SUMMER OPERATIONS RECAP

Transcription

1 SUMMER OPERATIONS RECAP INTRODUCTION BY: Cris Eugster Chief Operating Officer (COO) PRESENTED B Y: Operations Executives October 29, 2018 Informational Update

2 AGENDA RECORD SUMMER TEMPERATURES GREAT PLANT PERFORMANCE MARKET & FINANCIAL PERFORMANCE DELIVERY & RELIABILITY PERFORMANCE GAS SYSTEM 2

3 OPERATIONS TEAM Cris Eugster Chief Operating Officer (COO) Power Generation Commercial Operations Energy Delivery Services Benny Ethridge Sr. Vice Pres Environmental Planning & Compliance Climate & Sustainability Frank Almaraz Sr. Vice Pres John Bonnin Vice Pres ESMO Rudy Garza Sr. Vice Pres Distrib Svs & Ops Nuclear Oversight Paul Barham Sr. Vice Pres DEIPST CSI Program Speaking Today Kim Stoker Sr. Director Angela Rodriguez Director Don Stanton Sr. Director Gas Delivery Larry Blaylock Sr. Director Krista Davis Director 3

4 STARS ALIGNED STRONG OPERATIONAL & FINANCIAL PERFORMANCE Plants & Resources The Market Our People 4

5 RECORD SUMMER TEMPERATURES May 2018 S M T W T F S July 2018 S M T W T F S June 2018 S M T W T F S S 95 August 2018 M T W T F S days above days above 95 July was 3.8 hotter than average 95 to < or above Indicates record for that day 5

6 CPS Energy Peak Demand - MW ERCOT Peak Demand - MW CPS ENERGY & ERCOT HIT RECORD USAGE 5,200 CPSE Peak Demand MW ERCOT Peak Demand MW 74,000 5,100 69,000 5,000 4,900 64,000 4,800 59,000 4,700 54,000 4,600 4,500 49,000 4, ,000 Previous demand records broken Both ERCOT and CPS Energy broke all-time peak demand records in July

7 MW REDUCING THE PEAK THROUGH DEMAND RESPONSE 5,400 5,200 5,000 4,800 4,600 4,400 4,200 7/3 7/19 7/23 8/16 8/17 8/23 CPS Energy Peak Load Demand Response CPS Energy successfully partnered with 140,000 residential & 560 Commercial & Industrial customers across our community to manage demand during the hottest days 7

8 GENERATION PERSPECTIVE PRESENTED B Y: Benny Ethridge Senior Vice President, Power Generation 8

9 STRONG DIVERSITY DELIVERING OPERATIONS EXCELLENCE CPS Wind Plants (PPA) 1,059 MW Wind CPS Solar Plants (PPAs) 550 MW Solar Braunig Plants 859 MW Gas Milton B Lee Plants 373 MW Gas Plants delivered during the Summer run Spruce Plants 1,345 MW Coal Sommers Plants 830 MW Gas Deely Plants 840 MW Coal Rio Nogales Plant 785 MW Gas AVR Plant 492 MW Gas 9

10 GENERATION AVAILABILITY MAY THRU SEPTEMBER PERFORMANCE 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Traditional Fleet Renewables Top Quartile 99.0% 97.6% 92.7% 86.9% 92.9% 92.5% 28.2% 30.6% O&M Procedures & Checklists Behavioral Based Safety Near-miss Reporting & Review Solar Wind Coal Reliability-Centered Combined Gas Maintenance GT Budget Cycle management Steam & controls Peakers Asset 360 monitoring program JKS We also delivered when market prices were high with Summer Portfolio Commercial Availability at 94.5% Traditional Fleet Plant Benchmarks: Top Decile: 96.7% Top Quartile: 92.5% Median: 85.5% 10

11 MWs OUR PLANTS ARE AGING 7,000 6,000 5,000 4,000 Almost 40% of our capacity comes from plants that are 40+ years old 1, , ,579 3,000 2,000 1,459 1, All Years Years in Service (Total Capacity) MLB 5-8 Spruce 2 MLB 1-4 Rio AVR Spruce 1 STP 2 STP 1 Deely 1 & 2 Sommers 1 & 2 Braunig 3 Braunig 1 & 2 Proactive maintenance and solid budget controls are required to effectively manage investments in aging units 11

12 2018 SUMMER DRIVING OPERATIONS EXCELLENCE PEOPLE PROCESS Plant-centric structure Subject matter experts Enhanced training Procedures & checklists Work management system Behavioral-based safety Peer-to-peer checks Accountability & execution Safe & consistent work practices Reliable, competitively priced power to meet the needs of our Customers PLANT On-line monitoring Condition-based maintenance Strategic outages Reliability 12

