ENERGY PROCUREMENT OPTIONS CONTROL YOUR UTILITIES GRID

Transcription

1 ENERGY PROCUREMENT OPTIONS CONTROL YOUR UTILITIES GRID KEVIN T. KREJNY MONTGOMERY COUNTY ENVIRONMENTAL SERVICES August 27, :35-10:05 AM Room C111

2 OVERVIEW Energy purchasing options Tariff Rate Fixed Rate Index Rate Block and Index Block and Index Breakdown Case Study: Montgomery County, OH Strategy Logistics Data Capacity Charge What it means to energy bill How to keep it under control

3 PARTS OF ENERGY BILLS Distribution and Transmission approx 32% of bill No control over this portion of bill Generation Charges approx 60% of bill Control over this portion if using fixed or block pricing Largest portion of overall bill Index pricing and operational changes give some control Capacity Charge approx 8% of bill Control of going off the grid during 5 peak hours each year Can be done, but need to know your plant and PJM demands

4 USING TARIFF RATES ENOUGH SAID (DP&L TARIFFS HEADERS) Tariffs Rules General and Regulations Terms and Conditions Electric Distribution Service Riders Title Title Tariffs Title Title Applications Availability; and Application; Contract Application For ServiceFee Back Title Standard to Top Offer Residential Reserved Ancillary Riders Credit Services For Requirements Future Useof Customer Electric Transmission Residential Standard Rearrangement Service Billing Offer and Residential Payment for Electric Heating Universal Title Service Fund Rider Service Residential Rules Standard Disconnection/Reconnection Offer Regulations Heating Secondary of Service Back Reconciliation Transmission Reserved General to Top Terms Owner's for Future Cost Rider and Right Recovery Conditions Use of Inspection Rider Distribution Secondary Transmission Generation Title Alternate Standard Owner's Offer Generation Section Primary Notification; Items Supplier Abandonment by Electric Tariffs Bypassable Generation Service Reserved Pole Rental Title Attachment Primary and Charge For for Installation Future Schedule Section Use Items Application Title Standard Offer and Primary-Substation Contract For Service Reserved Title Exhibit A Amplifiers For for Future Use Back Primary-Substation Title Credit Alternate Standard Page Transmission Reserved to Requirements Equipment Top Offer Generation High Voltage of Supplier Customer Alternative Title Availability; Exhibit Page B For Energy Base Future Cost on Rental; Recovery Rider Customer's Use General Rider Premises Terms Nonbypassable Reserved PJM Table and Exhibit Conditions RPM of CContents For Rider Future Use Private Tariff Use Competitive Standard Index Emergency Outdoor Character Claims; Offer Retail School Release Lighting Electrical of Generation Service and Procedures Indemnification Service Pole High Table Billing Coordination Standard Attachment Voltage of Use Contents (Other Offer Excise Tax and Payment Tariff Surcharge Character than Private Rental for Rider of Outdoor Electric Charges); Service Lighting Service Third Party Switching Reserved Fuel Exhibit Rider D For Fees Future Use School Definitions Standard Extension Public Liability Offer and of Street Amendments Electric Insurance Lighting Facilities Reserved Service Street Lighting Extension Stability Performance For Future of Rider Bond; Electric Use Work of One Party Competitive Bidding Rate Facilities to House Performed by the Other; Additional Reserved Competitive Trailer For Parks Bid Future True-Up UseRider Miscellaneous Reserved Termination for Future Service Right; UseCharges Force Majeure Energy Definitions Efficiency and Rider Amendments Interconnection Cogeneration Additional Charges Service Economic Charge; Development General Terms Rider and Conditions Adjustable Rate Conditions of Attachment; Loaned Space; Replacement Poles; Multiple Applications; Meters and Metering Equipment: Location Attachor; Attachor's Power Supply and/or Service Facilities: Location and Installation D08 Computation and Payment of Total Costs Delayed Payment Charge; Returned Check Open may Access be Amended Terms and Conditions Tariff Number Tariff Number PA03 D03 Tariff Number G10 Tariff Number PA04 D04 D27 D05 D17 G11 D28 Tariff Number PA05 D06 D18 G12 D29 G22 D07 D19 T09 G13 Tariff Number Tariff D30 G24 Number PA06 D20 T03 G03 G14 Tariff Number Tariff D31 T10 G25 Coming Number Soon D21 T04 None G04 G15 D09 Coming D32 T11 G08 G26 None Soon PA07 D10 D01 D22 T01 T05 T08 G01 G05 G16 PA02 D33 T12 G27 PA01 PA14 D11 D02 D23 T02 T06 G02 G06 G09 G17 PA08 D34 T13 G28 PA15-20 D12 D24 T07 G07 G18 D36 T14 G29 PA09 D13 D25 G19 D37 T15 G30 D26 G20 D14 D38 D15 D35 G21 PA10 D39 G23 D16

5 FIXED RATES One account or group of accounts fixed price for 1/2/3 years for the generation portion of their bills Simple way to handle generation costs Higher pricing for this convenience Pricing depends on load not amount When you get pricing It can be good or bad Limited on when you can fix your price Over a year, will be lower than tariff rate, but higher than index rate

