Political factors affecting the renewables and energy efficiency
This presentation is the property of its rightful owner.
Sponsored Links
1 / 28

Political Factors Affecting the Renewables and Energy Efficiency PowerPoint PPT Presentation


  • 123 Views
  • Uploaded on
  • Presentation posted in: General

Political Factors Affecting the Renewables and Energy Efficiency. Remarks of Ron Binz, Chairman Colorado Public Utilities Commission October 15, 2010. IPPAI – NRRI Conference New York City. Caveat. I am one of three equal commissioners My positions are my own

Download Presentation

Political Factors Affecting the Renewables and Energy Efficiency

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Political factors affecting the renewables and energy efficiency

Political Factors Affecting the Renewables and Energy Efficiency

Remarks of

Ron Binz, Chairman

Colorado Public Utilities Commission

October 15, 2010

IPPAI – NRRI ConferenceNew York City


Political factors affecting the renewables and energy efficiency

Caveat

  • I am one of three equal commissioners

  • My positions are my own

  • I am confused by many things and have not made up my mind on much at all

  • I don’t even agree with some of the things I say

  • Good advice:

don’t believe everything you think


Outline of this presentation

Outline of this presentation

  • High-level considerations of US Climate Policy

  • Renewable portfolio standards, energy efficiency and controlling GHG emissions

  • One state’s experience

    • Planning

    • Renewables

    • GHG reduction


High level considerations on us ghg policy

High level considerations on US GHG policy

  • Congress has been unable to complete action

  • EPA activities are driving change

    • CAA rules; CO2 regulation

  • States and regions have been moving forward

    • State RPS standards

    • State EE activity

    • State and Regional Climate Agreements

  • Power industry is close to consensus

  • Regulators have consensus on many issues

  • Public opinion


Epri prism merge

EPRI Prism/Merge


Political factors affecting the renewables and energy efficiency

  • Electricity first

  • Carbon cap

  • $4/ton CO2 research fee

  • Allowance allocation

  • Early action provision

Available at

www.fortnightly.com


What is colorado doing

What is Colorado Doing?


The setting

The Setting

  • Two regulated electric utilities; 55% of sales

  • State RES – 30% by 2020 for IOUs

    • Xcel: ~12% renewable energy level now

  • Utility CO2 reduction goals (-20% by 2020)

  • Clean Air/Clean Jobs Act case underway

  • Rates up due to new (fossil) generation facilities


Generation fuels in colorado

Generation Fuels in Colorado


History of colorado s rps

History of Colorado’s RPS

  • Amendment 37 (2004)

    • Voter initiated; 10% by 2020; solar carve-out; net metering

  • HB 1281 (2007)

    • 20% by 2020; 10% for Munis, Coops; solar carve-out

  • HB 1001 (2010)

    • 30% by 2020; carve out for DG of 3% by 2020(~650 MW PV)


