Powering Communities. A Changing Landscape. John Hewa, Chief Executive Officer

Transcription

1 Powering Communities A Changing Landscape John Hewa, Chief Executive Officer

2 Electric Cooperative Network Over 900 Electric Cooperatives Serve 42 million Americans in 47 States Cover >70% of Nation s land mass Own 42% of all Distribution Line Totals 2.5 Million Line Miles Not for Profit, Consumer Owned, Consumer Controlled 3

3

4 Cooperative Principles Voluntary & Open Membership Democratic Control Member s Economic Participation Autonomy & Independence Education, Training, & Information Cooperation Among Cooperatives Concern for Community

5 The Seven Cooperative Principles In Action American Customer Satisfaction Index

6 Co-op Territory Revenue per Mile Consumers per Average Mile Consumers Served Co-op Co-op IOU IOU IOU Co-op Muni Muni Muni

7 PEC: HISTORY President Franklin D. Roosevelt established the Rural Electrification Administration (REA) in 1935 Congressman Lyndon B. Johnson and local rancher E. Babe Smith led the effort to bring power to region that investor-owned utilities said had too low-profit potential On Sept. 27, 1938, REA granted PEC a loan to build nearly 1,800 miles of electric line to serve 3,000 families For a definitive historical account of the REA and the U.S. electrification movement, see The Path to Power, vol. 1 of LBJ s biography by Robert Caro

8 ELECTRIC COOPERATIVES National Averages 22,600 Meters 3,100 Miles of Line 7.33 Accounts per Mile 2,400 Sq. Mile Territory 66 Employees $50M Annual Revenue Retail Rate $.1094/kWh Wholesale Rate $.06/kWh Purchase Power 60% of Budget PEC Metrics 266,000 Meters 21,000 Miles of Line 12 Accounts per Mile 8,100 Sq. Mile Territory 720 Employees $620M Annual Revenue Retail Rate $.1187/kWh Wholesale Rate $.0599/kWh Purchase Power 57% of Budget

9 PEC BY THE NUMBERS 2014 ENERGY TRENDS kwh Sold 5,338,807,639 Growth ~ 9,200 Meters 3.92% Energy

10 PEC SERVICE TERRITORY

11 THE MEMBERS COOPERATIVE Outstanding Reliability Favorable Reduction Trend on Controllable Costs Favorable Trend on Employee Efficiency Introducing New Essential Tools/Technology Substantial Member Engagement in Co-op Direction Working Closely with Community Partners Reducing Member Rates Achieving Strong Financial Performance

12 FINANCIAL MANAGEMENT AND PERFORMANCE Reduction in Rates Cost of Service Study & Rate Design

13 INDUSTRY LEADING RELIABILITY Reliability in Top 10% of all electric cooperatives Average interruption time of only 47.5 minutes per year Building to maintain strong system Emergency preparedness Centralized dispatching System Inventory Reliability & Resiliency Plan

14 SYSTEM INVENTORY & MAPPING Building a Platform for Improved Outage Notification and Engineering Programs

15 AUTOMATIC VEHICLE LOCATION SYSTEM Enhancing Response Time, Efficiency, and Safety

16 METER INSPECTIONS Ensuring Fairness and Accuracy Current transformers 123 amps 123 amps 122 amps 117 amps 216 amps, ct location. 208 amps, ct location.

17 ENERGY SERVICES Helping Members Lower Monthly Bills

18 LIGHTING AUDIT Reducing Losses and Protecting Dark Skies

19 GOOGLE FIBER AGREEMENT Leveraging Member Assets

20 BUILDING STRONG TEAMS Lineman s Rodeo Team

21 PROVIDING HAITI ASSISTANCE

22 FAST ELECTRONIC WORK TICKETING Bringing the Right Tools to the Job

23 INNOVATIVE SERVICES IN 2015 Mobile member portal Online, real-time outage map More flexible billing Dynamic notifications Pre-pay compatible Kiosk compatible Enhanced security

