APS and Regional Transmission Systems Overview

Transcription

1 APS and Regional Transmission Systems Overview Bob Smith Director Energy Delivery Asset Management and Planning

2 Agenda About APS Regional Transmission System Overview APS Transmission System Overview Industry Challenges APS Unique Challenges

3 About APS Service Territory and Statistics Financial structure and health Cost structure and pricing Resource and fuel mix overview APS Customer Initiatives

4 11 counties 34,645 sq. mi. CC&N area 1.1 million customers 411 substations 28,022 distribution line miles 5,234 transmission line miles 54 generation units APS Service Statistics

5 Pinnacle West Financial Snapshot $12 Billion Assets December 31, 2008 APS SunCor APSES El Dorado Approximately $3 billion market cap 4 th largest employer headquartered in Arizona S&P 500 Index member Approximately 75% of shareholders are institutional investors $11 billion utility assets $242 million net income $2.10 per share annual dividend

6 Stock Price Comparison December 31, 2007 March 27, % PNW (37.6)% S&P 500 (44.4)% S&P 1500 Electrics (38.0)% 0% (10)% (20)% (30)% (40)% (50)% (60)% Dec Mar Jun Sep Dec Mar

7 APS Prices Compared to Other Utilities June 2008 Average Electric Prices ( /kwh) Selected Western Electric Utilities SDGE SCE PG&E EPE-TX NPC APS UNSE TEP SRP Excel CO PNM RMP

8 Compared to All Other Prices APS Average Retail Price and CPI 60% 50% 49% 40% 30% 20% 10% 14% 0% -10% -20% APS Price CPI

9 APS Cost Components $ % $ % $ % Distribution Transmission Generation

10 2009 Projected Energy Mix Renew able 2% New EE 2% Nuclear 27% Coal 38% Natural Gas 31%

11 Load Duration Curve The guts of utility supply 7,500 7,000 6,500 6,000 Gas Peaking 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 Gas Combined Cycle Gas Combined Cycle Coal Coal Renewables 1, Nuclear Nuclear HOURS

12 APS Customer Initiatives Renewable energy development Energy efficiency programs Smart Grid development Pricing options Customer experience enhancements

13 Western Interconnection System US Electric Grid NERC and Regional Reliability Organizations Three US Interconnections WECC Major Western Interconnection Transmission Planning and Operational Issues DOE Congestion Study

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15 WECC Historical Reliability Coordination Organization for Western US, Canada, Mexico Ensure Reliable Operation and Planning Coordination Provide Reliability Coordination Centers Delegated Compliance Monitoring from NERC Issues: Transmission Planning Delegation model Regional deference Tensions between CAISO, BPA, rest of Interconnection

16 Western Transmission Grid British Columbia Peace River Alberta Seattle Canada Portland Pacific Ocean San Francisco OR WA Malin Round Mountain Reno Celilo NV ID Midpoint Salt Lake City Borah UT MT WY Colstrip Jim Laramie Bridger River Denver SD NE CA Market Place Four Corners CO Los Angeles San Diego Mexico Palo Verde AZ Phoenix Tucson Albuquerque El Paso NM Legend 500 kv DC 345 kv AC 500 kv AC 230 kv AC

17 Planning and Operating Issues Planning Sub-Regional vs Regional (WECC) Who Decides Builds Pays Operations Relay misoperations Right of way maintenance difficulties

18 DOE Congestion Study

19 Critical Congestion and Areas of Concern in the Western Interconnection Source: Figures ES-3 & 5-2 U.S. Department of Energy National Electric Transmission Congestion Study 2006

20 Conditional Constraint Areas Source: Figures ES-4 & 5-5, U.S. Department of Energy, National Electric Transmission Congestion Study, 2006

