Public Service Company Of New Mexico · OTC:PNMXO
Public Service Company Of New Mexico — Corporate Update (July 2007)
53 slides from Public Service Company Of New Mexico's corporate update, Jul 2, 2007
Slide 1: Electric Integrated Resource Plan
Electric Integrated Resource Plan First Public Involvement Meeting July 2, 2007 PNM Alvarado Square
Slide 2: Pat Vincent
Pat Vincent President PNM Utilities
Slide 3: Jim Ferland
Jim Ferland Senior Vice President Energy Resources PNM
Slide 4: Evelin Wheeler
Evelin Wheeler Energy Resources Director of Strategy, Planning and Analytics PNM
Slide 5: PNM IRP Public Advisory Group Process and Goals
PNM IRP Public Advisory Group Process and Goals July 2, 2007 Dan Violette Summit Blue Consulting
Slide 6: Summit Blue Consulting Overview
Summit Blue Consulting Overview • Provide planning and evaluation consulting services to the utility and energy industries since 2000. • Primary practice areas: – Planning, especially IRPs and related projects – Measurement and evaluation, primary for DSM – Developing DSM programs – Technical resear
Slide 7: Previous IRP Project Examples
Previous IRP Project Examples • A number of IRP reviews and participation in collaboratives related to both supply-side and demand-side planning. • Work on planning processes with utilities within a number of utilities. • Participated in a number of Commission proceedings on IRP and IPR related acti
Slide 8: The Facilitation Role
The Facilitation Role • Help ensure that all points of view are heard, considered, and that group input is carefully analyzed. • Help frame issues and specify areas of agreement or disagreement on issues that arise. • Help prioritize issues. • Work to see if there is information available that can h
Slide 9: Public Advisory Group Goals
Public Advisory Group Goals • Provide PNM with advice on public preferences regarding the Company’s future resource options. – Assist PNM with developing assumptions regarding future resource options and costs. – Review and comment on PNM’s proposed analysis approach for selecting future resources.
Slide 10: PNM's Overview of the IRP Process
PNM’s Overview of the IRP Process
Slide 11: Value of the IRP Process
Value of the IRP Process • Transparency • Diversity • Robust Result
Slide 12: Why are We Here?
Why are We Here? We believe we can best meet our goals through a participant process.
Slide 13: Process Requirements
Process Requirements • Create a Resource Plan – Filed every 3 years • Twenty year planning horizon • Four year action plan – Development of Resource Portfolios • Load Management and Energy Efficiency • Renewable energy • Standardized carbon pricing • Transmission constraints • Reliability and reserv
Slide 14: Process Plan
Process Plan • Three Phases: – Information Sharing – Resource Modeling – Reporting
Slide 15: Discussion of IRP
Discussion of IRP
Slide 16: Lunch
Lunch • 12:00 to 1:00 • Many options available • Weekdays – Downstairs – Tables reserved
Slide 17: Overview Electric Resource Plan
Overview Electric Resource Plan
Slide 18: Striking a Balance
Striking a Balance • Obligation to provide reliable and affordable service • All options have advantages and disadvantages • Achieve a balance
Slide 19: Electric grid diagram
= ind solar is shown as a potenti b mM future as is Biomass conversion (woo turbine) wl may soon be an additional so electrical g ation. Hydro power, a major - electricity in North America isnot shown. he Bulk PowetSubstatioh-commiérts thehigh-veltayes _ carried by the long distance transmission lin
Slide 20: Electric Demand vs. Energy
Electric Demand vs. Energy • Demand – Usage at a point in time Measured in MW or kW • Energy – Usage over a period of time Measured in GWh, MWh, kWh
Slide 21: Annual Capacity Factor
Annual Capacity Factor Capacity MWh generated by the unit = Factor (8760 hours)*(Unit Capacity)
Slide 22: Resource Needs – 10 Years
Resource Needs – 10 Years PUBLIC SERVICE COMPANY OF NEW MEXICO Total Load and Resource Projection (MW) Based on 2007 Load Forecast - No Resources Added 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 System Peak Demand 1903 1948 1984 2016 2058 2128 2180 2233 2283 2343 Energy Efficiency (3) (6) (9)
