Meeting Summary
NorthWestern Energy Electricity Technical Advisory Committee
Helena, Montana
February 11, 2015
Attendance
Those participating in or attending the Energy Electricity Technical Advisory Committee
(ETAC) meeting in person or via the web and by teleconference included:
Name
Chuck Magraw
Frank Bennett
John Bushnell
Luke Hansen
Todd Guldseth
Jamie Stamatson
June Pusich-Lester
Kyla Maki
Diego Rivas
Jeff Blend
Brian Spangler
Dave Fine
Mike Dalton
Patrick Barkey
Thomas M. Power
Will Rosquist
Laura Andersen
Al Brogan
Brian Dekiep
Paul Schulz
Organization
Natural Resource Defense Council
NorthWestern Energy
NorthWestern Energy
NorthWestern Energy
NorthWestern Energy
Montana Consumer Council (MCC)
NorthWestern Energy
Montana Environmental Information Center (MEIC)
NW Energy Coalition
Montana Department of Environmental Quality (DEQ)
DEQ
NorthWestern Energy
Montana Public Service Commission (MPSC)
University of Montana - Bureau of Business and Economic Research
(via web and telephone)
District XI Human Resource Council
MPSC
DEQ/EPPB
NorthWestern Energy
Northwest Power and Conservation Council
MPSC
Agenda
The meeting included the following topics:
• CREP update
• Existing Resources
• Loads and Resources Balance
• New Resource Options
• Battery Storage and Solar Project update
• Net metering update
• Tour of Battery and Solar Project
Meeting
CREP Update
NorthWestern began the meeting with a status update regarding NorthWestern Energy’s CREP
obligation. NorthWestern conducted a CREP RFP in 2014 and has executed contracts with
Greycliff Wind Prime LLC and New Colony Wind LLC. The combination of the projects will
have a nameplate capacity of 45 MW. NorthWestern’s 90% of the 75 MW state of Montana
CREP obligation will be fulfilled if these contracts are approved by the commission. The filing
for Greycliff is expected to be February 13, 2015 and the project is expected to have a
commercial operation date (COD) in December of 2015, while New Colony is expected to have
COD by June 2016.
Question - When will the New Colony project be filed with the commission?
Answer - New Colony will be filed after the completion of a transmission study, which is
expected by April 1st of 2015.
Question - Why isn’t a transmission study completed prior to the execution of a contract?
Answer - Energy supply can’t request a transmission study until a power purchase agreement is
executed.
Question – Where are they located, is it near Judith Gap?
Answer – The Greycliff facility is located Northwest of Reedpoint East of Big Timber and New
Colony is located about 3 miles from Martinsdale.
Existing Resources
NorthWestern detailed the existing energy supply resources in capacity, energy, ancillary
services, and expiration date. Resources included the hydroelectric facilities, NorthWestern
Energy’s share of Colstrip Unit 4, QF thermal contracts, natural gas plants, company-owned and
third party wind resources, and expected DSM savings.
Basin Creek is shown having 52 MW of nameplate capacity versus 35 MW in the 2013 plan.
While there has always been 52 MW of capacity at Basin Creek, 17 MW had historically been
set aside for reserves (non-spinning), but with the hydro resources now providing reserves all 52
MW can be utilized by energy supply.
Question – What is the status of the optimization work?
Answer – HDR and Ascend Analytics will both provide input into the final analysis and the work
is ongoing to define enhancements, capital projects, or additional or changed usage of facilities.
Question – What was the average energy used for hydro modeling?
Answer – It was based on the 5 year historical period that was used in the hydro filing adjusted
for what is expected considering recent upgrades to Rainbow and Cochrane.
Greycliff, New Colony, and Sleeping Giant were included in the existing resources as all have
executed contracts with NorthWestern.
Question – Why was Greenfield not on the list?
Answer -- Greenfield Wind was left off the list of existing resources due to the MPSC rejection of
the stipulation agreement that is subject to reconsideration.
Annual energy savings from DSM of 91.5 aMW including losses is equivalent to 84 aMW of
reduced load at the customer meter. The energy savings at the customer level means Energy
Supply will have to procure that much less plus the line losses that would have been incurred.
The portfolio is significantly different from the 2013 Plan with the inclusion of the hydroelectric
facilities and NorthWestern does not have a need for baseload resources for the foreseeable
future. The total nameplate capacity of all resources is over 1,600 MW; with a winter peaking
capacity almost equaling the winter peak load.
