Extreme Heat Over The Weekend Drives New SRP Records For Energy Demand
July 14, 2020
by Paul Ciampoli
APPA News Director
Posted July 14, 2020
Salt River Project (SRP) on Saturday, July 11, and Sunday, July 12, delivered a record amount of energy to its Phoenix-area retail customers, the Arizona-based public power utility reported on July 13.
Between 5 and 6 p.m. on Saturday, SRP delivered an estimated retail peak demand of 7,395 megawatts (MW). That peak topped SRP’s previous system peak of 7,305 MW, which occurred on July 25, 2018.
Then on Sunday, SRP shattered both figures by delivering an estimated retail peak-demand record of 7,615 MW between 5 and 6 p.m. One megawatt is enough energy to power about 225 average homes.
SRP reported that strong customer demand is the result of several factors, including a series of extreme daytime temperatures, higher overnight temperatures and an increase in the number of SRP electric customers. The high temperature recorded on Saturday was 115 and was 116 on Sunday.
“We were able to meet the increased customer demand thanks to a robust electrical grid maintained year-round to provide reliable service and our dedicated employees who continue to rise to the challenge despite the circumstances we face due to the COVID-19 pandemic,” said Barbara Sprungl, SRP’s Manager of Power Supply and Trading.
Scott Harelson, an SRP spokesman, on July 14 said that SRP on Monday, July 13, peaked at an estimated 7,051 MW.
On the morning of July 14, SRP was already tracking a little bit under Monday’s demand and the expected high was around 109, so SRP was not likely to enter into record energy demand territory.
Residential Power Sales Soared, While Commercial Sales Slumped In April: EIA
July 7, 2020
by Paul Ciampoli
APPA News Director
Posted July 7, 2020
April residential electricity sales in the United States increased 8% compared with April 2019, while the commercial and industrial sectors saw decreases of 11% and 9%, respectively, the Energy Information Administration reported on June 30.
U.S. residential electricity sales have never been this high in April. Commercial electricity sales in April were the lowest April value since April 2003, and industrial sales were the lowest since April 1987.
Across all sectors, April U.S. electricity sales declined 4% compared with last April, largely as a result of measures to reduce the spread of COVID-19, EIA said in its Today in Energy report.
Starting with California on March 19, states began to issue stay-at-home orders in response to the pandemic. By mid-April, most states were under stay-at-home orders. As the orders took effect, businesses, schools, and industrial facilities closed, and office workers transitioned to working from home, EIA noted.
Electricity use in the U.S. is typically lowest in the spring and fall months, when demand for air conditioning and heating are often at their lowest levels, EIA said. “In each of the past 10 years, either April or October was the month with the lowest electricity demand, which reflects both sales from the grid and the electricity produced by net-metered systems, such as rooftop solar panels. Electricity demand generally rises as temperatures either become much colder or much warmer than about 55 degrees to 65 degrees Fahrenheit.”
The residential sector is relatively sensitive to temperature changes, EIA noted. Based on the previous five Aprils, EIA estimates that the U.S. residential sector would have used about 3.1 million megawatt-hours (MWh) per day in April 2020. Actual residential electricity demand in April 2020 was 3.3 million MWh/day, or about 6% higher than the typical April value.
The U.S. commercial and industrial sectors are relatively less temperature sensitive, but they still tend to use more electricity in the summer and less in the spring and fall.
Based on the average of the previous five Aprils, daily commercial sector electricity demand is usually about 3.4 million MWh/day in April, and industrial electricity demand is about 2.6 million MWh/day.
In April 2020, commercial electricity demand was about 10% lower than the typical April value, and industrial electricity demand was 9% lower, EIA reported.
Coal, CO2 Emission Declines Caused By Pandemic Could Persist: Moody’s
July 2, 2020
by Peter Maloney
APPA News
Posted July 2, 2020
The slowdown in economic output and industrial activity as a result of efforts to slow the spread of COVID-19 is expected to reduce carbon dioxide (CO2) emission levels and accelerate the decline of coal fired generation, according to a report from Moody’s Investors Service.
