Public Service Company Of New Mexico · OTC:PNMXO
Public Service Company Of New Mexico — Technical Presentation (September 2022)
53 slides from Public Service Company Of New Mexico's technical presentation, Sep 13, 2022
Slide 1: PNM 2023-2042 IRP: Transmission (1 of 2)
PNM 2023-2042 IRP: Transmission (1 of 2) STEERING MEETING #5 SEPTEMBER 13, 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: PNM System and Modeling for IRP
TRANSMISSION: PNM SYSTEM AND MODELING FOR IRP 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
Slide 6: PNM Transmission Engineering
PNM Transmission Engineering Laurie Williams - Director, Transmission and Substation Engineering Tom Duane - Manager, Transmission Planning SL IDE 6 | SEPT EM BER 1 3 , 2 0 2 2
Slide 7: Introductions
INTRODUCTIONS Laurie Williams Tom Duane Director, Transmission and Substation Engineering Manager, Transmission Planning • Ms. Williams directed the Transmission and Substation • Mr. Duane has managed the PNM transmission planning Engineering teams for the last 1.5 years. She has over 30 department
Slide 8: Transmission Overview and the Role of Transmission in the Energy Transition
Transmission Overview and the Role of Transmission in the Energy Transition Laurie Williams SL IDE 8 | SEPT EM BER 1 3 , 2 0 2 2
Slide 9: Components of the Grid
COMPONENTS OF THE GRID Source: www.nerc.com PNM Transmission Voltage Levels include 115kV, 230kV, 345kV and 500kV SL IDE 9 | SEPT EM BER 1 3 , 2 0 2 2
Slide 10: Current US Grid – Interconnections and Regional Transmission Operators
CURRENT US GRID – INTERCONNECTIONS AND REGIONAL TRANSMISSION OPERATORS Home to roughly 250,000 home to roughly 700,000 MW of generating capacity MW of generating capacity Much of the system is organized “RTOs” US Transmission Grid – Comprised of 3 Synchronous Interconnections – largely independent o
Slide 11: The Western Interconnection
THE WESTERN INTERCONNECTION Covers the 14 western United States and parts of Canada and Mexico PRINCE RUPERT PEACE CANYON SUNDANCE KEMANO MICA Key Characteristics: • 1.6 million square miles, over 110k miles of LANGDON VANCOUVER AREA CRANBROOK transmission, population of approx. 74 million, ~165 SEA
Slide 12: NREL SEAMS Study - Comprehensive Economic and Resource Adequacy Analysis
NREL SEAMS STUDY - COMPREHENSIVE ECONOMIC AND RESOURCE ADEQUACY ANALYSIS SOURCE: https://www.nrel.gov/analysis/seams.html Study found SL IDE 1 2 | SEPT EM BER 1 3 , 2 0 2 2
Slide 13: NREL SEAMS Study Methodology
NREL SEAMS STUDY METHODOLOGY Modeled transmission and generation co-optimized for four different transmission designs SL IDE 1 3 | SEPT EM BER 1 3 , 2 0 2 2
Slide 14: Study Methodology
STUDY METHODOLOGY • The four conceptual transmission designs were studied under eight different grid environments • A total of 32 total capacity expansion model runs were made • Scenarios vary in terms of technology cost, fuel price, and policy assumptions • Refer to preprint article for numbered re
Slide 15: Cost/Benefit Results
COST/BENEFIT RESULTS SL IDE 1 5 | SEPT EM BER 1 3 , 2 0 2 2
Slide 16: Key NREL Findings
KEY NREL FINDINGS • The power system can balance generation and load • Additional transmission enabled lower total installed capacities (especially in the High VG scenario) • There are substantial positive benefit-cost ratios for increasing the transfer capability between the interconnections • Cros
Slide 17: Princeton's Net-Zero America Study
PRINCETON’S “NET-ZERO AMERICA” STUDY • Lays out five pathways by which the United States could decarbonize the entire economy in the next 30 years • According to the research, the United States will need to expand its electricity transmission systems by 60% by 2030 and may need to triple it by 2050
