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Cal Poly Pomona
Urban & Regional Planning
URP 337: Planning Public Infrastructure
Week 6: Electric Power

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  1. 1. URP 337 Planning public infrastructure<br />Week 62 May 2011<br />
  2. 2.
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  4. 4. Sometimes energy-related infrastructure represents a land<br />use<br />Energy<br />Utilities<br />Why <br />else should planners care?<br />
  5. 5. Energy Utilities<br />As consumer advocates.<br />
  6. 6. Yucca Mountain Nevada will it not be used to store nuclear waste. Where will it go? <br />As <br />advocates for the environment.<br />
  7. 7. As advocates for those with less privilege.<br />
  8. 8. http://www.eia.doe.gov/emeu/aer/pecss_diagram.html<br />
  9. 9. (Especially in fuel storage)<br />Infrastructure for the provision of energy has many planning dimensions<br />Consider gasoline…<br />
  10. 10. Photo in Longstreth, fig 10: Foy’s service station, 211 N Figueroa, Los Angeles, 1928.<br />
  11. 11. Big oil and the monkey wrench entrepreneur<br />Photo in Longstreth, fig 30: <br />Texaco “type C,” probably west coast, 1937.<br />
  12. 12. Gasoline distribution today<br />Photo from Violence Policy Center, “Sitting Ducks: The Threat to the Chemical and Refinery Industry From 50 Caliber Sniper Rifles.”: <br />http://www.vpc.org/studies/ducktwo.htm<br />
  13. 13. Gasoline distribution: NJ tank farm<br />Photo from SPROL: <br />“worst places in the world”<br />http://www.sprol.com/<br />
  14. 14. LA tank farm<br />
  15. 15. Tank farm<br />Source: image provided by Chevron. Downloaded from:<br />http://tonto.eia.doe.gov/kids/energy.cfm?page=oil_home-basics<br />
  16. 16. Source: image provided by Argonne National Laboratory. Downloaded from:<br />http://www.energy.ca.gov/2009_energypolicy/documents/2009-08-24_workshop/presentations/08_CEC_Schremp_Imports_and_Pipeline_Exports.pdfSource<br />
  17. 17. Petroleum pipelines to and from CA<br />http://www.energy.ca.gov/reports/2003-09-09_600-03-014F.PDF<br />http://www.energy.ca.gov/fuels/pipeline/documents/Fig1_Major_Refined_Pipeline.PDF<br />
  18. 18. Natural gas, too<br />
  19. 19. U.S. Natural Gas Supply Basins Relative to Major Natural Gas Pipeline Transportation Corridors, 2008<br />
  20. 20. Major Changes in Natural Gas Pipeline Transportation Capacity, 1998-2008<br />http://www.eia.doe.gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline/comparemapm.pps<br />
  21. 21. “Electricity is special because it cannot be stored”<br />neither can fire!<br />Electricity<br />(it still involves land uses)<br />
  22. 22. Recall: Three sorts of “snapshots” for analyzing infrastructure “events”: <br />Micro economics, in this case looking at potentials for monopolies. Also looking at notion of “non-redeployable investment.”<br />Inventory of stakeholders and their interests and for institutional change.<br />A look at the technological landscape and its inter-relationships with environmental goals and price elasticities of fuels.<br />
  23. 23. Recall:Three questions to guide inquiries of infrastructure: <br />By what process(es) was it constituted and is it sustained?<br />Where do opportunities for change lie within those processes?<br />Is a better infrastructure outcome imaginable? If so, can it be realized by exploiting the opportunities for change that have been identified?<br />
  24. 24. By what process(es) was it constituted and is it sustained?<br />
  25. 25. dateline 1922<br />
  26. 26.
  27. 27. Schematic of infrastructure for electricity<br />Figure source: http://www.eia.doe.gov/basics/electricity_basics.html<br />generation<br />transmission<br />distribution<br />natural monopolies<br />deregulation was <br />limited to<br />
  28. 28. Schematic of infrastructure for electricity<br />Figure source: http://www.eia.doe.gov/basics/electricity_basics.html<br />generation<br />transmission<br />distribution<br />On-site generation technologies may reduce the importance of these pieces<br />
  29. 29. Energy supply<br />Structure of industry<br />Three components:<br />Generation<br />Transmission<br />Distribution<br />Legislation<br />
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  34. 34.
