Current Resource Portfolio
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Appendix F Current Resource Portfolio City Light uses a combination of conservation Conservation programs encourage customers to Energy Saved by and power resources to meet its customers’ use power more efficiently and allow the utility energy needs. The utility’s current resource to defer the acquisition and expense of new Conservation Programs portfolio includes conservation, owned resources. Conservation is low cost and has low From 1977 through 2009, City Light’s generation resources and long-term contract environmental impacts, including no greenhouse conservation programs saved over 15 million resources, supplemented with power exchange gas emissions. It is integral to developing City megawatt-hours by increasing the efficiency agreements and near-term purchases and Light’s Integrated Resource Plan, to maintaining of electricity use in Seattle homes, businesses sales made in the wholesale power market. City its status as a greenhouse gas neutral utility, and industries. Ten years ago, the average City Light owns transmission facilities and depends to supporting the City’s climate change policy Light residential customer used 10,739 kilowatt- primarily on Bonneville Power Administration goals, and to meeting the requirements of I-937. hours of electricity per year, 500 kilowatt-hours (BPA) for electric transmission outside its service It has also been good policy in a transforming more than the national average. Today, the area. energy market because it reduces price risk and average City Light residential customer uses availability risk. approximately 8,975 kilowatt-hours, about 1,000 The following sections discuss existing kilowatt-hours fewer than the national average. conservation, generation, and market resources Conservation programs are designed for all City Light uses to meet its customers’ need for customer classes and address specific energy City Light’s new conservation measures saved energy services. end-uses such as efficient lighting, water about 14.2 average megawatts of power in 2009, heaters, laundry appliances, HVAC (heating, including credit for avoided transmission and ventilation and air conditioning), and motors and distribution losses. These savings prevented manufacturing equipment. They also encourage 74,600 tons of carbon dioxide emissions from Conservation weatherization and high-efficiency construction entering the atmosphere, which is roughly methods. Monetary incentives to utility equivalent to removing 16,600 automobiles from City Light meets the power needs for its customers include rebates, loans, or outright Seattle streets for a year. service area with a high degree of reliability. purchase of savings for installed energy efficient Conservation was introduced into the resource City Light’s conservation programs have been measures. mix over 30 years ago and has remained the guided by its Five Year Conservation Action resource of first choice for the utility to meet load Using information from City Light’s most recent Plan, developed in 2008 with guidance from the growth. The conservation partnership between Conservation Potential Assessment, conducted 2008 IRP and covering the period from 2008- the utility and its customers has successfully in 2006, the 2010 IRP assumes there are 2012. deferred acquisition of expensive new resources, approximately 135 aMW of cost-effective energy especially those that negatively affect the savings potential available over the 20 years of environment. the planning horizon. Seattle City Light 2010 Integrated Resource Plan Appendix F 1 Generation Resources Over 90 percent of City Light’s power is Figure 1. City Light’s Generation Resources generated by hydropower, including its own low-cost hydroelectric facilities in Washington High Ross Agreement CANADA state. As a municipal utility, City Light enjoys Ross Boundary Diablo preferential status in contracting for the purchase Gorge of additional low-cost power that the Bonneville Burlington Biomass Newhalem Power Administration (BPA) markets. The utility has contracts with several other owners of hydroelectric projects in the region. In 2002, GCPHA South Fork Tolt GCPHA City Light signed a 20-year contract with the Cedar Falls Seattle GCPHA Stateline Wind Project; in 2007, City Light began purchasing power from a biomass plant WASHINGTON owned by Sierra Pacific Industries in Burlington. Priest Rapids More recently, City Light contracted with Waste GCPHA Management Renewable Energy for output from Stateline Wind the Columbia Ridge Landfill Gas Project, on-line Columbia Ridge in 2009, and with King County for output from Landfill Gas a planned cogeneration plant at the West Point Energy Resources Treatment Plant in Discovery Park, online in Owned Hydro OREGON