GMP: LOCAL POWER

louisianabodyElectronics - Devices

Nov 21, 2013 (3 years and 10 months ago)

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Cost

Carbon

Reliability

Phase II ENERGY PLAN


GMP: LOCAL POWER

Cost, Carbon & Reliability


Maintain a low carbon profile


Competitively & stably priced
and reliable power


Use cost
-
effective efficiency and
demand response to reduce load


More in state and owned
generation

Energy
Future 2008


The Goals






Goals




ACCOMPLISHED


1.
Renewables & SPEED Resources:

1.
20% by 2013
-

On track to meet goal with Kingdom

2.
Additional 5% with existing hydro, Searsburg, biomass

3.
Additional 25% with HQ

4.
TOTAL 50% portfolio is renewable/speed

2.
HQ 26 year contract (starting price 5.8 cents kwh, below
cost of expiring contract)

3.
NextEra 23 year contract


(Starting price 4.66 cents/kwh)

4.
Efficiency Fund investments successful and continued
support of DR (Continued investments in efficiency and DR)

5.
Increased support of in
-
state renewables with Kingdom
permit and Moretown landfill contract.




GMP


Energy Position

-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Annual MWh
Projected GMP Energy Supply vs Load
Nextera PPA
System Contracts
Vermont Yankee
New HQ
Existing HQ / VJO
Premium RPS
Renewables
Existing Renewables
Fossil Fuels
Projected GMP Load
(MWh)
NOTE: This chart
assumes that GMP will continue to tpurchase its share of the Ryegate plant's output after the expiration of its VEPPI PPA in
201
2.




Phase I
-

Centralized power plants

HQ , Seabrook, Large Renewables

Lowest costs in class

Reliable

Price stability

Low carbon

Phase II

-

Local
Renewables



Expand distributed generation. A
logical next step:

Smart Grid technology complements it

Customers & communities want it

Vermont’s Energy Policy supports it

THE

Supply Balance


VEF: “use of solar thermal and photovoltaic
energy is on the rise, wind energy projects
are in process that could account for 6 to
7% of our load IF built.”



Benefits of Distributed and

Micro Generation

Renewable and in
-
state

Vermont in control of energy future

Economic development opportunities

Supports local jobs

Transmission system support

Diversity of supply

Helps protect our environment



BENEFITS

Local

Renewables

Four key benefits in Vermont Energy Future: Foster economic security/independence, Safeguard
environment, In
-
state innovation and job creation, increase community involvement/investment



Deeper connection with customer with


Wider availability of customer
-
owned solar


Community scale wind option


Smart Grid


Efficiency including: Street Lamp LED Program



Local utility
-
owned generation on
behalf of customers



Rutland Solar City

ENERGY VISION

Phase II



Local

Vermont’s Energy Future


“plan’s focus on efficiency and renewable energy sources
including community
-
based sources will help connect Vermonters to our energy choices”

Power


Partner with EV
-

GMP LED Street Lamp
Program; Smart Meters


Explore online billing for efficiency


Explore Solar PV Leasing Program


Partner with Northern Power Systems re:
community wind turbines


Upgrade our hydro facilities, explore biomass


Partner with Rutland


solar city can leverage
solar leasing, attract green companies


Investigate other opportunities for utility
-
owned
standard contract resources



THE PLAN

VEF: “Efficiency and conservation must be the first priority for any comprehensive energy plan.”

Local

Power

200 kW at Berlin Gas Turbine

149 kW at Shelburne Farms

129 kW at our Montpelier
Service Center

58 kW Westminster Service
Center

4 kW Colchester Service
Center

425 customers with 3.4
MW. (1% of load)

563 customers with
pending CPG’s total =5.8
MW

SOLAR GMP
Today



SOLAR


Fuel and technology diversity.

S
olar allows for more diverse energy supply
that features less reliance on single sources and more diversity in terms of fuel
type and technology


Support the Grid


Summer peak conditions drive transmission projects.

Solar generation reduces load on transmission, and has
potential to defer the need for future transmission projects.




Solar has potential to be part of an NTA package (along with local generation and load reductions) to defer the bulk
transmission needs identified in VT/NH Needs Assessment.


Capacity.

Half of GMP’s long
-
term capacity obligations are exposed to future
FCM market price changes.


Additional solar capacity will help to reduce that
market exposure.



Instate power.


Vermont’s power supply portfolio presently relies predominantly
on out
-
of
-
state sources.


In
-
state sources, particularly smaller ones, will help
produce a more robust system with lower energy losses.


Local economic benefits.

GMP’s portfolio and IRP analyses don’t

assign an explicit value to this consideration (jobs, in
-
state economic

activity), but it is a positive.

VEF: “Expand focus on Property Assessed Clean Energy program deployment and develop on
-
bill utility
payment of small
-
scale renewable generation and thermal projects for customers:”

Public

Benefits

GMP /
Northern

Power

Benefits


Foster development of community
scale wind


Promote Vermont business and job
growth


Deploy a technology that has not had a
lot of success in Vermont.


