UNDERSTANDING ENERGYINMONTANA AGuidetoElectricity,NaturalGas,Coal,Petroleum,andRenewableEnergy ProducedandConsumedinMontana DEQReportupdatedforETIC2013Ͳ2014 ReportoriginallypreparedforEQC 2001Ͳ2002 TableofContents Acknowledgments……………………………………………………………………………………………………………..pagei Introduction…………………………………………………………………………………………………………………….pageiii CommentsontheData…………………………………………………………………………………………………….pageiv Glossary…………………………………………………………………………………………………………………………….pagev Summary……………………………………………………………………………………………………………………SummaryͲ1 ElectricitySupplyandDemandinMontanaSummary………………………………………………..SummaryͲ2 Montana’sElectricTransmissionGridSummary…………………………………………………………SummaryͲ3 NaturalGasinMontanaSummary……………………………………………………………………………..SummaryͲ4 CoalinMontanaSummary…………………………………………………………………………………………SummaryͲ5 PetroleuminMontanaSummary……………………………………………………………………………….SummaryͲ6 RenewableEnergyinMontanaSummary…………………………………………………………………..SummaryͲ7 ElectricitySupplyandDemandinMontana………………………………………………………………………………..I ElectricityDataTables………………………………………………………………………………………………………………14 Montana’sElectricTransmissionGrid………………………………………………………………………………………23 NaturalGasinMontana…………………………………………………………………………………………………………..44 NaturalGasDataTables………………………………………………………………………………………………………….62 CoalinMontana………………………………………………………………………………………………………………………70 CoalDataTables………………………………………………………………………………………………………………………79 PetroleumandPetroleumProductsinMontana……………………………………………………………………..88 PetroleumDataTables…………………………………………………………………………………………………………..101 RenewableEnergyinMontana………………………………………………………………………………………………115 Preparedbythe DepartmentofEnvironmentalQuality forthe 2013Ͳ2014EnergyandTelecommunicationsInterimCommittee DEQProjectCoordinator:JeffBlend ETICStaffCoordinator:SonjaNowakowski AuthorsofStatistics JeffBlendandGarrettMartin AuthorsofSections JeffBlend–NaturalGasinMontana JeffBlend–ElectricTransmissionGrid JeffBlend–ElectricitySupplyandDemandinMontana JeffBlend–CoalinMontana GarrettMartin–PetroleuminMontana GarrettMartin–RenewableEnergyinMontana PaulDriscoll–HistoricalData PhotocourtesyofPPLMontana i ii Introduction EnergyissuescontinuetoreceivesignificantpublicattentionandscrutinyinMontana.Inthe decadesincethe1997decisiontoderegulateMontana’selectricitysupply,consumershave witnessedtheCaliforniaenergycrisis,thebankruptcyandreemergenceofNorthWestern Energy(NWE),dramaticchangesinthepriceofnaturalgas,hundreddollarbarrelsofoil, serioustalkofnewmarketsandnewtransmissionlinesforMontana,growthinrenewable energyresources,anddiscussionsofclimatechangeandenergyindependence.The EnvironmentalQualityCouncilfirstpreparedthisguidein2002.Itwasrevisedagainin2004and 2010.TheEnergyandTelecommunicationsInterimCommittee(ETIC)in2013agreedtorevise thedocumenttoprovidethemostupͲtoͲdatebackgroundinformationavailableto policymakersandcitizensalike.Forthe2013Ͳ2014guideanew,RenewableEnergyinMontana sectionhasbeenadded.SpecialthanksshouldbeextendedtotheDEQ,particularlyJeffBlend andGarrettMartin,whowereinstrumentalinthepreparationoftheinformationthatprovides thebackboneofthisdocument. Thisguidefocusesonhistoricalandcurrentpatternsofenergysupplyanddemand.Itisdivided intosixsections.FirstisanoverviewofelectricitysupplyanddemandinMontana.Thesecond sectioncoverstheelectricitytransmissionsystem,especiallyhowitworksinMontanaandthe PacificNorthwest.Thisisthecriticalissueaffectingaccesstoexistingmarketsandthepotential fornewgenerationinMontana.Athirdsectionaddressesnaturalgassupplyanddemand, importantinitsownrightandintertwinedwiththeelectricityindustry.Thefourthsection coverstheMontanacoalindustry,whichfuelsthegenerationofelectricity,isanimportant export,andwhosefutureisdependentuponchangesintheelectricindustryandworld markets.Thefifthsectionaddressespetroleum,thesectormostdirectlyaffectedby internationalevents.ThefinalsectiondiscussesrenewableenergydevelopmentinMontana andthepotentialforthatsectortogrowinthefuture. Theguide,withitsfocusonhistoricalandcurrentpatterns,dealsprimarilywithconventional energyresources.Energyefficiencyandenergyconservationaregivenbrieftreatment,simply becausesuchlimiteddataisavailable.Publicagencies,privatebusinesses,andindividual citizensneedtokeeptheissuesofefficiencyandconservationinmindastheyreviewthe conventionalresourcesincludedinthisdocument. iii Commentsonthedata Dataforthisguidecomesfromavarietyofsources,whichdon’talwaysagree.Inpartthisisdue toslightlydifferentdatadefinitionsandmethodsofdatacollection.Thereadershouldalways considerthesourceandcontextofspecificdata. iv Glossary General ResidentialSector:Energyconsumedby BritishThermalUnit(Btu):Astandardunit privatehouseholdestablishmentsprimarily ofenergyequaltothequantityofheat forspaceheating,waterheating,air requiredtoraisethetemperatureof1 