Georgia Power and Energy Planning
Julie Paul
Environmental Affairs
Georgia Power Company
January 14, 2013
Today’s Discussion



Introduction to GPC and
Energy Policy
Demand for Electricity and
Need of Fuel Diversity
Emissions Reductions
Who we are
 Largest of four Southern Company electric utilities
 $7.2 billion in revenue
 2.3M+ customers
 9,000 employees
 13,000 miles of
transmission lines
 61,000 miles of distribution lines
 Rates below the national average
 High customer satisfaction
2011 Georgia Power Generation
Oil
0.01%
Coal
61%
Gas
12%
Hydro
4%
Nuc
23%
Generation Mixes in the U.S.
Growing Demand for Electricity
• From 2000-2030, Georgia’s population is projected to
increase by 4 million residents.
• By 2030, 40% of the population of the United States will live
in the South.
• Electrical demand is projected to grow 30% during next 15
years!
US Census Bureau
Energy Policy Issues
 Policy “Purpose”
– Influence Decisions
 What Decisions?
– Electricity Segment
– New Generation
– Drive Markets
– Drive Economic Development
 Whose Decisions?
– Utility
– Regulator
– Consumer
Energy Policy Issues
Elements of a Policy:
 Cost
 Reliability
 Funding
 Research
 Efficiency
 Sustainability
 Conservation
 Environment
 National Security
 Implementation
• Incentives
• Regulations
• Markets
 Demand Growth
 Economy
 Equitable
Energy Policy Issues
Who Sets “Policy”
 White House
 Department of Energy
 EPA
 Georgia PSC
 Georgia Environmental Protection Division
 Georgia Power
 Electric Membership Co-Ops
 Environmental Organizations
 Consumers
Energy Policy Issues
Who
Sets
“Policy”
 White House
 Department of Energy
Different
Priorities
Lead
to
 EPA
Different Policies =
 Georgia PSC
 Georgia Environmental
Protection Decisions
Division
Different
 Georgia Power
 Electric Membership Co-Ops
 Environmental Organizations
 Consumers
Environmental Strategy
Achieving the right balance…..
Energy
Economy
Environment
U.S. Electricity Cost by State
U.S average residential retail price of electricity was 11.53 cents per kilowatt-hour in 2010
Electricity Prices by State - National Electric Rate Information by Copyright © 2011
ElectricChoice.com. All rights reserved
Coal Control Technologies
Improving Air Quality
Electrostatic
Precipitators (PM)
Currently: 33
Scrubbers (SO2 and Hg)
Currently: 13
Selective Catalytic
Reduction (NOx)
Currently: 16
Sorbent Injection &
Baghouse (Hg)
Currently: 4
Plant McDonough
Plant McIntosh
Plant Kraft
Plant Mitchell
Plant McManus
Non-fossil: Nuclear
Plant Vogtle
Fewer Components Reduce Plant Costs
50% Fewer
Valves
35% Fewer
Pumps
80% Less
Pipe
45% Less
Seismic
Building
Volume
70% Less
Cable
Non-Fossil: Biomass
Generation Efficiency
Plant McDonough CC
 Replacing 540 megawatts of coalfired generation with more than
2,500 megawatts of natural gasgeneration (will supply 625,000 homes)
 Creates significant emissions
reductions
–
–
–
–
NOx by 85%
SO2 by 99%
Mercury by 100%
CO2 rate by 50%
 Promoting energy efficiency
– Distributed over 330,000 CFLs between 2006-2009
– Rebates for Energy Star appliances
– Provide free in home energy audits
– Recycle old refrigerators and freezers
Renewables
Renewables
Solar Demonstration Project
 Customers may sell some
or all of generated
electricity to GPC
 Small generators
(<100kW) under RNR-7
and SP-1
 Large customers
(<80MW) as a QF
Green Energy & Solar Initiative
 Purchasing Green Energy
– $3.50 per block, biomass
– $5.00 per block, at least 50%
solar
– Special Event Purchase
Option
 Advanced Solar Initiative
– Proposed program that
encourages solar
development
– Supply agreements with
independent developers and
customers
– GPC does not earn a profit,
but acts as a technology
facilitator
– Program debut in early 2013
A Matter of Scale
Georgia Power Peak Demand = 18,360 MW (8/10/07)
Wind
1 Turbine ~ 3 MW
Solar
Coal/Nuclear
1 Installation ~ 50 MW
VS.
Biomass
1 Unit ~ 100 MW
Hydro
1 Dam ~ 45 MW
1 MW = Energy Needed To Power 250 Homes
1 Plant ~ 1000 MW
Emission Trends
Georgia Power
Emissions Trends
80%
60%
Retail Sales Up 55%
Population Up 50%
40%
20%
0%
-20%
-40%
-60%
Hg Down more than 75%
NOx Down more than 75%
SO2 Down more than 80%
-80%
-100%
1990
1995
2000
2005
2010
Greenhouse Gases
Carbon Dioxide
 Water vapor
 Methane
 Nitrous oxide
 Chlorofluorocarbons (HFCs and PFCs)
 Sulfur hexafluoride (SF6)
CO2 has risen from 280 ppm to 380 ppm since the industrial
revolution began.
U.S. GHG Emissions by Sector
Source: U.S. Environmental Protection Agency, Total U.S. Greenhouse Gas Emissions by Economic Sector in 2010
How to Cut CO2
Cut Fossil Fuel Usage
 Use Non-fossil
• Nuclear
• Renewables
 Use less energy
• Efficiency & DSM
• Increase Cost
 Generation Efficiency
• Combined Cycle
• IGCC
• SmartGrid
Develop CO2 Management
Technologies
 No Current Technology
 Capture & Sequestration
• Estimated Availability ~
2025
• Develop Offset Programs
Climate Change Solutions
 CO2 Capture &Storage
– The National Carbon Capture Center
• Managed by Southern Company
• Collaboration with DOE, scientists, technology developers, industry, university
– Kemper County Integrated Gas Combined Cycle
• Capture 65% of CO2 to be sold for enhanced oil recovery
• Only IGCC plant in U.S. to capture and store CO2 during commercial
operation
– Start-to-Finish Carbon Capture & Storage
• Alabama Power, Southern Company, DOE, Mitsubishi, EPRI
• Largest in the world connected to a pulverized coal-fired generating plant
• CO2 supplied to DOE and permanently stored in a deep geological formation
GPC Generation Mix (MWh)
2011
Oil
0.01%
Coal
61%
Gas
12%
Hydro
4%
Nuc
23%
2020
?
Summary
 Growing population increases
electrical demand
 Affordable, reliable service by
maintaining diverse fuel portfolio
and promoting energy efficiency
 Addition of pollution control
equipment to minimize
emissions
Georgia Leads the Nation