Question - Does NorthWestern expect DSM savings to be constant over time?
Answer - NorthWestern is maintaining its original forecast of DSM savings until there is data to
conclude a different result.
Question - Can DGGS provide spin or non-spin reserves for the energy supply department?
Answer - DGGS is primarily used by the transmission department. NorthWestern’s Energy
Supply must provide their own reserves which are currently being met by the hydroelectric
facilities.
Question - Does the reserves column detail all of the reserves required by NorthWestern’s
Energy Supply?
Answer - The requirements for reserves has recently changed and the current rules require
reserves for 3% of load and 3% of generation. Half of each requirement must be spin and the
other half non-spinning reserves. Spinning reserves must be attached to a generating turbine
while non-spinning reserves must be able to be dispatched within ten minutes. The columns
depict the reserves and type of reserve that each resource provides.
A portfolio optimization study has begun that will analyze each resource for optimal use
individually, and as part of the portfolio, in the context of determining the opportunity costs
associated with providing ancillary services versus generating to meet load. Utilization of the
Dave Gates Generating Station (DGGS) may change as a result of the optimization study.
There will be two components of the optimization study. The initial study will analyze the
physical capabilities of the system, the operating protocols (such as the FERC licensing
requirements), and determine how changes in operation will affect the system. The results of this
study will be used for an economic analysis to determine financial optimization of the system.
The study will be done in the first and second quarters of this year.
Question - Will the portfolio optimization analysis affect the operation of Basin Creek and the
hydro facilities?
Answer - This study will focus on the economic advantages of each portfolio resource. The
operation of some of the resources may change. For example, the hydroelectric facilities can
provide spinning reserves and Basin Creek can only provide non-spinning reserves. A unit can
use spinning reserves to fulfill its non-spin requirements if needed and this may change the use of
Basin Creek and the hydro facilities. The study will also determine if capital costs are needed for
enhancement of some of the resources.
NorthWestern described the current composition of NorthWestern’s Energy Supply portfolio.
The nameplate capacity and percentage of the portfolio for each resource is as follows: hydro
facilities 483 MW (excluding Kerr Dam) and 43%, wind 282 MW and 25%, coal 222 MW and
19%, natural gas 59 MW and 5%, QF thermal 87 MW and 8%.
Question – Will NorthWestern address the capacity value of resources?
Answer – In a future ETAC meeting this issue will be discussed.
Load and Resource Balance
NorthWestern discussed its load serving obligation for heavy load and light load hours for the
next 10 years with existing resources and average wind. The resource composition was also
shown with zero wind and wind at 91% of capacity.
The heavy load chart depicted a need of additional resources for average and zero wind.
However, if wind reaches 91% of capacity the portfolio is long. The chart depicting light load
hours demonstrates NorthWestern meeting its load serving obligation with average wind, a slight
need for energy with zero wind, and being significantly long with 91% capacity wind. These
charts continue to demonstrate need to insert only peaking resources in the portfolio.
NorthWestern compared peaking resources available for the next twenty years in January 2015
versus January 2013 in the following slides. Peaking resources are between 700 and 800 MWs
from 2016 through 2026, compared to a peak load of 1,200 and 1,400 MWs for the same time
period in the 2015 chart. The 2013 chart has peaking resources of 400 to 500 MWs for the same
time period. These charts conclude that while NorthWestern has added resources in the last two
years, there is still a need for additional peaking resources.
Information downloaded from the PowerSimm software detailed hourly load and resource
balance for one week each January, May, and July of 2016, 2021, 2026, and 2031 and shown in a
series of charts. January and May hourly data for 2016 and 2021 depict loads being met in offpeak hours and a need of resources in on-peak hours. July 2016 and 2021 charts detail a need for
additional resources in all hours with lower expected energy from hydro and wind resources
during the summer. Expected load growth by 2026 and 2031 translates into a need of additional
resources for all hours of January, May, and July other than off peak hours in January and May.
Question - Will NorthWestern model a critical water scenario in the 2015 Plan?
Answer - The PowerSimm software allows NorthWestern to stochastically model hydro output by
including 100 simulation results within its program. Critical water and high water scenarios are
captured under this modeling.