conditioning,cooking,lighting,andclothes poundofwaterby1degreeFahrenheit(F). drying. CogenerationorCogenerators:Aprocess thatsequentiallyproducesusefulenergy TransportationSector:Energyconsumedto (thermalormechanical)andelectricityfrom movepeopleandcommoditiesinthepublic thesameenergysources. andprivatesectors,includingmilitary, railroad,vesselbunkering,andmarineuses, CustomerClass:Agroupofcustomerswith aswellasthepipelinetransmissionof similarcharacteristics(e.g.,residential, naturalgas. commercial,industrial,salesforresale) identifiedforthepurposeofsettingautility FossilFuel:Anynaturallyoccurringfuelof ratestructure. anorganicnature,suchascoal,crudeoil, andnaturalgas. DemandͲSideManagement:Utility activitiesdesignedtoreducecustomeruse Fuel:Anysubstancethat,forthepurposeof ofnaturalgasorelectricityorchangethe producingenergy,canbeburned,otherwise timepatternofuseinwaysthatwill chemicallycombined,orsplitorfusedina producedesiredchangesintheutilityload. nuclearreaction. CommercialSector:Energyconsumedby NominalDollars:Dollarsthatmeasure serviceͲprovidingfacilitiesandbusiness pricesthathavenotbeenadjustedforthe equipment.Itincludesfederal,state,and effectsofinflation.Nominaldollarsreflect localgovernments;otherprivateandpublic thepricespaidforproductsorservicesat organizations,suchasreligious,social,or thetimeofthetransaction. fraternalgroups;andinstitutionalliving quarters. RenewableEnergy:Energyobtainedfrom sourcesthatareessentiallysustainable IndustrialSector:Energyconsumedby (unlike,forexample,thefossilfuels,of facilitiesandequipmentusedforproducing, whichthereisafinitesupply).Sourcesof processing,orassemblinggoods.It renewableenergyincludewood,waste, encompassesmanufacturing,agriculture, solarradiation,fallingwater,wind,and forestry,fishingandhunting,mining, geothermalheat. includingoilandgasextraction,and construction. v ShortTon:Aunitofweightequalto2,000 CoalRank:Aclassificationofcoalbasedon pounds.Alltonnagesusedinthisguideare fixedcarbon,volatilematter,andheating inshorttons. value. Coal F.O.B.MinePrice:The"freeonboard" mineprice.Thisisthepricepaidforcoal Coal:AblackorbrownishͲblacksolid measuredindollarspershorttonatthe combustiblesubstanceformedbythe miningoperationsiteand,therefore,does partialdecompositionofvegetablematter notincludefreight/shippingandinsurance withoutfreeaccesstoairandunderthe costs. influenceofmoistureand,often,increased pressureandtemperature.Thecoalrank SurfaceMine:Amineproducingcoalthatis (anthracite,bituminous,subbituminous, usuallywithinafewhundredfeetofthe andlignite)isdeterminedbyitsheating earth'ssurface.Overburden(earthaboveor value. aroundthecoal)isremovedtoexposethe coalbed.Thebedisthenminedusing Anthracite:Hardandjetblackwithahigh surfaceexcavationequipmentsuchas luster;itisthehighestcoalrankandis draglines,powershovels,bulldozers, minedinnortheasternPennsylvania. loaders,andaugers. Anthracitecontainsapproximately22to28 millionBtupertonasreceived. UndergroundMine:Aminetunnelinginto theearthtothecoalbed.Underground Bituminous:Themostcommoncoal;itis minesareclassifiedaccordingtothetypeof soft,dense,andblackwithwellͲdefined openingusedtoreachthecoalͲͲi.e.,drift bandsofbrightanddullmaterial. (leveltunnel),slope(inclinedtunnel),or Bituminousisrankedbetweenanthracite shaft(verticaltunnel). andsubbituminousandisminedchieflyin Kentucky,Pennsylvania,andWestVirginia. ElectricitySupplyandDemand Theheatingvaluerangesfrom19to30 millionBtupertonasreceived. AverageMegawatt(aMW):Aunitof energyoutputoveraspecifiedtimeperiod. Lignite:AbrownishͲblackcoalofthelowest Forayear,itisequivalenttothetotal rank;itisminedinNorthDakota,Montana, energyinmegawattͲhoursdividedby8,760 andTexas.Theheatcontentoflignite (thenumberofhoursinayear). rangesfrom9to17millionBtupertonas received. Capacity:Theamountofelectricpowerthat agenerator,turbine,transformer, Subbituminous:Adullblackcoalranking transmissioncircuit,station,orsystemis betweenligniteandbituminous.Itismined capableofproducingordelivering. chieflyinMontanaandWyoming.Theheat contentofsubbituminouscoalrangesfrom Demand:Therateatwhichelectricenergy 16to24millionBtupertonasreceived. isdeliveredtoasystem,partofasystem,or pieceofequipmentatagiveninstantor duringadesignatedperiodoftime(see Load). vi Generation(Electric):Theproductionof specifiedconditionsasdesignatedbythe electricenergyfromotherformsofenergy; manufacturer.Installedstationcapacity also,theamountofelectricenergy doesnotincludeauxiliaryorhouseunits. produced,expressedinkilowattͲhours. Nameplatecapacityisusuallyshownonthe manufacturer'sidentificationplateattached GrossGeneration:Thetotalamountof mechanicallytotheequipment.Because electricenergyproducedbythegenerating manufacturershavedifferingstandards,