Integrated Resource Plan

Report
Reno, NV
December 18, 2013
1
Agenda
1.
Regulatory Filings Update
2.
Integrated Resource Plan Update
3.
SB 123- NVision
4.
Stakeholder Input

2
Regulatory Filings Update





One Company Filing
One Company Rate Case
Tariff Changes
NPC Rate Case Settlement
FERC Order 1000
3

NVE filed an Application For Approval of
Internal Reorganization May 31, 2013
◦ Sierra Pacific to merge into Nevada Power.
◦ The surviving entity will be renamed NV Energy
Operating Company.
◦ The transaction to be effective January 1, 2014 or
the in-service date of ON Line.
◦ FERC issued an order on November 26, 2013
authorizing the transaction.
4

NVE filed a combined rate case May 31,
◦ One set of rates for NV Energy Operating Company
(the combined company)
◦ ON Line costs included
 Expected completion – December 2013
◦
◦
◦
◦
◦
Rates effective January 1, 2014
Transmission and NITS rate to be $3.57 per kW month
ROE – 10.50%
Loss for combined BAA updated 1.57%
Updated rates for Sch. 1, 2, 3, 5, 6, 7, 8, 11 & NITS
5


The case is currently in settlement
proceedings at FERC.
Next settlement conference is scheduled for
Thursday, January 16, 2014 at FERC.
6


Tariff for NV Energy Operating Company
requested to be effective Jan. 1, 2014
Tariff updated to reflect one BAA (SPPC /
NEVP to be combined to NVE on 1/1/14)
7





NPC filed a stand-alone rate case October 31,
2012.
On December 31, 2012 FERC accepted the filing
and suspended the rates for five months to be
effective June 1, 2013.
The December 31, 2012 order also established
hearing and settlement judge proceedings.
Settlement was reached and NPC filed the
settlement November 27, 2013.
On December 5, 2013 the Chief Judge granted a
Motion for Interim Rate Relief effective November
1, 2013.
8
Schedule
Description
Settled Rate
Measurement
Rate
Basic Rate
Firm Point to Point Service
$1.88
KW per month
Basic Rate
Non-Firm Point to Point
Service
$1.88
KW per month
Basic Rate
Network Integration
Transmission Service
$1.88
KW per month
$70.92
MW per month
$292.00
MW per month
1
Scheduling
2
Reactive Supply
3
Regulation
$7.25
KW per month
5
Spinning Reserve
$7.25
KW per month
6
Supplemental Reserve
$7.10
KW per month
11
Generator Regulation
$7.25
KW per month


On July 21, 2011, the Federal Energy Regulatory
Commission (“FERC”) issued Order No. 1000,
Transmission Planning and Cost Allocation by
Transmission Owning and Operating Public Utilities
(“Order 1000”), which became effective on October
11, 2011
Four areas of reform:
◦ Regional transmission planning
◦ Interregional transmission planning coordination
◦ Right of First Refusal (ROFR) – N/A to Nevada
◦ Cost Allocation
10



Public Utility Transmission Providers (“TPs”) required to
participate in a regional planning process that satisfies Order
890 principles (coordination, openness, transparency,
information exchange, comparability, dispute resolution and
economic planning) and produces a regional transmission plan
◦ Each region to produce a regional plan reflecting solutions that
meet the region’s needs more efficiently or cost effectively
Local and Regional transmission planning processes must
consider transmission needs driven by “Public Policy
Requirements” established by state or federal laws or regulations
TPs in each pair of neighboring planning regions must
coordinate to determine if more efficient or cost-effective
solutions are available
11
•
•
•
Order is process, not outcome, oriented
FERC did not prescribe the exact manner for public
utilities to develop the regional transmission
planning process, but rather only set forth
principles for public utilities, in consultation with
stakeholders, to develop a transmission planning
process for their regions (P157)
FERC did not require that the regional transmission
planning process create/establish obligations to
build or commitments to construct transmission
facilities – rather Order 1000 simply sets forth
principles public utilities need to consider in
developing a regional transmission planning
process (P159)
12




