Michael Kotara, CPS Energy - Speaker at the marcus evans Generation Summit 2012 held in San Antonio, TX, delivered his presentation entitled Moving towards a More Sustainable and Secure Energy Future
Moving towards a More Sustainable and Secure Energy Future - Michael Kotara, CPS Energy
1. Moving Towards a More Sustainable
and Secure Energy Future
Michael Kotara, P.E.
,
SVP Power Generation, CPS Energy
Generation S
G ti Summit
it
February 6, 2012
San Antonio, Texas
2. Overview of CPS Energy
gy
⢠Electric & Gas utility serving the greater San Antonio area
Electric & Gas utility serving the greater San Antonio area
⢠Oldest energy utility in Texas â Founded in 1860
⢠First service was gas lights in front of The Alamo
⢠One of the largest municipallyâowned utilities in the U S
One of the largest municipally owned utilities in the U.S.
⢠717,000 electric customers
⢠323,000 natural gas customers
⢠3,600 employees
, p y
⢠Nearly $10B in assets with AA credit rating by S&P
⢠Outstanding customer satisfaction track record
/
⢠Low electric rates â 2011 Residential rates averaged about 9¢/kwh
g
J.D. Power Survey â Southern Region 2009 2010 2011
Electric Residential Customers 1st 3rd 2nd
Gas Residential Customers 1st 1st 1st
2
3. CPS Energyâs Vision 2020
gy
⢠Goals for Renewable Energy
Goals for Renewable Energy
⢠1,500 MW of renewable energy capacity by 2020
⢠Approximately 20% of generation capacity
⢠100 MW from renewable sources other than wind by 2020
00 o e e ab e sou ces o e a d by 0 0
⢠Goals for Energy Efficiency & Conservation
⢠Save for Tomorrow Energy Plan (STEP) will help avoid 771 MW of
Save for Tomorrow Energy Plan (STEP) will help avoid 771 MW ofÂ
electric load growth by 2020
⢠Drive local economic development by:
Drive local economic development by:
⢠Maintaining affordable retail electric rates
⢠Partnering with suppliers and vendors who are committed toÂ
investing in the New Energy Economy in San Antonio
investing in the New Energy Economy in San Antonio
3
4. Main Take-Aways
y
⢠Energy diversification and energy independence haveÂ
gy gy p
been cornerstones of CPS Energyâs strategy for the pastÂ
four decades
⢠Ab d t h l
Abundant shale gas provides an opportunity to enhanceÂ
id t it t h
sustainability over the next decade and possibly longer
⢠Less expensive to reduce emissions by ârebalancingâ generationÂ
portfolios
⢠Pursuing lowâemissions strategy is the path with leastÂ
incremental risk
incremental risk
⢠Measured, incremental changes have nominal cost impact
⢠Economic development adds considerable value and offsets cost
4
5. Four Decades of Energy Mix
Diversification
Di ersification at CPS Energy
Energ
1970 1980 Nuclear 1990
16.3%
Coal
25.2%
Coal
30.9%
Gas â Steam Gas â Steam Gas â Steam
100.0% 74.8% 52.8%
1,701 MW 3,452 MW 4,632 MW
Gas â CC Gas â CT & CC
9.4% 10.2% Gas â Steam
29.1%
Nuclear
14.8% Renewables
2000 10.9% 2010
Nuclear Coal
Coal 16.4%
Gas â 33.5%
28.0% Steam
47.8%
5,113
5 113 MW 6,800
6 800 MW
Installed Capacity 5
11. Partnering with Summit Power for
Texas Clean Energy Project
⢠CPS Energy entered into a PPA with Summit Texas CleanÂ
Energy for 200 MW of net capacity and energy from theÂ
Texas Clean Energy Project (TCEP)
⢠Overview of TCEP
Overview of TCEPÂ
⢠400 MW gross power output