  35. 35. ghu took out<br />ghu put in<br />net purchase<br />
  36. 36. Generation<br />generic thermal generatorwww.eia.doe.gov/cneaf/electricity/chg_stru_update/fig3a.html<br />Schematic of Gas Turbinewww.eia.doe.gov/cneaf/electricity/chg_stru_update/fig3b.html<br />Schematic of Combined Cyclewww.eia.doe.gov/cneaf/electricity/chg_stru_update/fig3b.html<br />Cogeneration Schematicwww.eia.doe.gov/cneaf/electricity/chg_stru_update/fig3b.html<br />
  37. 37. U.S. Electric <br />Power Industry Net Generation, 2009<br />Source:Figure ES1 http://www.eia.doe.gov/cneaf/electricity/epa/epa_sum.html<br />
  38. 38. Source:http://www.eia.doe.gov/cneaf/electricity/chg_stru_update/fig5.html<br />see also:http://www.eia.doe.gov/state/<br />large icons ~ 10 GW of capacity, <br />not individual plants, in a regional <br />area for each fuel source. <br />smaller icons ~ 5 GW capacity. <br />http://www.eia.doe.gov/state/state-energy-profiles.cfm?sid=CA<br />
  39. 39. Transmission Ownership in the United States<br />Source:http://www.eia.doe.gov/cneaf/electricity/chg_stru_update/fig6.html<br />
  40. 40. North American Electric Reliability Council<br />NERC regions<br />http://www.eia.doe.gov/cneaf/electricity/chg_str_fuel/html/fig02.html<br />
  41. 41. Geographic reliability<br />IOU=Investor owned utility<br />Feds=Fed gov’t<br />Other=municipal utilities & more<br />Co-ops=non-profit cooperative utilities<br />
  42. 42. Comparison of 750 kWh per month bill (CA avg)<br />Does municipal vs IOU make a difference?<br />
  43. 43. CA’s largest IOUs<br />
  44. 44.
  45. 45. CA has relatively clean energy<br />Source: Environmental Integrity Project (May 2005). Dirty Kilowatts: America’s most polluting power plants. http://www.environmentalintegrity.org/<br />
  46. 46. California’s energy is clean because relatively little coal is used in its generation<br />
  47. 47. No CA plants are on this graph<br />Source: Environmental Integrity Project (March 2010). Dirty Kilowatts: America’s most polluting power plants. http://www.environmentalintegrity.org/news_reports/<br />documents/DirtyKilowatts-Top50MercuryPowerPlantReport.pdf<br />
  48. 48. notes on COAL for twenty-something Californians<br />
  49. 49.
  50. 50.
  51. 51. TVA Coal-fired power plant accident, 22 Dec 2008 at<br />Tennessee’s Kingston Fossil Plant<br />NASA images<br />http://earthobservatory.nasa.gov/NaturalHazards/view.php?id=36352<br />American News Project Videohttp://www.environmentalintegrity.org/index.php<br />EPA cleanup web site<br />http://www.epakingstontva.com/nature_extent.aspx<br />
  52. 52. Energy utilities<br />Deliver energy to customers in homes, offices, shops, etc<br />Sell electricity, natural gas, oil, coal, and other energy sources<br />Include public and private sector suppliers<br />private sector suppliers include investor-owned as well as privately held<br />
  53. 53. Distribution of consumption by sector, 2008/9<br />Data source: http://www.eia.doe.gov/cneaf/electricity/epa/epat7p2.html<br />http://www.eia.doe.gov/cneaf/electricity/st_profiles/california.html<br />
  54. 54. Revenue by Sector1993-2004 in $millions<br />Data source: http://www.eia.doe.gov/cneaf/electricity/<br />
  55. 55. Energy Consumption by Sector<br />in quadrillion Btu<br />
  56. 56. Source:Statistical Abstract of the U.S., 1997, Table 921.<br />
  57. 57. Electric generation capacity, <br />selected sourcess<br />total<br />in gigawatts<br />sources<br />
  58. 58.
