Transcript Generic Template - Energy Bar Association

Nuclear’s Role in the Clean
Energy Mix
The Energy Bar Mid-Year Meeting on
Energy Markets, Renewable Energy and Change
Washington, DC
December 3, 2009
David Heacock
President and Chief Nuclear Officer, Dominion Nuclear
Dominion at a Glance
Dominion
Generation
 Regulated
Generation
 Merchant Generation
Dominion
Energy
Dominion
Virginia Power
 Gas Distribution
 Electric
 Gas Transmission
and Storage
 Electric Transmission
 Producer Services
 Appalachian E&P
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Distribution
 Unregulated Retail
Diverse, Balanced Generation Mix
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Low Carbon Intensity
100 Largest U.S. Power Producers
(Pounds CO2 per MWh Output)
Dominion
Source: Natural Resources Defense Council, 2008 Study
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Increasing Demand for Energy
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Mounting Energy Gap
Peak Demand
(Megawatts)
22,000
Additional
Deficit of
4,600 MW
by 2019
20,000
18,000
16,000
2009
2019
Current generating capacity
Projected Dominion peak demand—PJM Forecast
*Updated 2009 to reflect projected demand growth between 2009 and 2019.
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Distribution Growth Drivers
Additional Usage By Existing
Customers 40% of Growth
New Usage By New
Customers 60% of Growth
 Added Sq Ft per House
 Historically, 50,000 Connects
 Flat Screen TV
 2009: 30,000 Connects
 Home Computer Networks
 Transportation Growth
 New Appliances
 Military Expansion
 Digital Displays
 Data Centers
1050000
24,000
23,000
22,000
21,000
20,000
19,000
18,000
17,000
Dominion 2.2%
1000000
MW
950000
US 1.7%
900000
850000
800000
750000
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D om inion
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08
07
US
20
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Ye a r
MW
D e m a n d G ro w th
Military Expansions:
Base Realignment and Closure (BRAC)
Ft. Belvoir
 22 Projects on Base
 19,000 New Residents in 3 Yrs
 Initial Capacity 56 MVA
 230 kV Transmission Supply
 Eventual Build Out 100 MVA
Ft. Lee
 6 Major Facilities
 7 million Additional Sq Ft
 Initial Capacity 15 MVA
 Eventual Build Out 33 MVA
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New Transportation Corridors
New Silver Line Rail Northern Virginia
 Phase I - 2013; Phase II - 2016
 Tyson’s Corner Impact
– 88 million Sq Ft added
– 100,000 new jobs
– 83,000 residents
– Build Out 480-830 MVA
 Relocation Work Begins January 2009
Norfolk Light Rail
 $232 M Project
 7.4 miles across Downtown Norfolk
 11 Passenger Stations
 Began 2007; Complete 2010
 Transport 6,000–12,000 daily
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Data Centers, 2009 and Beyond:
24 / 7 Load Factor
Existing
Future (by 2013)
 36 Data Centers
 50 Data Centers
 200 MW of Existing Load
 700 MW of Future Load
 3% of Northern Virginia Load
 10% of Northern Virginia Load
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Strategy for Meeting
Growing Demand
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Conservation: Critical to Virginia’s Future
 Conservation will help meet Virginia’s growing
energy needs while protecting the environment
 Dominion is fully committed to state’s goal of
reducing energy consumption by 10 percent by
2022
 Dominion is developing
portfolio of demand-side
management programs and
evaluating “smart”
technologies
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Demand-Side Management: Two Key Elements
Demand Response:
 Reduces peak electricity demand, often by
shifting usage to off-peak hours
 Improves reliability
 Easily measured and verified
Conservation:
 Reduces consumption of electricity
 Produces environmental benefits
 Poses new set of challenges:
- Requires change in customer behavior
- Harder to measure and verify
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Smart Metering Technology
 Key component of Dominion’s Energy Conservation
strategy
 Customers in Midlothian and Charlottesville
participating in smart metering demonstration projects
 Customers save through the delivery of more
efficient operating voltages to their homes
 Other benefits include:
– improved outage reporting
– new time-sensitive pricing
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Voltage Conservation
 Trabue Demonstration: 6,700 meters
 Charlottesville Demonstration: 45,000 meters
 Initial loss reduction focus areas include
– Conserving off-peak voltage and monitoring through AMI technology
 Successful demonstration of project on Trabue Circuit
(Midlothian)
– 5% voltage reduction using AMI technology has been demonstrated
– Average energy savings per 1% reduction exceeds 0.8%
– Trabue test results confirm full deployment savings of 2.34 million MWH
per year or 2.79% of the total system load
– Demonstrated energy savings from Voltage Conservation confirms
previously announced customer savings (and have risen to $1.7 billion
over 15 years)
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Virginia RPS
 Federal RPS is under development
 Dominion’s existing utility-owned renewable assets reach 2%
level
 Dominion is growing its renewable project portfolio
 To comply with RPS requirements, Dominion needs:
– 4% by 2010
– 7% by 2016
– 12% by 2022
– 15% by 2025 (recently signed by Gov. Kaine)
 Evaluating all available options to meet targets:
– Existing utility-owned renewable generation
– Build new renewable facilities in Virginia
– Purchase RECs / renewable energy
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Dominion’s Renewable Assets
Operating
Under
Development
Total
89 MW
217 MW
306 MW
Wind
282 MW
695 MW
977 MW
Hydro
327 MW
Biomass
327 MW
TOTAL RENEWABLE ASSETS:
1610 MW
Bath County: Dominion’s pumped storage facility helps make renewable energy dispatchable.
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Infrastructure Growth Plan
Expanding Renewable Generation Portfolio
Facility
Status
Capacity
<<<<< Biomass >>>>>
Fowler
Prairie Fork
NedPower
Ridge I-II
Altavista
Pittsylvania
Operating
83 MW
Altavista
Operating
6 MW
VCHEC 1
Construction
117 MW
Undisclosed
Development 4
100 MW
Biomass Subtotal >>>
<<<<< Wind >>>>>
VCHEC
Pittsylvania
Wise County/VA Wind
Tazewell County/VA Wind
NedPower 2
Operating
132 MW
Fowler Ridge I 2
Operating
150 MW
Fowler Ridge II
Development 4
150 MW
Prairie Fork
Development 4
300 MW
Virginia Wind 2,3
Development 4
245 MW
Wind Subtotal >>>
Total Biomass and Wind
1)
2)
3)
4)
306 MW
Assumes 20% co-firing
Dominion’s 50% share
Includes Wise County and Tazewell County as well as other undisclosed facilities
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Development projects are subject to change
977 MW
1,283 MW
Nuclear - Part of the Solution
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U.S. Electric Net Generation by Source, 2008
Source: NRC 2009-2010 Information Digest – DOE/EIA
Monthly Energy Review, March 2009
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U.S. Capacity Factors by Fuel Type
Fuel Type
Average Capacity Factors (%)
Nuclear
91.5
Coal (Steam Turbine)
70.8
Gas (Combined Cycle)
41.7
Gas (Steam Turbine)
14.6
Oil (Steam Turbine)
12.6
Hydro
27.4
Wind
31.1
Solar
21.1
Source: NEI - Ventyx Velocity Suite / Energy Information Administration
Updated: 4/09
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U.S. Nuclear Industry Capacity Factors
(1971 – 2008)
Source: NEI - Energy Information Administration
Updated: 4/09
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U.S. Average Plant Production Expenses $/Mwhr
Source: NRC 2009 – 2010 Information Digest – FERC Form 1 and
DOE/EIA Electric Power Annual 2008
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U.S. Electricity Production Costs
1995-2008, In 2008 cents per kilowatt-hour
Production Costs = Operations and Maintenance Costs + Fuel Costs. Production costs do not include
indirect costs and are based on FERC Form 1 filings submitted by regulated utilities. Production costs
are modeled for utilities that are not regulated.
Source: Ventyx Velocity Suite
Updated: 5/09
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Nuclear Economic Benefits
 $430 M in sales of goods and services
 $40 M in total labor income
 Every $1 spent by plant => creates $1.07 in local
community
 $20 M/yr in state and local tax revenue
 $75M/yr in federal tax payments
 400-700 permanent jobs at operating units
 1,400 – 1,800 during construction
 Forward price stability – fuel costs small
Source: NEI
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Value of Environmental Benefits
 Avg nuclear plant avoids