⢠Low Sulfur Powder River Basin Coal
⢠First U.S.âbased power plant that combines both IGCC technology andÂ
Fi t U S b d l t th t bi b th IGCC t h l d
90% carbon capture
⢠Siemens gasification & Fâclass combustion turbine technology
⢠Located in West Texas just outside Odessa, TX
Located in West Texas just outside Odessa TX
⢠Expected COD of 2015
⢠Summit Texas Clean Energy will open a local office in SanÂ
Antonio and support energyârelated research at UTSA
d l d h
11
12. Partnering with Consert, Inc. to
Deploy HAN Technology
⢠CPS Energy entered into 10 year The Smart Grid Home
agreement with Consert, Inc. toÂ
deploy its Home Area NetworkÂ
(HAN)Â technology
⢠Targeting 140 000 homes & small
Targeting 140,000 homes & smallÂ
businesses in San Antonio
⢠Consertâs âVirtual Peak PlantSMâÂ
is expected to provide 250 MWÂ
is expected to provide 250 MW
of peak load reduction
⢠Consert is relocating itsÂ
headquarters to San Antonio
⢠50 jobs in 2012
⢠150 jobs by 2014
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13. Partners Bringing Economic
Development Val e
De elopment Value
⢠Home Area Networks (HAN) ⢠Electric refrigerated trucks ⢠30 MW Solar
⢠Headquarters in SA
q ⢠Headquarters in SA ⢠Up to 40 jobs by 2012
⢠Up to 150 jobs by 2015 ⢠Manufacturing in SA ⢠Regional office in SA
⢠UTSA partnership ⢠Up to 50 jobs by 2012 ⢠$600k education investment
⢠LEDs (light-emitting diodes) ⢠400 MW Solar
⢠Clean coal
⢠Headquarters in SA ⢠800+ jobs
⢠Manufacturing in SA ⢠Up to 15 jobs by 2013
⢠$100m capital investment
⢠Up to 30 jobs by 2012 ⢠R&D council to SA
⢠$40m annual payroll
⢠University equipment funding
⢠Education investment
⢠$10/light produced in SA for
education
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14. Emphasizing STEP and
Renewable
Rene able & Gas Capacity
Capacit
2010 Capacity Projected Capacity 2020
Wind Solar Solar Landfill Gas
12.39% 0.21% 5.08%
Landfill Gas 0.14%
0.14% Wind
STEP
2.06% 15.18%
Gas
Nuclear Gas 40.16%
15.58% 37.81% STEP
10.23%
Nuclear
12.06%
Coal Coal
31.82% 17.15%
Traditional Sources = 85.20%
S 85 0% Traditional Sources = 69.37%
S 69 3 %
Renewable Sources = 12.74% Renewable Sources = 20.40%
Demand Reduction = 2.06% Demand Reduction = 10.23%
14
15. Changes in Projected Energy Mix are
Most Pronounced for STEP and Gas
Prono nced
2010 Generation Projected Generation 2020
Solar Landfill Gas
0.2%
0 2% Solar Landfill Gas
Wind 0.03%
Purch Pwr Wind 2% 0.2%
8% 5% 12% Purch Pwr
STEP Gas 1% Gas
2% 7% 20%
STEP
8%
Nuclear
Coal
32% Nuclear
uc ea
46%
23% Coal
34%
Total Generation = 26.3 Million MWh Total Projected Generation = 33 Million MWh
j
Traditional sources = 85% Traditional sources = 77%
Renewable sources = 8% Renewable sources = 14%
Demand Reduction, Purchases = 7% Demand Reduction, Purchases = 9% 15
16. Moving Forward into the
New Energy Economy
N E E
CPS Energy wants to achieve Vision 2020 Goals asÂ
CPS E t t hi Vi i 2020 G l
well as future goals:
Keep prices to our customers affordable
Provide reliable, clean energy for decades toÂ
come
Build the New Energy Economy in San Antonio
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17. Questions
Contact Information
Michael Kotara
Phone:Â Â 210â353â2285
h
Email:Â Â MKotara@CPSEnergy.com
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