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Fuel Mix Disclosure Policy Meeting Fuel Mix Disclosure Policy Meeting

Fuel Mix Disclosure Policy Meeting - PowerPoint Presentation

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Fuel Mix Disclosure Policy Meeting - PPT Presentation

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

mix power system energy power mix energy system net claims fmd renewable resources nwpp 2015 utility fuel amp recs

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Presentation Transcript

Slide1

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

23