Renewable Energy Based Tribal Utility Formation · Tribal Utility Formation. Page - 2 10/5/2005 TRIBAL GOVERNMENT Introductions Lisa Haws Viejas Tribal Government XXXXX 619 659 2341

October 5, 2005

TRIBAL GOVERNM ENTTRIBAL GOVERNM ENTTRIBAL GOVERNM ENTTRIBAL GOVERNM ENT

Renewable Energy BasedTribal Utility Formation

10/5/2005Page - 2


Introductions

Lisa Haws

Viejas Tribal Government

XXXXX

619 659 2341

Terry Meyer

Black & Veatch

Project Engineer, Renewable Energy Specialist

913 458 7175

10/5/2005Page - 3


Agenda

Study Overview

Renewable Technology Alternatives

Environmental

Economic Analysis

Tribal Benefits

Conclusions

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Study Overview

1 Project Kickoff Meeting

2 Renewable EnergyResources and Technology

Assessment

3 Detailed ReservationLoad Profile

4 Assessment of EnergyStorage and Load

Management Opportunities

6 Distribution System Audit

8 Generation MixOptimization Study

9 EnvironmentalAssessment

10 Tribal BenefitAssessment

11 Economic Assessment

12 Business PlanDevelopment

5 Electrical InterconnectionAnalyses

WindSolarBiogasBiodiesel

7 Legal Analysis

13 Participate in Tribal Energy Program Review

Meeting

The Feasibility Study focused on Renewable Energy Alternatives and Utility Formation Feasibility.

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Study Overview

Study performed by:

Black & Veatch Corporation

Viejas Tribal Government Public Works Staff

Fredericks, Pelcyger & Hester, LLC

Legal Analysis

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Strategic Options

Net Metering on Individual Accounts

Tribal Utility Interactive with the Grid

Tribal Utility Independent of the Grid

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Renewable Energy Alternatives

Wind

Solar

Bio-Fuels

Cogeneration

Energy Storage

Load Management

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Wind Data AnalysisMonthly Power Output

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

1 2 3 4 5 6 7 8 9 10 11 12

Month

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

mph Power

Measured WS

Wind Strongest in Early Afternoon

Wind From NE and SW

Estimated Capacity Factor for Wind Turbine between 8% and 13%

Power Production by Time of Day

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23Hour

% A

nual

Pow

er

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Single Wind Turbine

Connects Directly to Casino Loads

Offsets Retail Electricity (Net Metering)

Marginal Wind Resource

Self Generation Incentive Program (SGIP)

Good Visibility

SGIP Currently Overbooked

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Small Wind Farm

Wind Resource Gradient

VejasReservation

Better Wind

Economy of Scale

Requires Off-Reservation Land

Could Sell Power

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Photovoltaic (PV) Installation

Net Metering

High Reliability

Good Visibility

High Cost (per kWh)

SGIP Applies

Little Maintenance

Can be Integrated Into Building Roofs or Parking Shade

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Bio-Fuels

Biodiesel, Biogas, and Straight Vegetable Oil Investigated

Works in Diesel Engine or Combustion Turbine

Biodiesel is Expensive

No Known Local Biogas Resource

Straight Vegetable Oil is Not Proven

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Cogeneration

Can be small or large size30 kW Micro-TurbineDiesel Generator3000 kW Combustion Turbine

Can Use Bio-Fuels

If Heat is Used Can be Cost-effectiveAbsorption ChillersHot water

Follows Electrical or Heat Load

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Energy Storage

Critical for a Renewable-based Independent Utility

Pumped Hydro May Work for Viejas

Batteries, Hydrogen, and other options are not currently economic

Pumped Hydro Requires Development Outside of Reservation Boundries.

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Load Management

Energy Efficiency

Dispatchable Loads

Waste Water Treatment Plant

Well Pumps

Central Chiller PlantWith Cold Storage

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Economic Analysis Process

Levelized Cost Screening

POWROPT Scenario Analysis

Economic Assessment

•Net Metering

•Interconnected Utility

•Stand Alone Utility

10/5/2005Page - 17


Levelized Cost Screening Results

0 50 100 150 200 250 300 350 400 450

Pumped Hydro*Small Wind Farm*

Net Metered Wind (SGIP)Net Metered Wind

SVO GeneratorBiodiesel Generator

Residential PVCommercial PV (SGIP)

Commercial PVDish Stirling

Fuel Cell Conventional Gas SCMicro Turbine CoGen

Battery

Levelized Cost $/MWh

Considered in Optimization Model Not Evaluated in Optimization Model

Considered for Stand Alone Utility Scenario Only

10/5/2005Page - 18


Levelized Cost Screening Results

The results of the screening analysis and PowerOpt model were used to focus on the most economic alternatives:

Net Metering

1 to 3 MW of wind turbines

Interconnected Utility

No Generation

Wind turbines added

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Cash Flow Results

10 Year Cash Flow Analysis yielded the following results:

Option 10 Year NPV Capital Cost(after SGIP)

Net Metering – 1 WT $223,000 $700,000

Net Metering – 3 WT $651,000 $2,100,000

Utility Base Case –No Generation

-$1,929,000 $8,210,000

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Tornado Diagram – Renewable Utility Formation

10/5/2005Page - 21


Tribal Benefits

Employment

Self-determination

Environmental Stewardship

Energy Cost??

10/5/2005Page - 22


ConclusionsViable Net Metering Options Include:

Wind TurbinePV Parking Shade Boiler Co-Gen

Utility Formation may be More Expensive Depending On:

Transmission ImprovementsCost of Energy

Stand Alone Utility Possible Using:Wind FarmPumped Hydro Storage Large Co-Gen

Documents

Renewable Energy Based Tribal Utility Formation · Tribal Utility Formation. Page - 2 10/5/2005 TRIBAL GOVERNMENT Introductions Lisa Haws Viejas Tribal Government XXXXX 619 659 2341