Florida Public Service Commission
Renewable Portfolio Standards Workshop
Tallahassee, FLJuly 26, 2007
Francis A. FerraroVP, Public Affairs
From everyday collection to environmental protection, Think Green.® Think Waste Management.
Wheelabrator Technologies Inc. A Waste Management
Company
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Wheelabrator Technologies Inc.
– Wholly owned subsidiary of Waste Management Inc.
– Operate 21 energy facilities (19 renewable energy)
• 16 waste-to-energy plants• 5 Independent Power Production facilities
– Developed, built and operate the first commercially successful waste-to-energy plant in U.S.
• Saugus, MA 1975
– Total generating capacity 836 MW
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
Independent Power Production facility
Waste-to-Energy facility
‘75 ‘83 ‘84 ‘85 ‘86 ‘87 ‘88 ‘89 ‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ’99 ‘03
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19
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16
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8
6
5
2
1
Year Completed
Nu
mb
er
of
Pla
nts
Lisbon
Ridge (Polk County)
Frackville, Norwalk
Falls
Spokane, South & North Broward
Concord, Gloucester
Bridgeport
Claremont, Millbury
N. Andover, Tampa, Baltimore
Westchester
Saugus
Shasta
Lassen
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21
Hudson Falls
Wheelabrator Technologies Facilities
4Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
Wheelabrator Technologies Inc.
– Own & operate 2 waste-to-energy facilities in Broward County
• 134 MW; 4,500 tons per day Municipal Solid Waste
– Built & operate City of Tampa’s waste-to-energy facility
• 22 MW; 1,000 tons per day Municipal Solid Waste
– Own & operate a waste wood/tires/landfill gas-to-energy facility in Auburndale
• 50 MW
FLORIDA
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Waste-to-Energy
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
Waste-to-Energy is a modern, proven process for safe disposal of municipal solid waste and generation of clean, renewable energy from the heat released by the combusted waste.
Waste-to-Energy facilities are equipped with state-of-the-art air pollution control systems and are operated by professionals certified by US EPA and American Society of Mechanical Engineers.
South Broward (FL) facility
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Waste-to-Energy- U.S. -
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
There are 89 waste-to-energy facilities in 27 states that:
Combust MSW to reduce its volume
Produce energy, usually as electricity
Recover ferrous and sometimes non-ferrous metals for recycling
McKay Bay (Tampa) facility
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Waste-to-Energy- U.S. -
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
• Percentage of U.S. Waste Managed: 13%
• Disposal Capacity: 93,000 TPD
• Annual Disposal: 29 million tons
• People Served: 36 million
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Waste-to-Energy- U.S. -
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
• Power Generation Capacity: 2500 MW
• Annual Power Generation: 16 million MW-hours
• Homes served: 1.98 million
• Percentage of Total Renewable Energy (excluding hydropower):18%
North Broward (FL) facility
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Waste-to-Energy- Florida -
– 11 facilities
– ~496 MW of installed capacity
– > 17,500 tons per day municipal solid waste processing capacity
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
Existing waste-to-energy capacity in Florida
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Renewable Portfolio Standards
– Lee County is completing an expansion– Hillsborough County is planning an expansion– Palm Beach County is considering an expansion– Others?
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
“New” waste-to-energy capacity in Florida
-- Definite and anticipated near-term
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Renewable Portfolio Standards
• Setting a Renewable Portfolio Standard
• 1. How should a renewable portfolio standard be set? – a. Based on a megawatt goal?– b. Based on a percentage of peak generation goal?– c. What renewable technologies should qualify toward
meeting the goal?
• 2. What vintage of renewable generating units should qualify toward meeting the goal?
• 3. What is a reasonable level for the goal? – a. What amount of renewable generation is achievable in
Florida?
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
12
Renewable Portfolio Standards
• Setting a Renewable Portfolio Standard
• 1. How should a renewable portfolio standard be set? – a. Based on a megawatt goal?– b. Based on a percentage of peak generation goal?– c. What renewable technologies should qualify toward
meeting the goal?
• 2. What vintage of renewable generating units should qualify toward meeting the goal?
• 3. What is a reasonable level for the goal? – a. What amount of renewable generation is achievable
in Florida?
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
13
Renewable Portfolio Standards
Renewable Energy Sources that should be included in a Renewable Portfolio Standard
• Chapter 366– 366.91 -- "Renewable energy" means electrical energy produced from a method that
uses one or more of the following fuels or energy sources: hydrogen produced from sources other than fossil fuels, biomass, solar energy, geothermal energy, wind energy, ocean energy, and hydroelectric power. The term includes the alternative energy resource, waste heat, from sulfuric acid manufacturing operations.
• "Biomass" means a power source that is comprised of, but not limited to, combustible residues or gases from forest products manufacturing, agricultural and orchard crops, waste products from livestock and poultry operations and food processing, urban wood waste, municipal solid waste, municipal liquid waste treatment operations, and landfill gas.
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
14
Renewable Portfolio Standards
• Setting a Renewable Portfolio Standard
• 1. How should a renewable portfolio standard be set? – a. Based on a megawatt goal?– b. Based on a percentage of peak generation goal?– c. What renewable technologies should qualify toward
meeting the goal?
• 2. What vintage of renewable generating units should qualify toward meeting the goal?
• 3. What is a reasonable level for the goal? – a. What amount of renewable generation is achievable
in Florida?
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
15
Renewable Portfolio Standards
– A fixed MWhr requirement does not provide for concomitant growth of renewable energy along with electric load growth.
– A percentage requirement provides incentive for utilities to implement additional demand-side activities.
