1 wind energy in south dakota - sdlegislature.gov · south dakota successes 16 sd ranked 4th in new...
TRANSCRIPT
![Page 1: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/1.jpg)
1
Wind Energy in Wind Energy in South DakotaSouth Dakota
Public Utilities CommissionPublic Utilities CommissionJuly 27, 2011July 27, 2011
Gary Hanson Gary Hanson -- ChairmanChairmanChris Nelson Chris Nelson -- Vice ChairVice Chair
![Page 2: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/2.jpg)
2
In the beginningIn the beginning……
PUBLIC UTILITIES COMMISSION
![Page 3: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/3.jpg)
3
In the beginningIn the beginning……
PUBLIC UTILITIES COMMISSION
![Page 4: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/4.jpg)
4
PUBLIC UTILITIES COMMISSION
TodayToday
![Page 5: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/5.jpg)
5
The BasicsThe Basics
PUBLIC UTILITIES COMMISSION
![Page 6: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/6.jpg)
6
Large Wind BasicsLarge Wind Basics Farms sited in rural
areas along ridges Farms are typically 20
MW to 300 MW -between 10 and 200 turbines
Each turbine needs a concrete pad and access road
Each turbine typically uses <1 acre of land
PUBLIC UTILITIES COMMISSION
![Page 7: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/7.jpg)
7
Large Wind BasicsLarge Wind Basics
Towers are typically 250’ to 330’
Blades @ about 125’to 150’
Total tower height is about 375’ to 480’
PUBLIC UTILITIES COMMISSION
![Page 8: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/8.jpg)
8
Small Wind BasicsSmall Wind Basics Small wind typically
turbines < 100 kW Tower heights range
from 30’ to 120’ Typically used for
residential consumption Siting small wind not at
all the same as siting large wind farms
PUBLIC UTILITIES COMMISSION
![Page 9: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/9.jpg)
9
SD Wind IndustrySD Wind Industry
PUBLIC UTILITIES COMMISSION
![Page 10: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/10.jpg)
10
Smaller ProjectsSmaller ProjectsChamberlain Prairie Wind– 2.6 MWRosebud – 750 kWCity of Howard – 200 kWOaklane Colony – 160 kWCity of Carthage – 100 kWCity of Canova – 100 kWGary, EMS – 90 kWKILI-FM – 65 kWWind for Schools – 1.8 kW
PUBLIC UTILITIES COMMISSION
![Page 11: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/11.jpg)
11Larger Projects Larger Projects (Completion Date)(Completion Date)
SD Wind Energy Center – 40.5 MW (2003)MinnDakota – 54 MW (1/1/2008)Tatanka I – 88.5 MW (3/1/2008)Wessington Springs – 51 MW (1/2009)Buffalo Ridge I – 50.4 MW (2009)Titan I – 25 MW (12/2009)Day County Wind – 99 MW (4/2010)Buffalo Ridge II – 210 MW (12/2010)Crow Lake Wind Project – 162 MW (2/2011)
PUBLIC UTILITIES COMMISSION
![Page 12: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/12.jpg)
12
0100200300400500600700800900
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
TotalGrowth
South Dakota South Dakota Wind DevelopmentWind Development (MW)(MW)
PUBLIC UTILITIES COMMISSION
![Page 13: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/13.jpg)
13
US Wind Development US Wind Development (MW)(MW)
0
2000
4000
6000
8000
10000
12000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
PUBLIC UTILITIES COMMISSION
![Page 14: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/14.jpg)
14
0
1000
2000
3000
4000
5000
Total Generation Capacity Statewide Peak Demand
TotalWind
South DakotaSouth DakotaCapacity ComparisonCapacity Comparison (MW)(MW)
PUBLIC UTILITIES COMMISSION
Source: EIA, Electric power plants generating capacity by energy source, by producer by state, year end 2009. Known capacity additions since 2009 were included in the data.
