Public Service Company Of New Mexico · OTC:PNMXO
Public Service Company Of New Mexico — Technical Presentation (October 2022)
35 slides from Public Service Company Of New Mexico's technical presentation, Oct 6, 2022
Slide 1: PNM 2023-2042 IRP: Transmission
PNM 2023-2042 IRP: Transmission STEERING MEETING #6 OCTOBER 6, 2022
Slide 2: Disclosure Regarding Forward Looking Statements
DISCLOSURE REGARDING FORWARD LOOKING STATEMENTS The information provided in this presentation contains scenario planning assumptions to assist in the Integrated Resource Plan public process and should not be considered statements of the company’s actual plans. Any assumptions and projections contain
Slide 3: Meeting Ground Rules
MEETING GROUND RULES THE FOCUS OF THE MEETING IS THE DEVELOPMENT OF THE 2023 IRP • Questions and comments are welcome – One Person Speaks at a Time 01 • Reminder; today’s presentation is not PNM’s plan or a financial forecast, it is an illustration of the IRP process 02 • When asking a question, ple
Slide 4: Technical Session
TECHNICAL SESSION THE FOCUS OF THE MEETING IS THE DEVELOPMENT OF THE 2023 IRP The technical sessions are about discussing the advantages and disadvantages regarding the application of different technical methodologies within the IRP modeling framework. We are not here to focus on the results or driv
Slide 5: Agenda
TRANSMISSION CONTINUED AGENDA PNM Transmission Engineering PNM Integrated Resource Planning and transmission teams • Transmission System Overview • PNM Transmission Modeling for IRP – 2020 & 2023 • Role of Transmission in Energy Transition • Nodal Transmission Modeling • PNM’s Transmission System an
Slide 6: Transmission in Integrated Resource Planning
Transmission in Integrated Resource Planning Presentation to PNM IRP Workshop October 6, 2022 Nick Schlag, Partner
Slide 7: Emerging need for consideration of transmission in resource planning efforts
Emerging need for consideration of transmission in resource planning efforts Conceptual transmission projects identified to Utility resource planning and transmission planning deliver renewable resources to load in California’s Renewable Energy Transmission Initiative (2009) have historically been
Slide 8: Transmission in IRPs vs. Transmission Planning
Transmission in IRPs vs. Transmission Planning Transmission Analysis in IRPs Transmission Planning Studies Transmission analysis in IRPs are typically performed More detailed NODAL analysis is typically conducted in under a ZONAL (pipe and bubble) modeling framework utilities’ transmission plann
Slide 9: Three general approaches for incorporating transmission in resource selection
Three general approaches for incorporating transmission in resource selection & portfolio development in IRPs 1 “CREZ”-style cost adders Methodology: Generic transmission assumptions used to develop cost adders that are applied to applied to resources or resources in capacity expansion modeling loca
Slide 10: Use of transmission cost adders is the most common approach in IRPs
Use of transmission cost adders is the most common approach to including transmission in IRPs Utility Cost Adders Scenario Analysis Full Co-optimization Avista Corporation ✔ ✖ ✖ California Public Utility Commission ✔ ✖ ✖ El Paso Electric ✔ ✖ ✖ Idaho Power ✔ ✔ Nova Scotia Power ✖ ✔ ✔ NV Energy ✖ ✔ ✖
Slide 11: Inclusion of cost adders for transmission common across IRPs
Inclusion of cost adders for transmission necessary to deliver new resources common across IRPs Example of CREZ-style cost adders in EPE 2020 IRP Transmission cost adders applied to resources allow planners to account for costs of transmission in addition to generation resources in the resource se
Slide 12: Scenario analysis used to evaluate targeted transmission expansion strategies
Scenario analysis used to evaluate targeted transmission expansion strategies Scenario analysis is used in multiple utilities’ IRPs to Example of transmission scenario analysis in IPC 2021 IRP evaluate the benefits and costs of certain strategic transmission projects • Scenarios typically designed
Slide 13: Co-optimization of generation and transmission performed under specific circumstances
Co-optimization of generation and transmission performed under specific circumstances Example of Co-optimized modeling in PAC 2020 IRP PacifiCorp’s 2020 IRP uses a detailed approach to modeling transmission that reflects unique aspects of its system (service territory spread across six states and
Slide 14: Tradeoffs among transmission modeling approaches
Tradeoffs among transmission modeling approaches All three methods allow for consideration of transmission costs associated with new resources and essentially provides a framework that allows utilities to evaluate remote resources coupled with potential transmission expansion as an option/strategy
Slide 15: Integrated System Planning: the next frontier
Integrated System Planning: the next frontier of coordinated generation & transmission planning? The concept of integrated “system” planning SRP’s Integrated System Planning Framework is gaining momentum at a number of utilities ISP represents a coordinated planning effort that unites multiple p
Slide 16: Transmission Modeling for PNM IRP
Transmission Modeling for PNM IRP Nick Phillips Tom Duane SL IDE 1 6 | O CT O BER 6 , 2 0 2 2
Slide 17: Progression of Transmission Modeling in IRP
PROGRESSION OF TRANSMISSION MODELING IN IRP 2011 IRP 2014 IRP 2017 IRP 2020 IRP ➢ Modeled ➢ Modeled ➢ Modeled ➢ Modeled interconnection and interconnection and interconnection and interconnection and minimal delivery minimal delivery delivery costs for delivery costs for costs for candidate costs fo