Slide 23: Resource Needs
Resource Needs 1,400 1,200 1,171 1,100 1,024 1,000 949 870 806 800 737 668 599 MW 600 542 441 381 400 301 232 200 80 (10) (21) 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (200)
Slide 24: Current Fuel Mix
Current Fuel Mix Coal, nuclear,natural gas and renewable 2007 Demand 20% 1% 18% 17% 48% 0% 14% 2007 Energy 0% Nuclear 67% 6% Coal Total Total 3% Natural Gas 9% Generating Generating 5% Oil Purchases Capacity: Capacity: 19% Wind 2,006MW 2,006 MW
Slide 25: Ways to Meet Resource Needs
Ways to Meet Resource Needs • Energy Efficiency • Load Control • Renewable Resources • Conventional Resources
Slide 26: Capital Costs vs. Operating Costs
Capital Costs vs. Operating Costs Baseload: Higher Capital Lower Operating Cost Intermediate: Moderate Capital Moderate Operating Cost Peaking: Lower Capital Higher Operating Cost
Slide 27: Resource Mix Balance
pall A personal commitment to New Mexico Generating Unit Duty Cycle 1600 1400 4 Peak Load Type Resources “ Peak Load - intermediate Load Transistion Intermediate Load Type Resources _ intermediate Load - Base Load Transistion 600 | Base Load Type Resources 400 200 0 0.00% 10.00% 20.00% 30.00% 40.00%
Slide 28: The Fuel Mix Balance
The Fuel Mix Balance • Coal – Abundant, available on demand – Higher air emissions (SO2, NOx CO2, Particulates) • Nuclear – Lower air emissions, zero carbon emissions, available on demand – Radioactive waste must be managed • Natural Gas – Cleanest burning fossil fuel, available on demand – Volatile
Slide 29: The Fuel Mix Balance
The Fuel Mix Balance • Wind and Solar – Inexhaustible supply, no emissions, no water needed – Not available “on demand” • Biomass – Renewable fuel supply – Available on demand
Slide 30: Carbon Regulation
Carbon Regulation • Slow, Stop, Reverse the growth Alcoa of greenhouse gas emissions BP America Inc. Caterpillar Inc. • PNM is founding member of Duke Energy United States Climate Action DuPont Environmental Defense Partnership FPL Group General Electric • “A Call for Action” Natural Resources Defen
Slide 31: Optimal Portfolio
Optimal Portfolio • Cost Effective • Meets reliability needs – 15% reserve margin – NERC and WECC requirements – Transmission system reliability • Resource diversity – Peaking, intermediate and base load – Purchased power, renewable, gas and coal options • Renewable Portfolio Standard
Slide 32: Review Discussion of Resource Planning
Review Discussion of Resource Planning
Slide 33: Overview Demand Side Options
Overview Demand Side Options Electric Energy Efficiency and Load Management
Slide 34: Electric Energy Efficiency and Load Management
Electric Energy Efficiency and Load Management • Topics – Description of Proposed Energy Efficiency Programs – Description of Proposed Load Management Programs – Projected Energy and Demand Impacts – Filing Status
Slide 35: Energy Efficiency Programs
Energy Efficiency Programs • The Residential Lighting program will provide in- store discounts for purchasing compact fluorescent lighting (CFL). • The Refrigerator-Recycling program will pay customers $30 to encourage early retirement of old refrigerators or unnecessary second refrigerators. PNM wi
Slide 36: Energy Efficiency Programs (Continued)
Energy Efficiency Programs (Continued) • The Energy Saver Kit program will install a set of efficiency measures free of charge for income- qualified customers. The New Mexico Mortgage Finance Authority will administer this program. • The Residential and Commercial Indirect Cooling program will rebat
Slide 37: Load Management Programs
Load Management Programs • The Residential Load Management program will cycle non-critical loads (refrigerated AC units, pool pumps, etc.) during critical peak times. • The Commercial Load Management program will use tailored curtailment and load management strategies to provide firm demand response
Slide 38: Projected Energy and Demand Impacts by Product
Projected Energy and Demand Impacts by Product Programs Annual MWh Lifetime MWh Savings / Unit Saved Refrigerator Recycling 0.66 1,481 Residential Lighting 0.05 34,096 Residential Indirect Cooling 1.3 682 ENERGY STAR Homes 1.5 1,557 Energy Saver Direct Install 0.58 2,989 Total Residential EE 4.06 40