![Page 15: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/15.jpg)
15US States With Most Wind as a Percentage of US States With Most Wind as a Percentage of Total InTotal In--State Generation State Generation (end of 2010)(end of 2010)
PUBLIC UTILITIES COMMISSION
2.6%
7.3%
7.6%
7.8%
8.2%
9.8%
12.3%
13.5%
16.9%
23.2%
0% 10% 20% 30%
U.S. Average
Idaho
Kansas
Colorado
Wyoming
Oregon
Minnesota
Noth Dakota
Iowa
South Dakota
Source: 2010 Wind Technologies Market Report, Lawrence Berkeley Lab, June 2011
![Page 16: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/16.jpg)
16
South Dakota SuccessesSouth Dakota Successes SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind
capacity in 2010 SD ranks 4th in wind as percentage of total state
capacity SD ranks 1st in wind as percentage of generation ND’s Basin Electric ranks 1st in coop total wind
capacity
PUBLIC UTILITIES COMMISSION
Source: 2010 Wind Technologies Market Report, Lawrence Berkeley Lab, June 20112011 AWEA Wind Industry Market Annual Report
![Page 17: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/17.jpg)
17TomorrowTomorrow……Harvest Wind – 20 MWBuffalo Ridge III – 170 MWWild Prairie Wind – 99 MWCrowned Ridge – 150 MWHyde County Energy Center – 150 MWMinnehaha County West – 350 MWNorthern Hills – 50 MW
PUBLIC UTILITIES COMMISSION
![Page 18: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/18.jpg)
![Page 19: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/19.jpg)
![Page 20: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/20.jpg)
![Page 21: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/21.jpg)
21
Wind Energy IngredientsWind Energy Ingredients
1. Wind Resource2. Investment Capital3. Buyer for Electricity4. Transmission Capacity
PUBLIC UTILITIES COMMISSION
![Page 22: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/22.jpg)
22
Wind Energy BenefitsWind Energy Benefits Contribution to County through Property Taxes
$3/kW + gross receipts tax in lieu of property taxes Lease payments to landowners can be substantial
Typical leaseholders earn $3,000 to $5,000 per tower per year Temporary construction jobs Small number of permanent operation & maintenance jobs Approx. 2.5 – 6.8 jobs / 100 MW capacity
Possibility of permanent manufacturing jobs No emissions No fuel costs Reduced dependence on fossil fuels
PUBLIC UTILITIES COMMISSION
![Page 23: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/23.jpg)
PUBLIC UTILITIES COMMISSION
![Page 24: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/24.jpg)
24Wind Energy PricesWind Energy Prices Wind prices became competitive in the mid-2000s,
but have since rebounded. Wind prices are above wholesale market prices,
nationally Wind typically competes with coal and natural gas
generation. Natural gas price volatility? Coal & national environmental policy?
Wind costs vary greatly on location Wind resource quality Transmission need
Wind prices may be declining again
PUBLIC UTILITIES COMMISSION
![Page 25: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/25.jpg)
Source: 2010 Wind Technologies Market Report, Lawrence Berkeley Lab, June 2011
![Page 26: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/26.jpg)
Source: 2010 Wind Technologies Market Report, Lawrence Berkeley Lab, June 2011
![Page 27: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/27.jpg)
Source: 2010 Wind Technologies Market Report, Lawrence Berkeley Lab, June 2011
![Page 28: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/28.jpg)
Source: 2010 Wind Technologies Market Report, Lawrence Berkeley Lab, June 2011
![Page 29: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/29.jpg)
29Price of ElectricityPrice of ElectricityCents/kilowattCents/kilowatt
7.39 8.146.63
15.5213.24
9.86 9.94
23.1
39.6
17.120.6 21.8
0
5
10
15
20
25
30
35
40
45
SD MN ND NY CA TX US UK Denmark Brazil Japan Spain
¢/kWh
Source: EIA
PUBLIC UTILITIES COMMISSION
![Page 30: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/30.jpg)
30
Current Capital CostsCurrent Capital Costsin 2009 Dollars/kilowattin 2009 Dollars/kilowatt
0
1000
2000
3000
4000
5000
6000
Natural GasCC
PulverizedCoal
IGCC CCS
Nuclear Wind Biomass SolarThermal
Photovoltaic
AEO 2011
Source: EIA, Annual Energy Outlook 2011
PUBLIC UTILITIES COMMISSION
![Page 31: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/31.jpg)
Source: 2010 Wind Technologies Market Report, Lawrence Berkeley Lab, June 2011
![Page 32: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/32.jpg)
32
Market OversupplyMarket Oversupply
Source: 2010 Wind Technologies Market Report, Lawrence Berkeley Lab, June 2011
PUBLIC UTILITIES COMMISSION
![Page 33: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/33.jpg)
33
Wind Challenges1. Unpredictability2. Generation Profile vs. Load Profile3. Storage4. Location5. Transmission!!!
