CAP Energy NeedsTom McCannRon LuntOctober 17, 2013

Central Arizona Project

• 336‐mile aqueduct

• 15 pumping plants

• 8 inverted siphons, 3 tunnels

• New Waddell Dam & Lake Pleasant

• 24.3% of Navajo Generating Station

CAP Energy Use

• CAP is largest power user in Arizona

• 2.8 million MWh needed to deliver 1.6 million acre‐feet

• Nearly 3000 feet of lift from Lake Havasu to terminus

CAP Elevation Profile

-15 35 85 135 185 235 285 335

Distance (miles)

400

900

1,400

1,900

2,400

2,900

Ele

vatio

n (fe

et)

Mark Wilmer

Bouse Hills

Little HarquahalaHassayampa

Waddell/Lake Pleasant

Lake Havasu

Brady

Picacho

Red Rock

Twin Peaks

Sandario

Brawley

San Xavier

Black Mountain

La Paz Maricopa Pinal Pima

Phoenix AMA Pinal AMA Tucson AMA

Snyder Hill

Salt Gila

1.5

MA

F

1.0

MAF

0.5

MAF

0.25

MAF

0.12

5 M

AF

Volume Through Segment*

* 2009

Energy Use by Pumping Plant

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

Annual MWh

CAP Needs Base Load Power• CAP system design

– Requires operation at constant volume– Requires continuous operation (24/7) to deliver full water entitlements

• CAP customers require deliveries 24/7• Repeated starts/stops increase cost and risk

– Pump/motor maintenance– Potential canal damage due to constantly changing water levels

– Reduced system reliability

CAP Energy Usage

0

50

100

150

200

250

300

350

400

450

500

0%              25% 50% 75% 100%

MW

% of annual hours

Base Load Requirement

CAP Generation Resources

• Navajo Generating Station• Hoover• New Waddell• Market

Hoover Energy• Contract with APA, expires in 2017

– Hoover B energy• Up to 176,768 MWh (6% of CAP needs)

• Provides ramping, regulation and reserves for CAP loads (not readily available from market)

– Hoover C energy• Additional energy during high flows (359,519 MWh in 1999)

• CAP also diverts more water then, so needs increase

– Includes transmission rights

NGS Energy

• CAP reserves NGS energy to meet pumping needs– Real‐time scheduling & tagging performed by AEPCO/APM

• Unreserved NGS energy is sold by Western Area Power Administration as Navajo Surplus– Net proceeds assist CAP repayment– Value dependent on energy market

CAP Power Management

• Lake Pleasant provides regulatory storage for CAP

• Allows CAP to optimize pumping seasonally– Pump from Colorado River to fill lake in winter when energy costs are lower

– Release from lake in summer when energy costs are higher 

CAP Transmission Portfolio

• Navajo Transmission• CAP Transmission• Contract rights

– Intertie– Parker‐Davis

• Network Service– APS– SRP

NGS 

WESTWING

McCULLOUGH

DAVIS

PARKER

LIBERTY

MEADHOOVER

NEWWADDELLHAVASU

BOUSE

LITTLEHARQUAHALA

HASSAYAMPA

PINNACLE PEAK

ED‐2

SAGUARO

DEL BAC

RATTLESNAKE TAP

BRADY

PICACHO

RED ROCK

TWIN PEAKS

SANDARIO

BRAWLEY

SAN XAVIERSNYDER HILL / BLACK MOUNTAIN

ED‐5

ED‐4

NAVAJOCAP

INTERTIEPARKER DAVIS

SALT GILA

HARCUVAR

PALO VERDE

SPOOK HILLROGERS

COOLIDGE

TUCSON

THUNDERSTONE

RACEWAY

APS

Las Vegas Page

BuckeyeSun City

Mesa

North Scottsdale

Avra Valley Tucson

Parker

SUN VALLEY

CRYSTAL

MORGAN

CAP Transmission Map

NGS Replacement Considerations

• Type of generation– CAP needs significant base load resource

• Cost– Capital cost of replacement generation

• CAP repayment impact– NGS provides $25M±/year toward CAP repayment

• Transmission needs– CAP transmission system is designed to move electricity from NGS to CAP pumps

Questions?