Texas Panhandle
Synchronous Condenser
Solution
Presented to ERCOT Regional Planning Group
www.datcllc.com
April 22, 2014
Outline
• DATC Introduction
• Problem Description
• DATC Proposal
• DATC Advantages
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Duke-American Transmission Company (DATC)
• DATC is a 50/50 joint venture, formed in April 2011 to pursue transmission development on a
national scale
• Founded on a vision of transmission as the key to efficient power markets
• Committed to developing projects that deliver a strong portfolio of reliability, economic and public
policy benefits
• Publically announced projects and assets:
–
DATC Midwest Portfolio – new transmission line projects in Iowa, Wisconsin, Illinois, Indiana and Ohio
–
Zephyr Power Transmission – planned 500 kV HVDC transmission line from Wyoming to California
–
Path 15 – DATC owns 72 percent of the transmission service rights the 500 kV transmission line in central California
• Strategic focus on ERCOT, Texas and SPP as areas of high potential
–
Interest in pursuing a variety of platforms for transmission development including partnerships, greenfield, and
acquisitions
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Overview of Duke Energy Corporation (NYSE: DUK)
• Headquartered in Charlotte, NC
• 150+ years of service
• ~ 30,000 employees
• $50 Billion market cap
• 57,200 MW of generating capacity
• 85% regulated franchise utilities
and 15% commercial enterprises
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Duke Energy Texas Presence
Offices in Houston and Austin
Over 100 employees in Texas
950 MW operating generation
Sweetwater Windpower Project, Nolan County
283 MW 2003 (2007)
Ocotillo Windpower Project, Howard County
59 MW (2008)
Notrees Windpower Project, Ector & Winkler Counties
153 MW (2009)
Blue Wing Solar Power Project, San Antonio
14 MW (2010)
Notrees Battery Storage Project, Winkler County
36 MW (2012)
Los Vientos I Windpower Project, Willacy County
200 MW (2012)
Los Vientos II Windpower Project, Willacy County
202 MW (2012)
Wind
Solar
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Battery
Office
6
Overview of American Transmission Company
• First multi-state stand alone
transmission utility in U.S.
– Formed in 2001
– Privately held with diverse
ownership made up of investorowned utilities, municipalities and
cooperatives
• Tremendous growth since
formation
– Over $3.3B in assets in 2012
– Largest transmission owner in
MISO
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ATC Municipalities, IOUs, and Co-ops
ATC has 29 owners, including several cooperatives
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PREZ Problem Statement
• Original CREZ plan called for ~5.5 GW of capacity in Panhandle, but
reactive support equipment initially installed for ~2.4 GW.
• Panhandle transmission, remote from ERCOT load and synchronous
generation, is stability constrained.
• Panhandle Renewable Energy Zone (PREZ) study has determined
additional transmission upgrades are required to support generation
located in the panhandle when GI queue reaches 3,000 MW financial
commitment.
• PREZ study (phase 1) recommends additional transmission and 200
MVAR of reactive support be installed initially (1,650 MVAR ultimately) in
the panhandle area in the form of synchronous condensers1 due to their
superior inertia and fault current characteristics.
1 Synchronous Condensers are generators that operate like a motor to supply inertial response, reactive
support, and frequency response - synchronized with the grid, requiring no fuel, and produce zero emissions.
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PREZ Upgrade Requirements
• Synchronous condensers located at Windmill and
Ogallala stations in all 3 PREZ planning scenarios
• Synchronous
condensers and linear
upgrades required
concurrently
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PREZ Upgrade Plan
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DATC Solution
• Project Phoenix is the DATC response to ERCOT’s identified need for
reactive support in the Texas panhandle to facilitate wind generation
interconnection currently in the queue with confirmed financial
commitment to build.
• DATC proposes to install repowered generators from the Duke fleet
operated as Synchronous Condensers at Windmill Substation and/or
other ERCOT locations to supply the needed reactive power.
• DATC is eligible to offer and own this solution to ERCOT under ERCOT
Nodal Protocol 3.11.2 (3) which states, “ERCOT shall attempt to meet
these reliability criteria as economically as possible and shall actively
identify economic projects to meet this goal.”
• If endorsed by ERCOT, a PUCT CCN application will follow.
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Duke Preferred Synchronous Condenser Inventory
Unit
Manufacturer
1
Westinghouse
192
155 / -116
March 2014
2
GE
288
205 / -125
May 2015
3
Westinghouse
512
379 / -256
May 2015
4
Westinghouse
105
103 / -76
April 2016
5
GE
145
115 / -67
April 2016
6
GE
145
115 / -67
April 2016
7
Westinghouse
156
144 / -94
April 2016
8*
Westinghouse
496
320 / -250
October 2013
9*
GE
128
101 / -59
April 2013
10*
Westinghouse
297
250 / -130
September 2012
11*
GE
150
100 / -65
April 2012
12*
GE
160
110 / -80
October 2012
*
Recently rewound
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MVA Capability MVAR Capability Retirement
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DATC Proposal
Proposal
Units to be
Repowered
Capability
MVAR
A
#10
#12
Total
250 / -130
110 / -80
360 / -210
$39M
#10
#8
Total
250 / -130
320 / -250
570 / -380
$41M
B
Cost
• DATC is also amenable to collaborating with ERCOT on ERCOT’s preference of
available Duke units.
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DATC Solution Advantages
• DATC provides a cost advantage over all other incumbent providers due
to full depreciation ($0 book value) of Duke generators to be repowered.
• Anticipate 20-30% savings over new Synchronous Condenser
equipment.
• Duke retired generator inventory is immediately available providing a
time advantage over new equipment long lead time delivery.
• DATC Proposal B can satisfy PREZ Phase 2 reactive reinforcement
requirements at Windmill thereby avoiding approximately $88M
additional cost.
• DATC Synchronous Condenser solution is “repeatable” at other ERCOT
locations requiring reactive support.
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Duke / ATC Strengths Applicable To the TX Panhandle
• Large fleet of retired and soon to be retired units and spare parts
inventory
• History of operating generation and transmission providing a unique
skill set in ERCOT when considering synchronous condensers as
transmission assets
• Supply chain economies of scale
• Expert in planning, designing, and constructing transmission lines,
substations, generating plants, and related infrastructure
• History of reliable interconnection and operations in the ERCOT system
• History of meeting stakeholder expectations
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Contact Information
www.datcllc.com
Jeff Peterson
713-375-0709
jeff.peterson@duke-energy.com
Bob Burner
704-382-6889
g.burner@duke-energy.com
Mark Bruce
512-810-1516
mark.bruce@stratusenergy.com