PUBLIC UTILITIES COMMISSION
![Page 34: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/34.jpg)
![Page 35: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/35.jpg)
![Page 36: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/36.jpg)
Generation Profile vs. Load ProfileGeneration Profile vs. Load Profile
![Page 37: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/37.jpg)
![Page 38: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/38.jpg)
![Page 39: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/39.jpg)
![Page 40: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/40.jpg)
40
State GovernmentState GovernmentInvolvementInvolvement
PUBLIC UTILITIES COMMISSION
![Page 41: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/41.jpg)
41
State GovernmentState Government Financial
Property TaxesContractors’ Excise Taxes Energy Infrastructure Authority
Information Tower Working Group Landowner GuideCommunity MeetingsWind for Schools
Developers WRAN Relationships
PUBLIC UTILITIES COMMISSION
![Page 42: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/42.jpg)
42
State GovernmentState Government Regulatory
Expedited Siting Reduced siting process from 18 months to 6 Established 100 MW as the size of project required
to obtain siting permit Receive input from other state agencies
DENR, GF&P, SHPO, DOT Renewable Energy Objective (2008)
10% by 2015 Transmission Cost Recovery Regional Transmission PlanningRegional Transmission Planning
Cost Allocation
PUBLIC UTILITIES COMMISSION
![Page 43: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/43.jpg)
43
SD PUC Permitting ProcessSD PUC Permitting Process Application for Permit
SDCL 49-41B-11 and ARSD 20:10:22.04 - 40
Public Hearing within 60 Days SDCL 49-41B-15 - 16
Decision within Six Months of application SDCL 49-41B-25
PUBLIC UTILITIES COMMISSION
![Page 44: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/44.jpg)
44
Land ProcurementLand ProcurementSDCL 43:13:17-19
Maximum of 50 years per easement or lease Option for easement or lease void if no
development occurs within five years Wind rights are not severable from the land
PUBLIC UTILITIES COMMISSION
![Page 45: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/45.jpg)
45
Arrowhead Arrowhead ––WestonWeston––220 miles of 345 kilovolt transmission line220 miles of 345 kilovolt transmission line––850 property owners850 property owners––10,000 pieces of opposition correspondence10,000 pieces of opposition correspondence––8 counties opposed project initially8 counties opposed project initially––25 town/village boards opposing project initially25 town/village boards opposing project initially––75 legal challenges to project75 legal challenges to project
Permitting Permitting 7272 months months Construction 27 monthsConstruction 27 monthsCost to build $439 mCost to build $439 m
Transmission Siting Transmission Siting -- WisconsinWisconsin
PUBLIC UTILITIES COMMISSION
![Page 46: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/46.jpg)
46
Transmission Siting Transmission Siting -- MinnesotaMinnesota
Big Stone II - 230 kV line and a 345 kV line230 kV line 44 miles (4 in SD, plus
substation additions) ending near Morris, MN 345 kV line 90 miles (33 miles in S D)
ending near Granite Falls, MN Siting process - More than three years
PUBLIC UTILITIES COMMISSION
![Page 47: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/47.jpg)
47
01/16/0701/17/06Interstate33345EL06-002- Big Stone II
01/16/0701/17/06Interstate5.45230EL06-002– Big Stone II
08/21/0804/02/08Intrastate13115EL08-010 – East River
10/03/0806/12/08Intrastate9.5115EL08-016 – East River
02/05/0901/31/08Interstate6.5115EL08-001 – Xcel
6/14/1111/30/10Interstate10.6345EL10-016 – CapX2020
ClosedFiledInterstate/Intrastate
Length (mi)Size (kV)Project
Transmission Siting Transmission Siting -- South DakotaSouth Dakota
Average < Average < 9 months9 months per docket during the last 4 yrsper docket during the last 4 yrs
PUBLIC UTILITIES COMMISSION
![Page 48: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/48.jpg)
48Drivers of Drivers of Transmission DevelopmentTransmission Development Load requirements ReliabilityCost allocationPlanningGovernment policies Regulatory processes
PUBLIC UTILITIES COMMISSION
![Page 49: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/49.jpg)
49
Justification for need Cost recovery that eliminates
uncertainty Tariff that fairly matches cost with
benefit National energy policy
Requisites for Nationally Requisites for Nationally Expanded TransmissionExpanded Transmission
PUBLIC UTILITIES COMMISSION
![Page 50: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/50.jpg)
50
The PlayersThe Players President & Congress FERC: Federal Energy Regulatory Commission
Approve or deny plans submitted by the RTO/ISO Decisions may be appealed through federal courts
EPA PUC / PSC State Regulatory Commissions
Permitting for siting and generation in their state Regulatory Agencies and Courts
approve use of eminent domain
PUBLIC UTILITIES COMMISSION
![Page 51: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/51.jpg)
51
ISO - Independent System Operator RTO - Regional Transmission Owner
