appa joint action workshop tucson, az january 9, 2006 joint action still relevant, after all these...
TRANSCRIPT
APPA Joint Action WorkshopAPPA Joint Action Workshop
Tucson, AZ January 9, 2006
JOINT ACTION
STILL RELEVANT, AFTER ALL THESE YEARS
JOINT ACTION
STILL RELEVANT, AFTER ALL THESE YEARS
Bill D. CarnahanExecutive Director
What Do We Want to Accomplish Today?What Do We Want to Accomplish Today?
• Review What External Factors Influence Success
• Review What Internal Factors Influence Success
• Determine What We Have in Common
• Review What External Factors Influence Success
• Review What Internal Factors Influence Success
• Determine What We Have in Common
Why Were Joint Action Agencies Created?Why Were Joint Action Agencies Created?
To provide “collective” projects, activities and services that are more economical and efficient than the members can do individually
SCPPA PROFILE
VITAL STATISTICSVITAL STATISTICS• DIVERSITY
SIZE Banning to LADWP
(10,000 Customers) (1.4 Million Customers)
Average - 50,000 to 100,000 Customers
(Burbank, Glendale, Pasadena, Anaheim, Riverside, Imperial Irrigation District)
LOCATION
Metropolitan – Coastal – Inland – Desert
LOAD CONTROL AREAS
CAL ISO – Anaheim, Riverside, Pasadena, Azusa, Banning, Colton, Vernon, Cerritos
LADWP – Burbank and Glendale
IMPERIAL IRRIGATION DISTRICT
• DIVERSITY
SIZE Banning to LADWP
(10,000 Customers) (1.4 Million Customers)
Average - 50,000 to 100,000 Customers
(Burbank, Glendale, Pasadena, Anaheim, Riverside, Imperial Irrigation District)
LOCATION
Metropolitan – Coastal – Inland – Desert
LOAD CONTROL AREAS
CAL ISO – Anaheim, Riverside, Pasadena, Azusa, Banning, Colton, Vernon, Cerritos
LADWP – Burbank and Glendale
IMPERIAL IRRIGATION DISTRICT
VITAL STATISTICSVITAL STATISTICS• DIVERSITY
RESOURCES
Local Generation – LADWP, Burbank, Glendale, Pasadena, Imperial Irrigation District
Local Peaking Generation – LADWP, Burbank, Glendale, Pasadena, Riverside, Anaheim, Vernon, Colton, Imperial Irrigation District
SCPPA-Financed Generation = 2,000 MW
SCPPA Aggregate Peak Member Load = 9,000 MW
SCPPA Aggregate Member Population = approx. 5 Million
• DIVERSITY
RESOURCES
Local Generation – LADWP, Burbank, Glendale, Pasadena, Imperial Irrigation District
Local Peaking Generation – LADWP, Burbank, Glendale, Pasadena, Riverside, Anaheim, Vernon, Colton, Imperial Irrigation District
SCPPA-Financed Generation = 2,000 MW
SCPPA Aggregate Peak Member Load = 9,000 MW
SCPPA Aggregate Member Population = approx. 5 Million
VITAL STATISTICSVITAL STATISTICS
GOVERNANCE – SCPPA Board composed of Member Utility
General Managers (no elected officials on
Board)
CAFETERIA-STYLE PROJECTS – Members pick projects to
participate in
SMALL STAFF – Reliance on member’s-staff to supplement SCPPA
staff
REVENUE BOND FINANCING – Power Supply Contracts providing
security for bonds (to date have issued in
excess of $6 Billion)
GOVERNANCE – SCPPA Board composed of Member Utility
General Managers (no elected officials on
Board)
CAFETERIA-STYLE PROJECTS – Members pick projects to
participate in
SMALL STAFF – Reliance on member’s-staff to supplement SCPPA
staff
REVENUE BOND FINANCING – Power Supply Contracts providing
security for bonds (to date have issued in
excess of $6 Billion)
RESULTS: (early years)
Financing participation in large central station generating plants (coal, nuclear and hydro), and,
Financing and constructing interstate high voltage transmission lines to bring the power home,
and,
Provided some services
RESULTS: (early years)
Financing participation in large central station generating plants (coal, nuclear and hydro), and,
Financing and constructing interstate high voltage transmission lines to bring the power home,
and,
Provided some services
Why Joint Action Agencies Were CreatedWhy Joint Action Agencies Were Created
Palo Verde (Nuclear)
Mead/PhoenixMead/Adelanto (Transmission)
Hoover Upgrade (Hydro)
Southern Trans. System
San Juan (Coal)
TIMELINE OF SCPPA PROJECTSTIMELINE OF SCPPA PROJECTS
YEARS
TIMELINE OF SCPPA SERVICESTIMELINE OF SCPPA SERVICES
LOBBYINGPROJECT REPRESENTATION
YEARS
RESULTS: (restructuring years)
After passage of Restructuring Legislation (AB 1890) and direct access, members felt like they could become competitors.
Played cards close to vest, not willing to share resource plans.
