TEP and UES Resource Planning Workshop 1

Resource Overview

Victor AguirreLead Supply-Side Planner

Phoenix

Tucson

500 kV

345 kV

Luna 2005

190 MW

San Juan 1973

322 MW

SouthVail

Phil Young

Westwing

Navajo 1974169 MW

Saguaro

Four Corners 1969

112 MW

Springerville 1985-1991

800 MW

Existing Resources - Remote

Local Area Resources

3

North Loop80 MW - Peaking

Sundt430 MW – Intermediate40 MW - Peaking

DeMoss Petrie75 MW - Peaking

TEP Service Territory

Unisource Energy Services

4

Black Mountain90 MW

Valencia 60 MW

Kingman

Nogales

Palo Verde Market

Existing Resources

Base Capacity – Coal

» Remote

» 1400 MW

Intermediate - Combined Cycle & Gas/Steam

» Local

» 620 MW

Peaking – Combustion Turbines

» Local

» 200 MW (TEP)

» 150 MW (UES)

Resource Mix - Energy

6

Coal42%

Gas35%

Nuclear 15%

Other8%

WECC Subregion - Arizona, New Mexico & So. Nevada

Coal80%

Gas20%

Tucson Electric Power

Coal70%

Gas30%

UES and TEP Aggregated

Renewable Resources

Springerville PV – 5,000 kW

Landfill Gas – 5,000 kW

Customer Sited Solar

» Residential – 2,500 kW

» Commercial – 1,500 kW

http://www.tep.com/Green/GreenWatts/SolarStats/SolarDescr.asp

Launched in 2003

Designed for staged

construction

Offsets coal burn

Reduced emissions

8

Springerville PV– 5,000 kW

http://www.tep.com/Green/Business/Solar/losreales.asp

Launched in Aug 1999

Methane byproduct of

decay

20 year plus supply

Offsets coal burn

Reduced emissions

9

Los Reales Landfill – 5,000 kW

TEP and UES Resource Planning Workshop 1

Energy Efficiency Program Overview

Denise Richerson-Smith

Director - Energy Efficiency and Renewable Programs

http://www.tep.com/Green/Business/Solar/community.asp

750 kW Global Solar

1 MW City of Tucson

2.5 MW residential systems

Community Projects:

» Reid Park Zoo

» Pima Air Museum

» Tucson Airport Auth.

» Local School Districts

» University of Arizona

11

Distributed Generation Projects – 4,000 kW

Renewable Energy Programs

Commercial & Residential

Residential Non-Residential

Biomass/Biogas

Daylighting

Geothermal

Small hydro

Solar electric-PV

Solar water heating

Solar pool heating

Wind

Residential DSM Programs

Programs TEP UNSE UNSG

Low-Income Weatherization

New Home Construction

Residential HVAC Retrofit

Shade Tree

CFL Bulb Program

Commercial DSM Programs

Programs TEP UNSE UNSG

Large Business

Small Business

Building Design

TEP and UES Resource Planning Workshop 1

Workshop 2 Thursday, October 22nd 2009

Energy Efficiency and Renewables

TEP and UES Resource Planning Workshop 1

Resource Overview

Victor AguirreLead Supply-Side Planner

Total Firm Load Obligations vs. Firm Capacity Resources

17

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2010 2012 2014 2016 2018 2020 2022 2024 2026 2028

Pea

k D

eman

d (

MW

)

Remaining Peak Demand Requirements

Existing Firm PPAs

Current Resource Capacity

Total Firm Load Obligations (Retail, Firm & Planning Reserves)

2010 - TEP Load Duration & Resource Type

18

0

500

1000

1500

2000

2500

3000

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Ho

url

y D

ema

nd

, MW

620 MW Intermediate Resources

Retail

TEP Retail & Firm Demand

Peaking Capacity Factor

1400 MW Baseload Resources

Intermediate Capacity Factor Baseload Capacity Factor

600 MW Peaking Resources (CTs & PPA)

2010 - TEP Peak Requirement

19

2000

2100

2200

2300

2400

2500

2600

2700

0% 1% 2% 3% 5% 6%

Ho

url

y D

ema

nd

, MW

TEP Retail & Firm Demand

600 MW Peaking Resources (CTs & PPA)

Future Resources

20

Need for Peaking Resources

Short Lead-Time

Responsive

Support Renewables

Reliable Technology

Market

Short-term

Flexible

Availability?

Merchant Plant Surplus?

WECC 2008 Power Supply Assessment

Power Supply Margin - 6% Operating Reserves

21

2010 2011 2012 2013 2014 2015 2016 2017 2018

Southern California - - - - - (411) (660) (917) (1,574)

Desert Southwest 7,023 6,328 4,897 2,564 330 (477) (2,089) (3,795) (5,142)

Total 7,023 6,328 4,897 2,564 330 (888) (2,749) (4,712) (6,716)

(8,000)

(6,000)

(4,000)

(2,000)

-

2,000

4,000

6,000

8,000

Po

we

r Su

pp

ly M

arg

in (M

W)

WECC 2009 Power Supply Assessment (Preliminary)

Power Supply Margin - 6% Operating Reserves

22

2010 2011 2012 2013 2014 2015 2016 2017 2018

Southern California 3,657 3,866 3,460 2,251 1,019 30 - - -

Desert Southwest 4,829 4,388 4,053 3,467 2,528 1,255 7 3 -

Total 8,486 8,254 7,513 5,718 3,547 1,285 7 3 -

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Po

we

r Su

pp

ly M

arg

in (M

W)

TEP and UES Resource Planning Workshop 1