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1 Power Infrastructure PowerToGrowPHX.com

2 Electricity 101 Key utility terms Power supply and generation mix Overview of the electric power system Federal and State Regulation Electric Ready Site What information an electric service provider needs

3 Key Terminology Transmission system: A system of wires or electric cables used to carry electric energy at high voltages between two points - usually a generating station and a receiving station (major substation). Distribution system: One or more circuits of a distribution system operating at relatively low voltage as compared with transmission lines. The distribution system steps down power from highervoltage transmission lines to a level that can be used in homes and businesses.

4 Key Terminology Three-phase Power: Three-phrase power is commonly used for generation, transmission and distribution of electric power in which the waveforms of three supply conductors are out of phase by one-third, or 120 degrees. Threephase power is the most economical way to provide larger quantities of power often to major equipment. Single-phase Power: Single-phase power is either a single alternating voltage or all voltages of the supply varying in unison. Single-phase is used for loads that are primarily lighting and heating, such as homes and small businesses

5 Key Terminology Amp: the number of electrons moving along a conductor path (flow) Volts (or Voltage) The potential of an electron to do work; used in sizing the delivery system. Typical voltages for manufacturing operations are 240 volts, 480 volts, 600 volts, 2,300 volts or 4,160 volts Transformer: A device used to change voltage to a higher or lower level. Substation: An electric power facility that serves as a control and transfer point in an electric transmission system, and where the voltage of electricity is reduced before distribution to customers/end users.

6 Key Terminology Power Factor: ratio of resistive power to apparent power (PF = kw/kva) Load: Amount of electricity needed/demanded at a given time. Load factor: The ratio of average demand to peak demand during a specific period of time, expressed as a percentage Energy (kwh usage): A amount of electrical energy used by the customer Kilowatt-hour (kwh): energy consumed in 1 hour Demand (kw): The total amount of electricity being used by customers at a given time.

7 The National Grid Electric generating stations throughout the United States are interconnected in a system called power grids. This allows electricity generated in one state to be sent to users in another state.

8 The Regional Grid Electrical transmission lines are divided into four U.S. regional grids. The four grids cover the contiguous 48 states and parts of Canada and Mexico and are known as the Western Interconnection, the Eastern Interconnection, the Electric Reliability Council of Texas (ERCOT) Interconnection and the Quebec Interconnection.

9 Generation: How electricity is made Nuclear Coal-fired Wind Hydroelectric Gas combined-cycle Solar

10 Energy Generation Portfolio

11 How Electricity Gets To The Customer Receiving Station 230/69kV Generating Station Step-up Transformer Transmission 230kV Subtransmission 69kV 120/240V Distribution 12kV Industrial./Commercial Building 277/480V Distribution Substation 69/12kv System Operations

12 Typical transmission pole characteristics

13 Overhead Electric Distribution System Overhead Transformer Primary Distribution Feeders CATV Secondary Distribution Lines Telephone

14 Power Characters: Federal of the Industry Due to its complexity and number of different business elements, the electric power industry is one of the most heavily regulated businesses in the United States. Federal Regulators The FERC The Federal Energy Regulatory Commission (FERC ) is the federal agency that regulates electricity transmission and wholesale electricity sales in interstate commerce. FERC implements the laws of Congress through orders and rulemakings on electricity policy. Visit for detailed information on FERC

15 State Regulation of Industry Arizona Corporation Commission was established by Article 15 of the Arizona Constitution. Currently five members / staggered four-year terms. Arizona is one of 13 states with elected commissioners. The Arizona Corporation Commission has jurisdiction over the quality of service and rates charged by public service utilities.

16 Differences in Public and Private Power Community Owned (SRP) Local Control: Community-owned utilities are governed by locally elected boards or commissions. Boards are elected by constituents to set rates and policies. Investor Owned (APS) Shareholder and PUC Control: Investor-owned utilities are governed by private boards of directors. State utility commissions (PUCs) set their rates. Directors are elected by the shareholders.

17 What is an Electric-Ready site? Proximity to Electric Facilities - The Closer the Better Low or no Customer Charges for Line Extensions high charges for system improvements and/or extensions can jeopardize projects Time Requirements for System Upgrades/Line Extensions lengthy extensions and system upgrades can require a considerable amount of time, this doesn t always meet the customer s timeframe

18 Matching Electric Facilities to Proposed Use Heavy Industrial - Sub-transmission or transmission on-site or nearby, possible dual feed capabilities Data Centers - Sub-transmission or transmission on-site or nearby, redundant service capabilities, high reliability Light Industrial/Distribution Primary or secondary voltage lines available Office - Primary or secondary lines nearby, underground often preferred

19 Information needed for Assessment/Rate Estimate Site Location (address, intersection or map) Peak Demand in Kilowatts (kw or MW) Energy Consumption in Kilowatt-hour (kwh) per month/year Load Factor Hours of Operation/Days per Week Needed Supply & Delivery Voltages at Site(s)

20 Why bring the utility in on the projects? To manage customer & community expectations Review by engineers and planners Determine best way to serve the customer Determine if impending change will affect service to other customers Helps the customer understand potential charges and timelines

21 Manufacture Sales Tax Exemption for Utilities Example: Mesa- State and Maricopa County Tax is 6.3% 5.6% State 0.7% County 1.75% City Tax

22 Karla Moran

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