EEI Transmission, Distribution and
Metering
Mark Schiavoni
Executive Vice President - Operations
Arizona Public Service Company
1
Discussion Topics
• APS Overview
• Renewable Portfolio
• Impacts of Solar
• Net Metering
• Transmission and Distribution System
Upgrades
2
APS Overview
3
APS Facts
•
Incorporated in 1886
•
6,400 employees
•
1.2 million customers
•
35,000 square mile service
area
– 417 substations
– 6,000 distribution line
miles
– 29,000 transmission line
miles
– 520,000 poles
4
APS Generation Profile
Energy Efficiency
7.4%
Renewables Including DE
9.5%
Nuclear
27.7%
Gas
20.1%
Coal
35.3%
5
APS Resource Needs
•
10 year outlook includes resource need of 5,000 MW including expiring purchase contracts and 1,500 MW of customer‐
sited resources
•
Compliance with energy efficiency and renewable energy mandates
•
Increased need for flexible generation
•
Coal uncertainty
Peak Customer Demand (MW)
14,000
Forecasted Customer Demand
(Inc. Reserves)
12,000
EE and DE
10,000
Additional Resource Need
8,000
Existing Purchase Contracts
6,000
4,000
Existing Owned Resources
2,000
‐
2014
2016
2018
2020
2022
2024
2026
2028
6
Fossil Generation Challenges
Aggressive EPA regulations:
•
•
•
•
•
•
Coal Combustion Residuals
316(b) Cooling Water Intake Structures
MATS
BART Order
Effluent Limitation Guidelines
New Source Performance Standards
Note: Rule for Existing Fossil-Fired Power Plants
is being proposed
7
Renewable Portfolio
8
Renewable Energy Standard
•
•
Renewable Energy Standard (“RES”) Total Energy
Requirement
o
4.5% of retail sales in 2014
o
Increasing to 5% of retail sales by 2015
o
Incrementally increasing to 15% by 2025
RES Distributed Energy Requirement
o
o
•
A minimum of 30% of the RES total energy requirement
½ from residential customers, ½ from non-residential
customers
APS commitment to exceed RES requirements
o 3.4 Million MWHs by 2015 (about 12% of retail sales)
9
APS YE 2013 Renewable Portfolio
By Type of Acquisition:
Online In Development
Purchase Power Agreements 629 MW 0 MW
APS owned and operated 137 MW 32 MW
Customer owned and operated 308 MW
69 MW
TOTAL 1074 MW 101 MW
By Type of Technology:
Solar
Wind
Biomass, Geothermal & Biogas
TOTAL Online In Development
755 MW 101 MW
289 MW 0 MW
30 MW 0 MW
1074 MW 101 MW
10
APS Renewable Energy
•
APS and our customers have more than one gigawatt of
solar, wind, biomass/biogas and geothermal resources
installed (enough power for 289,000 customers)
•
Over 35,000 customer installations of various technologies
•
Over 2,000 open applications representing over 43 MW of
additional generation are under development
•
Almost 7% of retail sales are served from renewable
resources (2013 RES requirement = 4%)
11
Impacts of Solar
12
Distributed Solar Adoption
• Adoption
accelerated by:
2,000
5
18
60
2010
1,000
2009
165
271
382
13
2025
2020
2015
2013
2012
0
2011
• Cost transfer
acknowledged
by ACC -inequity still
exists
3,000
2008
tax credits
cost reductions
lease model
rate arbitrage
4,000
MWac
–
–
–
–
APS DE Growth Potential
Solar Impacts on Customer Demand
Spring Customer Power Consumption
• Growth of solar PV is dramatically changing customer energy consumption patterns
5,000
2014
2025
4,500
2021
2029
MW
4,000
3,500
3,000
2,500
Potential over‐
generation followed by 8‐hr 3,000 MW continuous up‐
ramp
2,000
1,500
• Fast starting and ramping capability is key in responding to variable output of renewable resources
1,000
1
3
5
7
9
11
13
15
17
19
21
23
Hour
14
Net Metering
15
Under net metering, customers do not
pay for all services used
RESIDENTIAL BILLING ELEMENTS
Base Rates:
Metering and Billing
Distribution
Transmission
Public Benefits Programs
Power Plants
Fuel, O&M
Adjustments:
Renewables
Fuel
DSM
Environmental Improvement Surcharge
Transmission
LFCR (Public Benefits Programs)
Taxes and Government Fees:
Regulatory Assessment Fee
Franchise Fee
Sales Taxes
CHARGE TYPE
Monthly
kWh
kWh
kWh
kWh
kWh
Rooftop solar does not
