Transcript Slide 1
Political Factors Affecting the Renewables and Energy Efficiency
IPPAI – NRRI Conference New York City
Remarks of Ron Binz, Chairman Colorado Public Utilities Commission October 15, 2010
Caveat
• I am one of three equal commissioners • My positions are my own • I am confused by many things and have not made up my mind on much at all • I don’t even agree with some of the things I say • Good advice:
don’t believe everything you think
Outline of this presentation
• High-level considerations of US Climate Policy • Renewable portfolio standards, energy efficiency and controlling GHG emissions • One state’s experience – Planning – Renewables – GHG reduction
High level considerations on US GHG policy
• Congress has been unable to complete action • EPA activities are driving change – CAA rules; CO 2 regulation • States and regions have been moving forward – State RPS standards – State EE activity – State and Regional Climate Agreements • Power industry is close to consensus • Regulators have consensus on many issues • Public opinion
EPRI Prism/Merge
9 • Electricity first • Carbon cap • $4/ton CO 2 research fee • Allowance allocation • www.fortnig
What is Colorado Doing?
The Setting
• Two regulated electric utilities; 55% of sales • State RES – 30% by 2020 for IOUs – Xcel: ~12% renewable energy level now • Utility CO 2 reduction goals (-20% by 2020) • Clean Air/Clean Jobs Act case underway • Rates up due to new (fossil) generation facilities
70,000
Generation Fuels in Colorado
Colorado Electric Generation by Fuel Source 1990-2008
60,000 50,000 40,000 30,000 Hydro NG Renewable 20,000 10,000 Coal 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
History of Colorado’s RPS
• Amendment 37 (2004) – Voter initiated; 10% by 2020; solar carve-out; net metering • HB 1281 (2007) – 20% by 2020; 10% for Munis, Coops; solar carve-out • HB 1001 (2010) – 30% by 2020; carve out for DG of 3% by 2020 (~650 MW PV)
• Reduce Colorado’s carbon emissions by 20% below 2005 levels by 2020 • Reduce Colorado’s carbon emissions by 80% below 2005 levels by 2050 14
Our State Energy Priorities
•
Stress renewable resources
– Aggressive State Renewable Portfolio Standard – Progressive resource planning at Commission – Healthy renewables industry – A commitment to addressing climate change •
Boost Energy Efficiency
– Customer: education – Utility: engagement – Regulatory: incentive regulation; rate structure changes •
Advanced technologies development
– Research and demonstration for carbon sequestration – Concentrating solar field at PSCo’s Cameo coal-fired plant – CAES and other storage strategies – Smart grid test bed in Boulder, Colorado • 15
Transmission development
– SB 100 in Colorado – Western Renewable Energy Zones participation
Gas Price Increases Comanche 3 FSV Turbines
Xcel Energy
• ~ 7000 MW peak load • 2004-present – 1,200 MW wind capacity – 60 MW solar capacity • By 2015 – Additional 750 MW wind capacity resulting in 2000 MW – >250 MW new solar thermal – >160 MW new photovoltaic 17
HB10 -1365
HB 1365 Triggers a Coordinated, Multi-Pollutant Strategy
• Ozone • Regional Haze • Carbon Dioxide •
“A coordinated plan of emission reductions from these coal-fired power plants will enable Colorado rate-regulated utilities to meet the requirements of the federal Clean Air Act and protect public health and the environment at a lower cost than a piecemeal approach.”
For a copy of legislation: go to www.leg.state.co.us
, follow links to HB10-1365
Structure of HB10-1365
• Utility must consult with CDPHE on plan to meet current and projected EPA clean air rules.
• Utility files plan with PUC to improve air quality, addressing at least 900 MW of coal generation.
• Utility required to conduct various studies: – Plan impacts on NO x emissions – Cost of controlling emissions at existing coal plants – Cost of replacing 900 MW coal generation with natural gas – Impacts on system reliability • CDPHE will participate in PUC process.
• Any PUC-approved plan must meet projected EPA rules.
• Air Quality Control Commission will incorporate approved plan into State Implementation Plan (SIP) for addressing regional haze.
$5.88
Long Term Natural Gas Contracts
23 San Luis Valley
Solar Electric Density
• Use: 100 MW(ac)/mile 2 • Colorado Peak Integrated Demand: 11GW • Result: 110 mile 2 required land area 24
25 San Luis Valley
But what if 11 GW of solar were spread around the state in 100 MW installations?
It might look like this...
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