Presentation to Acoma Pueblo by Working Session Draft 10272016 1 Glossary Peak Demand the maximum energy required at a specific time expressed in thousands of watts kilowatts or KW KWmo ID: 812440
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Slide1
New Directions: Outline of Acoma’s Energy Future After Continental Divide Electric Coop
Presentation to Acoma Pueblo by
Working Session Draft
10/27/2016
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Slide2GlossaryPeak Demand: the maximum energy required at a specific time, expressed in thousands of watts (kilowatts or KW)$KW-mo
: the $/KW price x the maximum of KW recorded at the electric meter over the past 12 months kWh: thousands of watts/hour of energy produced or used over time$/kWh
: the price per kWh consumed or producedBtu (British thermal unit): measure of energy required to raise 16 oz. of water by one degree F. $/
MMBtu: price per 1 million btu, the standard price increment for natural gas.
Standard Cubic Foot (SCF): for Natural Gas, 1 scf typically = 950-1,150
btu
. 1
mmbtu = 1,000 scf of natural gasLoad Factor: for an electric generator: Full load = running the generator 100% of the timePartial Load = running the generator as less than 100% of the timeAvailability: the percent of time an electric generator or source of electric supply is available to produce or supply electricity. Capacity: the maximum amount of power in KW that can be produced by a generatorCapacity Factor: the average amount of capacity produced by a generator over timeOutage: forced (ie, a breakdown) or scheduled (down time for maintenance)Heat Rate: the btu required to produce a kWh of electricityReliability: the measure of certainty in receiving power from a given source. Reliability has to take into account outages (forced and scheduled)N-1 Reliability Risk: the risk of loss to the electric supply system from the single largest potential failure event on the system. This can include the forced outage or failure of:the transmission line or substation feeding the system for any scenario involving delivery of wholesale power, or the largest generating unit under a self-supply scenario.
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Slide3BackgroundAcoma and CDEC have agreed to “part ways”Enables Acoma to either:Grant another utility a “franchise” and become their retail customer (a “new” CDEC), or
Maintain Independence by forming a Tribal Utility Authority (TUA) Transition Period:Power Purchase Agreement Self-Generate Power
CDEC may be available during the transition to:Provide Acoma TUA with power requirementsHelp operate and maintain Acoma’s distribution system
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Slide4Results Summary100% Wholesale Power (including WAPA allocation) is most expensive option at $0.0843/kWh ($84.30/MWH, Navopache/PNM PSA, 2013)
The regional market for purchased power is +/- $0.07/kWh ($70/MWH) – electrical transmission and substation costs are major considerationsEngine/generators w/natural gas fuel at $3.96/
mmbtu and 80% load factor are priced at $0.082/kWh ($82/MWH) and is the most cost-effective and reliable solution, with the potential for improved economics via Combined Heat & Power, priced at about $0.076/kWh ($76/MWH)
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Slide5Energy Options: Tribal Utility AuthorityMeeting Power & Energy Requirements:WAPA Capacity & Energy Allocation
Purchase Wholesale Power off the GridSelf-Generate some or all of Acoma’s needs“Behind the Meter” for specific loadsCentral/Distributed Plant to meet all or most loads
Acoma Electricity Distribution System: Third Party Vendor/ContractLong-term arrangement Short term, with transition to Acoma operations
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Slide6Current Loads, 2011 per CAR* Study of Acoma for CDEC, July 2012
Energy: 22 MM kWh/yearAssumed Capacity Factor: 60%Imputed KW Demand (Peak Load): 22 MM kWh/yr / 8,760 hrs/yr / 60% capacity factor = 4,318 KW
* Center for Advanced Research
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Slide7Acoma data for 2011 by Category, per Center for Advanced Research* July 2012
2011
TotalResidential
Small Commercial (<50 KW/mo)
Large Commercial & Industrial (>50 KW/mo)
Meters
937
8091262Sales/yr$1.75 MM$636k$639K$482k Pct of Total36%36%28%Energy (kWh)/yr22.7 MM5.6 MM
7.3 MM9.8 MM
Pct of Total
25%
32%
43%
Effective $/kWh
$0.077
$0.1129
$0.0868
$0.0491
* Numbers not verified by YESCO
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Slide8Average Measured ABE Loads & Costs, Mar 2010 – Feb 2011 Data
Accts >50 KW
except other commerclPublic Fire & Safety
Tribal Admin *
Cultural CenterCasino Signage
Casino&
Hotel
Travel CenterCasino Hiway SignOther Commercial <50 KW (24 meters)Ave Mo $$2,803$789$3,828$1,914$29,894$7,164$2,796$7,569Ave KW-mo
75
29113
48
660
160
74
na
$KW-mo
$561
$216
$846
$600
$4,463
$1,196
$1,108
na
kWh-mo
30,360
6,059
38,840
19,820
369,933
87,880
27,956
77,083
Effective
$/kWh
$0.0923
$0.1302
$0.0986$0.0966$0.0808$0.0815$0.100$0.0982KW - Peak89541515782818374naAve KW as % of Peak KW72%28%53%68%61%78%99%na* Exceeded 50KW in only 1 of 12 months
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Slide9Wholesale Power Sources: Existing Allocation from WAPA to AcomaDemand ($5.18/KW-mo):
Summer (Apr – Sep): 410 KW/moWinter (Oct – Mar): 420 KW/moEnergy ($0.0122/kWh): Summer: 783,229/kWh total;
ave = 130,538/kWh/moWinter: 750,759/kWh total; ave = 125,127/kWh/mo
Transmission Delivery Costs: $1.14/KW-mo + $0.0162/kWhAll-in delivered cost = $0.0489/kWh ($48.90/MWH)