13 MARKET PERSPECTIVE PRESENTED BY: John Bonnin Vice President, Energy Supply & Market Operations (ESMO) 13

14 POWER GENERATION AND ESMO PARTNERSHIP ENERGY SUPPLY & MARKET OPERATIONS (ESMO) POWER GENERATION 14

15 2018 SUMMER AVAILABILITY WHEN PRICES RISING 100% 90% 80% 70% Plant Availability When Prices Exceed $75 per MWh 100% 96% 91% 88% 72% 60% 50% 40% 30% 25% 20% 10% 0% COAL GAS CC GAS PEAKERS GAS STEAM SOLAR WIND 15

16 1-Jun 8-Jun 15-Jun 22-Jun 29-Jun 6-Jul 13-Jul 20-Jul 27-Jul 3-Aug 10-Aug 17-Aug 24-Aug 31-Aug 7-Sep 14-Sep 21-Sep 28-Sep $/MWH $ (Millions) FINANCIAL RESULTS ERCOT Daily Average Prices Wholesale Revenue net Fuel ($M) $ $42.8 $ FY2017 FY2018 FY2019 FY2019 Forecast LE High prices in the ERCOT market provided opportunity to earn revenue from off system sales 16

17 MW DIVERSITY = RESILIENCE 6,000 5,000 Highest Usage Hour 5,080* 4,744 4,900 4,968 23% 24% 24% 35% 4,000 3,000 39% 41% 42% 33% 2,000 16% 14% 12% 13% 1,000 22% 21% 20% 21% 0 May 31st 5-6 PM June 5th 5-6 PM July 23rd 6-7 PM August 22nd 5-6 PM We work to ensure our transmission lines and power plants are online & available when usage is highest Nuclear Renewables Coal Gas Our diverse generation portfolio protects customers from high prices caused by the tight reserves position. Peak load is reduced by demand response programs. *Demand Response programs: 197 MW; without it peak would have been 5,134 MW in hour 4-5 PM 17

18 ELECTRIC DELIVERY PERSPECTIVE PRESENTED B Y: Paul Barham Senior Vice President, Delivery Engineering, Integrated Planning, Substation & Transmission & Rudy Garza Senior Vice President, Distribution Services & Operations 18

19 SUMMER READINESS SUMMER PREPAREDNESS ACTIVITIES Safety Training Operational Equipment/Vehicle Snake bite awareness Heat Stress Hydration Inspections & testing Load shed plan updates Load flow analysis Inventory checks Personal voltage detector checks Vehicle checks Preparation for high heat levels reinforced system performance in the Summer months. 19

20 TRANSMISSION PERFORMANCE Close coordination with ERCOT during Summer months No events impacted customer load Good performance through Summer storms Transmission crew re-insulating a tower Cagnon-Kendall Transmission Line 20

21 DISTRIBUTION 24/7/365 Summer heat stressed the system Hot summer transitioned into September storms System reliability was challenged Service Restoration repairing damaged pole top equipment Service Restoration climbing poles to restore power Overall system performance is favorable. 21

22 RELIABILITY METRICS SEPTEMBER LIGHTNING & RAIN IMPACT SAIFI Top Quartile Sept. Lightning Strikes FY FY19 10,000 Month Rainfall SAIDI SAIFI Sep. FY in Sep. FY in Metric % Increase 80% 71% # of minutes FY18 SAIDI Metric Target = FY19 Projection Top Decile Metric Target = SAIFI reliability metric is at risk due to weather impacts FY FY19 Projection Weather headlines retrieved from Combined Benchmarking First Quartile & Southern Company 2016 Data 22

23 USING TECHNOLOGY TO IMPROVE RESTORATION VIDEO 23

24 GAS PERSPECTIVE PRESENTED B Y : Frank Almaraz Senior Vice President, Commercial Operations 24

25 2018 SUMMER COMMUNITY SAFETY & PREVENTATIVE MAINTENANCE Safety meetings Lunch truck Loncheras Trench safety for contractors As construction activity increases in the summer, Gas Delivery focuses on Public & Employee Safety Awareness & preventative maintenance activities 25

26 GAS DELIVERY CONTINUOUSLY IMPROVING COMMUNITY SAFETY Response Time to Odor Complaints (% < 30 Mins) 95.0% Top Decile 90.0% 87.3% 87.8% 89.44% 85.0% 80.0% 75.0% 70.0% CY16 CY17 YTD CY18 CPS Energy ranks #1 among our Big 4 peers in Texas in Response Time metric performance Source: 2017 American Gas Association Annual Benchmark Study 26

27 WINTER IS GAS PEAK SEASON WINTER PREPAREDNESS ACTIVITIES People System Operations Equipment Gas Delivery is currently underway with seasonal preparedness activities for their winter peak season 27

28 GREAT EXECUTION = SUCCESSFUL PERFORMANCE Plants & Resources The Market Our People 28

29 Thank You