Wisconsin Public Utility Institute
Fundamental Course: Energy Utility Basics
October 21-25, 2013
Promoted by Agenda Full program attendance eligible for 3.0 CEUs and 30 CLEs Site: The Pyle Center, located on Lake Mendota Accommodations: The Lowell Center (Room Rate: $109 Deluxe Rooms, most overlooking the lake) Parking is available in Lot 46 (Lake & Johnson St Ramps at 301 N. Lake St.) Click here for map and more info October 21, Monday Electricity: Industry Structure Pyle Center, Room 235 Time 7:30-­‐8:00 7:30-­‐8:00 8:00-­‐8:20 Session Title Continental Breakfast Registration Introduction 8:20-­‐9:45 Why a regulated monopoly? Who’s regulated, why and how: The Federal and State Perspective •
Why a monopoly •
What is a public interest •
The role of federal level commissions •
The relationship between the utility and the regulator Break •
Federal Roles, Rules, Spheres of Influence: FERC and EPA 9:45-­‐10:00 10:00-­‐11:15 11:15-­‐11:30 11:30-­‐12:30 12:30-­‐1:30 1:30-­‐2:30 2:30-­‐3:00 3:00 – 3:45 Speaker (s) Break The Public Service Commission-­‐Roles and Rules, Balance of Power •
PSC Authority and Jurisdiction •
Organizational Structure of the PSC •
A Case: Start to Finish Lunch Transmission-­‐The Overlooked Connection Until 1970 • History 1970 to date • Order 2000 RTOs and then Repair Bill Order 890 • The Underlying Driver for FERC • FERC Order 1000 and then the Repair Bill 1000-­‐A • Right of First Refusal—Current Status Break A Day in the Life of a Regional Transmission Organization: A Primer •
What is an RTO •
Roles •
RTO market products Current RTO initiatives 1 Cara Lee Mahany Braithwait Wisconsin Public Utility Institute Theresa Hottenroth Theresa M. Hottenroth, LLC David Boyd Minnesota Public Service Commission Justin Chasco Wisconsin Public Service Commission Flora Flygt American Transmission Company Jennifer Richardson MISO Time 4:00 – 5:30 Session Title Utility Company Models-­‐Presentations and Panel Discussion Moderator: Nate Zolik, Wisconsin Public Service Commission •
Who are your stakeholders •
How do you secure power •
How do you sell power •
Who are your customers •
How are you regulated or managed •
Why was this form of company formed 5:30 Adjourn Speaker (s) Brian Rude Dairyland Power Coop John Sumi Madison Gas and Electric Doug Collins ITC Midwest/ITC Holdings Jem Brown Wisconsin Rapids Water Works and Lighting Commission October 22, Tuesday Electricity: Industry Operations 2:30-­‐3:00 3:00-­‐3:45 Pyle Center, Room 235 Session Title Continental Breakfast From Heat to Electricity-­‐How we make Electricity in the U.S. •
How much energy do we use •
What is the difference between energy and power •
Creating electricity •
AC/DC—what does this mean? •
How does a generator make electricity •
Start-­‐up •
Black starts •
Who uses what •
Cost of electricity Break Field Identification Guide to the Electric Industry •
Recognizing a power line •
Curtailments from a phone line •
Substations, boosters, inter-­‐
•
Line losses tie, DC lines •
Technical language used in •
Line loading the field •
Power flows •
Buses •
Transmission basics •
Basics of LMP •
Step-­‐up & step-­‐down •
Congestion •
Counterflows Break A Day in the Life of a Distribution Company •
The New Responsibility (Opportunity) •
Physical characteristics •
A typical day in 1990 •
A typical day in 2012 Lunch A Day in the Life of a Transmission Operator •
What they do and why they do it •
Scheduling •
Forecasting •
Selling into the market •
Good days and bad days •
Transmission investment decisions •
Meeting renewable portfolio standards •
Planning and cost allocation Break A Day in the Life of an Independent Generation Operator 3:45-­‐4:00 Break 4:00-­‐4:45 How is Energy Used Time 7:00-­‐8:00 8:00-­‐9:15 9:15-­‐9:30 9:30-­‐11:15 Speaker(s) Jake Blanchard Dept. Chair, Engineering Physics UW-­‐Madison College of Engineering Ken Copp Strategic Technical Advisor American Transmission Company LLC 11:15-­‐11:30 11:30-­‐12:30 12:30-­‐1:30 1:30-­‐2:30 Chuck Callies VP, Power Delivery Dairyland Power Cooperative Jeff Pollei, Campus Utilities Engineer, UW-­‐
Madison Facilities Planning and Management Peter Taglia Taglia Consulting 2 Merlin Raab Wisconsin Public Service Corporation/Integrys Time 4:45 Session Title Adjourn Speaker(s) October 23, Wednesday Ratemaking for Electric and Gas Companies Pyle Center, Room 235 Time 7:00-­‐8:00 8:00-­‐9:15 9:15-­‐9:30 9:30-­‐10:45 10:45-­‐11:00 11:00-­‐11:30 11:30-­‐12:30 12:30-­‐1:30 1:30-­‐2:45 2:45-­‐3:00 3:00-­‐3:45 3:45 – 4:00 4:00 – 4:45 4:45-­‐5:30 5:30 Session Title Continental Breakfast What Drives Utility Stock Prices; What (Should) Keep Utility Execs Awake at Night? •
How do investors value utility stock? •
What is changing about the utility's business climate for earnings growth? •
What are the implications of the changes on future stock value? •