21 APS Transmission System

22 State Area Transmission TO ELDORADO TO MEAD / MARKETPLACE TO CRYSTAL ROUND VALLEY BAGDAD SELIGMAN (WAPA) WILLOW LAKE YAVAPAI (WAPA) VERDE COCONINO NAVAJO MOENKOPI TO GLEN CANYON (WAPA) 2 circuits FLAGSTAFF (WAPA) CHOLLA FOUR CORNERS Red = 500 kv Green = 345 kv Blue = 230 kv TO DEVERS (SCE) DUGAS (WAPA) GAVILAN PEAK PREACHER CANYON SUGARLOAF (SRP) CORONADO Black = 115 kv TO IMPERIAL VALLEY YUCCA N.GILA HARQUAHALA PALO VERDE- HASSAYAMPA REDHAWK GILA RIVER/ PANDA GILA BEND LIBERTY RUDD JOJOBA SANTA ROSA TAT MOMOLI WEST WING PINNACLE PEAK KYRENE COOLIDGE KNOX SUNDANCE DESERT BASIN MILLIGAN SAGUARO CASA GRANDE ORACLE JUNCTION VALLEY FARMS SAN MANUEL ADAMS MURAL

23 Four Corners/Cholla System Transmission TO ELDORADO TO CRYSTAL NAVAJO MOENKOPI FOUR CORNERS Four Corners and Cholla Power Plants TO MEAD / MARKETPLACE ROUND VALLEY BAGDAD SELIGMAN (WAPA) WILLOW LAKE YAVAPAI (WAPA) VERDE COCONINO TO GLEN CANYON (WAPA) 2 circuits FLAGSTAFF (WAPA) CHOLLA Four Corners-Moenkopi- Eldorado 500kV line TO DEVERS (SCE) DUGAS (WAPA) GAVILAN PEAK PREACHER CANYON SUGARLOAF (SRP) CORONADO Four Corners-Cholla 345kV lines TO IMPERIAL VALLEY YUCCA N.GILA HARQUAHALA PALO VERDE- HASSAYAMPA REDHAWK GILA RIVER/ PANDA GILA BEND LIBERTY RUDD JOJOBA SANTA ROSA TAT MOMOLI WEST WING PINNACLE PEAK KYRENE COOLIDGE KNOX SUNDANCE DESERT BASIN MILLIGAN SAGUARO CASA GRANDE ORACLE JUNCTION VALLEY FARMS SAN MANUEL Cholla-Pinnacle Peak 345kV lines Cholla-Saguaro 500kV line ADAMS MURAL

24 Navajo System Transmission TO ELDORADO TO CRYSTAL NAVAJO MOENKOPI FOUR CORNERS Navajo Power Plant TO MEAD / MARKETPLACE TO DEVERS TO IMPERIAL VALLEY YUCCA N.GILA ROUND VALLEY (SCE) HARQUAHALA BAGDAD SELIGMAN (WAPA) PALO VERDE- HASSAYAMPA WILLOW LAKE REDHAWK GILA RIVER/ PANDA GILA BEND YAVAPAI (WAPA) VERDE LIBERTY RUDD JOJOBA SANTA ROSA DUGAS TAT MOMOLI WEST WING COCONINO (WAPA) GAVILAN PEAK TO GLEN CANYON (WAPA) PREACHER CANYON PINNACLE PEAK KYRENE COOLIDGE KNOX SUNDANCE DESERT BASIN MILLIGAN SAGUARO 2 circuits FLAGSTAFF (WAPA) CASA GRANDE ORACLE JUNCTION CHOLLA SUGARLOAF VALLEY FARMS SAN MANUEL (SRP) CORONADO Navajo-Crystal 500kV line Navajo-Westwing 500kV lines ADAMS MURAL

25 Palo Verde Hub Transmission YUCCA TO ELDORADO TO MEAD / MARKETPLACE TO DEVERS TO IMPERIAL VALLEY N.GILA TO CRYSTAL ROUND VALLEY (SCE) HARQUAHALA BAGDAD SELIGMAN (WAPA) PALO VERDE- HASSAYAMPA WILLOW LAKE REDHAWK GILA RIVER/ PANDA GILA BEND YAVAPAI (WAPA) VERDE LIBERTY RUDD JOJOBA SANTA ROSA DUGAS TAT MOMOLI WEST WING COCONINO (WAPA) GAVILAN PEAK PREACHER CANYON PINNACLE PEAK KYRENE COOLIDGE SAGUARO NAVAJO MOENKOPI KNOX SUNDANCE DESERT BASIN MILLIGAN TO GLEN CANYON (WAPA) 2 circuits FLAGSTAFF (WAPA) CASA GRANDE ORACLE JUNCTION SAN MANUEL ADAMS CHOLLA SUGARLOAF VALLEY FARMS FOUR CORNERS (SRP) CORONADO Palo Verde Nuclear Plant and Hassayampa Gas Power Plants Palo Verde West PV-Devers 500kV line Hassayampa-North Gila 500kV line Palo Verde East PV-Westwing 500kV lines PV-Rudd 500kV line Hassayampa-Jojoba-Kyrene 500kV line MURAL

