Eco green group utility overview presentation final

“An Overview of our Utilities
and how it relates to
sustainability
ECO Green Group Thursday May 7, 2015
by
Tony Green
Copyright @ Tony Green 2015

Agenda
1. Power Generation in California
2. Transmission and distribution to our homes
3. What are Deregulation, Wholesale Markets and CAISO?
4. Utilities in the State of California
5. What is the Renewable Portfolio Standard?
6. Grid Communication – getting Smarter with Smart Meters
7. Demand Response
8. Looking toward the Future

“The Lights Must Stay On”
Source: http://www.nd.edu/~jstiver/FIN360/Lecture%20Slides/The%20US%20Power%20Grid.ppt

How is the energy we consume
produced?

produced?
Photos Courtesy of dreamstime.com

produced?
46,486
13,555
2,323
401
6,567
4,541
2,603
1,579
15,290
MW Generated Conventional and Renewable
Oil/Gas Hydro-electric Nuclear Coal Wind Solar Geothermal Waste to Energy (WTE)

Peaker Plants
http://www.willdecher.com/California-vs-The-Peaker-Plant
operating reserves (readily available generating
capacity) to ensure a reliable supply of electricity.
Can be quickly put into service for
contingencies such as another generator
suddenly becoming unavailable or if demand
for electricity is higher than usual.
TAKEAWAYS
Peakers' plants provide electricity when it's hot, but at
the highest price
-AND-
Peaker plants are outdated, inefficient, coal-fired
pollution factories

Peaker Plants
http://inside.edison.com/g1012
Number of Plants (at
least .1 MW)
1285
Total MW Online 78,055
Total MW Peaker 5,522
Number of Peaker
Plants
48
Percentage MW of
Peaker
7%
Peaker Plants in California

o Base Load plants are typically steam driven. They operate at 35% efficiency, but
must run at full capacity and are difficult to start up and shut down.
o Peak Load Plants usually use gas turbines. They operate at a lower efficiency,
but can be started up and shut down rapidly.
The Difference in Base Load and
Peak Load

transported?
Source: Presenters personal collection
Source: dreamstime.com
Source: Public Service Commission of Wisconsin Underground Electric Transmission Line

How is the energy we consumed
produced?
Source:
http://ww2.wapa.gov/sites/western/business/selling/Documents/Construction_Std_
Dwg_Part_One.pdf
Image: Presenter Personal Photo

produced?

produced?
Image: Courtesy of dreramstime.com

What is Deregulation? How did it
come to pass?
 In the past the transmission companies controlled the access to
the power which went through its lines.
 Deregulation allowed parties other than the transmission
companies to have access to the power which went through its
lines

What caused Deregulation?
to occur?
 Northeast Blackout (1965) and Three Mile Island (1979)
damaged trust in the industry.
 Oil Price Shocks (1973, 1979) and the Clean Air Act
(1970) encouraged the more efficient use of fossil fuels
and development of alternative energy sources
 Technological improvement in power generation
(combination power plants)
 Large price discrepancy in electricity prices across the
US suggested price discrimination in the industry

How does the Wholesale market
operate?
There are three basic types transactions that take place on the
grid
 Sale for Resale – Wholesale market
 Retail Sale of Electricity or the Retail Market
 Wheeling (3rd party charges for use of transmission lines)

How does the Whole sale market
Operate? The Power Exchange

What is the Grid?
Source: Plunkett Report U.S. Electric Grid Enhancements include a Smart Grid, Smart Meters and Flow Batteries Updated 03-13-
2014 and Source: Smart Grid and You—The Consumer - NEMA
What is it? It’s electricity with a brain!
It listens, processes, and even responds. Bottom line, it’s all about adding “intelligence” to our aging electric
power infrastructure and delivery systems, from the power plant to the appliances inside your home.
The networks of electric lines that businesses and consumers depend on every day are connected with
and interdependent upon a national network of major lines collectively called “the grid.”
Unfortunately, much of this grid was designed and constructed with technology developed in the
1950s and 1960s, and it was never intended to carry the amazing amount of power that today’s
electricity-hungry Americans consume. Simply put, much of the grid is out of date.
What is the SMART Grid?

What is CAISO and how did it
come to be?
 CAISO was created in 1998 when the state restructured its
electricity markets at the recommendation of the Federal Energy
Regulatory Commission (FERC), following the passage of the
Federal Energy Policy Act of 1992
 Removed barriers to competition in the wholesale generation of the
electricity business.
 The CAISO is regulated by the FERC because interstate transmission
lines fall under the jurisdiction of federal commerce laws.

What are the major division of
CAISO?
Source: http://www.nd.edu/~jstiver/FIN360/Lecture%20Slides/The%20US%20Power%20Grid.ppt
U.S. Grid with Major Interconnections

How does CAISO operate?