Serve as a demonstration project and
educational resource to towns and
communities and educational
institutions


Help towns meet energy goals in town
plans for renewable generation


Market transformation strategy


catalysis for future development


VEF: “Investigate whether voluntary participation in a
community renewable energy program … would allow
towns and regions that wish to make the investment
become green energy zones”.

PARTNERSHIP

Community

Scale

NP100
-

2 Planned:


Northland Job Corp
(12/11)


Site TBA

(6/12)

Evaluate opportunities :


Standard Offer


NP 2.2 MW on farms


explore leasing program



WIND


8 small plants, generate 6%
GMP power


38

MW capacity,
122,000,000

kwh/year =
16,944

homes


Built between 1896 and
1986, most early
1900s


Our lowest cost resource,
less than 4.0
¢
/kwh

GMP



HYDRO

PLANTS



VEF: “Because there are few undeveloped sites that are candidates for new hydroelectric
plants, an effective way to increase capacity is to improve efficiency and output at existing
hydroelectric facilities.”


Upgrades increase low cost, low carbon power


Newer turbine technology improves efficiency


More sophisticated computer programming
allows engineering of better blade pitch in
runners to get significantly more efficient


Replaced runners in 3 plants, planning 4
th


More than10% increase in efficiency



UPGRADING



GMP



Hydro

Improving Efficiency of GMP Hydro Plants







Additional Power

Vergennes New Runner


= 2,388 MWH

Essex


Min Flow Unit


= 2,539 MWH

Waterbury

New Runner


= 1,765 MWH

Gorge doubles output (runner)

= 11,562MWH

Total





= 18,254MWH

Added efficiency equates to enough energy to supply 2,534 homes




Street Lamp



7000 lights in 700 days


Street Lamp


Past


LED



the Future


72% more efficient


Replace 7000 lamps


2,820 MWH savings


391 homes

VEF: Consistent with putting energy efficiency first., GMP developed lease model
with VEIC to make transition more affordable for towns and accelerate efficiency.

.


LED Program

GMP Street Lamp LED




Partner with VEIC / Efficiency Vermont


No added
cost to town


efficiency funds pay


Towns get benefits of new lighting that is uniform
and will support a darker night sky while
providing safer, brighter ground lighting


New

leasing payment lower than previous
payment


Savings

for town come from lower lease
payment and reduction in total number of lamps


Guide book produced by VEIC





Kingdom Community Wind

0
5
10
15
20
25
30
At around10 cents/kwh, KCW will be the most affordable new, renewable energy available to
GMP customers and VEC members





21 turbines over 3.2 miles of ridgeline in Lowell




63 MW installed capacity




180,000
MWh
/year total output




Power for over 24,000 homes




Utility
-
owned, expected completion by end 2012

Employment at KCW

(Construction Phase)

In all phases of the project, more than 90 Vermont
-
based firms and vendors have worked on KCW

Total direct and indirect VT jobs = 700

Millions in economic activity resulting from new wages, tax payments and competitive, stable energy costs.


VT

Employer

Location

Staffing/

Anticipated Staffing

ADA Security

Newport

6/6

JA McDonald (Site construction)

Lyndon Center

31/55

Ken Davis (Logging)

Hardwick

5/5

New England Tree Experts

Hardwick

18/18

ECI (Substation)

Burlington

4/15

Northern Realm Power

Colchester

5/9

Bates & Murray (Electric)

Barre

0/15

Maine Drilling & Blasting (VT

Office)

Barre

0/15

Other VT based (including GMP

&VEC)

Vermont

24/25

Total

Vermont

93/163

Taxes and Good Neighbor Fund

Education Fund
Payments

Estimated

Payment on Vestas
V112 3.0MW

$555,522
annually

Good Neighbor

Fund Payments

Town

Estimated Payment on
Vestas
V112 3.0MW

Estimated Payment
prior to turbine

selection

Albany

$65,103
annually

$54,030

annually

Eden

$72,132

annually

$59,855

annually

Craftsbury

$31,544

annually

$26,171

annually

Irasburg

$10,000

annually

$10,000

annually

Westfield

$10,000

annually

$10,000

annually

Lowell Tax

Payments

Estimated

Payment on Vestas
V112 3.0MW

$535,000

annually

Under the agreement with the Town
of Lowell the annual payment will
increases every 5 years by $32,500,
regardless of the project’s size

The Fund will provide payments of
one tenth of one cent for each
kilowatt
-
hour produced by the
Project during the first ten
years.
The
payments will be made to the
towns of Albany, Eden, Craftsbury,
Irasburg, and Westfield,
The
payments will be based on each
year’s audited Project output and will
be allocated based on the acreage
in each town that is within a five mile
radius of the wind turbines, subject
to an annual minimum payment of
$10,000.

SUMMARY


Phase I of Energy Vision


goals accomplished with
well balanced long term, low carbon, competitively
priced resources


Phase II of the Energy Vision with Smart Grid
technology calls for investments in distributed
generation and greater efficiency


Deeper relationship with customers


partnering on solar and wind generation


Partner with VEIC for big energy savings on LED

and online billing


Optimal production at our hydro dams



Exploring lease to own solar and wind

generation programs for customers


Smart Grid investments will allow for more

local power and new efficiency opportunities