26 Mead-Phoenix Transmission TO CRYSTAL NAVAJO FOUR CORNERS TO ELDORADO MOENKOPI TO MEAD / MARKETPLACE SELIGMAN COCONINO TO GLEN CANYON (WAPA) Mead-Phoenix 500kV line ROUND VALLEY BAGDAD (WAPA) WILLOW LAKE YAVAPAI (WAPA) VERDE 2 circuits FLAGSTAFF (WAPA) CHOLLA TO DEVERS (SCE) DUGAS (WAPA) GAVILAN PEAK PREACHER CANYON SUGARLOAF (SRP) CORONADO TO IMPERIAL VALLEY YUCCA N.GILA HARQUAHALA PALO VERDE- HASSAYAMPA REDHAWK GILA RIVER/ PANDA GILA BEND LIBERTY RUDD JOJOBA SANTA ROSA TAT MOMOLI WEST WING PINNACLE PEAK KYRENE COOLIDGE KNOX SUNDANCE DESERT BASIN MILLIGAN SAGUARO CASA GRANDE ORACLE JUNCTION VALLEY FARMS SAN MANUEL ADAMS MURAL

27 APS Coal Fired Plants 2008 Data 28% APS CAPACITY 47% MWH 33% FUEL $ Four Corners 2,060 MW 597 employees Cholla 1,021 MW 290 Employees Navajo 2,250 MW 545 Employees

28 APS Gas Fired Plants 2008 Data 53% APS CAPACITY 23% MWH 61% FUEL $ Redhawk 984 MW 48 Employees West Phoenix 988 MW 56 Employees Ocotillo 330 MW 27 Employees Saguaro 399 MW Douglas 16 MW 20 Employees Yucca 340 MW 25 Employees Sundance 420 MW 11 Employees

29 Fossil Generation Plays a Key Role APS OWNED CAPACITY APS GENERATION Gas/Oil 54% Nuclear 18% Coal 28% Gas/Oil 23% Coal 47% Nuclear 30% APS FUEL EXPENSE Gas/Oil 61% Nuclear 6% Coal 33% 2008 ACTUALS - APS OWNED GENERATION FUEL CAPACITY GWH FUEL EXP Nuclear 1,146 8,512 $ 41,591 Coal 1,741 13, ,651 Gas/Oil 3,380 6, ,204 Renewable Total 6,273 28,034 $ 755, Million Tons of Coal 47.6 BCF Natural Gas

30 Major Challenges Confronting APS and the Utility Industry Infrastructure investment Capital Access Financial Health Technology Economic Turmoil Aging Workforce Regulatory Uncertainty Climate Change Upward pressure on pricing

31 APS Unique Challenges Cost Recovery Desert Climate Heavy summer peak loading Low load factor Heavy inductive air conditioner load Expansive Service Territory Transmission Line Permitting Increased System Utilization Monsoon Storm Season

32 APS Rates Have Become Noncompensatory 8 Per kwh Revenue Less Fuel Expense Non-Fuel Costs (Including Return) 6 Per kwh 4 Per kwh '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12

33 Credit Ratings Distribution Investor-Owned Electric Utilities Standard & Poor s Ratings A+ A A- BBB+ BBB BB+ BB AA- BBB- BB APS Non-Investment Grade Junk Number of Companies

34 Meeting Challenges of Peak Load Growth Average Annual Load Growth 2.7% 12,000 MW 10,000 8,000 6,000 4, Projected Long-Term Resources Native Load Peak & Reserves

35 Transmission Line Permitting /siting_38.html

36 Predictive Maintenance Preventative Maintenance Line inspections Right of Way Maintenance LIDAR Remote Equipment Monitoring Maintenance

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38 EEI Award

39 Emergency Equipment Mobile 69/12kV Transformers Emergency Towers - two Lindsey towers Generator 1,500 KW Mobile Unit Mobile Command Center

40 Mobile Transformer

41 Lindsey Towers

42 Mobile Generator

43 Mobile Command Center

44 Storm Response

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46 Questions