Slide 18: The Bottom Line
THE BOTTOM LINE Transmission is key to achieving the energy transition efficiently across the US ********* Broader use of Distribution will also be critical to success SL IDE 1 8 | SEPT EM BER 1 3 , 2 0 2 2
Slide 19: PNM Transmission System Overview
PNM Transmission System Overview Tom Duane SL IDE 1 9 | SEPT EM BER 1 3 , 2 0 2 2
Slide 20: New Mexico System Overview
NEW MEXICO SYSTEM OVERVIEW • Lines shown in red are the primary backbone transmission lines in NM • Lower voltage lines provide a portion of the transmission capability to deliver resources and distribute power to outlying smaller load areas distant from Albuquerque and El Paso SL IDE 2 0 | SEPT EM
Slide 21: Transmission Limitations: Historical Constraints for Generation Delivery
TRANSMISSION LIMITATIONS: HISTORICAL CONSTRAINTS FOR GENERATION DELIVERY Path 48 Path 47 SL IDE 2 1 | SEPT EM BER 1 3 , 2 0 2 2
Slide 22: Northern NM Limitations for Generation Delivery
NORTHERN NM LIMITATIONS FOR GENERATION DELIVERY Existing Resources: 1590 MW 2022 Additions: 50 MW 2023 Additions: 840 MW Existing Resources: 55+ MW Load-side Resources: 550 MW Existing Resources: 190 MW 2023 Additions: 200 MW Existing Resources: 2457 MW Existing Resources: 270 MW 2024 Additions: 190
Slide 23: Southern NM Limitations for Generation Delivery
SOUTHERN NM LIMITATIONS FOR GENERATION DELIVERY PNM Rights = 89 MW into SNM PNM Rights = 345 MW to NNM Existing BA Resources: 1010 MW PNM Share: 490 MW PNM Load: ~170 MW SL IDE 2 3 | SEPT EM BER 1 3 , 2 0 2 2
Slide 24: PNM Transmission System Usage
PNM TRANSMISSION SYSTEM USAGE Retail (IRP) 44% • Transmission grid serves all customers alike whether wholesale (utility-scale power delivery) or retail (services retail electric load customers) Wholesale Transmission Network • PNM plans and constructs its 5% System 12% system to meet all forecasted
Slide 25: What's Going On Today?
WHAT’S GOING ON TODAY? • Flows on major transmission change direction frequently • Major lines loading in historical north to south direction with low wind conditions and late summer peak hours • Daytime hours during other months and high wind conditions flows are occurring at high levels in a south
Slide 26: Interconnection Requests: Geographic Diversity
INTERCONNECTION REQUESTS: GEOGRAPHIC DIVERSITY • Primarily shows interconnection points. Generation ties of up to 40 miles may also be part of some requests. • Larger circles represent more requests • Darker circles represent more MWs requested. SL IDE 2 6 | SEPT EM BER 1 3 , 2 0 2 2
Slide 27: New Mexico Renewable Resources
NEW MEXICO RENEWABLE RESOURCES • New Mexico is ranked second in the nation for potential solar-generated electric power production and tenth in wind potential.* Western grid rank is higher. • Access to Eastern NM wind resources is dependent on existing and new transmission facilities. *New Mexico St
Slide 28: Merchant Transmission in New Mexico
MERCHANT TRANSMISSION IN NEW MEXICO Will these help NM retail customers? Largest projects are HVDC and may not add load serving capability for retail loads ~8,000 MW transmission capability SL IDE 2 8 | SEPT EM BER 1 3 , 2 0 2 2
Slide 29: Recent Transmission and Renewable Energy Expansion in New Mexico
RECENT TRANSMISSION AND RENEWABLE ENERGY EXPANSION IN NEW MEXICO • “BB2” Line - 362 MW Incremental Capacity -Second BA-Clines Corners Line - $110M • Western Spirit Line – 800 MW Incremental Capacity - $365M Both projects improved access to wind resources SL IDE 2 9 | SEPT EM BER 1 3 , 2 0 2 2