6 INDEX RATES Fluctuates hour to hour based on regional supply and demand Weather sensitive Pricing can be very good, but also can be very bad Nights and weekends cheaper Greater than 85 degrees and below 15 degrees prices usually spike upward Works out well for wastewater Drinking water demand can get costly

7 BLOCK AND INDEX Fixed pricing for a portion of usage (BLOCK) 1 MW minimum block Over 100 KW demand accounts Index pricing for the remaining usage (INDEX) Can project low and high costs using historical data Not 100% full proof (POLAR VORTEX)

8 BLOCK AND INDEX GRAPHICALLY

9 MCES ENERGY PROCUREMENT CASE STUDY Past, Present, Projected

10 HOW DID BLOCK & INDEX COME ABOUT? 2.5 YEARS OF WORK IN ONE MINUTE STEP Energy Procurement presentation Dec look into Block & Index with STEP - Spring 2012 Got overview of the concept saw that some accounts could use Block & Index to MCES financial advantage Ran our usage numbers vs. historical index pricing Formed Energy Procurement Team Summer 2012 Screened and hired Energy Broker - STEP Resources Got go ahead from county admin for B&I Spring 2013 Evaluated energy suppliers and chose GDF Suez Spring 2013 Broke off 7 accounts to purchase block(s) -May 2013 Purchased 1 year Block (2-3 MW), index on remaining usage Blocked second year, switched energy supplier (DPLER)- June 2014 Ready to block out to with DPLER - Current

11 $ PER MEGAWATT (MW) GENERATION AND CAPACITY COSTS $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 index price MCES Price MC Fixed

12 LESSONS LEARNED 1 in 20 year polar vortex winter, (Jan-Feb-Mar 2014) can erase gains from the rest of the year. Blocked off a third MW for Jan + Feb 2015 MCES has some control over building heating, but not much Signed a long term deal with supplier 5-10 years to assure better long term planning Once a year going out for pricing is not good

13 SUCCESSES M2 & M4 (Booster Stations) off hour pumping WS Operations pumping more water at less expensive overnight hours Day ahead pricing and monitoring tank levels Using more efficient M4 instead of M2 Fast execution of block pricing Less than 24-hour block purchases achieved Decreased usage at facilities Western Regional Dryden Road Offline for capacity charge peak hours (2013/14) WR/PTP/ER Reduced usage at facilities

14 DECREASED USAGE 2,900,000 Usage for 7 large accounts 2,700,000 2,500,000 2,300,000 2,100,000 1,900,000 1,700,000 1,500,000 Usage Linear (Usage)

15 DECREASED USAGE AND COSTS WESTERN REGIONAL Western Regional Usage (kwh) Overall costs Overall Cost Per month February 2013-June ,327,856 $ 452,594 $ 90,519 July 2013-June ,046,147 $ 787,107 $ 65,592 July 2014-June ,815 $ 63,078 $ 63,078

16 CAPACITY CHARGE Predicting Peaks

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19 CAPACITY CHARGE CALCULATION Set on previous year 5 highest PJM-RTO peak hours Megawatts your account using during these 5 peak hours Average of these 5 MW usages during peak hours set your MW for the following year

20 IF WE DID NOTHING July 2013 july 2014 Peaks set in Summer 2012 WR KW Demand During Peaks 1869 KW = MW MW * $28.37 *365 DAYS $19,354 Capacity Charge July 2014 July 2015 Peaks set Summer 2013 WR KW Demand During Peaks 1869 KW = MW MW * $ * 365 $87,404 Capacity Charge $68,050 increase for next year

21 RUNNING PLANT GENERATOR (12 TIMES) HIT ALL 5 PEAK HOURS Money spent/ results Fuel = (4800 gal * $3.50) = $16,800 Labor = (12 days*3 hr*$35/hr*1.145 OPERS) = $1,442 $18,242 Spent no DPL bill during time (-$12, 560) Cost of $5,682 Money saved (7/14 7/15) Doing nothing Capacity Charge $89,404 We spent $5,682 to go off the grid Capacity Charge for (7/14 7/15) = $5,611 Total Savings = $78,111 for Capacity Charge in Future (July 2014 July 2015)

22 PREDICTING PEAK HOURS Telemetry time: 08/18/14 07:30 EDT Load MW PJM RTO Total 86,979 Mid-Atlantic Region 29,554 Southern Region 10,710 Western Region 46,715 AE Zone 1,113 AEP Zone 14,496 APS Zone 5,143 ATSI Zone 7,788 BC Zone 3,362 COMED Zone 10,648 DAYTON Zone 1,984 DEOK Zone 3,159 DOM Zone 10,536 DPL Zone 1,869 DUQ Zone 1,623 EKPC Zone 1,420 JC Zone 2,256 ME Zone 1,622 PE Zone 4,171 PEP Zone 3,608 PL Zone 4,269 PN Zone 2,061 PS Zone 4,646 RECO Zone SessionManager?a=instLoad

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