And, even as states begin to slowly reopen, the impact of the pandemic on power demand and carbon emissions will continue through the remainder of the year and likely into 2021, the report, “Coronavirus-related power demand reductions drive lower carbon emissions,” said.
Moody’s expects CO2 emissions to drop by 175 million metric tons compared with 2019 levels, to end the year at 320 million metric tons. In its base case scenario, Moody’s estimates US CO2 emissions will be 11% below 2019 levels by 2022, following a year-over-year decline of 14% in 2020. The base case scenario includes a 6% average generation decline across all customer classes in 2020, followed by two years of moderate recovery with 3% increases in generation in both 2021 and 2022. In that scenario, generation would fully recover to pre-pandemic levels by 2022.
In a milder scenario, Moody’s estimates CO2 emission in 2022 will be 5% lower than in 2019, with a year-over-year decline in 2020 of 10%.
In a more extreme scenario, in which average generation declines by 8% in 2020, with most of the reductions absorbed by coal-fired generation, Moody’s estimates CO2 emissions could drop by 19% in 2020 and remain at those levels going forward.
Moody’s shares the Energy Information Administration’s (EIA) expectation that most of the CO2 reductions will be driven by generation declines from CO2 emitting resources, primarily coal-fired plants, however, the ratings agency does not share the EIA’s forecast of a significant rebound in US coal consumption in 2021.
In 2019, output from the US coal plants fell to its lowest point since 1976 and the power sector has cut coal consumption by more than half since the late 2000s, Moody’s noted.
And while Moody’s base case scenario sees coal-fired generation remaining flat next year, “it is possible that it will continue to decline” under pressure from sustained low natural gas prices, the report said.
In March 2020, Moody’s reduced its medium-term price band for North American natural gas at the Henry Hub to $2.00-$3.00 per million British thermal units (MMBtu) from $2.25- $3.25 per MMBtu. Moody’s projects Henry Hub prices to be at the lower end of that range through 2021.
Low natural gas prices challenge the fundamental economics of coal-fired generation, especially for coal plants in regions near shale plays where natural gas prices are below the Henry Hub price, which could accelerate retirements of out-of-the-money coal-fired power plants, Moody’s noted.
And while all regions to see declines in coal and gas-fired generation, Moody’s expects those declines will vary by region. Fossil-fired generation will likely increase in the New York Independent System Operator region, for instance, because of higher natural gas generation in 2020 and lower year-over-year nuclear generation because of the retirement of the Indian Point nuclear plant.
The Southwest Power Pool (SPP) and the Pacific Northwest, on the other hand, could see large declines in coal-fired generation.
Regions such as Florida, SPP, Pacific Northwest, Southwest and Texas will likely see larger declines in CO2 emissions because declining coal generation is not replaced by natural gas, either because of an uptick in renewable generation or because coal generation declines are absorbing the reduced electric loads, so more natural gas generation is not needed, Moody’s argued.
Moody’s also included a caveat that “unanticipated weather conditions, summer residential load spikes and the length and speed of the economic recovery will all affect the magnitude of the coronavirus outbreak’s effect on US power sector carbon emissions.”
Board of Colorado Springs Utilities OKs Plan That Will Close Coal Plants, Expand Renewables
June 26, 2020
by Paul Ciampoli
APPA News Director
Posted June 26, 2020
The board of Colorado Springs Utilities on June 26 signed off on a plan under which the public power utility will decommission its coal plants by 2030, expand renewable energy and storage and reduce its carbon emissions by 80% by 2030.
The plan calls for grid modernization, integration of more cost-effective renewable energy and incorporation of new technologies like energy storage. Noncarbon resources such as wind and energy storage will replace the generation from the utility’s last coal-fired plant, the Ray Nixon Power Plant, which will be decommissioned no later than 2030.
To enable the decommissioning of the Martin Drake Power Plant no later than 2023, temporary natural gas generators will be placed at the site to ensure system reliability, Colorado Springs Utilities said. Once new transmission projects are complete in the coming years, generation will no longer be needed in downtown Colorado Springs and these units will be relocated.
The plan is aligned with the utility’s Energy Vision, Colorado Springs Utilities noted.
