Rural Energy Conference Planning the Construction of Lake Dorothy Hydro By Tim McLeod President Alaska Electric Light and Power

Transcription

1 Rural Energy Conference Planning the Construction of Lake Dorothy Hydro By Tim McLeod President Alaska Electric Light and Power

2 Under the provisions of the its tariff, a utility is obligated to provide service to customers within its service territory

3 Major Considerations Load projections Generating/system capacity Production alternatives Timing/lead time Permitting/constructability Environmental Impacts Financing Rates Reliability Regulatory Approval

4 GWh Juneau Area Energy Dorothy Phase Dorothy Phase 1 1.3% growth Snett Phase Snett Phase 2 Salmon, Annex, Gold Creeks

5 Wind Solar Tidal Current Wave Action Geothermal Biomass Landfill Gas Hydro Diesel Coal Natural gas Alternatives

6 Rate Impact Rates are formula driven Total revenue requirement all costs including the cost of capital / kwh sales Costs are appropriately distributed to various customer classes based on the cost of service

7 Diesel vs. Hydro Diesel Cheap to build expensive to run Defined out-put Installed near loads Burning diesel is a poor investment Hydro Expensive to build cheap to run Variable out-put (weather dependent) Not ideal locations Long vulnerable transmission lines Good community investment

8 Conclusion: For Juneau, the alternative that will provide the lowest cost and most reliable energy is A Combination of Hydro and Diesel Hydro for base loading Diesel for back-up

9 inflow (ac-ft) Energy (MWh) Hydro storage vs. run of river Snettisham Inflow and Energy Demand 70,000 35,000 60,000 30,000 50,000 25,000 40,000 20,000 30,000 15,000 20,000 10,000 10,000 5,000 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 0 firm energy LL inflows

10 Phasing the project to match demand

11 Lake Dorothy Hydroelectric Project Site

12 Cost per KWH Rate impact illustration Total Cost to Ratepayers Without new hydro With new hydro Year

13 Cents per KWH Rate impact illustration delayed construction Total Cost to Ratepayers Without new hydro With new hydro Year

14 Cents per KWH Rate impact illustration delayed construction Total Cost to Ratepayers Without new hydro With new hydro Year

15 Constructability

16 Access Road Construction 2007 (working from tidewater to Bart Lake))

17 Reliability- Tower destroyed in 2008 avalanche Photo By AELP

18 The advantages of surplus hydro capacity Available for load growth Provides rate stability Enables incentive rates Avoid diesel use during dry years The disadvantage of surplus hydro capacity Higher output cost per kwh (hydro costs are mostly fixed)

19 Megawatt hours HYDRO OUTPUT IS VARIABLE Annual MWH Output Year

20 Megawatt hours HYDRO OUTPUT IS VARIABLE Annual MWH Output Firm Customer Load Requirements Annual MWH Year

21 Megawatt hours New Hydro plant constructed when average output matches firm loads Water spills from reservoirs Firm Load Diesel generation is used to supplement hydro Year

22 Megawatt hours Early construction of new hydro Water spills from reservoirs Revenue from surplus energy sales used to satisfy revenue requirement Firm Load Diesel used to supplement hydro Year

23 Princess Cruises Shore Power Facility Unique challenge Cleaner air Surplus energy sales benefit others

24 9 miles of submarine cable and 14 miles of overhead transmission line connected Greens Creek Mine on Admiralty Island

25 AELP Interruptible Loads Dual Fuel Space Heating Residential Federal Building University Library Princess Cruises Shore Power Greens Creek Mine Total 80,000,000 kwh s annually Approximately 20% of total sales are interruptible With average precipitation, interruptible loads contribute over $7 million to AELP revenue requirement annually

26 $ per kwh - Base Forecast Average Water Year Rev/kwh no LD Rev/kwh with LD

27 $ per kwh - Base Forecast Firm Water Year Rev/kwh no LD Rev/kwh with LD

28 $ per kwh - Some Electric Heat in Load Forecast Average Water Year Rev/kwh no LD Rev/kwh with LD

29 Lake Dorothy