What are the value implications for utility investment in environmental infrastructure projects? Break Basics of Rate Setting •
Cost of Service, Efficient Pricing, and Advanced Renewable Tariffs Break Dynamic Pricing and Demand Response •
Why have these strategies become popular •
What the challenges and what do they deliver New Models for Pricing •
Meeting customer, utility, regulatory and stakeholder needs Lunch Pricing-­‐continued •
Creating rates for distributed generation such as rooftop solar Break Declining Revenues and Rate Response Break Wisconsin Response to Declining Sales The Climate Crisis and American Health: Threats and Opportunities Speaker(s) Allen Williams Jr. Partner Foley & Lardner-­‐Retired Bruce Chapman, CA Energy Bruce Chapman, CA Energy Jon Kubler, Kubler Associates Jon Kubler, Kubler Associates Dan Hansen, CA Energy Greg Bollom, MG&E Joel Charles, UW School of Medicine and Public Health Adjourn October 24, Thursday Electricity/Gas: Environmental Issues & Gas Markets Time 7:00-­‐8:00 8:00-­‐11:00 11:45 – 12:30 Pyle Center, Room 235 Session Title Speakers(s) Continental Breakfast Work Done Without (or with a small) Carbon Footprint—Moderator Rich Hackner, GDS •
The big picture-­‐-­‐what is the renewable big picture—Rich Hackner, GDS (8:10) •
Efficiency: First, fix the holes in the bucket—Jeannette LeZaks, Energy Center of Wisconsin (8:15-­‐8:45) •
Geothermal and Biogas—Peter Taglia, Taglia Consulting (8:50 – 9:15) •
Break (9:15 – 9:30) •
Wind— Tyler Huebner, Renew Wisconsin (9:30 – 9:55) •
Solar— Niels Wolter, Madison Solar Consulting (10:00 – 10:25) •
Utility response to carbon mitigation—Nick Martin, Xcel Energy (10:25 – 10:50) •
Break (10:50 – 11:00) •
Spotlight: Wind Permitting—Diane Ramthun, Law Office of Diane Ramthun (11:00 – 11:25) Nuclear Future—The Base Load of the Future? Mike Corradini, UW Madison, Department of Nuclear and Engineering Physics 3 Time 12:30-­‐1:45 1:45-­‐2:45 2:45-­‐3:30 3:30-­‐5:00 5:00 Session Title Working Lunch What Everyone ought to Know About Gas (Part I, Part 2 continued Friday Morning) •
Where does natural gas come from •
What is unconventional gas •
How does the near term supply look •
What about the future •
Typical composition of a gas molecule •
How natural gas is normally used-­‐by time of day, coincident hourly demand, and month and by industry type •
How efficient is natural gas as an energy source—and how clean is it compared to other fossil fuels •
What is the natural gas production break-­‐even point (Basin production cost per MMbtu) •
Big picture of historical natural gas prices Demo-­‐ What happens to carbon with different generation portfolios Break Field Trip: •
Co-­‐Generation Power Plant Tour Adjourn Speakers(s) Alan Carroll UW-­‐Madison, Department of Geology Paul Meier University of Wisconsin-­‐Madison, Department of Engineering Physics Charter Street Cogeneration Plant October 25, Friday Gas: Status and Operations Pyle Center, Room 235 Time 7:00-­‐8:00 8:00 – 8:30 Session Title Continental Breakfast What Everyone Ought to Know About Gas (continued) 8:30-­‐9:30 Providing Natural Gas Service-­‐Wholesale •
How does a local company do demand forecasting for short and long term gas contracts •
Definitions for a •
Design Week •
Normal winter weather •
Severe winter weather •
Least severe winter weather •
What does a capacity resource portfolio look like—what do you manage •
How do you do capacity planning and analysis of costs, risks, etc? •
Transportation, storage, peak shaving options, •
What does the natural gas pipeline system look like—how much gas, where does it run, what are daily imports what is the peak daily demand •
Storage issues •
When do we typically build storage capacity and what does this imply for costs? •
What are the financial and physical risks associated with storage •
What is commodity price hedging and how does it work in gas markets (fixed, capped, banded etc.) •
Why do you need to watch the weather in Africa and what is the value of diversity in your portfolio Break A Day in the Life of a Gas Company •
Four different perspectives Break 9:30-­‐9:45 9:45-­‐10:45 10:45-­‐11:00 4 Speaker Alan Carroll UW-­‐Madison, Department of Geology Jeff Hicken Alliant Energy Jeff Hicken Alliant Energy Time 11:00-­‐11:45 11:45 Session Title Gas Markets •
Brief history of natural gas regulation from 1938 forward and who regulates what •
How are wholesale gas market prices forecast (Henry Hub etc) average and spot market prices and what drives prices (importance of such things as location) •
Transportation markets—Importance of FERC Order 436 •
What happened on 1989 with the Natural Gas Wellhead Decontrol Act •
FERC Order 636 (1993) •
What happened to OAT •
Picture of wholesale gas pipeline system—can gas flow two ways? Adjourn 5 Speaker Sarah Mead Manager, Gas Supply Michigan Gas Utilities