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Colorado Springs Utilities Drew A. Rankin, General Manager Energy Supply. Agenda. Where We Have Been Our History - Citizen-Owned Utility Where We Are Achieving a Critical Balance Looking Ahead A Vision for Tomorrow Pilot Scrubber Project. Where We’ve Been.
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Colorado Springs UtilitiesDrew A. Rankin, General Manager Energy Supply
Agenda • Where We Have Been • Our History - Citizen-Owned Utility • Where We Are • Achieving a Critical Balance • Looking Ahead • A Vision for Tomorrow • Pilot Scrubber Project
Where We’ve Been 1924: Citizens vote for municipal utility 1925: Drake - Coal 1980: Nixon Coal 1900 1910 1920 1930 1940 1950 1960 1970 1980 1905: Manitou - Hydro 1925: Ruxton - Hydro 1953: Birdsall – Oil/natural gas
Where We’ve Been 2005: Manitou Hydro Expansion 2010: Cascade Hydro 1997: Tesla Hydro 1980 1990 2000 2010 2011: USAFA Solar 1989: Begin WAPA Hydro 2003: Front Range – Natural Gas
Current Electric Power Sources Capacity Energy Output Total: 1,095 MW summer Record peak: 863 MW August 2007
Doing the Right Thing Demonstrate Corporate Responsibility Relationships Community Commitment Customer Service Communication Environmental Stewardship Maintain Financial Stability Rates Bond Ratings Fixed Cost Coverage Days of Cash Debt Ratio Customer Cost/Value Plan and Execute for the Future Reliability Safety Reliability and Quality Regulatory Customer Satisfaction Critical Balance
Customer Satisfaction Drivers JD Power & Associates, 2010. Residential
Looking Forward – Our Questions • What is our unique fingerprint as a community with respect to the environment? • How do we bring together all the diverse stakeholder views and draw out the best ideas in service of a common goal? • What does success look like for Colorado Springs with electric energy in 2020? • Given the challenges we are facing, what portfolio mix best positions us for that success?
A Vision for TomorrowA Starting Place Draft Vision: By 2020, Colorado Springs Utilities will provide 20% of its total electric energy through renewable sources, reduce average customer use by 10% and maintain a 20% regional cost advantage.
A Vision for Tomorrow Renewable Facilities 20 MW Hydroelectric Manitou Ruxton Tesla WAPA Cascade Total local generation (35.4 MW)WAPA (121 MW) Solar Customer Rebates* Net metering Air Force Academy - 2011 (5.2 MW) Woody Biomass – 2012 (20 MW) *2005-2010, 119 projects, 661 kW
Geothermal A Vision for Tomorrow 20% Renewables Potential Concentrated Solar Solar Municipal Waste Sludge to Energy High-Tech Wind
A Vision for Tomorrow Energy Reduction– Reduce Customer Use by 10% Annual residential use per customer in Kwh • Price options • Incentives and rebates • Smart Grid applications • Demand response • Regulatory • Appliance standards • Building codes • Load control • New technologies
A Vision for TomorrowExisting Cost Advantage June 2010 Monthly Power Cost – Residential - 600 kWh PSCo Mountain View Black Hills Energy Colorado Springs Utilities Currently 21% lower than average of the other three electric utilities
A Vision for TomorrowConclusions • Colorado Springs Utilities has offered value to citizens for over 85 years: • Local ownership • Reliable electricity • Competitive cost • Compliance and beyond with environmental standards • We have a unique opportunity to address the energy challenges ahead in a way that positions our community to thrive • We must maintain the critical balance.
A Vision for TomorrowConclusions • A diverse portfolio continues to offer the best blueprint for tomorrow • An energy vision can bring us together and be a rallying point for future success • Collaboration and innovation are key to meeting the challenges of tomorrow • We must move forward together as a community, region, and industry to build the future now
Pilot Scrubber Project Using a Public-Private Partnership Design, Test, and Implement a Solution to Present and Future Power Generation Technology Emission Challenges in Maintaining Low Cost, Reliable, and Higher Quality Environmental Performance.
Serendipity – DOD Meets CSU • Neumann Systems Group • Colorado Springs Based • DOD Research and Development Contractor • NeuStream • NSG Subsidiary to Help Solve Emission Challenge • Cross Application of Proprietary Technology • CSU Presentation and Assessment • “Too Good To Be True” Lab Test and Proposition • Engage Slip Stream Testing • Three (3) Phases – 0.13 MWe – 2.0 MWe – 20 MWe
NeuStreamTM Modular Architecture SORBENT SPRAY 2 MW Scrubber 60 MW System TOP FRONT SORBENT FEED PLENUM CLEAN FLUE GAS OUT 56 in SORBENT STORAGE TANK 15 in SORBENT FLOW FLUE GAS FLOW WATER TREATMENT SYSTEM 121 in 2 MW Scrubber x 10 x 3 20.7 FT DEMISTER SIDE JET PACK ZONE PUMP HOUSE 40 in FLUE GAS FLOW HEX FLUE GAS FLOW SORBENT FLOW 28 FT 18 FT FLUE GAS IN DEMISTER Half the Size – Half the Cost – Superior Performance
30% Design Study Results • Operational Performance • Financial Performance
Current Status and Next Steps • Continuing 20 MW Pilot Stress Testing • >90% Removal • 97% Availability • Draft EPC Contract Drake 6 and Drake 7 • 97% Removal Design • EPRI Independent Assessment Report – November 1 • Execute EPC Contract • Continue Testing for NOx and CO2 • Market Development • Fundamentally Improve Emissions