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
Requirement should be set as a percentage of total, annual electric sales
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Renewable Portfolio Standards
• Setting a Renewable Portfolio Standard
• 1. How should a renewable portfolio standard be set? – a. Based on a megawatt goal?– b. Based on a percentage of peak generation goal?– c. What renewable technologies should qualify toward
meeting the goal?
• 2. What vintage of renewable generating units should qualify toward meeting the goal?
• 3. What is a reasonable level for the goal? – a. What amount of renewable generation is achievable
in Florida?
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
17
Renewable Portfolio Standards
• New renewable energy facilities– RPS must provide incentive for new renewable energy
generation
• Existing renewable energy facilities– RPS must help protect existing base of renewable energy
generation
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
What vintage of renewable generating units should qualify toward meeting the goal?
18
Renewable Portfolio Standards
– RPS must provide incentive for new renewable energy generation
• Establish definition of “new”
– “New” renewable energy is capacity that is established after the effective date of the RPS rule
– Establish “age“ for transition from “new” to existing» e.g. 10 years after qualifying as a “new” facility
Wheelabrator Technologies Inc. A Waste Management Company
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New renewable energy facilities
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Renewable Portfolio Standards
- New, “greenfield” facilities
- Increased capacity at existing facilities- Addition of new generating capacity
- Efficiency improvements that lead to increased generation
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
“New” renewable energy is capacity that is established after the effective date of the RPS rule
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Renewable Portfolio Standards
• Ambitious goals
• Alternative Compliance Payment– If utilities are unable to obtain required amount of
renewable energy
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
“New” renewable energy is capacity that is established after the effective date of the RPS rule
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Renewable Portfolio Standards
– At what level should ACP be set?» High enough to provide incentive for utilities to search
out and provide incentives for new renewable capacity
– Experience of other states with ACPs
Wheelabrator Technologies Inc. A Waste Management Company
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“New” renewable energyAlternative Compliance Payment
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Renewable Portfolio Standards
– Experience of other states with ACPs» e.g., Massachusetts
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
“New” renewable energyAlternative Compliance Payment
1.0% by 2003 1.5% by 2004 2.0% by 2005 2.5% by 2006 3.0% by 2007 3.5% by 2008 4.0% by 2009 an additional 1.0% each year afterward until DOER ends add’l
reqmnts
» 2007 ACP $57.12 /MWh
» Utilities have paid ACP every year since 2003
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Renewable Portfolio Standards
– At what level should ACP be set?» High enough to provide incentive for utilities to search
out and provide incentives for new renewable capacity
– Experience of other states with ACPs
– Uses for ACP funds?» Development of new, promising technologies; seed
money for construction of new facilities; etc.
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
“New” renewable energyAlternative Compliance Payment
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Renewable Portfolio Standards
• Set at current percentage of renewable generation
• Increase requirement as “new” capacity transitions to “existing” capacity
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
RPS must help protect existing base of renewable energy generation
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Renewable Portfolio Standards
• Setting a Renewable Portfolio Standard
• 1. How should a renewable portfolio standard be set? – a. Based on a megawatt goal?– b. Based on a percentage of peak generation goal?– c. What renewable technologies should qualify toward
meeting the goal?
• 2. What vintage of renewable generating units should qualify toward meeting the goal?
• 3. What is a reasonable level for the goal? – a. What amount of renewable generation is achievable
in Florida?
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
26
Renewable Portfolio Standards
Current Renewable Generation in Florida– 1* - 2.5%
* Florida’s Energy Plan
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
What is a reasonable level for the goal?
Goal: ?Governor’s goal – 20%Over what time period?How aggressive?
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Renewable Portfolio Standards
Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®
Renewables Portfolio Standards
State Goal
? PA: 18%¹ by 2020
? NJ: 22.5% by 2021
CT: 23% by 2020
MA: 4% by 2009 + 1% annual increase
WI: requirement varies by utility; 10% by 2015 goal
IA: 105 MW
MN: 25% by 2025(Xcel: 30% by 2020)
TX: 5,880 MW by 2015
*NM: 20% by 2020 (IOUs)10% by 2020 (co-ops)? AZ: 15% by 2025
CA: 20% by 2010
? NV: 20% by 2015
ME: 30% by 200010% by 2017 goal - new RE
State RPS
? Minimum solar or customer-sited RE requirement* Increased credit for solar or customer-sited RE
¹PA: 8% Tier I / 10% Tier II (includes non-renewables); SWH is a Tier II resource
HI: 20% by 2020
RI: 15% by 2020
? CO: 20% by 2020 (IOUs)*10% by 2020 (co-ops & large munis)
? DC: 11% by 2022
DSIRE: www.dsireusa.org June 2007
? NY: 24% by 2013
MT: 15% by 2015
*DE: 10% by 2019
IL: 8% by 2013
VT: RE meets load growth by 2012
Solar water heating (SWH) eligible
*WA: 15% by 2020
? MD: 9.5% in 2022
? NH: 23.8% in 2025
OR: 25% by 2025 (large utilities)5% - 10% by 2025 for smaller utilities
*VA: 12% by 2022
MO: 11% by 2020
http://www.dsireusa.org/documents/SummaryMaps/RPS_Map.ppt
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Renewable Portfolio Standards
Examples of other states
Wheelabrator Technologies Inc. A Waste Management Company
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New Jersey
2004 – 3.25%
2021 – 22.5%
Connecticut
2006 – 5%
2020 – 27% (includes customer-sited combined heat and power (CHP) systems; 2)
electricity savings from conservation and load management programs; and 3) systems that recover waste heat or pressure from commercial and industrial processes)
29Wheelabrator Technologies Inc. A Waste Management Company
Think Green.®