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Wind Power Purchasing Big Ten and Friends Energy and Mechanical Conference September 30, 2013 Aparna Dial, University Director Energy Services and Sustainability John Rappleye, Senior Energy Programs Manager. Why Buy Wind Power?. A Commitment to Sustainability. Sustainability Leadership - PowerPoint PPT Presentation

TRANSCRIPT

  • Why Buy Wind Power?

    A Commitment to SustainabilitySustainability LeadershipACUPCC Signatory in 2008Commitment to Carbon Neutrality by 2050Commitment to Innovative Leadership

  • How did we do it?What worked for us may not work for others Options depend on the state regulations and the local utility The process evolved as we went through it.

  • How did we do it?We first approached AEP Ohio, the local utility.Due to regulatory constraints, without special approval from the PUCO all they could offer was renewable energy certificates or a buy/sell arrangement from Ohio wind farms.Ohio is deregulated and Certified Retail Electric Service (CRES) providers were becoming more competitive with the regulated utilities. However . . .AEP Ohio was in the middle of a major rate case which would have a significant impact on the cost of power supplied by a CRES provider. Resolution of the rate case which was settled then reversed then finally settled after 20 months delayed final agreement and implementation.We solicited proposals from a few CRES providers to supply our main substation load with a significant portion of the electricity supplied from an Ohio wind farm.AEP Energy, formerly known as AEP Retail, the unregulated arm of AEP, proposed providing our electricity load including 50 MW of capacity from the Blue Creek Wind Farm, a subsidiary of Iberdrola SA, located in Van Wert and Paulding Counties. This was an existing wind farm with uncommitted capacity. The 50 MW of capacity was projected to provide 25% of our electric load.The AEP Energy proposal included what we felt was a signification mark up and risk avoidance cost so working with AEP Energy we negotiated a direct power purchase agreement with Blue Creek Wind Farm and an agreement with AEP Energy to tunnel the wind power to OSU with a direct pass through of the associated costs and provide the remaining electric power load at a fixed cost.

    Iberdrolas Blue Creek Wind FarmProject LocationTully, Union, and Hoaglin Townships of Van Wert County, Ohio, and Benton, Blue Creek, and Latty Townships of Paulding County, Ohio.

    Project Capacity304 Megawatts (MW)

    Number of Wind Turbines152 Gamesa G90, 2.0 MW wind turbines on 100m (328 ft) towers, which are primarily made in Pennsylvania.

    TechnologyTurbines on a 328 foot (100 meter) tower for a total height of 476 feet when a 148 ft long blade is straight up. Each nacelle weighs 85 tons. Each foundation uses about 60 truckloads of concrete and 60 tons of steel rebar.

  • Contract OverviewWind Power Contracted from Blue Creek Wind Farm50 MW wind power capacityEstimated to produce 141,000 MWh annually20 year fixed price with annual escalator$46.50/MWh with 2% annual increaseAll environmental attributes retained by Ohio State and delivered to OSUs GATS account

  • Contract OverviewPower Supply and Wind Power Delivery Agreement with AEP-ETunnel the wind power through PJM SystemActual costs and credits passed through to Ohio StateSupply the rest of the power at a fixed price18 month termPass through costs include -PJM Scheduling, System Control and Dispatch ServiceBalancing Operating ReserveSynchronized Reserve & Capacity CreditsCAT Tax RecoveryCapacity & Transmission ChargesWind Congestion Credits or Debits

  • OSU GATS ACCOUNTAEP OhioPJMRECs

  • ProjectedActualDifferenceTotal MWh414,887419,6494,762Total Wind Power MWh102,333100,149-2,184AEP Price to Compare$21,902,866$23,273,309$1,370,443AEP Energy w/o Wind$18,566,193$18,779,309$213,116Savings w/o Wind$3,336,672$4,494,000$1,157,328Wind Premium$2,345,111$2,633,180$288,068Total w/Wind$20,911,305$21,412,489$501,184Net Savings$991,561$1,860,820$869,259Costs do not include distribution charges or Ohio kWh TaxHow Have We Done ?Results after nine months (December through August)

  • Benefits RealizedReduced Carbon FootprintEnhanced Sustainability RatingsSignificant PublicityUtility Cost SecurityAggregate Utility Cost SavingsAcademic and Research IntegrationImpact on the Campus Community

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