“My goal from this planning process was to develop an energy future that provides the most value to our customers; one that is resilient, reliable, cost-effective and environmentally sustainable,” said Colorado Springs Utilities CEO Aram Benyamin. “Today’s decision sets the stage for a brighter, sustainable future for generations to come.”
Colorado Springs Utilities said that through the utility’s sustainable energy plan, it will:
* Commit to its community with industry-leading reliability and resiliency and support the economic growth of the region;
* Benefit customers by maintaining competitive and affordable rates and advance energy efficiency;
* Reduce carbon emissions at least 80% by 2030 and 90% by 2050;
* Increase renewable energy and incorporate storage resources;
* Decommission all coal generation by 2030 and reduce reliance on fossil fuels; and
* Integrate new technologies responsibly by modernizing its grid and partner with its customers to create distributed energy resources throughout the community.
Benyamin said that the growth of the utility’s energy efficiency programs will be key to success. The utility’s customers are motivated to change the way they use energy in their homes and businesses as determined through public input and surveys, Colorado Springs Utilities noted.
A skilled workforce will be required for this energy transformation, Benyamin said. “As we look to the future, training opportunities will be available and transition plans will provide employees new and exciting opportunities. That is a benefit of a four-service, community-owned utility,” he said.
Colorado Springs Utilities said that the plan was largely delivered by utility employees who built comprehensive financial and technical analyses and took into consideration public input, growth forecasts for the city and future environmental regulations.
Platte River Power Authority To Retire Coal-Fired Unit 16 Years Ahead of Schedule
June 17, 2020
by Paul Ciampoli
APPA News Director
Posted June 17, 2020
The Platte River Power Authority on June 16 said that its coal-fired Rawhide Unit 1 generating resource will cease producing electricity by 2030, 16 years before its planned retirement date.
Platte River’s board approved a resource diversification policy in December 2018, which calls for a 100% noncarbon energy mix by 2030, and planners immediately began studying future energy mix options without the use of the 280 MW coal-fired unit as part of its integrated resource planning process.
While the IRP is currently on hold until public meetings and stakeholder engagement resumes, Platte River’s leadership needed to announce Unit 1’s retirement to support state regulatory timelines that align with the broader objectives for a noncarbon future, Platte River said.
Platte River is a not-for-profit wholesale electricity generation and transmission provider that delivers energy and services to its owner communities of Estes Park, Fort Collins, Longmont and Loveland, Colorado for delivery to their utility customers.
The last IRP that Platte River completed in 2016 did not call for additional generating capacity. Platte River nevertheless added 30 MW of new solar energy, studied the feasibility of a zero-net carbon energy mix, signed a power purchase agreement (PPA) for an additional 150 MW of wind power and later increased the amount to 225 MW, and will soon add 22 MW of additional solar power with 2 MWh of battery capacity.
It is currently negotiating another PPA for up to 150 MW of new solar generation.
Platte River noted that Rawhide Unit 1 has earned national recognition for its reliability, capacity and environmental performance. Throughout its life, Unit 1 has operated with an equivalent availability factor of 97.28%, running thousands of hours between planned or unplanned outages, delivering energy up to its nameplate capacity. When built, the unit featured state-of-the art emissions controls that most plants were not required to have and more were added before regulatory mandates.
From the beginning, Unit 1 provided more than half of the energy needs for Platte River’s owner communities, supplemented by federal hydropower contracts, natural gas resources, market purchases, wind and solar resources.
By the end of 2020, more than 50% of the energy delivered by Platte River will come from noncarbon resources including wind, solar and hydro facilities, and Platte River continues to take steps needed to achieve its 100% noncarbon goal.
In addition to Unit 1, the 4,560-acre Rawhide Energy Station also hosts five natural gas combustion turbines and a 30 MW solar farm, along with another 22 MW of solar power (with battery storage) currently under construction.
Energy from the 225 MW Roundhouse wind farm located in southern Wyoming will be delivered to the Rawhide Energy Station and then to Platte River’s owner communities.
Platte River’s ownership interest in the Craig station will also conclude when Unit 1 is retired in 2025 and Unit 2 follows, thereby ending the use of all coal-fired generating capacity by 2030.