Slide 30: Transmission Improvement for All Options
TRANSMISSION IMPROVEMENT FOR ALL OPTIONS • Expand stations and build Rio Puerco-Pajarito 345 kV line (30 miles) • Cost ~$90M; Permitting/CCN - 5 years SL IDE 3 0 | SEPT EM BER 1 3 , 2 0 2 2
Slide 31: Transmission Expansion for Western ABQ Solar Resources
TRANSMISSION EXPANSION FOR WESTERN ABQ SOLAR RESOURCES • 200 MW • Expand station Rio Puerco 115 kV station and build 115 kV line from Rio Puerco to two new stations on the KM and BW lines. • Reconductor/rebuild existing KM & BW lines to West Mesa • Cost ~$87M; Permitting - 4 years SL IDE 3 1 | SEPT
Slide 32: Transmission Expansion for Western NM Solar Resources
TRANSMISSION EXPANSION FOR WESTERN NM SOLAR RESOURCES • 600 MW • Expand McKinley-Rio Puerco 345 KV stations • Build McKinley-Rio Puerco 345 kV (125 mi.) • Install two 345 kV switchable shunt reactors • Install 345/115 kV transformer and new 345 kV &115 kV stations • Cost ~$442M; ROW/Permitting/CCN-
Slide 33: Transmission Expansion for South of ABQ Solar Resources
TRANSMISSION EXPANSION FOR SOUTH OF ABQ SOLAR RESOURCES • 200-300 MW • Convert BP 46 kV line to 115 kV • Huning-Belen Line Additions • Cost ~$100M; Permitting – 3-4 years • Driven by for Sky Ranch Solar SL IDE 3 3 | SEPT EM BER 1 3 , 2 0 2 2
Slide 34: Transmission Expansion for Northern NM Resources
TRANSMISSION EXPANSION FOR NORTHERN NM RESOURCES • 600 MW • 600 MW • Expand Four Corners and West Mesa 345 KV stations • Expand Ojo and • 345 kV stations and 345/230 kV transformers Norton 345 KV at Pillar, Bista and Ambrosia stations • Install two 345 kV switchable shunt reactors • Rebuild Four Cor
Slide 35: Transmission Expansion for Eastern NM Wind Resources
TRANSMISSION EXPANSION FOR EASTERN NM WIND RESOURCES • 800 MW • Expand Western Spirit & Pajarito 345 KV stations • Build Western Spirit-Pajarito 345 kV (135 mi.) • Install 345 kV series compensation • Install two 345 kV switchable shunt reactors • Cost ~$373M; Permitting/CCN- 5+ years SL IDE 3 5 | S
Slide 36: Transmission: Regulatory Construct
Transmission: Regulatory Construct Laurie Williams SL IDE 3 6 | SEPT EM BER 1 3 , 2 0 2 2
Slide 37: North American Electric Reliability Corporation (NERC)
NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION (NERC) • Approximately 880 requirements governing operations, planning, and security (physical and cyber) • All new and existing transmission must meet certain performance criteria designed to ensure grid reliability and resilience Develops and enforce
Slide 38: Federal Energy Regulatory Commission (FERC)
FEDERAL ENERGY REGULATORY COMMISSION (FERC) • FERC governs all interconnection and wholesale transmission service for the U.S. interstate transmission grid – including PNM’s • Governance achieved through FERC Orders and codified in Open Access Transmission Tariff (OATT) • All generators that want to
Slide 39: FERC Open Access Transmission (OATT) Process
FERC OPEN ACCESS TRANSMISSION (OATT) PROCESS FERC Prescribed OATT Timeframes in # Days • FERC governs interconnection to grid 704 Days Total • Transmission function must treat generation function commensurate with outside Large Generator Interconnection developers Agreement (LGIA), 85 Pre-applicatio
Slide 40: Current FERC Large Generator Interconnection Study Queues for PNM System
CURRENT FERC LARGE GENERATOR INTERCONNECTION STUDY QUEUES FOR PN M SYSTEM 665 MW 1,806 MW Cluster 10 Cluster 11 5 projects 9 projects 654 MW 1,680 MW Cluster 12 Cluster 13 4 projects 12 projects 3,098 MW 2,418 MW Cluster 14 Cluster 15 19 projects 11 projects SL IDE 4 0 | SEPT EM BER 1 3 , 2 0 2 2
