Southern Company (the) · NYSE:SO
Southern Company (the) — Alabama Power Company — Technical Presentation (June 2003)
36 slides from Southern Company (the)'s technical presentation, Jun 19, 2003
Slide 1: Alabama Power Company Water Use and Withdrawals
Alabama Power Company Water Use and Withdrawals June 19, 2003 1
Slide 2: E4 – Water Quantity, Water Use, and Water Withdrawals
E4 – Water Quantity, Water Use, and Water Withdrawals Issue Statement for E4 Effect of current water uses in the Coosa Basin (water withdrawals, drought/flood operations, navigation flow requirements, etc.) on the aquatic resources of the project study area. 2
Slide 3: E4 – Water Quantity, Water Use, and Water Withdrawals
E4 – Water Quantity, Water Use, and Water Withdrawals z Provide a basic understanding of issues associated with: – Water Withdrawals – Required Project Releases – Drought Operations 3
Slide 4: APC’s Challenge
APC’s Challenge Georgia ACT Compact New Lake Users/ Withdrawals Stored water APC Alabama River Minimum Flow 4
Slide 5: E4 – Water Quantity, Water Use, and Water Withdrawals
E4 – Water Quantity, Water Use, and Water Withdrawals z Water Withdrawals – Application Process – Compensation – Required Project Releases – Ecological – Recreational – Navigational – Drought Operations 5
Slide 6: FERC Approved Permits
FERC Approved Permits Current Coosa/Warrior Permitted Users Date Amount Withdrawer Reservoir Approved (mgd) Mid West Nurseries Weiss Feb-79 1 Talladega/Shelby Co. Lay Jan-89 30 City of Clanton Mitchell Jan-88 3 Town of Arley Smith Jul-88 3 Town of Curry Smith Jun-89 3 Five Star Bouldin Mar-98 14 Syl
Slide 7: Recent Requests or Inquiries
Recent Requests or Inquiries 400+ MGD 7
Slide 8: Water Withdrawals
Water Withdrawals z FERC Licenses require that no water withdrawal intake may be located on project lands without FERC approval. z FERC allows the Company to receive reasonable compensation for impacts caused by water withdrawals 8
Slide 9: Water Withdrawals
Water Withdrawals z FERC Licenses require that no water withdrawal intake may be located on project lands without FERC approval z FERC allows the Company to receive reasonable compensation for impacts caused by water withdrawals 9
Slide 10: Water Withdrawals
Water Withdrawals z Compensation policy established in 1989 – because of negative impacts to system due to increased demand and the drought – An attempt to make APC’s electric customers whole 10
Slide 11: Water Withdrawals
Water Withdrawals z Compensation calculation based on following assumptions: – Withdrawer uses 1 mgd for 365 days – Based on our study of reservoir storage costs in the region – Based on there being no cross subsidy between electric customers and water withdrawers 11
Slide 12: Water Withdrawals
Water Withdrawals z Compensation calculation based on following assumptions: – Withdrawer uses 1 mgd for 365 days – Based on our study of reservoir storage costs in the region – Based on there being no cross subsidy between electric customers and water withdrawers 12
Slide 13: Water Withdrawals
Water Withdrawals z Compensation calculation based on following assumptions: – Withdrawer uses 1 mgd for 365 days – Based on our study of reservoir storage costs in the region – Based on there being no cross subsidy between electric customers and water withdrawers 13
Slide 14: Water Withdrawals
Water Withdrawals z Two components of Compensation – Lost Energy Production – Reservoir Storage 14
Slide 15: Water Withdrawals
Water Withdrawals z Lost Energy Production – Removal of water upstream impacts all downstream dams • Domino effect – Energy budget model used to determine the amount of lost generation • based on the magnitude of the withdrawal 15
Slide 16: Water Withdrawals
Water Withdrawals z Reservoir Storage Cost – Replacement Value of Storage – Storage is Leased to Withdrawer – 10% “reserve” fee on unused amounts in permit 16
Slide 17: Water Withdrawals
Water Withdrawals z Reservoir Storage Cost – Replacement Value of Storage • Storage is Leased to Withdrawer – 10% “reserve” fee on unused amounts in permit 17
