1 rggi workshop june 15, 2006 gary ferenz. topics presented bethlehem – 1,092 mw’s 2 overview of...
TRANSCRIPT
Topics Presented
Bethlehem – 1,092 MW’s
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Overview of Conectiv Energy Supply, Inc. (CESI) business
CESI Renewable Energy Portfolio
Reporting Renewable Energy - Use of PJM-EIS GATS
Reporting Fuel Mix - Disclosure Label
Reporting Emissions
PJM Basics – Objective, Gen Dispatch, Power Flow
Commercial Perspective on RGGI “Leakage”
Contact Information
Conectiv Energy (CESI) - Overview
Bethlehem – 1,092 MW’s
Unregulated subsidiary of PEPCO Holdings, Inc. located in Newark, DE
Serve wholesale load and control 3,600 MW of generation primarily in eastern PJM
Generation fleet fueled by natural gas, oil, coal, and landfill gas
Involved in a variety of transactions – Load Auctions, Municipal Supply, Generation Tolls, Fuel Procurement, Hedging, Swaps, etc.
Flow power into and out of PJM
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CESI Renewable Portfolio
Renewable Energy obligations from serving load in NJ, MD, and DE under State Renewable Portfolio Standards (RPS)
Trade Renewable Energy Credits (RECs) short and long-term
Produce RECs qualified in several states
Active in Renewable regulatory process and PJM Generation Attribute Tracking System (GATS)
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DE RPS Highlights
• Comparable to surrounding states RPS except one class/tier
• Effective June 1, 2007 (banking starts 6/1/06)
• Planning Year requirements of 1% - 10% (2020) of retail load supplied
• Maximum of 1% from pre-1998 generation facilities
• Solar, wind, ocean tidal/thermal, fuel cells, small hydro, sustainable biomass, anaerobic digestion and landfill gas
• 3-Year shelf life for RECs
• Alternate Compliance Payments (ACP) of $25 - $45
• Co-firing allowed – proportional basis
• Behind-the-meter must be located in DE
• Requires PJM GATS for compliance reporting5
Records creation, sale and retirement of RECs (except NJ Solar) and load served by state
For Renewable generation, there is a monthly allocation of Fuel Mix based on proportional MMBtu utilization or different fuels
Periodic assignment of load responsibility to state accounts fro RPS Obligation calculation
Currently do not use GATS for Emissions Reporting or Disclosure Label
CURRENT USE OF PJM GATS
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Provides Fuel Mix of a company’s total MWhs of load served
Provided to LSE Customers on a state-by state basis
Reporting Requirements usually handled by Electric Delivery Company (EDC/LSE)
Utilizes aggregated data from Suppliers usually based on PJM averages with Renewable additions
Currently GATS not required for reporting
Disclosure Label
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Disclosure Label Example
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BGS Supplier Conectiv Energy Services, Inc. Phone (302) 451-5225 Contact Gary Ferenz Fax (302) 451-5266 Email [email protected]
Emission Table Jan - Dec 2005 July 04 – June 05 June 04 – Dec 04 June 04 2003 PJM
Kilowatt hours transmitted to Atlantic City Electric: January 1, 2005 – December 31, 2005
9,999,999,999 (Jan05 – Dec 05)
999,999,999 9,999,999 99,999 999,999,999
Annual NOx Emissions Rate (lbs/ MWh) 2.60 2.9 2.9 3.0 3.0 Annual SO2 Emissions Rate (lbs/ MWh) 8.49 8.5 8.5 11.1 11.1 Annual CO2 Emissions Rate (lbs/ MWh) 1,293 1195 1,195 1,268 1,268
Fuel Source
Jan - Dec 2005 July 04 – June 05 June – Dec 04 June 04 2003 PJM Non-Renewable Sources 95.8% 96.7% 96.7% 96.7%
Coal 55.8% 50.2% 50.2% 53.5% 53.5% Gas 5.3% 6.9% 6.9% 8.4% 8.4% Hydroelectric (large) 1.4% 1.4% Nuclear 33.2% 37.2% 37.2% 32.9% 32.9% Oil 1.5% 1.1% 1.1% 2.0% 2.0%
CLASS I RENEWABLE ENERGY: (minimum of 0.75% ) Captured Methane Gas 0.11% 0.7% 0.7% 0.8% 0.2% Fuel Cells Geothermal Hydroelectric (small) 0.91% 2.1% Solar Solid Waste Wind 0.07% 0.1% 0.1% 0.1% Wood or other Biomass 0.11% 0.1%