Slide 18: Zonal Transmission Modeling Overview
ZONAL TRANSMISSION MODELING OVERVIEW Zonal (pipe and bubble) ➢ Portfolio optimization ➢ Simulating transmission capacity limits and costs ➢ Environmental compliance ➢ Long-term study periods (1-20 yrs) SL IDE 1 8 | O CT O BER 6 , 2 0 2 2
Slide 19: 2020 IRP Topology – Core System
2020 IRP TOPOLOGY – CORE SYSTEM 250 MW MKT 4C (Gen) 200 MW 1,200 MW Primary Load/Gen Area 114 MW 204 MW 64 MW 25 MW Secondary Load/Gen Area SL IDE 1 9 | O CT O BER 6 , 2 0 2 2
Slide 20: 2020 IRP Topology – Zonal Modeling
2020 IRP TOPOLOGY – ZONAL MODELING 250 MW MKT 4C Load TZN 200 MW 1200 MW 175MW New Side Available 314 MW New 600 MW (2028) Available 200 MW (2025) 204 MW 600 MW TZW Primary TZE 64 MW 800 MW 114 MW 100 MW 25 MW Secondary TZS SL IDE 2 0 | O CT O BER 6 , 2 0 2 2
Slide 21: 2020 IRP Transmission Modeling Efforts
2020 IRP TRANSMISSION MODELING EFFORTS Initial Modeled Topology • Developed Transmission Expansion Projects Based on PNM Transmission Estimates • New Generic Resources Added After its Associated Transmission Line is Added • All Generic Resources Duplicated in Each Area (Except Wind and Pumped Storag
Slide 22: Nodal Transmission Modeling Overview
NODAL TRANSMISSION MODELING OVERVIEW Nodal Wheeling • Detailed transmission system Solar representation (DC power-flow) Baseload/Gas within a given zone Solar Baseload • Accounts for Balancing Area (“BA”) Wind Solar/BESS interaction and wholesale customers Solar • LMP’s for system nodes help Wind Wi
Slide 23: Network Components
Wheeling Network Components Retail Load Network Customer Load Solar Wheeling Obligation Baseload/Gas Solar Retail Resource Baseload Wind Solar/BESS Network Customer Resource Solar Merchant Resource with Point-Point Wheeling Wind Wind Solar/BESS Solar External Third Party Resource Gas Transmission Ow
Slide 24: Transmission Obligations
TRANSMISSION IMPACTS ARE A FUNCTIONAL OF ALL OBLIGATIONS Wheeling Solar Transmission Obligations Baseload/Gas • Transmission flows depend on meeting all obligations. Baseload Solar Wind • Timing of obligations are largely Solar/BESS independent – especially wheeling. Solar • Obligations for renewabl
Slide 25: Typically Defined Transmission Limitations
TYPICALLY DEFINED TRANSMISSION LIMITATIONS Market Study Area Wheeling Every element has a limit Transmission Limitations Solar • Every element has a limitation. Baseload/Gas • Interface: limitations defined for a set of branches. Baseload Solar Wind • May be possible to reach limit on Solar/BESS som
Slide 26: Zonal Model Development
ZONAL MODEL DEVELOPMENT Market Wheeling Area A Area B Zonal Areas Solar Area C • Zonal models require specific Baseload/Gas geographic areas be defined that Solar include a defined portion of the Baseload Wind transmission system. Solar/BESS • Areas are typically based on BA Solar boundaries and kno
Slide 27: Zonal Model Limitations
ZONAL MODEL LIMITATIONS Market 4C (Gen) Primary • PNM Load and Resources only modeled Mostly 3rd Party X Solar Load/Gen Area Resources – area not historically. ? ? modeled • Requires guessing at amount of transfer Baseload Solar/BESS XX Solar capability available for PNM retail. • Transfers are not
Slide 28: Nodal Modeling
NODAL MODELING Overlays the transmission grid (in more detail than pipe and bubble) against the generation dispatch Detailed transmission line capability and specific elements of the system assessed on their value to the production cost Allows non-retail utilization to be modeled Captures the intera
Slide 29: Nodal Modeling Considerations
NODAL MODELING CONSIDERATIONS Better forecasting of actual transmission utilization and congestion associated with proposed IRP scenarios. Help optimize storage amounts and locations around unused transmission capacity. Nodal modeling can capture a greater subset of the transmission customers beyond
Slide 30: Nodal Transmission Modeling
NODAL TRANSMISSION MODELING Expanding Encompass model to Building other customer data for Model validation required thereafter include a nodal model powerflow model for integrate with PNM’s against expected and neighboring overlay production cost database entity interaction(s) Guides $Bs in generati
Slide 31: Nodal Transmission Modeling: Next Steps for IRP
NODAL TRANSMISSION MODELING: NEXT STEPS FOR IRP Informs IRP modeling by providing robust framework in which to IRP validate capacity expansion and production cost simulation results Continue to perfect database following nodal transmission model runs and results assessments How can resource planning
Slide 32: Near Term Schedule
NEAR TERM SCHEDULE FUTURE MEETING TIME & LOCATION When: October 17, 2022 Topic: Public Advisory Steering Meeting #7: Emerging Grid Solutions Start Time: 9:00 AM Location: Virtual SL IDE 3 2 | O CT O BER 6 , 2 0 2 2
Slide 33: Next Meeting
NEXT MEETING We encourage you to send in your thoughts ahead of time to IRP@pnm.com so that we can summarize them and distribute them for the next meeting. Please have your submissions in by October 12, 2022. SL IDE 3 3 | O CT O BER 6 , 2 0 2 2
Slide 34: Make sure we have up to date contact information for you
MAKE SURE WE HAVE UP TO DATE CONTACT INFORMATION FOR YOU www.pnm.com/irp for documents IRP@pnm.com for e-mails Register your email on sign-in sheets to receive alerts of upcoming meetings and notices that we have posted to the website. SL IDE 3 4 | O CT O BER 6 , 2 0 2 2
Slide 35: Thank you
Thank you pr aio OO@
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