Slide 41: Siting and Permitting Challenges
SITING AND PERMITTING CHALLENGES NM Land Ownership / Management: US Forest Service Tribal Lands NM State Military US Bureau Land Management + Many local, county, city regulatory entities and many private landowners SL IDE 4 1 | SEPT EM BER 1 3 , 2 0 2 2
Slide 42: Renewable Energy Transmission Authority (RETA)
RENEWABLE ENERGY TRANSMISSION AUTHORITY (RETA) RETA was created by New Mexico lawmakers to facilitate the development of electric transmission and storage projects. The result is that power can be moved across New Mexico and exported out of New Mexico. • Established in 2007 to plan, finance, develop
Slide 43: Renewable Energy Transmission Authority (RETA)
RENEWABLE ENERGY TRANSMISSION AUTHORITY (RETA) NM RETA commissioned a Transmission Study in 2020 and an updated its findings in 2022, which included: • For NM to capitalize on its enormous renewable generation potential, we must find ways to transmit it outside of NM • While utility-scale storage te
Slide 44: Road to a Western RTO
ROAD TO A WESTERN RTO • Members of the Western Markets Exploratory Group (WMEG) Balancing Arizona Electric • Twenty-five member participants – encompasses most of Power Arizona Public Avista Corp. Authority of Black Hills Service Northern Energy Cooperative west less CA California • Created 2021 - e
Slide 45: Western Market Initiatives
WESTERN MARKET INITIATIVES CAISO Energy Imbalance •EIM saved PNM customers $12M in 2021 and project the ~ Market or “EIM” same in 2022 •A Western-wide ISO/RTO could help continue to leverage resource diversity to lower costs and/or improve reliability for carbon-free grid •RTO establishment will tak
Slide 46: Drivers for Transmission Expansion
DRIVERS FOR TRANSMISSION EXPANSION NERC/WECC Reliability Standards Require • Jurisdictional and Network Customer Needs – Core load growth generally Annual Adequacy studies minimal Generator Interconnection Procedures • Renewable Energy Requirements, La Joya wind, San Juan replacement (OATT Process)
Slide 47: The IRP/Transmission Challenge and PNM Strategy Going Forward
The IRP/Transmission Challenge and PNM Strategy Going Forward Laurie Williams SL IDE 4 7 | SEPT EM BER 1 3 , 2 0 2 2
Slide 48: The IRP/Transmission Challenge
THE IRP/TRANSMISSION CHALLENGE • IRP’s purview includes retail exclusively while PNM’s transmission system is used for both retail and wholesale customers • FERC Rules dictate investment in generator interconnections that are often geographically disparate • May not tend toward the best long-term tr
Slide 49: PNM's Transmission Strategy
PNM’S TRANSMISSION STRATEGY • Seek opportunities for regional transmission efforts that increase system • Maximize use of the transmission infrastructure through use of reliability and/or enable additional market value and strategic joint dynamic line ratings and other strategies to maximize potenti
Slide 50: Transmission presentation to be continued at Steering Meeting #6
Transmission presentation to be continued at Steering Meeting #6 on September 28, 2022 SL IDE 5 0 | SEPT EM BER 1 3 , 2 0 2 2
Slide 51: Near Term Schedule
NEAR TERM SCHEDULE FUTURE MEETING TIME & LOCATION When: September 28, 2022 Topic: Public Advisory Steering Meeting #6: Transmission 2/Modeling Inputs 1/Scenario Form Start Time: 9:00 AM Location: Virtual SL IDE 5 1 | SEPT EM BER 1 3 , 2 0 2 2
Slide 52: 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 5 2 | SEPT EM BER 1 3 , 2 0 2 2
Slide 53: Thank you
Thank you pr aio OO@
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