Question - Is NorthWestern considering including an electric load carrying capability (ELCC)
or exceedance analysis in the 2015 Plan?
Answer - Internal discussions regarding analyzing loss of load probability (LOLP), ELCC, and
exceedance analyses have taken place. PowerSimm may be able to help model these types of
analyses and preliminary discussions will continue to determine the software capabilities for
these studies.
New Resource Options
NorthWestern discussed the new resource options in consideration for inclusion in modeling the
2015 Resource Procurement Plan. Baseload resources included a combined cycle power plant,
gas combined heat and power plant, coal, internal combustion units, and small modular nuclear
reactors. The lack of need for baseload resources has limited the need to model many of these
resources, but a combined cycle plant is being proposed for inclusion in the 2015 Plan although
it may not fit into the portfolio until late in the 20-year planning horizon.
As discussed, peaking resources are needed for the portfolio. Aeroderivative, frame turbines, and
reciprocating engines were peaking resources that were discussed. The GE LMS 100 and Pratt
Whitney aeroderivative turbines were modeled in the 2013 plan and compared with a frame
turbine offer better efficiencies and lower operating costs, but have higher capital costs.
Reciprocating engines provide flexibility with very low startup costs and the Wartsila 50SG
model will be analyzed in the 2015 Plan.
Renewable resources such as rooftop solar, utility scale solar, small hydro, and wind will be
modeled in the 2015 Plan. NorthWestern believes that rooftop solar would be captured in the
model as a load reduction resource similar to DSM. Discussion revolved around if this was the
proper way to model rooftop solar and if multiple levels of solar should be modeled to determine
the effects to the system.
NorthWestern has recently begun to model utility scale solar as declining capital costs in recent
years have made solar more competitive. Depending on the amount of solar that is developed on
the system, the load shape could change significantly in the future. NorthWestern must
determine integration costs and the avoided cost for solar. The NorthWest Power and
Conservation Council has been analyzing solar for the 7th Power Plan and has noticed that costs
have and are expected to decline in the future.
Storage devices were also discussed as possible resource options. Battery storage is viewed as an
ancillary source instead of an energy source, but will be proposed for inclusion in the 2015 Plan.
Pump storage, such as the proposed Gordon Butte storage project, would have to be supported by
multiple utilities due to its size and won’t be modeled at this time.
Battery Storage Project Update
NorthWestern’s Regulatory Support Services presented an update on the battery storage project
located near the Helena district office. The project was designed to test battery storage with
renewable integration.
The battery system is 50 kW and is comprised of 200 batteries connected together in a shipping
container. The batteries must be charged to between 10-90% of capacity, but operate most
efficiently with a charge of 50%.
The batteries are attached to a control system that allows the batteries to charge during off-peak
hours and discharge power during on-peak hours. The control system can be programmed to
discharge at both the morning and afternoon peak.
Two fixed array, 5 kW solar panels are connected to battery system. The project was funded with
USB money in 2011 and 2012 and currently provides load support to the Helena division
building.
The original schedule projected that installation would be completed in 2013, with testing,
analysis and reporting being completed in 2014. There was a delay in the installation and the
updated schedule anticipates testing, analysis and reporting being completed by the end of 2015.
Net Metering Update
June Pusich-Lester presented an update on NorthWestern’s net metering program. Through
October of 2014 there were 1,333 net metered customers. Photovoltaic customers numbered
1,218 and have generated 6,209 MWh, while 110 wind customers have generated 682 MWh.
1,040 of the customers were residential and 293 commercial. Over half of all net meter
customers are located in Gallatin, Missoula, and Lewis and Clark counties.
Question – What is the average size of a net metered solar system?
Answer – It was two kW until two years ago, but now it may be closer to 4kW.
Question – What kind of production information does NorthWestern gain from the net meters?
Answer – It is difficult to gain much production information as the system is attached to the
customer’s side of the meter, but an audit was performed in the past and it was discovered that
many of the systems haven’t been maintained and thus aren’t producing any electricity.
Question – Would it be possible to develop an hourly generation profile?
Answer – NorthWestern doesn’t have the capability to develop an hourly profile yet, but NREL
(National Renewable Energy Laboratory) has an online PV Watts Calculator that is very
accurate.
Following the questions, everyone toured the battery storage and solar project in the Helena
District yard.
Next Meeting
The target date for the meeting will be some time in April 2015 and probably located in Helena.