24 ENERGY IN TEXAS Texas leads the nation in energy consumption, accounting for 12% of the nation s energy use and is one of the largest energy consumers in the world Demand for electricity has increased 20% since 2000

25 U.S. VS. TEXAS ENERGY CONSUMPTION

26 BACKGROUND - ERCOT OVERVIEW Consumers: 24 Million Peak Demand: 68,305 (Aug 11) Generation Capacity: 74,000 MW from 550 generating units Market Participants: 1,100+ that generate, move, buy, sell or use wholesale electricity Advanced meters: 6.6 Million 97 percent of ERCOT load in competitive areas settled with 15- minute interval data Demand Response: 2,100 MW

27 $9,000 ERCOT MARKET POSSIBILITIES ($/MWh) $35 Typical Pricing Price Cap

28 PEC WHOLESALE POWER DIVERSITY Junction 0.5% Available LCRA Load Release 12% Available LCRA Load Release Options: Market Purchases, Wind, Solar, Fueled Generation IPPG AEPEP 50 MW Wind 3% CONSTELLATION 5% LCRA Contract Minimum 65% Load Release Elections 20% AEPEP 10% CALPINE 5%

29 PEC Wind & Solar 30 % Renewable Energy Goal Total Renewable 11% (energy) South Trent Wind 6% (energy) Hydro Production 22% Combined Total Capacity

30 INTEGRATED RESOURCES PLAN

31

32 Grid Technologies Power Supply Knowledge & Control Growing Expectations Reliability Rates Service Options Grid New Tech Advanced Telecom Data Processing Market Design Regulations Business Services Immediacy Consumer Technologies Self-Service 2015 Touchstone NET Conference January 27, 2015

33

34

35 Grid Engineering for Accelerated Renewable Energy Deployment (GEARED) DOE SunShot Initiative Training/education framework growing expertise and preparedness of current/future electric utility professionals Specifically to accommodate high penetrations of solar electricity and other distributed technologies

36

37 Solar Utility Network Deployment Acceleration (SUNDA Project) Goal: Reduce barriers to implementation of utilityowned, utility-scale solar PV systems Standardized engineering designs minimize design and engineering costs. Volume purchasing program NRECA s National Discounts Program Pre-packaged business plans and financing options Tailored insurance package Reduced Labor Costs Targeting a 25% reduction Extensive outreach and training

38 COMMUNITY SOLAR Utility Trends Community Solar Over 60 Electric Cooperatives are offering Community Solar projects NRECA Database

39 COMMUNITY SOLAR BENEFITS Option for PEC to make available an unsubsidized program for interested members Program is available for all PEC members to participate in a renewable program Projects scalable to meet members interest levels Using third parties eliminates PEC financial risk.

40 CO-OP DG DRIVERS Economy Environment Motives Self Sufficiency Reliability

41 How to support all Co-op Members?

42 PEC Solutions Avoids Cross Subsidy Are Fair and Equitable Promotes Distributed Generation Empowers & Supports Members Are Scalable & Generates Revenue Consistent with our Mission, Values, Strategic Plan and Board Adopted Resolutions

43 PEC S CURRENT STANCE Interconnection Interconnected Accounts Growing Trend of Interconnection Increased Avoided Cost Buy Back

44 WHY OFFER ON-BILL FINANCING? Less Controversial and more Beneficial than Rebates Reduces the member s upfront investment 7 kw for System large projects 10 Year Financing ~ $3,000 Interest Savings Tax Credit Eligible Lowers default risk due to bundling with power bill Encourages participation in Vendor Partnership other efficiency programs PEC has access to lower interest rates

45 Mission The Solar Electric Power Association (SEPA) is an educational non-profit organization dedicated to helping utilities integrate solar energy into their portfolio for the benefit of the utility, its customers, and the public good.

46 Guiding Principles

47 SEPA Members At A Glance

48 Reports Insight, Analysis, and Guidance

49 Utility Solar Database

50 Fact Finding Missions Domestic and International

51

52 John D. Hewa, Chief Executive Officer Pedernales Electric Cooperative, Inc. Cell Phone: (830)