State Energy Office January 30 th 2017 1 Discussion topics FMD overview and calculations Net System Mix update 2014 data set Preliminary 2015 FMD results Treatment of RECs Reducing unspecified power claims ID: 723762
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Fuel Mix Disclosure
Policy MeetingState Energy Office
January 30
th
, 2017
1Slide2
Discussion topics
FMD overview and calculations
Net System Mix update (2014 data set)
Preliminary 2015 FMD results
Treatment of RECs
Reducing unspecified power claims
Legislative considerations
2Slide3
FMD Calculation Overview
Power Generation
Power Claims
Net System Mix
3Slide4
Power Generation
FMD considers electric power generation in the Northwest Power Pool
Washington, Oregon, Idaho, Utah, Montana, Wyoming, most of Nevada, and part of northern California
NWPP is considered the trading region for WA and OR utilities
4Slide5
Power Claims
Power “claimed” or accounted for as sold to utility retail customers
From utility owned or contracted resources (specified resources)
Market purchases (unspecified power)
5Slide6
Net System Mix
Net System
Mix
=
Power
Generation – Power Claims
This
formula
subtracts claims
for specified
sources from total NWPP power generation
Net system mix is considered available for utility market purchaseFMD process estimates the
mix (fuels) of
the net system mix.
6Slide7
Current NWPP Electric Power Claims
Power c
laims only from WA and OR
Comm. has access to data sources to expand claims to utilities in other NWPP states
Data sources of variable quality
7Slide8
Improving the Net System Mix Assessment –
Initial Results
Start with Net System Mix – WA & OR claims removed
Stage 1 – remove estimated utilities claims that are of high quality
Stage 2 – remove estimated utility claims that are lower quality (from utility level FMD or IRP reports)
These steps significantly reduce the size of the net system mix
8Slide9
Zeroing Out Renewables
Current
FMD policy is to
“zero out” remaining
renewables (wind, solar, geothermal, etc.) after WA and OR claims. This is based on the assumption that the remaining renewable resources are being used by utilities in the NWPP and CA to meet RPS
requirement
Renewable resources were added back into the net system mix analysis presented at the last meeting for illustrative purposes
9Slide10
Improving the Net System Mix Assessment –Updated Results as of Dec. 2016 (inclusion of renewable energy)
Comparison of the NWPP Net System Mix before & after adjustment for out-of-state utility claims
10Slide11
Preliminary 2015 FMD Results: NWPP 2014 & 2015 Generation Comparison
11
NWPP totals exclude 3 out of region Pacific Corp power plants which generated approx. 18 million MWh in 2014. These plants are part of the OR claims on resources and provide power to
other Pacific Corp states.Slide12
Preliminary 2015 FMD Results: NWPP 2014 & 2015 OR and WA Utility Claims Comparison
12Slide13
Preliminary 2015 FMD Results: NWPP 2014 & 2015 Net System Mix Comparison
13Slide14
14
2015 FMD Report Example: Summary SectionSlide15
2015 FMD Report Example: Claims on Plants
15Slide16
2015 FMD Report Example: Power Claims (cont.)
16Slide17
Expanded Declaration of Resources
About 85% of energy delivered by WA Utilities is declared
Wide range among larger utilities
0 to 98%
Unspecified power is typically more carbon intense than declared resources
More than twice as carbon intense than the average declared resource
Results in a shift of fossil fuel attributes from specific generators and purchasers to others
17Slide18
Expanded Declaration of Resources
Developing a better understanding of reasons for unspecified power
Utilities that opt to use the system mix instead of declaring resources
Energy from wind projects sold without RECs
System sales and power exchange agreements
Short-term power purchases
Options to expand declaration of short term power purchases
Use of NERC e-tags to identify & claim power sources
Use of WSPP “specified source” contract to identify and claim sources
Objective: More fossil fuel resources are claimed and fewer are shifted to the net system mix
18Slide19
Renewable Energy Credits
Fuel mix reports the attributes of the energy delivered to customers
Not the attributes of energy produced by the utility
Renewable energy credits are necessary to claim a renewable resource
Energy + REC = Renewable Energy
Energy without a REC is not renewable energy
19Slide20
Renewable Energy Credits
Renewable Energy Credits can “green up” a utility’s fuel mix disclosure
Retired RECs can replace the attributes of other energy in the fuel mix
Other energy attributes do not disappear – shift to net system mix
Example – Utility uses 100% natural gas to supply customers. Retires wind RECs for 50% of load
Open issues in using Renewable Energy Credits for fuel mix disclosure
Use retired RECs to “green up” specific power sources such as a coal contract?
Use retired RECs
to “green up”
specific slices of net system mix?
Use retired
RECs from outside the fuel mix calculation year?
20Slide21
Potential Legislative or Policy Changes to FMD
Open Discussion
Future
Meetings?
Future Topics?
Homework
assignments
21Slide22
Staff Resources
Glenn
Blackmon
Senior Energy Policy Specialist
(360)
725-3115
glenn.blackmon@commerce.wa.gov
Greg
Nothstein
Energy Policy Specialist
(360)
725-3112
greg.nothstein@commerce.wa.gov
22Slide23
www.commerce.wa.gov
Presented by State Energy Office Staff
For further information:
Jill Nordstrom
Data & Programs Supervisor
(360) 725-3117
jill.nordstrom@commerce.wa.gov
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