CLASS II RENEWABLE ENERGY: (minimum of 2.5% ) Captured Methane Gas Fuel Cells Geothermal Hydroelectric (small) Solar Solid Waste 3.1% 2.5% 2.5% 2.5% 0.8% Wind Wood or other Biomass
TOTAL 100% 100% 100% 100.0%
Signature ____________________________
Title ____________________________
Data collected by Continuous Emission Monitors (CEMS) and internal systems
Currently report NOx, SO2 and state emissions factors
Electronic Data Reports (EDR) to EPA and states on a quarterly, seasonal, and annual basis
Delay between reporting and release of data to public and for use by GATS
CESI Emissions Reporting
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GATS currently not used for ER
GATS would be a Duplication of current reporting efforts
GATS has Outdated default emissions rates
GATS Requires monthly manual input to match EDR
Potential timing and adjustment issues
GATS could be used in the future IF REQUIRED
Emissions Reporting
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Objective is Reliability at the Lowest Cost
Economic Dispatch Model – Lowest cost available generation is called on first to serve load
Transmission system supports transport of power from where it is generated to where it is needed to serve load
Locational Marginal Pricing (LMP) – provides intended incentive to flow cheapest power to load
Significant investments in additional transmission pathways and coal generation are planned which will flow more cheap coal power from low-cost west to east
Low-cost coal generation located in non-RGGI states, load located in RGGI states
PJM Power Pool Operations
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Congestion Map Illustrating Areas of Highest Congestion and Price
Mid-Atlantic Power Pathway
Note: Map information is based on PJM data for a single day at peak demand 12
Low Cost Non-RGGI Western Generation
Eastern RGGI Load in NJ, DE & MD
American Electric Power (AEP) and Allegheny Power (AP) are individually proposing major high-voltage transmission projects by 2014; PHI has proposed a separate and complementary power pathway
Future Transmission Investments
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PHI has proposed a major transmission project to PJM:
• 230 mile, 500 kV line originating in northern Virginia, crossing Maryland, traveling up the Delmarva Peninsula and into southern New Jersey
• Significant 230 kV lines that support Maryland, Delaware and New Jersey
PJM design and significant pending investments are powerful forces which encourage transport of power (mostly coal) from the non-RGGI West to Eastern RGGI states
May result in less RGGI-state generation but more non-RGGI generation as PJM dispatches lowest-cost source – “leakage”
Critical Issue: Cost and availability of CO2 allowances/credits - If significant, raises costs of generators located in RGGI states
Diminished financial returns of RGGI-state generation may discourage investment and/or bring faster retirement of RGGI generation – Reliability Issue for PJM
Additional Multi-pollutant state initiatives will add incremental costs to RGGI state generators
Resulting Issues With RGGI
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Suggested Considerations
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Delay until all states in PJM join so there is no issue with “leakage” or economic harm to RGGI-state generators
CO2 Offsets should be geographically unrestricted to bring about the most economical solution to lower CO2 and minimize any conflict with the PJM power pool system
Further consideration and investigation of using a load serving requirement similar to RPS methodology whereby a load-serving entity would be required to have a limit on the CO2/MWh of power used to serve load in a RGGI state
Gary Ferenz
Conectiv Energy Supply, Inc.
302-451-5225
Additional Contact:
Gary Helm
302-451-5077
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Contact Information