least their project allocation percentage. The participants also have the first right to take any unsubscribed allocation before non-Resource Project participants. � The criteria for screening new resources include cost, operations, reliability, transmission access and environmental impacts.

Resource Project (cont. ) �The Resource Project also includes efficiency programs that UAMPS administers

Resource Project (cont. ) �The Resource Project also includes efficiency programs that UAMPS administers on behalf of the members �Conservation remains the least cost option to stretch energy supplies and avoid new energy development. �The Smart Energy Efficiency Programs include Home Energy Savings, Cool Cash, See Ya Later Refrigerator, Commercial Lighting and Smart Thermostats

�Example…. �Home Energy Savings Program (Rebate Program). �Members elect to participate. �Customers go to

�Example…. �Home Energy Savings Program (Rebate Program). �Members elect to participate. �Customers go to www. uamps. com to determine eligible programs. �Customers submit application to UAMPS within 90 days after date of purchase. �UAMPS verifies the application parameters have been met. �UAMPS pays incentive directly to customer within 45 days.

NEW ENERGY ECONOMY FLEXIBLE RESOURCE Energy Efficiency r ula od M rs all cto

NEW ENERGY ECONOMY FLEXIBLE RESOURCE Energy Efficiency r ula od M rs all cto Sm Rea Di Ge strib ne ute ra d tio n CARBON FREE POWER PROJECT

Carbon Free Power Project �Nu. Scale technology. �Cost competitive with natural gas combined cycle.

Carbon Free Power Project �Nu. Scale technology. �Cost competitive with natural gas combined cycle. �Reduced exposure to environmental regulations. �Phased development approach provides UAMPS the ability to gain technology and cost clarity while providing the Members a risk free development option.

What is a Nu. Scale Power Module? § A Nu. Scale Power Module (NPM)

What is a Nu. Scale Power Module? § A Nu. Scale Power Module (NPM) includes the reactor vessel, steam generators, pressurizer and containment in an integral package that eliminates reactor coolant pumps and large bore piping (no LB-LOCA) § Each NPM is 50 MWe and factory built for easy transport and installation § Each NPM has its own skid-mounted steam turbine-generator and condenser § Each NPM is installed below-grade in a seismically robust, steellined, concrete pool § NPMs can be incrementally added to match load growth - up to 12 NPMs for 600 MWe gross (~570 net) total output

Site Overview cooling towers A annex building turbine building A reactor building control building

Site Overview cooling towers A annex building turbine building A reactor building control building switchyard warehouse turbine building B protected area fence parking radwaste building administration building ISFSI (dry cask storage) cooling towers B 34. 5 acres (~14 hectares) within the protected area fence

Nu. Scale Differentiators Simple Ø Factory-built, integral nuclear steam supply and containment Ø Fewer

Nu. Scale Differentiators Simple Ø Factory-built, integral nuclear steam supply and containment Ø Fewer systems to construct and maintain Safe Ø Ø Ø Unlimited coping period for “Fukushima-like” events Core Damage once every 300, 000 reactor years Site Boundary Emergency Planning Zone Econo Ø mic Competitive with Natural Gas Combined Cycle Ø Ø Integrable with variable renewable energy sources Flexible, add 50 MW modules as needed

Questions?

Questions?