Slide 18: Water Withdrawals
Water Withdrawals z Reservoir Storage Cost – Replacement Value of Storage • Storage is Leased – 10% “reserve” fee on unused amounts in permit 18
Slide 19: Illustration of Reservation
Illustration of Reservation 30 Permit Maximum 25 20 Reserve@ 10% MGD 15 Withdrawal Schedule 10 Full cost 5 0 2000 2005 2010 2015 2020 2030 2035 2040 19 Year
Slide 20: Compensation Policy Impacts
Water Withdrawals Compensation Policy Impacts • Recovers costs for our rate payers •Withdrawers pay their fair share • Encourages consideration of alternative water sources (reservoirs, wells, etc.) • Promotes Conservation 20
Slide 21: Questions on Water Withdrawals
Water Withdrawals Questions on Water Withdrawals 21
Slide 22: E4 – Water Quantity, Water Use, and Water Withdrawals
E4 – Water Quantity, Water Use, and Water Withdrawals z Water Withdrawals z – Application Process – Compensation z Required Project Releases – Ecological – Recreational – Navigational – Drought Operations 22
Slide 23: Required Project Releases
Required Project Releases Jordan Dam Ecological Flows • July 1 thru March 31 • 2,000 cfs minimum base flow •Maintains wetted perimeter for aquatic species • April 1 thru May 31 • 4,000 cfs base flow 3 P.M. till 9 A.M. • 8,000 cfs pulse flow 9 A.M. till 3 P.M. •Attracts migratory fishes upstream from
Slide 24: Required Project Releases
Required Project Releases Jordan Dam Ecological Flows • June 1 thru June 15 • 4,000 cfs base flow reduced by 67 cfs/day • 8,000 cfs pulse flow reduced by 133 cfs/day • June 16 thru June 30 • 4,000 cfs base flow reduction of 67 cfs/day continues to reach minimum base flow of 2,000 cfs • Pulse flow ce
Slide 25: Required Project Releases
Required Project Releases Jordan Dam Recreational Flows • June 16 thru October 31, weekends only • 4000, 6000, or 8000 cfs continuously from 11 A.M. till 5:00 P.M., rotating thru weekend days • Special Releases up to 10,000 cfs • Memorial Day, Independence Day, and Labor Day Weekends • Special three
Slide 26: Required Project Releases
Required Project Releases Jordan Dam Ecological and Recreational Flows Can be impacted by Flood (increase) or Drought Conditions (decrease) 26
Slide 27: Required Project Releases
Required Project Releases Navigational Flows • Support commercial navigation • Reasonable rules and regulations of the Secretary of the Army • Requirements are different for each river system 27
Slide 28: Required Project Releases
Required Project Releases Navigational Flows • Smith Project expected to contribute 245 cfs • Coosa (Tallapoosa) Project releases • Minimum of 32,480 cfs/7-day • Minimum of 8,000 cfs/3-day • If 7-day release exceeds 50,000 cfs, reduced no faster than 1,700 cfs per day 28
Slide 29: Questions on Required Project Releases
Required Project Releases Questions on Required Project Releases 29
Slide 30: Drought Operations
Drought Operations – Water Withdrawals – Application Process – Compensation – Required Project Releases – Ecological – Recreational – Navigational – Drought Operations 30
Slide 31: Drought Operations
Drought Operations • Effects classified into three broad categories: • Ecological impacts • Electric generating capacity • Recreational opportunities 31
Slide 32: Drought Operations
Drought Operations z Ecological Impacts – Increase in BOD, reduced DO – Surface Temperature Increases z Electric Generation Impacts – Decreased peaking capability z Recreation Impacts – Lower reservoir levels can result in reduction in recreation opportunities 32
Slide 33: Drought Operations
Drought Operations z APC is committed to maintaining the average day flow of 4,640 cfs – APC will initiate drought operations when inflows approach required minimum releases 33
Slide 34: Logan Martin Hydro Project Operating Zones
LOGAN MARTIN HYDRO PROJECT OPERATING ZONES 466 ELEVATION (MSL)
Slide 35: Questions on Drought Operations
Drought Operations Questions on Drought Operations 35
Slide 36: Questions on E4?
E4 – Water Quantity, Water Use, and Water Withdrawals Questions on E4? 36
Alabama Power Company — Technical Presentation (June 2003) on 6ix