The Rawhide Energy Station has multiple generation resources, and workers will be needed for those facilities, Platte River noted.
Jason Frisbie, general manager and CEO of Platte River, said that plans will be developed to smoothly transition workers to new roles after closure.
Following its retirement, Unit 1 will undergo a lengthy decommissioning process.
EIA Forecasts 2020 Summer Electricity Demand To Be The Lowest Since 2009
June 16, 2020
by Paul Ciampoli
APPA News Director
Posted June 16, 2020
The U.S. Energy Information Administration (EIA) on June 10 said it expects U.S. electricity demand to total 998 billion kilowatt hours this summer, the lowest level of summer electricity consumption in the United States since 2009 and 5% less than last summer.
EIA expects electricity consumption to be lower this year largely as a result of efforts to reduce the spread of COVID-19.
Most of the expected decline in retail electricity sales occurs in the commercial and industrial sectors, which EIA forecasts to be 12% and 9% less, respectively, than during summer 2019. EIA said it expects residential electricity sales to grow by 3% this summer because more people are working from home and following social distancing practices.
In its “Today in Energy” report, EIA noted that normally, weather is one of the primary factors in determining electricity demand in the residential and commercial sectors.
The National Oceanic and Atmospheric Administration (NOAA) is projecting that U.S. cooling degree days for June, July, and August 2020 will be 1% lower than last summer.
“This summer, however, other factors are affecting electricity demand more than temperature,” EIA said. “Although state and local governments are relaxing stay-at-home orders, social distancing guidelines will likely result in Americans spending more time at home than usual this summer. In addition, many people that had worked in offices are now working from home, shifting electricity demand from the commercial sector to the residential sector.”
EIA noted that macroeconomic indicators are primary drivers in its forecasts for electricity consumption in the commercial and industrial sectors.
EIA’s short-term economic assumptions are based on a macroeconomic model from IHS Markit. This model projects non-farm employment will fall by 13% in 2020 and that the electricity-weighted industrial production index will contract by 12% in 2020, EIA said.
APPA, Others Urge Lawmakers To Include Nuclear Measure In Defense Legislation
June 12, 2020
by Paul Ciampoli
APPA News Director
Posted June 12, 2020
The American Public Power Association and several utility and nuclear industry stakeholders recently urged the chairman and ranking member of the Senate Armed Services Committee to include legislation that would accelerate the commercialization of a new generation of nuclear reactors in the fiscal year (FY) 2021 National Defense Authorization Act (NDAA).
The June 9 letter was sent to Sen. James Inhofe, R-Okla., Chairman of the Senate Armed Services Committee, and Sen. Jack Reed, D-R.I., Ranking Member of the committee.
APPA and the other stakeholders urged Inhofe and Reed to include the bipartisan Nuclear Energy Leadership Act (S. 903) in the FY2021 NDAA.
The bipartisan committee amendment on nuclear energy filed by several senators would add important provisions from NELA to the NDAA, “and we support the amendment,” the groups said.
“NELA would accelerate the commercialization of a new generation of nuclear reactors that are designed to provide energy in multiple ways beyond traditional large-scale nuclear electricity production,” the groups pointed out.
These new nuclear energy products “are important components in a modern, clean, resilient energy system that can meet civilian and defense needs. With China and Russia now developing and exporting advanced reactors to strategically significant countries throughout the world, it is critical that the U.S. reassert leadership in this geopolitically important field,” APPA and the other stakeholders told Inhofe and Reed.
NELA, introduced by Senate Energy and Natural Resources Committee Chairman Lisa Murkowski, R-Alaska, has twenty-two bipartisan co-sponsors, including Ranking Member Joe Manchin, D-W.Va.
The legislation would direct federal research and development related to advanced nuclear power, including advanced reactor demonstration, the development of a national nuclear strategic plan, and the creation of university nuclear leadership program.
NELA would also authorize long-term federal power purchase agreements increasing the current maximum from ten years to up to forty years, allowing upfront capital costs to be recouped over a longer period.
Last September, the legislation was reported out of the Senate Energy and Natural Resources Committee by a voice vote.