Political factors affecting the renewables and energy efficiency

  • Reduce Colorado’s carbon emissions by 20% below 2005 levels by 2020

  • Reduce Colorado’s carbon emissions by 80% below 2005 levels by 2050


Our state energy priorities

Our State Energy Priorities

  • Stress renewable resources

    • Aggressive State Renewable Portfolio Standard

    • Progressive resource planning at Commission

    • Healthy renewables industry

    • A commitment to addressing climate change

  • Boost Energy Efficiency

    • Customer: education

    • Utility: engagement

    • Regulatory: incentive regulation; rate structure changes

  • Advanced technologies development

    • Research and demonstration for carbon sequestration

    • Concentrating solar field at PSCo’s Cameo coal-fired plant

    • CAES and other storage strategies

    • Smart grid test bed in Boulder, Colorado

  • Transmission development

    • SB 100 in Colorado

    • Western Renewable Energy Zones participation


Political factors affecting the renewables and energy efficiency

Gas Price

Increases

Comanche 3

FSV Turbines


Xcel energy

Xcel Energy

  • ~7000 MW peak load

  • 2004-present

    • 1,200 MW wind capacity

    • 60 MW solar capacity

  • By 2015

    • Additional 750 MW wind capacity resulting in 2000 MW

    • >250 MW new solar thermal

    • >160 MW new photovoltaic


Hb10 1365

HB10 -1365


Hb 1365 triggers a coordinated multi pollutant strategy

HB 1365 Triggers a Coordinated, Multi-Pollutant Strategy

  • Ozone

  • Regional Haze

  • Carbon Dioxide

  • “A coordinated plan of emission reductions from these coal-fired power plants will enable Colorado rate-regulated utilities to meet the requirements of the federal Clean Air Act and protect public health and the environment at a lower cost than a piecemeal approach.”

For a copy of legislation: go to www.leg.state.co.us, follow links to HB10-1365


Structure of hb10 1365

Structure of HB10-1365

  • Utility must consult with CDPHE on plan to meet current and projected EPA clean air rules.

  • Utility files plan with PUC to improve air quality, addressing at least 900 MW of coal generation.

  • Utility required to conduct various studies:

    • Plan impacts on NOx emissions

    • Cost of controlling emissions at existing coal plants

    • Cost of replacing 900 MW coal generation with natural gas

    • Impacts on system reliability

  • CDPHE will participate in PUC process.

  • Any PUC-approved plan must meet projected EPA rules.

  • Air Quality Control Commission will incorporate approved plan into State Implementation Plan (SIP) for addressing regional haze.


Political factors affecting the renewables and energy efficiency

$5.88


Long term natural gas contracts

(4) THE UTILITY MAY ENTER INTO LONG-TERM GAS SUPPLY

AGREEMENTS TO IMPLEMENT THE REQUIREMENTS OF THIS PART 2. A

LONG-TERM GAS SUPPLY AGREEMENT IS AN AGREEMENT WITH A TERM OF

NOT LESS THAN THREE YEARS OR MORE THAN TWENTY YEARS. ALL

LONG-TERM GAS SUPPLY AGREEMENTS MAY BE FILED WITH THE COMMISSION

FOR REVIEW AND APPROVAL. THE COMMISSION SHALL DETERMINE WHETHER

THE UTILITY ACTED PRUDENTLY BY ENTERING INTO THE SPECIFIC

AGREEMENT, WHETHER THE PROPOSED AGREEMENT APPEARS TO BE

BENEFICIAL TO CONSUMERS, AND WHETHER THE AGREEMENT IS IN THE

PUBLIC INTEREST. IF AN AGREEMENT IS APPROVED, THE UTILITY IS ENTITLED

TO RECOVER THROUGH RATES THE COSTS IT INCURS UNDER THE APPROVED

AGREEMENT, AND ANY APPROVED AMENDMENTS TO THE AGREEMENT,

NOTWITHSTANDING ANY CHANGE IN THE MARKET PRICE OF NATURAL GAS

DURING THE TERM OF THE AGREEMENT. THE COMMISSION SHALL NOT

REVERSE ITS APPROVAL OF THE LONG-TERM GAS AGREEMENT EVEN IF THE

AGREEMENT PRICE IS HIGHER THAN A FUTURE MARKET PRICE OF NATURAL

GAS.

Long Term Natural Gas Contracts


Political factors affecting the renewables and energy efficiency

San Luis Valley


Solar electric density

Solar Electric Density

  • Use: 100 MW(ac)/mile2

  • Colorado Peak Integrated Demand: 11GW

  • Result: 110 mile2 required land area


Political factors affecting the renewables and energy efficiency

San Luis Valley


Political factors affecting the renewables and energy efficiency

But what if 11 GW of solar were spread around the state in 100 MW installations?

It might look like this...


Thanks for the invitation

Thanks for the invitation.

I look forward to your questions.


  • Login