FERC concluded that the WestConnect filing
partially complied with the requirements of Order
No. 1000and directed further compliance filings:
State that WestConnect has an obligation to
identify transmission solutions in the regional
transmission planning process that more efficiently
or cost-effectively meet transmission needs
Address Order No. 1000’s requirement to consider
transmission needs driven by public policy
requirements
Provide that regional cost allocations are binding
on identified beneficiaries.
13
Integrated Resource Plan (IRP)
Status
14
HOT
WEATHER
ENERGY
PCT
PEAK
PCT
PEAK
PCT
Year
(GWH)
GROWTH
(MW)
GROWTH
(MW)
GROWTH
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
21,856
21,889
22,089
22,144
22,313
22,492
22,803
23,129
23,477
23,714
23,954
24,227
0.2%
0.9%
0.3%
0.8%
0.8%
1.4%
1.4%
1.5%
1.0%
1.0%
1.1%
5,571
5,604
5,656
5,629
5,654
5,713
5,795
5,883
5,963
6,043
6,108
6,180
0.6%
0.9%
-0.5%
0.4%
1.0%
1.4%
1.5%
1.4%
1.3%
1.1%
1.2%
5,807
5,841
5,896
5,867
5,893
5,955
6,040
6,132
6,216
6,299
6,367
6,442
0.6%
0.9%
-0.5%
0.4%
1.1%
1.4%
1.5%
1.4%
1.3%
1.1%
1.2%
15
HOT
WEATHER
ENERGY
PCT
PEAK
PCT
PEAK
PCT
Year
(GWH)
GROWTH
(MW)
GROWTH
(MW)
GROWTH
2012
8,949
2013
9,179
2.6%
1,664
2.7%
1,728
2.7%
2014
9,123
-0.6%
1,659
-0.3%
1,723
-0.3%
2015
9,139
0.2%
1,663
0.2%
1,723
0.0%
2016
9,268
1.4%
1,583
-4.8%
1,727
0.2%
2017
8,782
-5.2%
1,620
2.3%
1,644
-4.8%
2018
9,061
3.2%
1,651
1.9%
1,683
2.4%
2019
9,274
2.4%
1,669
1.1%
1,715
1.9%
2020
9,374
1.1%
1,684
0.9%
1,733
1.0%
2021
9,474
1.1%
1,697
0.8%
1,749
0.9%
2022
9,498
0.3%
1,703
0.4%
1,763
0.8%
2023
9,500
0.0%
1,720
1.0%
1,769
0.3%
1,621
1,683
16
RECORDED
FORECAST
20-yr
average
Temps
Daily Temperatures
(MW)
Date
Hour
Max
Min
(MW)
Max
Min
South
5,854
7/2/2013
5:00 PM
115
90
5,604
112
87
North
1,720
7/22/2013
5:00 PM
101
69
1,664
101
64
17
1.
2.
3.
4.
2012 IRP filed June 2012 (Docket 12-06053)
Planning period: 2013 – 2032
PUCN Final Order December 24, 2012
PUCN approval was not requested for any new
transmission projects
18
ON Line Transmission Project
19
NW
(BPA)
ID-NW
(#14)
COI
(#66)
ALTURAS
(#76)
ID
(IPC)
ID-SPP
(#16)
CA
(PG&E)
PGE-SPP
(#24)
“C”
(#20)
SPPC
IN/PAVGON (#32)
UTAH
(PAC)
ON Line
RB-HA
(#35)
MDWLBNS
(#15)
NPC
Cry-HA
(#77)
TOT 2B
(#78/79)
CENT/S.
CUTPLANE
CA/AZ
(SCE/LA/WAPA/APS)
Figure 1: ON Line versus major WECC Paths
20
SCOPE
◦ 235-mile 500 kV transmission line
Robinson-Harry Allen
◦ Robinson Summit 500/345 kV
substation
◦ Falcon-Gonder Fold
◦ Series compensation on the
existing Falcon – Gonder 345 kV
line
◦ Harry Allen Terminal
SPPC and NPC Balancing areas will be
consolidated post ON- Line
Budget revised from $510 million to $552
million
In-service date of the project has been
delayed to December 31, 2013
21
1.
2.
3.
2013 IRP filed July 1, 2013 (Docket 13-07005)
Planning period: 2014 – 2033
Requested approval for new transmission projects
22
Bordertown to Cal Sub 120 kV Line
1.
2.
3.
The project was approved by the PUCN in 2007 and includes
the construction of a 345/120 kV transformer at Bordertown
Substation and a new 120 kV line from Bordertown
substation to California Substation.
Project would provide additional transmission support to the
West Reno transmission system for outages of a North Valley
Road transformer and N-1-1 outages of the 120 kV
transmission system.
To date Sierra has not obtained the required permits for this
line and permitting work is continuing. The in-service date
for this project has been moved from 2012 to 2016.
23
345 KV Voltage Support Project



Add 75 MVA 345 kV capacitor bank at North Valley Road
substation and Mira Loma substation
Mira Loma in service date is December 2013
Valley Road in service date is February 2014
24
Hycroft Mine Load Addition / Oreana 345/120 kV Substation





New 345/120 kV substation with a 280 MVA transformer
Expand existing Dun Glen Switching Station
Rebuild 119 & 162 lines to Bundled 954 ACSR for approx. 34
miles
Install approx. 48 miles of new Bundled 954 ACSR 120 kV line
Install a new 20 MVar Capacitor banks at Dun Glen and Hycroft
25
Carlin Trend Master Plan




Carlin Trend Under Voltage Load Shedding Scheme
Second Falcon 345/120 kV Transformer
Coyote Creek 120 kV Breaker Addition
Carlin Trend Transmission Additions
26




“Emission Reduction and Capacity Replacement Plan”
Requires NVE-South to retire or eliminate 800 MW of coal by
2019 (Reid Gardner 1,2&3 2014, Reid Gardner 4 2017 and
Navajo 2019)
Requires NVE to replace coal with company owned 550 MW of
generation either constructed or acquired
◦ Generation type not specified
◦ Receive cost recovery for decommissioning costs
Consumer protection, cap on rates at 5%
27




Requires annual RFPs for 100 MW of new renewables in 2014,
15, 16
◦ NVE can participate and compete in RFPs
Requires 50 MW of company-owned renewables to start
construction by 2017
Expect to file a Resource Plan Amendment with the PUCN in the
Spring of 2014 with plan to comply with SB123 and required
resource additions.
New generation additions may require additional transmission
including the addition of the Harry Allen 230/500 kV
transformer.
28
29

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