(Note: The WAPA allocation is equivalent to about ½ the power used by the hotel casino, at about 60% of CDEC’s cost)
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Slide10Wholesale Power: 5,000 KW estimated Peak Requirement (assumes 100% of Acoma supply)
Customer/Whsle SupplierDemand:
$/KW-moEnergy:$/kWh
Effective Rate:$/kWh
Gallup/PNM (expired 2013)$15.75
$0.0243
$0.0603
Navopache/PNM: 2012 PSA$20.49$0.00961+ $0.024 fuel = $0.0336$0.0843Regional Market: (Gallup bids, JAN)+/-$0.07/kWhPotential for PNM off-peak power (8pm-8am) for use in partial self-supply options – no discussions have taken place<$0.04/kWhWorking Session Draft
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Slide11Acoma Rate Forecast: WAPA + PNM (Novapache PSA, 2013): 5,000 KW peak requirement
KW-mo
$/KW-mo
$/KW/yr
kWh/yr$/kWh/yr
Total
Cost/yr
Effective Rate$/kWhWAPA KW+kWh415 (ave)$5.18$25,7961.5 MM$0.0122$18,699$44,496$0.0290WAPA Trans415 $1.14
$5,677
1.5 MM$0.0162
$24,805
$30,482
$0.0199
PNM
KW+kWh
4,585
$20.49
$1.127 MM
21.6 MM
$0.0336
$0.711 MM
$1.839 MM
$0.0869
Total Costs
$1.16 MM
$0.755 MM
$1.913 MM
$0.0843
Distribution
System O&M per T or C , plus $50k/yr Reserve Fund
$295k
$0.0130
Total/Yr
5,000
$1.16 MM
22.7 MM
$0.755 MM
$2.209MM$0.0973Working Session Draft10/27/201611
Slide12Self GenerationIndividual loads (behind the meter)Combined loads (casino/hotel, travel center, signage, lighting)Full loads: grid independence
Merchant PowerPeakingIntermediateBaseload
RenewablesWorking Session Draft
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Slide13Self GenerationSupply full or partial load requirements Gas-fired micro turbine/generator (GT) or internal combustion engine/generator (ICE)Optional heat recovery of process heat for space heating/cooling, hot water, low level (ICE) or high level (GT) steam
Small scale: estimated 4,300 KW peak load in 2011, growing to 10,000 KW with Industrial ParkPrime Considerations: Reliability
PriceIncremental Expansion Capability
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Slide14Technology OptionsGas Turbines: Higher capital & operating costs; not efficient under partial load, not scalable, reduced reliability (too large to fail)
Internal Combustion Engine (ICE)/Generators:Efficient in full or variable load conditionsSmall size options (400, 800, 1500, 2000 KW) allow multiple machines to be optimally matched with variable loads (scalable and redundant)
4,800 KW of ICE units = $7.96 million installed cost ($1,650/KW)Highest reliability for AcomaService contracts readily available
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Slide15Caterpillar CG132-6 800 KW Engine/GeneratorOutput: 800 KWHeat Rate (LHV):100% load = 9,049
btu/kWh75% load = 9,376 btu/kWh50% load = 10,068/
btu/kWh41.5% electrical efficiency = highest in the industry
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Slide16Self-Generation Model Inputs and ResultsInputs:4,800 KW gross generating capacity (no spare engine)
$7.96 million installed costNatural Gas at $3.96/mmbtu (Dec 2013 quote – NG is a pass through item tied to index)Average 80% Capacity Factor
Debt: 20 year period; 3.12% per annum rateOperating & Maintenance Costs (Variable and Fixed) per Cat specifications2% annual escalation (wholesale power purchases presumed to escalate at the same rate)
Results: $0.0822/kWh ($82.22/MWH) in Yr 1
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Slide17Natural Gas Price Forecast, March 2012
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Slide18Natural Gas Price Forecast, April 2011
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Slide19Natural Gas Short-Term Outlook, February, 2014
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Slide20Natural Gas Liquids Spot Prices (Propane), 2013 - 2014
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Slide21Results Summary100% Wholesale Power (including WAPA allocation) is most expensive option at $0.0843/kWh ($84.30/MWH, Navopache/PNM PSA, 2013)
The regional market for purchased power is +/- $0.07/kWh ($70/MWH) – electrical transmission and substation costs are major considerationsEngine/generators w/natural gas fuel at $3.96/
mmbtu and 80% load factor are priced at $0.082/kWh ($82/MWH) and is the most cost-effective and reliable solution, with the potential for improved economics via Combined Heat & Power, priced at about $0.076/kWh ($76/MWH)
Working Session Draft
10/27/2016
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Slide22Financing OptionsUSDA Rural Utility Systems (RUS): Targets Indian Country InfrastructureInterest Rates as low as 2%
New Market Tax Credits (NMTC):“leveraged” NMTC strips 39% out as federal tax creditDiscounted value paid by investor (about 30% of total loan value) for tax credit, which is not repaid
Potential for tribal sharing in tax credit payment7 year debt repayment w/rollover to longer termTribal Economic Development (TED) Bonds
US Treasury Dept programTax free bond issueThird Party Conventional Financing
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Slide23Way ForwardAcquire 15 minute meter data from CDECDevelop plan and schedule for establishing Tribal Utility Authority (electricity & gas)Clearly define costs of distribution system
Determine additional power needs of Industrial Park and new tribal loadsIdentify CHP opportunitiesEvaluate/optimize engine/generator loads by location
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Slide24Thank You
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