G&T Update – Western Farmers Electric Cooperative
OAEC MR/PR Fall Meeting (2015)
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360 MW of Capacity via PPA
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Regional Transmission Development
 Aggregate Study process being streamlined.
Integrated Marketplace (IM)
 SPP since March 1, 2014 functionally controls the entire transmission footprint.
 SPP consolidated from 15 balancing authorities to one SPP balancing authority.
 Administers tools for efficient / open use of transmission and generation resources.
 WFEC receives an allocation of Auction Revenue Rights (ARR) based on its load and resources. ARR’s can be converted to
Transmission Congestion Rights (TCRs) which provide a financial hedge for transmission congestion.
 March 1, 2014 the IM opened
 WFEC bids in sufficient capacity and energy to meet the next day load.
 SPP selects most efficient generation to meet the next day load + reserves for the entire region.
 SPP tells WFEC which of its units will generate for the next day and will pay WFEC for this energy.
 WFEC purchases from the IM all of its energy needs for the next day.
 SPP establishes an unsecured credit limit for each market participant. WFEC provides a letter of credit to participate in the ARR
process.
 In coordination with WFEC staff and Board policies, ACES, acting as WFEC’s agent, interfaces with SPP and performs the daily activities
to meet WFEC energy needs.
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 Current Footprint
 370,000 square miles of territory
 More than 15 million people
 627 generating plants
 4,103 substations
 48,537 miles transmission:
⁻ 69 kV – 12,569 miles
⁻115 kV – 10,239 miles
⁻138 kV – 9,691 miles
⁻161 kV – 5,049 miles
⁻230 kV – 3,889 miles
⁻345 kV – 7,401 miles
⁻500 kV – 93 miles
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 FERC 1000
 The Clean Power Plan
 Capital Credits
XYZ Committee
Month, Day, Year
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 Impacts rates
Unbundling
Impacts retail rates
Impacts LM Programs
Billing Determinates
C&I Consumers
 Drives renewables
 Creates new competitors
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Bundled
 Demand
Unbundled - proposed
$8.20/kW
 Generation
 Energy
winter
$5.85/kW
based on 3yr 3cp avg.
$0.00336
shoulder $0.00486
 Transmission
$3.30/kW
 Distribution
$1.55/kW
summer $0.00636
based on 12 month CP avg.
 Fuel
$0.034
 Energy
$0.00541
 Surcharge
$0.0018
 Fuel
$0.03053
Proposed implementation – January 2017
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2014 (MW)
So Far 2015 (MW)
August 22
1511
August 7 1599
July 26
1500
August 8 1573
August 23
1495
July 24
Our dilemma …
Winter Peak of 2015
1684 MW
1531
Summer Peak of 2015
1599 MW (with 100 MW LM)
On the horizon … SPP has expressed their desire for our cost to be
driven off of our CP with SPP peak rather than our own peak.
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 Transition continues
 Large portion have contract expiration Dec. 2016
~200MW of ~325MW - ~60%
 All will be transitioned by the end of 2017
 Average increase to the C&I consumer … 7.5%
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Adding 20+ MW of Community Solar to the WFEC Portfolio
5 multiple MW stations totaling 18 MW
13 co-op participants in approximately 5 MW
Why?
To learn the ropes
To deal with the “Clean Power Plan”
Adds diversity to our portfolio & some capacity
To deal with new competitors that pose a threat!
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WFEC increasing their incentives for GEO in 2016
Why – Everybody Wins
WFEC increasing Tier II rebate $200/T for Q4 2015
WFEC $650/T + Co-op $225 = $875/T
New approach to Energy Efficiency
Strategic Relationships providing measured results
Geo Energy Services
Energy Pioneer Solutions
LED USA
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XYZ Committee
Month, Day, Year
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