2 Company Background Gexa Energy NextEra Energy Services Parent company is NextEra Energy Inc largest sustainable energy provider in the world Over 1000000 customers Approximately 5000 employees ID: 805572
Download The PPT/PDF document "Mike Mumper & Brian Kick" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Mike Mumper
&
Brian Kick
Slide22
Company Background
Gexa Energy / NextEra Energy Services
Parent company is NextEra Energy Inc.,
largest sustainable energy provider in the world
Over 1,000,000 customers
Approximately 5,000 employees
Slide3Why are we presenting this topic?
Slide4DefinitionsEDC – Electric Distribution Company (wires company)Supplier – the company that procures the commodity ISO – Independent System Operator – in our area = PJMCSP – Curtailment Service Provider
Slide5How is capicity different from demand response?DR requires participation with a CSPDR events may or may not be called in a particular yearPayments for participation are typically shared with the CSPCapacity impacts the cost per kwh for a full yearIf managed properly, all of the savings from reducing capacity can be received by the customer
Slide6Typical bill components
Slide7Typical bill components
Slide8Typical bill components
Slide9What makes up the cost/kwh?Energy – power consumed over time (kWh)Capacity – Your share of the ISO’s cost to meet the ISO’s peak demand. A function of your capacity tag * the utility’s reserve requirement * daily capacity price * number of days.Transmission or NITS – Your share of the utility’s cost to manage their peak transmission. NITS = Network Integrated Transmission Service. A function of your NITO (NITS obligation, same as a cap-tag but for transmission) * daily NITS rate published by utility * number of days.Ancillary Services – the ability of the grid to maintain a stable frequency and maintain reserves (Ancillaries always include the “grab bag” of intermittent charges like RMR, aka Generation Deactivation. Some suppliers call them out, others leave them in the “ancillaries” bucket.) Renewable Energy Credits – state or PUC-mandated charge to spur renewable energy investment
Slide10Today’s key pointHow does this portion of the bill relate to this one?And why does it matter?
Slide1120%
Slide12What do customers know about capcity?Installed Capacity (called cap tag) (PLC) x Unforced Capacity (reserve requirement) x $/MWDay x Days in the period (365) = Capacity ChargeCapacity charge paid by the supplier is? Lump sum? Or per kwh used that year?Who holds the risk?What can the customer control?
Slide13Capacity and transmission market overviewCapacity is a fixed daily charge. Every meter has a Peak Load Contribution (PLC) which is the first step in determining what that charge is. There are 5 PJM Coincident Peaks (CP) that occur during the summer months, most of the time in July and August. A CP is when the system load hits its highest demands for the season.2017 PJM CPs6/12/2017 Hour Ending 186/13/2017 Hour Ending 177/19/2017 Hour Ending 187/20/2017 Hour Ending 177/21/2017 Hour Ending 17 For an interval metered customer, most EDCs take the meter’s recordings for those intervals, grosses them up for distribution losses, and takes an average and that becomes the PLC. There is an additional factor that some have that accounts for matching what the EDC measures their total load as during the 5 CPs and what PJM says it is (the EDC’s value is typically less due to unaccounted for energy).
Slide14Capacity and Transmission Market OverviewCapacity – PJMPJM's capacity market, called the Reliability Pricing Model, ensures long-term grid reliability by securing the appropriate amount of power supply resources needed to meet predicted energy demand in the future.Capacity is priced by the zone in PJM. Since each EDC is it’s own zone, the price of capacity varies by utility.Capacity prices and reserve requirements are set initially during an auction that takes place in June three years before the delivery year begins (called the Base Residual Auction).Both components are adjusted in three subsequent auctions1st Incremental Auction – September, two years prior to the PY beginning2nd Incremental Auction – July, one year prior to the PY beginning3rd Incremental Auction – March, three months prior to the PY beginning
Slide15PJM Capacity Prices by EDC and Planning YearPJM cleared its Base Residual Auction for Planning Year 21/22 on May 23, 2018. Most zones cleared significantly higher than PY 20/21BGE zone saw the largest increase
Slide16What makes up the cost/kwh?Energy – power consumed over time (kWh)Capacity – Your share of the ISO’s cost to meet the ISO’s peak demand. A function of your capacity tag * the utility’s reserve requirement * daily capacity price * number of days.Transmission or NITS – Your share of the utility’s cost to manage their peak transmission. NITS = Network Integrated Transmission Service. A function of your NITO (NITS obligation, same as a cap-tag but for transmission) * daily NITS rate published by utility * number of days.Ancillary Services – the ability of the grid to maintain a stable frequency and maintain reserves (Ancillaries always include the “grab bag” of intermittent charges like RMR, aka Generation Deactivation. Some suppliers call them out, others leave them in the “ancillaries” bucket.) Renewable Energy Credits – state or PUC-mandated charge to spur renewable energy investment
Slide17NITSThe portion of the total kwh charge varies by load sizeThe individual utility also has impact on the NITS chargeThe key is that it is tied to / calculated from the measured demand for an individual customer
Slide18Example of a Cap and Trans Pass-through bill
Slide19How to caculate the monthly cost(Tag x rate (text should read “per kw day”) x number of days billed = monthly cost(57.87 x 0.1647) x 30 = $285.95
Slide20Making a comprison to an “all in” rate
Slide21Contract StructuresIs “fixed price” really fixed?What does PCA mean or similar terms?What can trigger a price adjustment on a fixed price product?What role does swing and band width play?
Slide22NES PLC NotificationsNextEra Energy Services (NES) will provide notifications to participants highlighting the probability that a given day will be a peak. The first notification will be delivered in the morning (via email). On days of higher probability, a second notice will be sent in the early afternoon specifying whether load should be curtailed and the times when curtailment should occur.
Slide23PLC Notifications and Action PlanHow accurate are the PLC notifications?What can you do on a predicted peak day?When will you see the benefit?Will you see the full financial benefit of capacity management?
Slide24Slide25Questions?