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HomeMy WebLinkAbout15 Power Point UAMPS Carbon Free Power Project Workshop Item 15 April 15, 2015 New Resource –Project UAMPS Carbon Free Power UAMPS Carbon Free Power Project 2 Share publication with Board—Public Power”APPA published “Straight Answers to False Charges Against •Association (APPA)The District is a member of the American Public Power •Background / History New Resource– New Information New Resource–UAMPS Carbon Free Power Project 3 from other utilities through mutual aid programsIn the event of a major outage, public power utilities can get help —knowledge of the electric distribution systemlocal crews live in the community, and have intimate, expert Public power utilities can respond quickly to emergencies because —assetsbecause they focus on core operations and take care of their own Actually, public power utilities have a strong reliability record —Straight Answers:•power in the event of a major storm or outagePublic power utilities do not have the resources to provide reliable —False Charge:• New Information New Resource–UAMPS Carbon Free Power Project 4 resourcesPublic power utilities match local service needs with local —delayed tree trimmingreductions, closed service centers, deferred maintenance, or headquartered hundreds of miles away, which may result in staff Service quality is not compromised by mandates from a company —customers, rather than profitssatisfaction because their focus is always on service to the Public power utilities get high marks for customer service —Straight Answers:•to deliver excellent servicePublic power utilities are not large enough or sophisticated enough —False Charge:• UAMPS Carbon Free Power Project 5 to a study projectThe UAMPS Carbon Free Power Project (CFPP) may move •needs of member utilitiesUAMPS is constantly assessing and forecasting future energy —generation resources prior to starting a study projectThe Resource Project is used to investigate possible •The District is in the Resource Project at UAMPS•Background / History New Resource– 6 Five-year Market 2012-17 (Exist)Five-year Market 2017-22 (New)Trans Jordan - Land Fill GasStampede - Small HydroFallon Exchange for StampedePleasant Valley - WindNebo Power Plant - Natural GasHorse Butte Wind - WindVeyo Heat Recovery 2017Open Position-UAMPS Pool / Mkt 2022 Market Purchase-2017with Veyo Heat Recovery 2017 &2025-Resources (MWh) By Year 2014 180,000160,000140,0 00120,000100,00080,00060,00040,00020,0000 New Resource–UAMPS Carbon Free Power Project New Information Puzzle 1UAMPS Energy New Resource–UAMPS Carbon Free Power Project 7 modular reactor (SMR) power plant is being fully exploredThis workshop will help explain why development of small •hungry society –adequate supplies exist a decade from now for an energy online, decisions must be made in advance to ensure Baseload projects require years to plan, construct and bring • New Information New Resource–UAMPS Carbon Free Power Project 8 Not enough or stable enough to replace base load resources–Renewable generation are very important piece of portfolio–Role of “clean” alternatives•price instabilityHave historically fluctuated a great deal with accompanying –and inexpensiveNew drilling technologies have made natural gas abundant –The upside and downside of natural gas•pollutantsCoal in under severe pressure due to carbon emissions and –the end of their lifeCoal plants were built 30 to 40 years ago and are reaching –The evolution away from coal• New Information Questions 2UAMPS Energy New Resource–UAMPS Carbon Free Power Project 9• New Information New Resource–UAMPS Carbon Free Power Project 10 applicationsProviding major funding grants and faster approval of –encouraging developmentObama administration and its Department of Energy are –advanced nuclear reactor under developmentToday a new generation of smaller, technologically •renaissanceEnormous attention on nuclear plant safety stalled –created catastrophic failure at nuclear plantMarch 2011, earthquake and tsunami in Fukushima Japan –was underwayNot many years ago news reports of “nuclear renaissance” –Nuclear Renaissance: Phase II• New Information New Resource–UAMPS Carbon Free Power Project 11 and cheaper than many alternative sources Price of electricity to consumers is comparable to natural gas, –When amortized over 50 or 60 years of energy production•,or coalNuclear energy has historically been much safer than oil, gas –including extraction and transportationConsidering the entire supply chain of energy production, •been safety and costThe major two concerns regarding nuclear energy have • New Information Energy 3UAMPS Next Gen of New Resource–UAMPS Carbon Free Power Project 12 developed by NuScale Power, located in OregonUAMPS believes most promising technology is being –Small Modular Reactors: Believed to be safer, more practical • Next Steps New Resource–UAMPS Carbon Free Power Project 13 participantsOwnership of the investigation work product by SPS –Cost recovery of investigation based on SPS–refusalSelling SPS to other UAMPS members through first right of –Converting SPS to a Power Sales Contract–SPS definition would contain•Share” (SPS)Including the definition of a participation share as a “Site Percentage •to UAMPS Joint Action agreements and bylawsUAMPS has discussed the formation of the CFPP pursuant • Next Project Steps New Resource–UAMPS Carbon Free Power Project 14 operational date of this plantMany generation plants will likely need to be retired by the –Plant would likely not be operational before 2024–before 2017No final decision regarding SMR plant should be expected •April UAMPS meetingUAMPS staff is to provide CFPP draft agreements of the SPS at the —SPS participants will be able to take advantage of the grant —additional matching grant for site developmentUAMPS is working on obtaining a $1,000,000 and possibly • District Options New Resource–UAMPS Carbon Free Power Project 15 Do not participate in SPS and drop out of this project•Sell SPS rights to other members —Participation would change SPS to power sales agreement—Decision to participate would not come before 2017—Take advantage of matching grant for site development—Participate in “Site Percentage Share” (SPS) • Fiscal Impact New Resource–UAMPS Carbon Free Power Project 16 workshop itemThere is no direct fiscal impact associated with this • Recommendation New Resource–UAMPS Carbon Free Power Project 17 Receive and comment on this report•