Slide 39: Projected Energy and Demand Impacts
Projected Energy and Demand Impacts Projected Savings and Budgets Residential Programs 2008 2009 2010 2011 2012 Annual MWh Saved 20,395 42,041 63,823 63,823 63,823 Annual MW Saved 2 4 6 6 6 Dispatchable MW 8 19 26 32 32 Total Residential Budget $4,595,130 $5,816,550 $6,616,950 $3,897,192 $3,897,192
Slide 40: Filing Status and Implementation
Filing Status and Implementation • Program filed January 31, 2007 • Hearing completed June 21-23, 2007 • PRC decision expected by August 29, 2007 • Program implementation to begin mid- October
Slide 41: Review Discussion of Demand Side Options
Review Discussion of Demand Side Options
Slide 42: Overview Transmission System Overview
Overview Transmission System Overview
Slide 43: Transmission System
Transmission System • Topics – Transmission System Layout – Uses and Limitations of the Transmission System – Future Requirements
Slide 44: The New Mexico Transmission System
The New Mexico Transmission System Shiprock San Juan York Canyon Walsenburg The 345kV lines shown Four Corners Springer Ojo Taos in red are the primary Pillar Black Lake Gladstone transmission lines in Bisti Los Alamos Hernandez Bravo Dome NM Norton Storrie Lake Yah-tah-ey McKinley Las Vegas Ambrosi
Slide 45: The Western Transmission Grid
The Western Transmission Grid PRINCE RUPERT PEACE CANYON KEMANO SUNDANCE PNM is interconnected MICA to many adjacent LANGDON transmission owners and VANCOUVER AREA CRANBROOK operators including: CHIEF JOSEPH SEATTLE AREA EPE, Tri-State, APS, FT. PECK GRAND COULEE HOT SPRINGS SRP, TEP, WAPA, PORTLAND
Slide 46: The New Mexico Transmission System
The New Mexico Transmission System Shiprock San Juan Walsenburg Four Corners WECC Path 48 PNM “Remote” Ojo Taos Springer Gladstone Resources Los Alamos Bravo Dome Four Corners – 196MW Norton Yah-tah-ey San Juan – 768MW McKinley Santa Fe Las Vegas Ambrosia Algodones Palo Verde – 268MW PEGS Guadalupe
Slide 47: PNM Transmission System Uses
PNM Transmission System Uses • Retail-PNM native load customers represent about 60% to 65% of system use – On January 1, 2007 PNM merged TNMP’s NM facilities and customers • Wholesale-Transmission customers represent 35% to 40% of system use
Slide 48: Normal Power Flows
Normal Power Flows • NNM – Flows are always from the north to the south and east 1,600 MW to 1,850 MW in summer. • SNM – Flows are predominately from the west to east and north to south 600 MW to 900 MW. – Changing patterns observed with large generator development in SNM. • Northeast quadrant of th
Slide 49: A Few System Facts…
A Few System Facts… • Line mileage (includes jointly owned lines) – 1,556 miles of 345 kV – 180 miles of 230 kV – 1,000 miles of 115 kV – Also, in Arizona, 165 miles of 500 kV – Palo Verde outlet transmission • “Backbone” transmission lines are 150 to 200 miles in length. • Majority of transmission
Slide 50: Recently Completed System Upgrades
Recently Completed System Upgrades • Valencia Division improvements, October 2004 – Added needed capacity for growing loads • BA Station reconfiguration, November 2004 – Improved reliability to “backbone” system • Project Power, June 2006 – Provided new transmission source for Santa Fe Area • Wester
Slide 51: Load with Transmission Limits
Load with Transmission Limits Historical and Projected Northern New Mexico (NNM) Load with Transmission Import Limits (TTC) and Existing NNM Load Side Generation NNM Network Customer Load 2600 NNM PNM Retail Customer Load (includes KAFB & Gallup) Northern New Mexico Import Capability: NNM TTC Load S
Slide 52: The New Mexico Transmission System
The New Mexico Transmission System Shiprock San Juan Walsenburg Four Corners WECC Path 48 Springer Ojo Taos Gladstone Los Alamos Bravo Dome Norton Yah-tah-ey McKinley Las Vegas Ambrosia Algodones Santa Fe PEGS Guadalupe B-A HVDC tie Springerville Moriarty West Mesa Blackwater Belen Sandia Willard Be
Slide 53: Review Discussion of Transmission System
Review Discussion of Transmission System
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