10,000 tons of nitrogen oxides

32,000 tons of sulfur dioxide
 Equates to value of $4.7 M/yr
 Avg nuclear plant prevents 7 M metric tons of carbon
dioxide
 Equates to projected value of $130 – 208 M/yr
 Currently 20+ new reactors under consideration in
U.S.
 Investment of $6 – 8 B /per unit, depend on size
Source: NEI
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Two Ways to Increase Nuclear Slice
Uprates
New Build
Improved measurement
5 Technologies
More efficient turbines
Least Costly Alternative
Carbon free
Challenge – can they be
built in time
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Uprate Facts
 Jan 2009 124 uprates => 5,640 Mwe, equivalent
to five new reactors
 NRC reviewing or anticipating additional
applications totaling 2,333 Mwe
 March 2009 nuclear accounts for approximately
19.7% of U.S. net electrcial generation at 806
billion kilowatthours
Source: NRC 2009-2010 Information Digest
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New Nuclear
 ESP – Early Site Permit

NRC has issue three (including one at the North Anna site)
 DC – Design Certifications
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
Issued four
Five under review
 Combined Operating License

Reviewing 13 applications for 22 reactors
Source: NRC 2009-2010 Information Digest
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Timing – The Real Challenge
 1980’s:
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
Worldwide - 218 power reactors, average of one every 17 days
U.S. – average of one every 77 days
 Today
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China as of October 2009
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
U.S. as of October 2009
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



11 operable, 8587 MWe
17 under construction, 17,540 MWe
34 planned, 36,380 MWe
90 proposed, 79,000 Mwe
104 operable, 101,119 MWe
1 under construction, 1,180 MWe
11 planned, 13,800 MWe
19 proposed, 25,000 Mwe
Act Now
Source: World Nuclear Association
http://world-nuclear.org/info/reactors.html
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Nuclear – Is the Solution
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Positive Trend in Safety Performance
Reactor Scrams
Actuations
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Or
Virginia City Hybrid Energy CenterDelete?
change
previous slide
 Wise County project meets baseload energy needs and has
strong environmental features
 Will produce 585 MW of power using DOE-designated clean
coal technology
 Complete environmental package:
– Protects air quality; minimizes water
use
– Uses waste coal and biomass
 Sponsoring research at Virginia Tech to
determine feasibility of carbon capture and
storage technology
 Small-scale testing under way near Center
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Increasing Nuclear Capacity:
Uprates and North Anna Unit 3
 Uprates add approximately 300 MW of new nuclear generation across
our nuclear fleet (except Kewaunee)
 North Anna Unit 3 will use advanced nuclear technology with no carbon
emissions
– Early Site Permit (ESP) received approval in November 2007;
submitted Combined Operating License (COL) application to build
and operate in November 2007
– Commercial operation by 2016 / 2017
– Third unit would boost Dominion’s percentage of power produced by
nuclear almost 10 percent in about 10 years
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