Pat Wood, III, Chairman Federal Energy Regulatory Commission Energy Infrastructure Washington D.C....

Pat Wood, III, Chairman

Federal Energy Regulatory Commission

Energy Infrastructure

Washington D.C.April 5, 2005

April 5, 2005 Pat Wood, III: Federal Energy Regulatory Commission 2

The total U.S. energy consumption in 2004 was nearly The total U.S. energy consumption in 2004 was nearly 100 quadrillion Btus100 quadrillion Btus

Nuclear

8%

Oil40%

Coal22%

Renewable

and Other

7%

Natural Gas23%

Source: Based on data from EIA Annual Energy Outlook 2005

0

20

40

60

80

100

120

Qua

drill

ion

Btu

s

Oil and Petroleum Products

Dry Natural Gas

Coal

Nuclear

Renewable and Other


0

10

20

30

40

50

60

70

80

90

2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024

Qu

ad

rill

ion

Btu

s

Projected domestic energy production shows 3% growth Projected domestic energy production shows 3% growth from 2004 to 2005, then leveling off until after 2016.from 2004 to 2005, then leveling off until after 2016.


Dry Natural Gas

Coal

Nuclear

Renewable and Other



0

10

20

30

40

50

602

00

2

20

04

20

06

20

08

20

10

20

12

20

14

20

16

20

18

20

20

20

22

20

24

Qu

adri

llio

n B

tus


Natural GasCoal

Energy imports are projected to increase



A total of 131 new hydropower licenses and relicensesA total of 131 new hydropower licenses and relicenses have been issued since June 2001have been issued since June 2001

Relicensed Projects Newly Licensed Projects


Transco (323)

Southern (330)

Kern River

(886)

6

NorthBaja(500)

Tuscarora(96)

Northwest(162,113)

Kern River(282)

Iroquois(70)

TETCO(250)

Northwest(224)

NFS/DTI (150)

GeorgiaStraits (96)

SCG Pipeline (190)

12

3

4

Northwest(191)

East Tennessee (510)

Tennessee (320)

TETCO (197)

Greenbrier (600)

El Paso (320,620)

WBI(80)

ANR(210,220,107,143)

El Paso (140)

TETCO(223)

Cove Point(445)

Ocean Express(842)

7 CheyennePlains (560,170)

9

6. CIG (282,92) 7. CIG (118) 8. TransColorado (125) 9. WIC (116)

8

Calypso (832)

Discovery (150)

Transwestern (150,375)

5

Trunkline(1,500)

Cheniere Sabine (2,600)

Trunkline(200)

Questar

(272,102) 6

Petal (700,600)

Horizon(380)

GTN(207)

Otay Mesa (110)

Florida Gas (270)

East Tennessee (170)

7

1. Algonquin (285) 2. Islander East (285) 3. Iroquois (230,85) 4. Columbia (135,270) 5. Algonquin (140) 6. Transcontinental (105) 7. Transcontinental (130) 8. Tennessee (200) 9. Maritimes (360)10. Algonquin (301)

8

Millenium (700)9

10

Major Pipeline Projects Certificated (MMcf/d)Major Pipeline Projects Certificated (MMcf/d)June 2001 to March 2005June 2001 to March 2005

21.6 BCF/D Total3,612 Miles


Copiah (3.3)

SG Resources (12.0)

Seneca(0.8)

Dominion (5.6)

Gulf South (18.5)

Natural(10.7)

Wyckoff(6.0)

KM(6.5)

Saltville(5.8)

Pine Prarie (24.0)

Natural (10.0)

Petal (8.0)

Storage Projects (Capacity in Bcf)Storage Projects (Capacity in Bcf)June 2001 to March 2005June 2001 to March 2005

Certificated Since 6/1/2001


ConstructedA. Everett, MA: 1.035 Bcfd (Tractebel - DOMAC)B. Cove Point, MD: 1.0 Bcfd (Dominion - Cove Point LNG)

C. Elba Island, GA: 0.68 Bcfd (El Paso - Southern LNG)D. Lake Charles, LA : 1.0 Bcfd (Southern Union – Trunkline LNG) E. Gulf of Mexico: 0.5 Bcf/d (Gulf Gateway Energy Bridge

– Excelerate Energy) Approved by FERC1. Lake Charles, LA: 1.1 Bcfd (Southern Union – Trunkline LNG) 2. Hackberry, LA: 1.5 Bcfd, (Sempra Energy)3. Bahamas: 0.84 Bcfd, (AES Ocean Express)*4. Bahamas: 0.83 Bcfd, (Calypso Tractebel)*5. Freeport, TX: 1.5 Bcfd, (Cheniere/Freeport LNG Dev.)