meaningfully reduce
utility costs…
WHAT APS SAVES FROM ROOFTOP SOLAR PRODUCTION Partial
kWh, Capped
kWh
kWh
kWh
kWh
%
%
%
%
NA NA
NA
16
….but, DE customers
can “net meter”
almost their entire bill
WHAT ROOFTOP SOLAR CUSTOMERS DO NOT PAY
ACC Decision on Nov. 14, 2013
• Interim charge supported by Residential Utility
Consumer Office and some members of the solar
industry
• 70 cents/installed kW = about $5/month for
standard system
• Effective Jan 1, 2014 through next APS rate case
• Grandfathering:
– Existing customers through 12/31/13
– New customers Jan. 1, 2014 through next rate case
• Affidavit for all new customers
• Solar adoption data filed quarterly with ACC
17
Transmission and
Distribution System
Upgrades
18
Evolving Grid
Flexible grid needs to address many items that the traditional grid was never designed to handle… Challenges
Relay Coordination
Design Standards and Communications
Cost and Economies of Scale
Peak vs. Non‐Peak & Interconnection Standards (125%)
Centralized vs. De‐
centralized
Traditional Grid
Flexible Grid
1‐Way Power Flow
2‐Way Power Flow
Seasonal Voltage Settings
Dynamic Voltage Variability
Base Load Generation
DE Intermittency
Planning Criteria
Sizing for Increased DE
Load/Generation Matching
Load/Generation Mismatch
19
Enabling Technologies:
Solar Generation Forecasting
Integrated Volt/Var Control
Localized Energy Storage
Solar Production Metering
Fast Response Storage
Foundational Blocks of Flexible Grid
• Highly advanced
operational platforms
EMS/ADMS
• Robust system
health/situational
awareness, both local
and regionally
Communicating
Devices
• Remote operation on
about half of the
distribution system
Automated
Switching
20
Transmission Operations Investments
Strengthen the existing structure to create a greater focus
on and delivery of operational excellence
Add and refine
our set of tools to
better monitor
and adapt within
our territory and
region
Initiate greater
coordination across
regional utilities with
improved visibility
and contingency
planning
Organizational
Structure
Recruit, staff,
and train new
talent to enable
“Best in Class”
workforce
readiness
Operational
Excellence
Codify processes and
procedures in
support of more
efficient operations
and greater
knowledge transfer
21
New and Enhanced Operator Tools
• Operations Training Simulator – systematic and regular
training of operators
• Real-time Contingency Analysis – real-time scanning of
the Southwest grid to assess possible contingency
conditions
• Outage Management Tools – categorization of all
outages on the system to enhance outage scheduling
• “Situational Awareness” Visualization – dynamic and
interactive map of Southwest grid
• Upgrade and Modernize our Energy Management
System (“EMS”) – upgrade our current EMS with far
greater human interface and functionality
22
Expanding our Operating Visibility
• Situational
Awareness
Visualization –
dynamic and
interactive map of
Southwest grid
• Real Time
Contingency
Analysis –– thermal
and transient limits
for continuous,
emergency, and super
emergency ratings
23
Hassayampa to North Gila
• Project need was identified in the APS
Ten-Year Transmission Plan in 2003
• Follows the general corridor and alignment
of the HA-NG #1 Line
• Construction began September 17, 2013
• Anticipated completion date February
2015
24
Distribution Operations Upgrades
• Transitioned to total electronic mapping
– Increased outage prediction capabilities
– Facilitates disaster recovery plans
• Integrated five Operations centers into one
– 24/7 coverage
– Consistent work practices
• Advanced Distribution Management System “ADMS”
– New outage management system
– DMS – Advanced “smart grid technologies”
– Distribution SCADA
• 12 KV jurisdiction change
– Operations best practice
25
Looking Forward
• Further deployment of solar
• Increased need for flexible generation
• Distribution system management
– Outages
– DE
– Technology
26