MATANUSKA ELECTRIC ASSOCIATION, INC. M A Y O R ’ S E N E R G Y T A S K F O R C E
U P D A T E - F A L L 2 0 1 4
JOE GRIFFITH, GENERAL MANAGER OCTOBER 21, 2014
MATANUSKA ELECTRIC ASSOCIATION, INC.
• Over 60,000 accounts (47,320 members)
• 22 substations
• Over 4,200 miles of power lines
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Transmission, 125 miles
Overhead distribution, 2,227 miles
Underground distribution, 1,832 miles
MEA POWER PORTFOLIO (CAPACITY)
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80%
20% 80% Natural Gas(Currently ChugachElectric - Transition to EGSin 2015)
20% Hydro (Bradley Lake,Eklutna Hydro, Southforkof Eagle River, McRobertsCreek in Palmer)
Eagle River
Palmer Wasilla Matanuska Glacier
Point MacKenzie
Denali State Park
Talkeetna
Matanuska Electric Association Service Territory (Certificate 18)
Honolulu Creek
>100 Miles
~100 Miles
SERVICE AREA CHALLENGES
• Over 4200 miles of power lines covering only 59,000 customers
• Service area the size of West Virginia • Challenging terrain and narrow rights-of-way • Growing demand • Aging and inadequate infrastructure
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MEA’S GROWING LOAD Driving significant upgrades to our system to meet member demand
8000090000
100000110000120000130000140000150000160000
Year20112006200119961991
TRANSMISSION UPGRADES – EGS TO WASILLA
• Provides reliable power from EGS to the heart of our service area
• Supports significant commercial and residential growth
• Provides reliability and redundancy to vulnerable system
MEA TRANSMISSION UPGRADES
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Phase 1: EGS to Hospital • Poles in place • Lines connected from EGS • Completion anticipated this week • Tie to Eklutna Hydro Project
transmission line halted by EOC.
Wasilla Hospital
Substation
Palmer
EGS
MEA TRANSMISSION UPGRADES
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Phase 2: Hospital Substation to Herning (Wasilla)
• Supports significant commercial and residential growth in Wasilla
• Progress stalled due to Wasilla Planning Commission decision
• Interim step – build transmission to LaZelle substation
• MEA working with stakeholders on alternate overhead routes
Wasilla Hospital
Substation
Palmer
EGS
Herning Substation
OTHER SYSTEM UPGRADES – A FOCUS ON RELIABILITY Substation improvements –
• Reduce outages, improve power quality, account for growth
• 5 substations currently undergoing upgrades, including Parks (Chugiak)
Clearing to reduce outages
• Chugiak/Birchwood
• Willow to Talkeetna
New meters
• More accurate bills
• Reduce outage time
• Improve efficiency of workforce
MEA LONG RANGE PLANNING Development of a comprehensive growth and maintenance plan
• Proactive assessment of current system compared to projected growth
• Coordination with other planning efforts at MoA and Mat-Su Borough
• Several new substations identified, including Powder Reserve (N Eagle River)
• Will likely result in the purchase of corridors and substation property for future use
• Target completion: Summer 2015
EKLUTNA GENERATION STATION Online Early 2015
DECISION FACTORS LEADING TO EKLUTNA GENERATION STATION (EGS)
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• 2004: 10-year notice to Chugach that MEA would not be customer after Dec. 31, 2014 • MEA Integrated Resource Plan, MEA power supply studies, Technology Evaluation Report • Financial and hourly dispatch modeling • Load-flow study, pooling studies • Conversations with Chugach and ML&P on joint effort Other considerations
o Railbelt generation suite o Lack of meaningful work between 2004 and 2009 o Cook Inlet fuel situation o Pipeline configuration o Air regulations o Load characteristics
EKLUTNA GENERATION STATION DESIGN
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• 171mW Capacity (Ten 17.1mW engines)
• Dual-fuel (Natural gas & diesel)
• Reciprocating engines o Efficiency over power range
• Why Wärtsilä? o Industry leader o 10 smaller engines to better follow our primarily residential load o Proven and efficient technology o Price
STRATEGIC LOCATION
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AK Railroad Enstar 20”
Gas Pipeline
Eklutna Generation Station
EGS - Strategic Location
EGS POWER BLOCK CONTRACTOR AND MAJOR SUBS
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EGS PROJECT IMPACT
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o Nearly 300 jobs at peak of construction