Types of Utilities in California
There are 4 basic groups of Utilities
 Investor Owned Based (IOU) – These are the large utility which
serve thousands of customers, these are public companies
which are owned by investor- They serve thousands of
customers.
 2. Municipals - These utilities service a small market area, often
a town, city or county.
 3. Cooperative/Rural - often serve smaller metropolitan markets
or rural areas since not economical for large IOU or Municipals
to supply,
 4. Federal - These utilities are owned by the federal government.

Examples of each Types of Utility
in California

Local Utilities in Silicon Valley
http://www.energy.ca.gov/maps/serviceareas/Electric_Service_Areas_Detail.pdf

California Utilities
Copyright @ Tony Green 2015 http://www.energy.ca.gov/maps/serviceareas/Electric_Service_Areas.pdf
67,091
10,572
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
IOU Municipal Other
Generation of power in MW by Utility Type
# of MW

Renewable Portfolio Standard
 It is a commitment to make 33% all energy procured
by energy retailers in California renewable by 2020
Who does this cover?
What is it?
 Investor owned utilities, energy service providers,
small and multi-jurisdictional utilities, and
community choice aggregators.
 Municipal utilities have a voluntary RPS obligation
 The RPS also requires retail sellers to achieve intermediate RPS targets
of 20% from 2011-2013 and 25% from 2014-2016.
 Note: 20% obligation started in 2010 and continues indefinitely

Established in 2002 under Senate Bill 1078, accelerated
in 2006 and expanded in 2011 - California's is one of
the most ambitious renewable energy standards in the
country
How did it come to be?
Who owns this?
The California Public Utilities Commission (CPUC) and
the California Energy Commission (CEC) jointly
implement and administers RPS compliance rules for
California’s retail sellers of electricity

California's three large IOUs collectively
served 22.7% of their 2013 retail electricity
sales with renewable power.
How are we doing?
Source: http://www.cpuc.ca.gov/PUC/energy/Renewables/
Since 2003, 8,248 MW of renewable capacity
achieved commercial operation under the
RPS program. In 2014, 3529 MW of capacity
reached commercial operation.
Image: Courtesy of dreramstime.comImage: Courtesy of fotolia.us

IOU progress towards 33% renewables, actual and forecasted by year
Reference: Renewable Portfolio Standard (RPS) Quarterly Report 4th Quarter 2014

Renewable resource mix, actual and forecasted by year
Reference: Renewable Portfolio Standard (RPS) Quarterly Report 4th Quarter 2014

Smart Meters – Starting from dumb
And getting smarter all the time
http://extension.psu.edu/natural-
resources/energy/aec-
program/resources/real-time-pricing-
fact-sheet/download.
Source: Presenter’s personal
collection
collection
A smart meter is a device that can communicate with the utility as well
as the consumer’s equipment and records and relays detailed
consumption patterns to the utility.

Smart Meters Operation
collection
SMART METERS:
 Transmit use data to the
utilities
 Alert utilities to service
interruptions
 Display price fluctuations

Smart Meter Operation
http://www.centerpointelectric.com/staticf
iles/CNP/Common/SiteAssets/doc/92617
%20energy%20insight%20brochure.pdf
Data is transmitted from the meters to
cell relays, which are wireless devices
installed on distribution poles.
Cell relays pick up signals from meters in
the vicinity and transmit the data via
radio to a Take Out Point (TOP).
TOPs collect data from cell relays within
a several-mile radius and deliver it to the
data center via microwave or fiber optic
cable.

Smart Metering
To keep in mind:
Smart metering does not refer to just the meter. It comprises an entire system
capable of functionalities Example load control programs, demand response
Automatic meter reading (AMR) is the technology by which the power
consumption data from the metering device is transferred to a central location for
further analysis ONE WAY
Advanced metering infrastructure (AMI)--paved the way for two way
communication between the meters and the utility. This feature promises
improved operational and energy efficiency, customer service, and environmental
protection TWO WAY

Demand Response
The terms “load management,” “peak load reduction,” and
“curtailment” can all be used to describe Demand Response.
“reducing or shifting their electricity usage during peak periods in response
to time-based rates or other forms of financial incentives.”
Can applied to consumer and business, typically serviced by
difference vendors.
Can be accomplished by a variety of methods: time-of-use pricing,
critical peak pricing, variable peak pricing, real time pricing, and
critical peak rebates

Demand Response
“What could cause a Demand Response?
 Hot for days on end
 Cold snap
 Weather conditions
 Generation facilities are
closed

Sequence if a Demand
Response Event

Example if a Demand
Response Event

The Future?
I see the following technologies emerging:
1. Distributed Generation
2. Small Modular Reactors (SMR)
3. Direct Current Cable High Voltage Transmission
4. Grid Storage
5. “Overgen”

Summary
1. How a utility operates and what a SMART grid is
2. Baseline load / what a peaker plant is
3. Demand Response
4. Smart Meter and Smart Grid
5. What is the Renewable Portfolio Standard?
6. What was deregulation?
7. How electricity is sold in California
8. Insight into Trends

Thank You!!!!!

Eco green group utility overview presentation final

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Eco green group utility overview presentation final