TJ Deora Energy Policy Leadership GEO
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Transcript of TJ Deora Energy Policy Leadership GEO
Energy Policy Leadership
TJ Deora
Colorado has a typical electric power resource mix today…
Fuel source by gWh generated
…but soon our portfolio will be significantly different
How did we do it?
2004
2007
2010
Amendment 37
HB07-1281
HB10-1001
HB10-1365
10% RES by 2015 (IOUs)
20% RES by 2020 (IOUs)
30% RES by 2020 (IOUs)
900 MW Coal to Gas
Colorado State Policy Drivers
Why could we do it?
Colorado is well positioned to demonstrate energy policy
leadership:
1. High awareness of, and concern about, health & environment
2. Abundant traditional & renewable energy resources
3. Straightforward (relatively) energy markets
4. Willing host communities
5. Bold leadership
Is it worth it?
Oong
CostsRetail Rate Impact
BenefitsR
ES
DSM
2%
2%1% 5%
Tota
l
CAC
JEconomic Development• Over $5 Billion Invested • ~16,000 Net New Jobs
Health and Environmental• Improved Local Air Quality• Clean Air Interstate Rule
Compliance
Consumer• Reduced Demand• Forward Price Stability• Long Term Cost Reduction
There are many forces affecting our energy markets
Energy Markets
Demand
Technology
RegulationCapitalAvailability
Colorado’s Renewable Energy Standard (RES) has a low impact on retail rates
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
Average Monthly PSCo Residential Electric Bill by Component
ECA
RESA
TCA
AQIR
DSMCA
Fort St Vrain
Comanche
Base S&F
PCCA
CPI
Consumer Price Index
Fuel(natural gas and coal)
Base rates(utility asset recovery)
RES(~1.3 GW, 2% rate impact)
New coal generation(~0.9 GW, 6% rate impact)
ECA= Electric Cost Adjustment; RESA= Renewable Energy Standard Adjustment; TCA=Transmission Cost Adjustment; AQIR= Air Quality Improvement Rider; DSMCA= Demand Side Management Cost Adjustment;
Fort St. Vrain= PSCo-owned gas peaking units; Comanche= coal-fired generating station in Pueblo; Base S&F= Base Service and Facility Rates or Base Rate; PCCA= Purchased Capacity Cost Adjustment paid to independent power
producers; CPI= Consumer Price Index
Source: CoPUC
Federal policies are of critical importance to complement state policies
Markets
Technology
Regulation
Capital Availability
• PTC / ITC• Modified Accelerated
Cost Recovery System• Loan Guarantees
• National Labs• R&D Tax Credits• ARPA-E
• Renewable Energy Standards• Clean Air-Clean Jobs Act/
State Implementation Plan• Sales and Property Tax
FEDERAL STATE
•Clean Air Act
Policy (or lack thereof) reinforces broader market trends
Reduced Investment
Levels
Low Energy Prices
Regulatory Uncertainty
Natural gas prices
Why is Federal policy support so unstable?
Our country should do more to support renewable energy…
Democrats Independents Republicans
Can we establish successful national energy policy?
1. High awareness of and concern about health & environment
2. Abundant traditional & renewable energy resources
3. Straightforward (relatively) energy markets
4. Willing host communities
5. Bold leadership
What is next for GEO?
Implement the legislative framework for maximum benefit
Jobs• Increase manufacturing• Increase energy project
development and construction by providing commercialization capital (revolving loan funds)
Consumer Cost• Support residential EE finance• Promote energy performance
contracting for commercial sector
• Simplify PV/RE permits & regulations
• Diversify to hedge price volatility
• Increase ROI of weatherization programs
Environmental• Capture coal mine methane• Advance oil & gas best
practices• Increase energy productivity• Utilize beetle kill
What is next for Colorado?
2. Understand portfolio potential post-2020
Lower Emission Power
Generation
New Supply / Demand Dynamics
Cost effective integration
beyond 30%
COAL NATURAL GAS RENEWABLES
What is next for Colorado?
3. Find the next big opportunity, e.g.
Diversification of Our Transportation Fuel MixNatural Gas, Electricity,
Biofuels, Other?
Improved Local Air Quality
Lower Consumer
Prices
Energy Security
Investment & Jobs