  59. 59. residential price per kWh in 2005.<br />Source: http://www.eia.doe.gov/cneaf/electricity/epa/fig7p5.html<br />
  60. 60. residential price per kWh in 2006.<br />Source: http://www.eia.doe.gov/cneaf/electricity/epa/fig7p5.html<br />
  61. 61. residential price per kWh in 2008.<br />Source: http://www.eia.doe.gov/cneaf/electricity/epa/fig7p5.html<br />
  62. 62. residential price per kWh in 2009.<br />Source: http://www.eia.doe.gov/cneaf/electricity/epa/fig7p5.html<br />
  63. 63. Average Retail Price of Electricity to Ultimate Customers by End-Use Sector , 1997-2007 (current dollars)<br />Data source: http://www.eia.doe.gov/cneaf/electricity/epa/epat7p4.html<br />
  64. 64. Regulation: PUHCA<br />limits the geographic spread (therefore, size) of utility holding companies, the kinds of business they may enter, the number of holding companies over a utility in a corporate heirarchy, and their capital structure; <br />(2) controls the amount of debt (thus, cost of capital), dividends, loans and guarantees based on utility subsidiaries (so the parents can’t loot or bankrupt the utility subsidiary), and the securities that parent companies may issue; <br />Weakened by EPA of 2005<br />
  65. 65. Regulation: PUHCA<br />(3) regulates self-dealing among affiliate companies and cross-subsidies of unregulated businesses by regulated businesses; <br />(4) controls acquisitions of other utilities and other businesses; and, <br />(5) limits common ownership of both electric and natural gas utilities.<br />Weakened by EPA of 2005<br />Lynn Hargis (September 2003) PUHCA FOR DUMMIES: An Electricity Blackout and Energy Bill Primer<br />
  66. 66. deregulation 1999<br />
  67. 67. Status of State Electric Industry Restructuring Activity<br />-- as of February 2010 --<br />Interactive version:<br />http://www.eia.doe.gov/cneaf/electricity/page/restructuring/restructure_elect.html<br />
  68. 68. Sept. 14, 2000<br />Sue: This is the time of year when government affairs has to prove how valuable it is to Ken Lay and Jeff Skilling . . . . Do you know when you started overscheduling load and making buckets of money on that?"<br />Susan J. Mara, Enron's California director of regulatory affairs until December 2001 <br />Overscheduling load — a tactic that Enron traders famously dubbed "Fat Boy" — involved purposely overstating how much electricity would be needed in the future, creating the appearance of power shortages and leading to inflated prices.<br />
  69. 69. Sept. 14, 2000<br />Tim: "Well he [Jeffrey S. Richter] makes … between one and two [million] a day, which never shows up on any curve shift…. He steals money from California to the tune of about a million — "<br />Timothy N. Belden<br />Enron's West Coast trading chief <br />Unknown voice: “Could you rephrase that?"<br />Tim: "OK…he, um, he arbitrages the California market to the tune of a million bucks or two a day."<br />
  70. 70. Consolidation of industry<br />Between 1986-1998, 39 electric IOUs merged with other utilities in the industry.<br />
  71. 71. Diversification of industry<br />
  72. 72. Employment in industry<br />
  73. 73. Legislation<br />The Public Utility Regulatory Policies Act of 1978 (PURPA) stipulated that electric utilities had to interconnect with and buy, at the utilities' avoided cost, capacity and energy offered by any nonutility facility meeting certain criteria established by the Federal Energy Regulatory Commission (FERC). <br />Repealed by EPA of 2005<br />
  74. 74. Legislation<br />In 1996, FERC issued Order 888 which opened transmission access to non- utilities, thereby establishing wholesale competition, and <br />Order 889 which requires utilities to establish electronic systems to share information about available transmission capacity. <br />
  75. 75. Order 888 on stranded costs<br />Recovery of stranded costs is perhaps the most contentious issue confronting regulators in promoting competition. Stranded costs (or assets) are costs that have been prudently incurred by utilities to serve their customers but cannot be recovered if the consumers choose other electricity suppliers.<br />One study has estimated current stranded assets at $88 billion, and estimates of projected stranded costs range from $10 billion to $500 billion. <br />
  76. 76. Legislation<br />The Energy Policy Act of 1992 (EPACT) opened access to transmission networks and exempted certain nonutilities from the restrictions of the Public Utility Holding Company Act of 1935 (PUHCA)<br />Energy Policy Act of 2005 (555 pages) CBO Summary of the Energy Policy Act of 2005<br />
  77. 77. OIL/GAS<br /><ul><li>Left open the possibility of opening the Arctic National Wildlife Refuge in Alaska to oil and gas drilling.
