greg hall president aep energy partners october 27, 2009
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Wind Energy Supplying Wholesale Customers in ERCOT. Greg Hall President AEP Energy Partners October 27, 2009 Texas/European Union Wind Energy Symposium. AEP Overview. 2008 Highlights Combined Revenues$14.4 Billion Total Assets$45.2 Billion Total US Customers5.2 Million - PowerPoint PPT PresentationTRANSCRIPT
Greg Hall
President
AEP Energy Partners
October 27, 2009
Texas/European Union Wind Energy Symposium
Wind Energy
Supplying Wholesale Customers in ERCOT
2
AEP Overview
2008 Highlights
•Combined Revenues $14.4 Billion
•Total Assets $45.2 Billion
•Total US Customers 5.2 Million
•Capacity 39,000 MW
•Service Territory 11 states
•Employment 21,912
3
Largest US coal consumer (77 mm tons)
9,000 rail cars
2,978 barges and 58 tug boats
5.2 million customers
212,000 miles of Distribution lines
11 states
39,000 miles of Transmission lines
2,116 miles of 765kV Transmission lines
3 NERC regions
39,000 MW in U.S.
Diverse fuel mix
Top U.S. GeneratorTop U.S. Generator
FuelFuel
Top 5 U.S.
PowerDistributor
Top 5 U.S.
PowerDistributor
America’s Transmission
Backbone
America’s Transmission
Backbone
Transmission Distribution PowerCoal &
Transportation
Superior Asset Portfolio
4
AEP Energy Partners
• Created in 2006 as AEP’s unregulated business with primary operations in ERCOT market
• Primary strategy is to:– Manage purchased power agreements from power assets
in the ERCOT market– Provide innovative wholesale power supply products to
municipal and cooperative customers at the lowest possible cost
5
Top Muni & Coop Supplier
Top Muni & Coop Supplier
AEP Energy Partners
ERCOT MARKET
Coal-Fired Generation• 360 MW Long-Term PPA from Oklaunion Unit #1
Wind Generation• 150 MW Trent Mesa Wind Farm• 160 MW Desert Sky Wind Farm• 74 MW Long-Term PPA from Southwest Mesa Wind Farm• 101 MW Long-Term PPA from South Trent Wind Farm
Power Supply Contracts• City of Bridgeport Golden Spread Electric Cooperative• City of Coleman Pedernales Electric Cooperative• City of College Station Rio Grande Electric Cooperative• City of Georgetown Rayburn Country Electric Cooperative• City of Hearne Tex-La Electric Cooperative• City of Robstown Western Farmers Electric Cooperative• City of San Antonio• City of Sanger Luminant Energy• City of Seymour• City of Weatherford
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History of AEP’s Wind Activities in ERCOT
1992 BUILT FIRST COMMERCIAL WIND FARM IN ERCOT
• Built 6 MW Fort Davis Wind Farm
1998 PURCHASED POWER FROM FIRST MAJOR WIND FARM IN ERCOT
• PPA from FPL for 74 MW Southwest Mesa Wind Farm
2001 SECOND LARGEST WIND DEVELOPER IN ERCOT• Built 150 MW Trent Mesa Wind Farm• Built 160 MW Desert Sky Wind Farm
2009 LAST DEVELOPMENT PROJECT BUILT SPECIFICALLY FOR MULTIPLE MUNI/COOP CUSTOMERS
• Sold development rights to 101 MW South Trent Wind Farm and purchased power to resell smaller portions to customers who wanted large scale economics without purchasing a complete projects output.
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Wind Energy Customers
• SW Mesa– Southwestern Electric Power
– City of Georgetown
• Desert Sky– City of San Antonio
• South Trent– Pedernales Electric Cooperative
– City of College Station
– City of Georgetown
• Trent Mesa– Luminant Energy
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Near Term Future for Wind in ERCOT
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Near Term - Pricing Deterioration
Average ERCOT Zonal Prices2008 v. 2009
$33$24 $29 $32
$73
$54$63
$72
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
Houston West North South
2008 2009
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Near-Term – Congestion & Curtailment
Source: Hunt Transmission
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Long Term – Transmission Build Out w/ CREZ
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Long Term – Ample Opportunity