Joint action projects and services suffered.
Why Joint Action Agencies Were CreatedWhy Joint Action Agencies Were Created
Palo Verde (Nuclear)
Mead/PhoenixMead/Adelanto (Transmission)
Hoover Upgrade (Hydro)
Southern Trans. System
San Juan (Coal)
TIMELINE OF SCPPA PROJECTSTIMELINE OF SCPPA PROJECTS
AB 1890 Years
YEARS
TIMELINE OF SCPPA SERVICESTIMELINE OF SCPPA SERVICES
LOBBYINGPROJECT REPRESENTATION
YEARS
Public Benefit Programs
AB 1890 Implementation
RESULTS: (after restructuring years)
Why Joint Action Agencies Were CreatedWhy Joint Action Agencies Were Created
• MEMBERS REALIZED DIRECT ACCESS WAS NOT COMING
• RALLIED AROUND “LOCAL CONTROL” AND VERTICAL INTEGRATION
• RECOGNIZED WORKING TOGETHER WAS A GOOD THING
• BEGAN PLANNING NEW GENERATION
• EMBRACED RENEWABLES
• INCREASED COOPERATION IN DELIVERY OF SERVICES
• REINVIGORATED SCPPA AND JOINT ACTION CONCEPT
Board of DirectorsBoard of Directors
Executive DirectorExecutive Director
Finance
Resource Planning
Public Benefits
CustomerService
T&D E&O
ProjectDevelopment
SCPPA STAFF
SCPPA ORGANIZATION STRUCTURESCPPA ORGANIZATION STRUCTURE
LegalLADWP ACCTG
PROJECT DEVELOPMENTPROJECT DEVELOPMENT
Project Development Agreement
|Steering Committee
Project Development Agreement
|Steering Committee
Member CityCouncil Approval
SCPPA BoardApproval
SCPPA BoardApproval
PROJECTPROJECT
Palo Verde (Nuclear)
Mead/PhoenixMead/Adelanto (Transmission)
Hoover Upgrade (Hydro)
Southern Trans. System
San Juan (Coal)
TIMELINE OF SCPPA PROJECTSTIMELINE OF SCPPA PROJECTS
Magnolia (Gas)
Gas Reserves
Renewables
YEARS
NATURAL GAS RESERVE ACQUISITIONNATURAL GAS RESERVE ACQUISITION
PURPOSE: Purchase natural gas reserves, in place, and transport gas to California border and then to the burner-tip
• Fuel Portfolio Diversity (Approx. 15-20% of Total)
• Less Price Volatility
• Secure Supply
• More Economical
• Economies of Scale (SCPPA)
FIRST NATURAL GAS ACQUISITIONFIRST NATURAL GAS ACQUISITION
• July 2005 – Anschutz Pinedale Corp.• Pinedale Wyoming – Pinedale Anticline• $300 Million• 146 Bcfe of proved reserves – 1,250 operated
gross acres with a 42.5% Working Interest• Ultra Petroleum – Operator• Largest acquisition of natural gas reserves
by a U.S. governmental history• 40,000 MDF per day delivery (60,000 Goal)• 32 Operating Wells• Transition Agreement
CURRENT RENEWABLESCURRENT RENEWABLES
Goal: 20% Renewables by 2017
• 2010 Target ?
• What Counts as a Renewable?
• What if the Utility doesn’t need Resources?
• Impact on Rates
• Production Tax Credit Equivalent
ISSUES:
SCPPA MEMBERS – RENEWABLE PROGRAMS = $70 MILLION (5 YEARS)
69 PROJECTS ---- 588 MEGAWATTS (1 MW = 750 HOMES)
WIND = 201 MW GEOTHERMAL = 190 MW
LANDFILL GAS = 32 MW SMALL HYDRO = 97 MW
BIO CONVERSION = 60 MW
TIMELINE OF SCPPA SERVICESTIMELINE OF SCPPA SERVICES
LOBBYINGPROJECT REPRESENTATION
YEARS
Ice BearBenchmarking
Joint ContractingResource Planning
Market Intelligence“Almost Anything”
FUTURE RENEWABLESFUTURE RENEWABLES
WIND
GEOTHERMAL
Currently Negotiating for:
• 150 Megawatts of Geothermal
• 475 Megawatts of Wind in California, Oregon, Wyoming, and Utah
• 100 Megawatts of Solar
• 15 Megawatts of Landfill Gas
• Could be as high as 800 Megawatts
Contract and Ownership Options
($600 Million – Ownership)
Transmission Construction
(Upgrades and New)
KEYS TO SUCCESSKEYS TO SUCCESS
• Look for Common Ground
• Give Members the Spotlight
• Don’t Compete With Member Staff
• Never Say, “We Can’t”
• Encourage Large Members to Help Small Ones
• Treat All Members Equally
• Look for Common Ground
• Give Members the Spotlight
• Don’t Compete With Member Staff
• Never Say, “We Can’t”
• Encourage Large Members to Help Small Ones
• Treat All Members Equally