Generator interconnections, grid planning, dispatch/operations
Use stakeholder process and final board approval to set formulas for allocating costs of transmission lines
Planning across multiple RTO regions Different rules in different RTOs State regulators are contributors in these
processes
PUBLIC UTILITIES COMMISSION
The PlayersThe Players
![Page 52: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/52.jpg)
Regional Transmission Regional Transmission Organizations (Organizations (RTOsRTOs))
Source: FERC: Electric Power Markets – National Overview, ferc.gov/market-oversight/mkt-electric/overview.asp, July 2011
![Page 53: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/53.jpg)
53Federal Energy Regulatory Federal Energy Regulatory Commission (FERC)Commission (FERC) PURPA (1978): promoted new generation from
independent producers; required purchase at avoided cost
Energy Policy Act (1992): mandated open access of the transmission grid.
FERC Order 888 (1996): functional unbundling of generation and transmission; open access non-discriminatory access to transmission; encouraged ISO participation
PUBLIC UTILITIES COMMISSION
![Page 54: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/54.jpg)
54
FERC FERC cont.cont.
FERC Order 2000 (1999):put transmission under the control of an RTO; improve grid operations
EPAct2005 (2005): new FERC authority for reliability; required the ID of transmission congestion corridors; provided “backstop” siting authority
FERC Order 890 (2007): mandated an open and transparent transmission planning process
FERC Order 1000 (last week)…
PUBLIC UTILITIES COMMISSION
![Page 55: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/55.jpg)
55
“Local politics and parochialism in one state should not be allowed to prohibit the economic and environmentally friendly construction of renewable energy facilities in another state. And our nation’s energy future is far too important to allow this practice to continue.”
“To have the greatest economical and environmental benefits transmission facilities, similar to renewable portfolio standards, should not be localized or nationalized; practical considerations require they need to be regionalized.”
- Testimony by Chairman Gary HansonUS Senate Committee on Energy & Natural Resources
PUBLIC UTILITIES COMMISSION
![Page 56: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/56.jpg)
56
Transmission ChallengesTransmission Challenges
Current Policies are out-of-date Transmission Cost Allocation Who should pay?
Transmission Planning How do we decide what gets built?
RGOS, UMTDI, CARP, EISPC…
PUBLIC UTILITIES COMMISSION
![Page 57: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/57.jpg)
57Upper Midwest Transmission Upper Midwest Transmission Development Initiative (UMTDI)Development Initiative (UMTDI)
Formed by Midwest Governors' Association (MGA) Stakeholders (SD, ND, IA, MN, WI) Commissioners & staff Governors' staff / Department staff Utilities Transmission companies MISO
PUBLIC UTILITIES COMMISSION
![Page 58: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/58.jpg)
58
UMTDIUMTDI
Goals Develop a plan to facilitate the construction of
interstate transmission in 5 states Develop an equitable way to distribute the
costs {cost allocation} Site the Lines
PUBLIC UTILITIES COMMISSION
![Page 59: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/59.jpg)
59
UMTDI Planning MethodUMTDI Planning Method
Focus on the needs of 5 states Rely on Midwest ISO studies Agree on plans for transmission expansion Identify options for cost allocation Create a plan that meets everyone’s needs All lines should be considered to be
"no regrets" lines
PUBLIC UTILITIES COMMISSION
![Page 60: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/60.jpg)
60
UMTDIUMTDI ResultsResults
Accepted CARP’s cost allocation and limited their task to siting transmission
Used MISO wind production studies to choose locations while staying within the “no regrets”goals
The UMTDI lines are first on the consideration list of MISO MVP projects
PUBLIC UTILITIES COMMISSION
![Page 61: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/61.jpg)
61Regional GenerationRegional GenerationOutlet Study (RGOS)Outlet Study (RGOS) Informed by UMTDI results
Analyzed new wind generation siting options to determine optimal placement of wind
Determined that a combination of local and regional wind generation zones offers the least cost to meet state RES
PUBLIC UTILITIES COMMISSION
![Page 62: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/62.jpg)
62Cost Allocation Resource Cost Allocation Resource Planning (CARP)Planning (CARP) Stakeholders
14 states and 2 Canadian provinces Goal
Achieve a method of cost allocation that would match benefit with cost
Spring 2010 - completed its work July 2010 - MISO filed with FERC December 2010 - FERC substantially approved
PUBLIC UTILITIES COMMISSION
![Page 63: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/63.jpg)
63
CARPCARP’’s MVP Cost Allocations MVP Cost Allocation
Under RECB 1 allocation if a line was necessary for reliability and 345 kv or larger then 80% of cost stayed with utilities/generators, and 20% was shared across MISO.
