TEP's Power Generation Future
Transcript of TEP's Power Generation Future
TEP’s Power Generation FutureTEP’s Power Generation Future
Erik BakkenErik Bakken DirectorDirector
Corporate Environmental Services & Land ManagementCorporate Environmental Services & Land Management DirectorDirector
Corporate Environmental Services & Land ManagementCorporate Environmental Services & Land Management
June 2013
TEP Generation and Transmission Resources
1
Navajo
Sundt
Moenkopi
Peacock
Marketplace
Kayenta
Tucson
Generating Station
Coal Mine
Interconnection With Other Utility
Substation
Solar Station
TEP 404,000 customers
UNS Gas 148,000 customers
UNS Gas & Electric
UNS Electric 91,000 customers
High Voltage Transmission Lines
San Juan Ship Rock
Four Corners San Juan
Mine Navajo
McKinley McKinley
Mine
Coronado
Springerville
Luna
Hidalgo
Greenlee
South
Vail
Valencia Nogales
Davis
Mead
Black
Mountain
Kingman Kingman
Black
Mountain
Griffith Griffith
N. Havasu Lake
Havasu
City Parker Parker
Saguaro
West Wing
Liberty
Palo Verde
Phoenix Pinal West
Cholla Flagstaff
Lee Ranch
Yavapai Prescott
MEXICO
NEVADA
UTAH COLORADO
CALIFORNIA NEW MEXICO
Lake
Havasu
City
Pinnacle
Peak
Service Areas / Customers
Source: IRP Page 60
Environmental Regulatory Challenges
2
Air
Climate
Water
Land & Natural Resources
Waste & Chemical
Management
Coal Ash
PCBs in Electrical
Equipment
HazMat Transport
Transmission Transmission Siting and Permitting
Avian Protection
Endangered Species
Vegetation Management
316(b)
Effluent Effluent Guidelines Limitations
Waters of the United States
NPDES NPDES Pesticide Permits
New & NSPS- New & Modified Sources
NSPS-Existing Sources
BACT Permitting
International Negotiations
Utility MACT
Interstate Transport
(CAIR/CSAPR)
Regional Haze/Visibility
Ozone NAAQS
New Source Review (NSR)
Waterbody- Specific
Standards
Regional Haze Goal
1998 2008 2018 2028 2038 2048 2058 2064
Dec
ivie
w H
aze
Ind
ex (
dv)
Planning Period
Reasonable Progress
only (SGS)
Uniform Rate of Progress
Natural Conditions
BART and Reasonable
Progress (NGS, FCPP, SJGS, Sundt)
3
2.00
2.25
2.00
1.75
1.50
1.25
1.00
0.75
0.50
0.25
0.00
Ch
ange
in V
isib
ility
Cost Deciview Change
0.47
0.70
Humanly Perceptible Change in Visibility
Costs to Achieve
Incremental Visibility Improvements (NGS)
October 19, 2009 ACC Special Open Meeting - Glen D. Reeves
Low NOx Burners Selective Catalytic Reduction
Regional Haze Costs at
TEP Remote Plants
5
San Juan Generating
Station Navajo Generating Station
Four Corners Power Plant
$200M $85M
$35M
SCR Required on all units?
?
Springerville Generating Station
BART for Sundt Unit 4
• Sundt Unit 4 ordered by DOE to convert to coal in 1980s
• February 2011 - Arizona regional haze plan – Units reconstructed outside
of BART time frame (1962-1977) are not BART eligible
• December 2012 - EPA disapproved decision regarding Sundt Unit 4
– Sundt Unit 4 is BART eligible
• EPA regional haze proposal for Arizona due September 6, 2013
– Will include BART determination for Sundt
– Final rule due February 6, 2014
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$130M
Regional Haze Controls
7 U.S. Chamber of Commerce, EPA’s New Regulatory Front: Regional Haze and the Takeover of State Programs, July 13, 2012,
Four Corners Generating
Station (APS) Navajo
Generating Station (SRP)
San Juan Generating
Station (PNM)
Coal Facing Potential Early Retirement
Springerville Unit 1 (TEP)
Springerville Unit 2 (TEP)
Sundt Unit 4 (TEP)
40% of TEP’s Coal Capacity
Facing Potential Early
Retirement
20122012 2014 2016 2018 2020 2022 2024 20262014 2016 2018 2020 2022 2024 2026
170 MW
75 MW
250 MW 325 MW 500 MW
120 MW 170 MW 250 MW
Utility Scale Renewables
Distributed Generation
Future Support for Intermittent Resources
Renewable Resource Integration
Combustion Turbines
Demand Response
Energy Storage
Fully Compliant with Arizona Energy
Efficiency Standard 22% by 2020
Fully Compliant with Arizona Renewable
Energy Standard 15% by 2025
Solar Test Yards
16
Irvington Test Site 1Irvington Test Site 1
Irvington Test Site 2Irvington Test Site 2
Irvington Test Site 3Irvington Test Site 3
DMP Test SiteDMP Test Site