6. Sabine, LA: 2.6 Bcfd (Cheniere LNG)7. Elba Island, GA: 0.54 Bcfd (El Paso - Southern LNG)

Approved by MARAD/Coast Guard8. Port Pelican: 1.6 Bcfd (Chevron Texaco)9. Louisiana Offshore: 1.0 Bcfd (Gulf Landing – Shell)

Mexican and Canadian Approved10. St. John, NB: 1.0 Bcfd (Canaport – Irving Oil)11. Point Tupper, NS: 1.0 Bcfd (Bear Head LNG – Anadarko)12. Altamira, Tamulipas: 0.7 Bcfd (Shell/Total/Mitsui)13. Baja California, MX: 1.0 Bcfd (Sempra & Shell)

Existing and Approved North AmericanExisting and Approved North AmericanLNG TerminalsLNG Terminals

As of March 25, 2005

A

3 4

E

B

US Jurisdiction

FERC US Coast Guard

* US pipeline approved; LNG terminal pending in Bahamas

7C

2D,165

10

11

12

13

98


Existing Bulk Electric Transmission GridExisting Bulk Electric Transmission Grid

Derived from Platts POWERmap


New generation units added from New generation units added from June 1, 2001 to March 2, 2005 totals 185,908 MWJune 1, 2001 to March 2, 2005 totals 185,908 MW

Source: Derived from Platts POWERmap


10 Transmission Projects completed10 Transmission Projects completedFebruary 2003 – March 2005February 2003 – March 2005

(GTE 230kV & GTE 40 miles)(GTE 230kV & GTE 40 miles)

Source: Derived from NERC ES&D database and Platts PowerMap

500 kV

345 kV

230 kV

Transmission Projects


Electric Transmission Needed to meet 2025 demandElectric Transmission Needed to meet 2025 demand

Possible Transmission Projects


Need/Cost Recovery

It is difficult to determine need and cost allocation for new transmission lines

Lack of investment capital

Difficulty in securing long-term transmission rights

Regulatory uncertainty regarding regional transmission organizations in relations to infrastructure needs

Siting

Stakeholder concerns adversely affect the ability to successfully site and construct needed transmission lines, in a timely manner.

The lack of an effective forum/policy for coordinating or resolving multi-state disagreements on siting.

Impediments to new transmission include determining Impediments to new transmission include determining need, cost recovery and siting.need, cost recovery and siting.


Licensed and exempted hydropower projectsLicensed and exempted hydropower projects provide 59 GW of electric generation capacityprovide 59 GW of electric generation capacity


0

200

400

600

800

1,000

1,200

2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025

GW

With a modest 2% growth in electricity demand, projected available With a modest 2% growth in electricity demand, projected available generation capacity will be able to meet demand through 2020.generation capacity will be able to meet demand through 2020.

Projected Available Capacity

Demand

Net additions included retirements and plants currently under construction and in advanced development.

Source: Based on data from EEA January 2005, PLATTS PowerDat and NewGen.


Timely and efficient licensing process as provided by the ILP

Congressional incentives

Renewable portfolio standards

Rational siting process

Encourage new technologies

Removing impediments to hydro developmentRemoving impediments to hydro development


Existing major natural gas pipelines in U.S and CanadaExisting major natural gas pipelines in U.S and Canada

Source: Based on Platts PowerMap


Existing natural gas storage and LNG facilitiesExisting natural gas storage and LNG facilities

Source: Based on Platts PowerMap


Impediments to new LNG terminals and natural gas Impediments to new LNG terminals and natural gas pipeline and storage facilities pipeline and storage facilities

Safety/Security concerns

Take away capacity

Local acceptance

Redundant federal and state approval


Conclusions

Challenges lie ahead

Coordination of integrated national energy infrastructure planning

Authority to ensure that projects in the national interest are constructed in a timely manner

Jurisdiction over bulk electric transmission used in interstate commerce.

Rational Siting Process

Pat Wood, III, Chairman Federal Energy Regulatory Commission Energy Infrastructure Washington D.C....

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