By Jim Heneghan Delta-Montrose Electric Association 27 March 2014 How the Utilities Got Their Start 1882 Thomas Edison’s coal fired power plant begins operation in.
Download ReportTranscript By Jim Heneghan Delta-Montrose Electric Association 27 March 2014 How the Utilities Got Their Start 1882 Thomas Edison’s coal fired power plant begins operation in.
By Jim Heneghan Delta-Montrose Electric Association 27 March 2014 How the Utilities Got Their Start 1882 Thomas Edison’s coal fired power plant begins operation in Manhattan ◦ ◦ High capital cost for the plant Central generation distributed via power lines to customers Samuel Insull, Jr. Developed the Regulated Utility Monopoly Concept in Chicago, Illinois ◦ ◦ ◦ ◦ High cost of entry required a “guaranteed” customer base to attract private investors In exchange for allowing a monopoly, the states could regulate the industry Large central generation resulted in relatively low cost of electricity to consumers Inexpensive electricity prompted innovative appliances which brought comfort and convenience to society The Regulated Monopoly Insull’s Idea to Allow State Regulation ◦ Greatly slowed the development of municipally owned utility operations which were a growing trend ◦ Made difficult for “upstart” entrepreneurs to enter the electric utility industry Legally protected service areas ◦ Viable in densely populated areas Regulation protected and assured the interests of the people were protected Wholesale Power Providers Independent Power Providers ◦ PURPA – Public Utility Regulatory Policies Act - 1978 Regulated electric utility monopolies must purchase power from independent sources if it is more efficient, cheaper than avoided cost Intended to promote greater use of renewable energy ◦ Renewable Portfolio Standards – 2004 in Colorado (first by voter initiative) State requirements (thus far, no Fed RPS) that a percentage of electricity sales be from renewable resources ◦ Third Party Owned Photovoltaic Generation In Colorado, 3rd parties can own PV generation and not be regulated as a utility PV installed at a consumers site Tied to the grid via the consumer’s electric meter Consumer makes payments to Third Party Provider It’s a Great Site. Why won’t the utility buy the power?! When is the electricity available? ◦ Hydro is often seasonal Reserve generation when the IPP is not available Percentage output compared to nameplate output 24 hrs -365 days per year ◦ Annual Plant Capacity Factor ◦ ◦ Available during peak demand periods? Base load generation? What about the Power line? Proximity of generator to power line $150K - $200K per mile for 3 phase Does my generation capacity mesh with the utility infrastructure Capacity of the infrastructure What if you can’t generate? ◦ Utility needs a back up G&T, RTO, Balancing Authority 3 Basic Considerations for Grid Connection Net Metering ◦ Interconnection occurs at the meter ◦ Electricity has “retail” value ◦ Kwh provided to grid is “banked” for later consumption Intended to offset consumption on site Generally, low cost to interconnect Often 240 V, single phase Even though generation may be in excess of consumption at any given minute, hour, day, week or month(s), it is intended that the “excess” will be consumed at some point during the year Seasonal hydro is a good example – generate excess during irrigation season; consume in the winter Connect to Utility Grid for Sale to Utility ◦ Interconnection occurs at Utility Grid ◦ Electricity has “wholesale” value ◦ Must meet utility interconnection standards Typically, generation is stepped up to Utility voltage Typically, will have sophisticated trip schemes May require transfer-trip Utility SCADA A negotiated PPA determines the price the IPP receives for electricity May require generation schedules, curtailment clauses, regulatory compliance Intended for consumption on the Utility’s grid May be subject to the Utility’s load factor 3 Basic Considerations for Grid Connection Connect to Utility Grid for Wheeling to Point of Consumption ◦ Interconnection occurs at Utility Grid Must meet utility interconnection standards Typically, generation is stepped up to Utility voltage Typically, will have sophisticated trip schemes May require transfer-trip Utility SCADA ◦ Electricity has “wholesale” value A negotiated PPA determines the price the IPP receives for electricity May require generation schedules, curtailment clauses, regulatory compliance ◦ Intended for consumption Outside of the Utility Service Area in which Generation is Interconnected Subject to Grid Capacity System Impact Study System Losses Multiple Transmission Systems May be Involved Each Transmission Entity Has a “Layer” of Charges Where Can I Find Help? Internet ◦ www.dmea.com Net Metering Policy Net Metering Application ◦ www.dsireusa.org Database of State Incentives Consultants ◦ Telluride Energy & Applegate Group USDA ◦ Potential Funding for Small Hydro Thank You Questions?