NorthWestern Energy Group, Inc. · NASDAQ:NWE
NorthWestern Energy — Technical Presentation (July 2017)
15 slides from NorthWestern Energy's technical presentation, Jul 19, 2017
Slide 1: Hydro Upgrades Analysis
Hydro Upgrades Analysis Rehabilitation & Development Performance Validation & Project Prioritization
Slide 2: Hydroelectric System Scope of Capacity Expansion Potential
Hydroelectric System Scope of Capacity Expansion Potential Scope of Project was to Refine Capacity Increase and Cost Estimates for the Hydro Upgrades detailed in the Electricity Supply Resource Procurement Plan dated March 2016
Slide 3: NWE Resource Plan - Hydro Summary
NWE Resource Plan - Hydro Summary • 11 Facilities • 37 Units • 442 MWs • High Capacity Factors
Slide 4: Hydro Upgrade Potential
Hydro Upgrade Potential NorthWestern Energy Delivering o Bright Future Volume 1, Chapter 9 — New Resources Table 9-4 Hydroelectric Capacity Expansion Potential HDR Project Performance Evaluation Report Hydroelectric Capacity Expansion Potential Hydroelectric Capacity Expansion Potential Sievelonmare
Slide 5: Optimized Hydro Upgrade Potential
Optimized Hydro Upgrade Potential
Slide 6: Next Steps
Next Steps • Evaluate and Prioritize Projects – Financial Models including energy value, depreciation, taxes, etc. • Considerations – Cost vs. Benefit in MWs or MWhrs? o Energy difference of e.g. 5 MW at Morony vs. 5 MW at Cochrane – Condition of Existing Units? o Age, maintenance needs, & performan
Slide 7: Draft Potential Prioritized 10-Year Implementation
DRAFT Potential Prioritized 10-Year Implementation
Slide 8: Ryan Turbine Upgrades Economic Summary
Ryan Turbine Upgrades Economic Summary Step 1 – Propose Unit for Upgrade Step 2 – Preliminary Models and Seek Budget Approval for the Upgrade Step 3 - Develop RFP and receive proposals from Vendors Step 4 – Use vendor performance curves to establish new output for each unit in CHEOPS model
Slide 9: Ryan Turbine Upgrades Economic Summary
Ryan Turbine Upgrades Economic Summary Step 5 – Use energy numbers to run financial model – 24 page spreadsheet Model Produces Levelized Rate per MWHr
Slide 10: Ryan Turbine Unit Upgrade: Economic Study
Ryan Turbine Unit 3 Upgrade: Economic Study Step 6 – Provide energy and financial information to Energy Supply Planning for further analysis At the time the Ryan Unit 3 turbine upgrade was being considered, August, 2016, Energy Supply Planning used PowerSimm to evaluate what NWE would be willing to
Slide 11: Ryan Turbine Upgrades
Ryan Turbine Upgrades Step 7 – Make recommendation to Capital Committee and Board Step 8 (if project is approved): • Issue contract • File Generation Interconnection Application (GIA) for additional MW’s onto transmission system (if not already completed) • File FERC License Amendment Application fo
Slide 12: Step 9 – Finally get to Install New Unit!
Step 9 – Finally get to Install New Unit!
Slide 13: Hauser Unit 2 Evaluation Underway
Hauser Unit 2 Evaluation Underway Send these scenarios to finance for analysis to determine an evaluated cost per MWhr to determine which projects make most sense economically for the company
Slide 14: Hauser Unit 1 Installed in 2016
Hauser Unit 1 Installed in 2016 Out goes the Old In goes the New!
Slide 15: Questions?
Questions? NorthWestern Energy Delivering @ Bright Future
NorthWestern Energy Group — Technical Presentation (July 2017) on 6ix