  78. 78. Suspended federal royalty payments five years for drilling in Gulf of Mexico deep water of more than 400 meters.
  79. 79. Requires the designation of corridors for oil, gas, and hydrogen pipelines and electricity transmission and distribution corridors on Federal land in certain contiguous Western States and on Federal land in States other than the contiguous Western States (ie. the East and HI and AK)</li></ul>   <br />Photo source: U.S. Fish and Wildlife Service. See http://www.savearcticrefuge.org/sections/photo.html<br />
  80. 80. FUEL/TRANSPORTATION<br /><ul><li>Limits product liability for makers of methyl tertiary butyl ether (MTBE), a fuel additive and suspected carcinogen that has fouled groundwater in cities across the nation.
  81. 81. Bans MTBE use by 2014 and gives more than $3.8 billion in transition aid for MTBE makers to switch to other products.
  82. 82. renewable fuels standard -- 7.5 billion gallons of ethanol (made from corn) and other renewable-based fuel to the nation's supply of gasoline by 2012
  83. 83. Cuts number of special gasoline blends now required to ease air pollution in cities and regions.
  84. 84. Offers subsidies to build new ethanol production plants. </li></li></ul><li>NUCLEAR ENERGY<br /><ul><li>Extends expiring accident insurance protection for owners of nuclear power plants by 20 years.
  85. 85. Spends $1.3 billion for experimental Idaho reactor that would also produce hydrogen fuel. </li></ul>ELECTRICITY<br /><ul><li>Sets mandatory reliability standards for the electric power grid to prevent a repeat of the August 2003 blackout that left 50 million people in the dark.
  86. 86. Offers financial incentives to generate more electricity from solar, wind, biomass and geothermal sources.</li></li></ul><li>MISCELLANEOUS<br /><ul><li>Extends annual US daylight-saving time by two months to cut energy use.
  87. 87. Extends deadline for cities downwind of polluting factories to comply with smog standards if states can prove that most pollution comes from outside their borders.
  88. 88. Requires 20 percent cut in federal buildings' energy use by 2015.
  89. 89. Authorizes more than $3 billion annually to help poor families pay winter heating bills.</li></ul>Source: Reuters News Service, 22 April 2005.<br />
  90. 90. References<br />California Solar initiative (jan 2006)<br />Press release:http://www.cpuc.ca.gov/word_pdf/NEWS_RELEASE/52745.pdf<br />Fact sheet:http://www.cpuc.ca.gov/static/energy/solar/california_solar_initiative_-_fact_sheet.pdf<br />Energy Information Administration of DOE<br />Quick facts:http://www.eia.doe.gov/neic/quickfacts/quickelectric.html<br />2008 Energy Outlook: http://www.eia.doe.gov/oiaf/aeo/index.html<br />Monthly Energy Review: http://www.eia.doe.gov/emeu/mer/contents.html<br />Laws<br />Public Utility Holding Company Act of 1935:http://www.eia.doe.gov/oil_gas/natural_gas/analysis_publications/ngmajorleg/pubutility.html<br />Energy Policy Act of 2005: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_public_laws&docid=f:publ058.109<br />Resources to help understand the EPA of 2005:http://www.energy.wsu.edu/ftp-ep/pubs/library/EnergyPolicyAnalysis.pdf<br />