IDAHO 2013. Long-Term Hydro Contracts (in addition to the BPA contract; GCPHA is the Grand Coulee The West Point Treatment plant is within City Project Hydroelectric Authority) Light’s service area. Its other resources and their Agreement with British Columbia locations are shown on the map in Figure 1. See Other Long-Term Contracts Lucky Peak Figure 2, following the descriptions of City Light resources, for the amounts generated by City Light resources over the period 1999-2009. Seattle City Light 2010 Integrated Resource Plan Appendix F 2 City Light Resources Contracted Resources base system generation and the other, a market rate for power from other resources. Decisions Boundary Dam is City Light’s largest Bonneville Power Administration City Light’s affecting the marketing of BPA power can resource with a peaking capability of 1,055 largest power purchase contract is with BPA. significantly affect City Light’s resource portfolio MW and average generation of about 490 The contract allows the utility to receive power cost, risk and reliability. aMW annually. Under the Federal Energy from 29 hydroelectric projects and several Regulatory Commission (FERC) license, part thermal and renewable projects in the Pacific High Ross Agreement In an 80-year of Boundary output must be sold to Pend Northwest. Energy is delivered over BPA’s agreement with the Canadian Province of Oreille County Public Utility District No. 1 to transmission grid. British Columbia, City Light abandoned plans to meet the PUD’s load growth. In addition, about raise the height of Ross Dam in exchange for Under the contract, power is delivered in two five aMW of energy must be delivered to the power purchases from British Columbia Hydro forms: a shaped Block and a Slice. Through the PUD in compensation for Boundary Project’s (Powerex). Power delivery and price is similar Block product, power is delivered in monthly encroachment on its Box Canyon Dam. Energy to the generation and costs City Light would amounts shaped to City Light’s monthly net from Boundary is delivered to consumers over have experienced had construction taken place. requirement, defined as the difference between BPA’s transmission grid. Through 2020, the power City Light receives City Light’s projected monthly load and the from the contract has a relatively high cost. In Skagit Project includes the Ross, Diablo and resources available to serve that load under 2020, the cost reduces to a few dollars per MWh Gorge projects, which have a combined one- critical water conditions. Under the Slice product, because the cost portion, equivalent to debt hour peak capability of 690 MW. City Light’s City Light receives a fixed percentage of the service that would have been issued to build the transmission lines carry the power generated actual output of the federal system and pays High Ross Dam, will terminate. BPA delivers the from the Skagit Project to Seattle the same percentage of the actual costs of the power over their transmission lines. system. Power available under the Slice product Newhalem is located on Newhalem Creek, a varies with water conditions, federal generating Because of its location near Boise, tributary of the Skagit River. City Light-owned Lucky Peak capabilities, and requirements for fish and Idaho, Lucky Peak can sell power to all major transmission lines deliver its two megawatts of wildlife protection and restoration. western trading hubs (Mid-C, COB, PV, Mead, power. and Four Corners) without encountering normal In December 2008, City Light signed a contract South Fork of the Tolt has a one-hour peaking transmission constraints. City Light has the with BPA to continue City Light’s access to capability of less than 17 MW. Project costs are option to sell to the highest price market. City the power resources the BPA markets through offset by BPA billing credits. Power from this Light has contract rights to Lucky Peak output September 2028. BPA is involved in structuring project is delivered over a line owned by Puget (approximately 34 aMW annually) until 2034. contracts that will fairly apportion its least Sound Energy. expensive base system generation among its Priest Rapids Project The Priest Rapids Cedar Falls dam has capacity of 30 MW. Power customers. All other BPA power will be available Project consists of two dams: the Priest Rapids is transmitted by Puget Sound Energy. as variously designed products. Power will be Dam and Wanapum Dam. City Light purchases sold primarily at two rate levels – one for the power from this project under two agreements Seattle City Light 2010 Integrated Resource Plan Appendix F 3 with Grant PUD, who owns and operates the Stateline Wind Project City Light has an Columbia Ridge Landfill Gas Project City project. The term of the agreements is to the agreement with J.P.