o 28 permanent O&M positions filled – majority Alaska hire
o Estimate over $100M in Alaskan economic impact to date
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Eklutna Generation Station – as of Summer 2014
EGS PROJECT UPDATE
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• Mechanical Substantially complete - equipment placed, attached & plumbed in
• Connection to Enstar pipeline complete • Wärtsilä finalizing engine prep – oil and coolant
filled • Electrical cable pulls and terminations in
process • Testing, flushing and commissioning plan
crafted and underway
EGS PROGRESS
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% Complete
Summer 2013
Fall 2013
Winter 2013
Spring 2014
Summer 2014
Fall 2014
Winter 2014
Spring 2015
EGS Switchyard 100
Field Erected Tanks 100
Administration Building 100
Warehouse 100
Power Block 90 - 95
Testing and Commissioning 20
2014 EGS CONSTRUCTION ACTIVITIES
Complete In Progress Today
EGS COMMISSIONING PLAN
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• Commissioning agent - Universal Energy, Inc. • Plan for testing, verification and power
delivery • Commissioning dispatch agreement with
Chugach Electric signed • Filling of liquid fuel, oil, coolant, and ammonia
tanks scheduled • Goal -
oFour engines online December 31, 2014 oAll 10 engines online Spring 2015
IMPORTANT COORDINATION WITH RAILBELT UTILITIES
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• Interim sales agreement with Chugach Electric signed for Q1 2015 • Coordination for power produced during commissioning • Interconnection agreement necessary – EOC stop work order • Complete control communications loop – Eklutna Hydro, EGS, Plant 2
(ML&P), Teeland Substation (Chugach)
• Agree to a plan to capitalize on new opportunities for economic dispatch of power for significant savings
IMPACT TO MEMBERS • EGS transforms the way we serve our members.
• Increased control over decisions that impact our membership.
• Allows us to more closely and efficiently serve our load.
• Projecting an initial rate increase (15-20%) over the next 18 months oLargely driven by new, more expensive gas contracts oProjections were for a similar increase with Chugach, but one year
later.
ROLE IN THE RAILBELT ENERGY PICTURE
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• 10 smaller engines for load following
• Dual-fuel in case of natural gas supply interruption
• Improves grid stability throughout the system
• Can help integrate variable power
• Component of a single transmission operator and economic dispatch
• May help meet proposed EPA regs by offsetting less efficient generation
CURRENT RAILBELT ISSUES Infrastructure Problem o Inadequate transmission systems o Solution - Upgrade and construct new infrastructure
New generation facilities o 5 new facilities on the Railbelt o Solution - Single, economic dispatch of power
New organizational structure o 6 vertically integrated utilities o Solution - Single transmission operator (TRANSCO)
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RAILBELT UTILITY NATURAL GAS CONCERNS
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• Current market is 200 bcf per year. Too small to encourage exploration.
• Inadequacy of current gas infrastructure o Mismatch of supply delivery
infrastructure with demand centers o Long and vulnerable distribution
system o Limited and expensive storage
• Transport costs and ownership
ARCTEC – A CONSORTIUM OF RAILBELT UTILITIES
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Prioritizing upgrades to fragile Railbelt transmission infrastructure • Support for infrastructure development plan • Funding options limited
TRANSCO/ISO development • Goal – coordination of assets for benefit of the entire Railbelt • Identify best model for Alaska • Feedback from other stakeholders (Legislators, IPP’s) • Legislative $250k to RCA at ARCTEC’s request
MEA IN THE COMMUNITY • Involved in events and organizations throughout our
service area
• MEA Charitable Foundation supports service area with approx. $125K annually from Round Up funds
• Award $20,000 in scholarships annually to area youth
ENERGY EDUCATION (K-12) • The Energy Hog teaches our youth about energy efficiency.
• Safety City presentations educate youth on safe practices around electricity.
• MEA offers school visits, tours and presentations
• AK EnergySmart Curriculum – Energy Efficiency lessons for K-12.
THAT’S ALL FOLKS.
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