RECB 2 required a 3:1 economic benefit cost ratio Under Multi-Value Project classification the benefit
to cost ratio must exceed 1:1 for reliability and economic benefits. The entire cost is then borne by the MISO system based on MWH consumption
SD has less than 1% of MISO MWH consumption
PUBLIC UTILITIES COMMISSION
![Page 64: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/64.jpg)
64
CARPCARP’’S MVP Cost AllocationS MVP Cost Allocation Lines < 345 kv
100 % cost stays with the constructing utility if built to serve only native load
Cost is shared based on LODF if serves > native load
50% Generator - 50% Utility when generator is upgrading the utilities local network
345 kv and > for ‘reliability only’ 80% LODF* 20% Postage stamp
*Line Outage Distribution Factor
PUBLIC UTILITIES COMMISSION
![Page 65: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/65.jpg)
65Eastern Interconnection StatesEastern Interconnection States’’Planning Council (EISPC)Planning Council (EISPC)
Designed to function similar to CARP with similar goals
Expanded to 39 states and 8 Canadian provinces Scheduled to go into the Summer of 2013
Commissioner Lauren Azar, WI, organized the process for both CARP and EISPC
PUBLIC UTILITIES COMMISSION
![Page 66: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/66.jpg)
66Eastern Interconnection Eastern Interconnection Planning Collaborative (EIPC)Planning Collaborative (EIPC)
EIPC is a companion group working with EISPC EIPC is comprised of engineers and system
planners EISPC represents the policy/regulation input to
EIPC CARP relied on MISO staff to model systems;
and EISPC is relying upon EIPC EIPC has authority to go its own way
PUBLIC UTILITIES COMMISSION
![Page 67: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/67.jpg)
67FERC Docket RM10FERC Docket RM10--2323June 2010 June 2010 -- Notice of Proposed Rulemaking (NOPR)Notice of Proposed Rulemaking (NOPR)
Transmission Planning: FERC identified deficiencies that hinder wholesale power markets Need for stronger regional plans Lack of coordination among planning regions Potential for discrimination because of a “right of first
refusal” (ROFR) for development Cost Allocation: current methods hinder development
and may not be “just and reasonable”
PUBLIC UTILITIES COMMISSION
Sought to address:Sought to address:
![Page 68: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/68.jpg)
68FERC Order 1000FERC Order 1000July 2011July 2011-- FERC Order releasedFERC Order released
620 pages released last week, only beginning to evaluate,conference calls with FERC
Main Points: Requires public utilities to develop and participate in regional
planning and cost allocation that satisfy certain principles Requires public utilities to coordinate planning and cost
allocation between regions Requires consideration of public policy-driven transmission
needs (State RPS, EPA Emissions, etc.) Removes ROFR for FERC-jurisdictional projects 1 year compliance for utilities, 1.5 year compliance for regions
PUBLIC UTILITIES COMMISSION
![Page 69: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/69.jpg)
69
Thank You!Thank You!Chris Nelson
Vice [email protected]
PUBLIC UTILITIES COMMISSION
Gary HansonChairman
Brian RoundsAnalyst
Chris DaugaardAnalyst
SD Public Utilities Commission605-773-3201
John SmithCommission Counsel
![Page 70: 1 Wind Energy in South Dakota - sdlegislature.gov · South Dakota Successes 16 SD ranked 4th in new wind capacity in 2010 SD ranked 3rd in percentage of growth in new wind capacity](https://reader035.vdocuments.mx/reader035/viewer/2022071216/6048b0d02c8fa0580a53bcce/html5/thumbnails/70.jpg)
70
PUBLIC UTILITIES COMMISSION