Utilities as Transportation Fuel
Providers
Wisconsin Public Utility Institute
Institute Seminar, July 14, 2011
Peter Taglia Energy and Environmental Consulting, LLC and
Merlin Raab, Renewable and Alternative Policy Senior Consultant,
Wisconsin Public Service Corporation
Institute Seminar Introduction
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Introduction:
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Seminar Overview:
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Midwest Fuel Background
Economic and Environmental Implications
Utility Perspective
National Perspective: Electric and Natural Gas
Vehicles
Wisconsin’s Status and Opportunities
Examples of Utility, Policy and Infrastructure
Preparations
Customer Rollout
Final Panel with Responses and Reflections
Housekeeping
Midwest Transportation Fuel Mix
9%
5.0
8%
4.0
6%
3.0
5%
4%
2.0
3%
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Liquid biofuels are sold and
distributed similar to
petroleum, not utility fuels.
All other fuels << 1% of total
Gasoline
2%
1.0
% Ethanol
1%
CNG
LNG
Electric
E85
WI
TN
SD
OK
OH
NE
ND
MO
MN
MI
KY
KS
0%
IN
0.0
Region
Ethanol
Percent Ethanol
7%
IL
The Midwest produced about
8 billion gallons of ethanol,
consuming almost 3 billion
(~7% of sales) and exporting
the rest. (WI produces
approx. 500 million gals)
10%
IA
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Petroleum is the dominant
transport fuel in Midwest
Billions of Gallons
•
6.0
Hydrogen
LPG
PADD 2
12,224
33
625
10,933
0
51,409
Midwest
9,981
28
467
9,045
0
38,132
US Total
166,878
22,409
5,219
38,074
25
188,171
Gallons of gasoline equivalent
Source: EIA 2005
Midwest Conventional and Alternative
Fuel Use in 2005
Sources: EIA, RFA
[1]
http://www.eia.doe.gov/cneaf/alternate/page/atftables/afv_hist_data.html
Liquid Fuel Markets
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The sources, distribution,
price, and regulation of
liquid fuels in the Midwest
are dramatically different
from natural gas and
electricity
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Petroleum is a globally
traded fungible commodity;
very little is used for electric
generation in the U.S.
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Utility fuels are more
diverse and less fungible
• $U.S. natural gas << $
Global LNG
• Transportation is a
major price component
of coal
What Drives Crude Oil Prices?
Source: EIA
Liquid Fuels in the Midwest
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Crude oil and finished
transportation fuels are
shipped in pipelines across
the Midwest and U.S.
•
Major Midwestern Refineries
(bbs/day and 2011 U.S rank):
BP Whiting (IN) 405,000 (#6)
WRB Wood River (IL) 362,000 (#7)
Koch Flint Hills (MN) 280,000 (#16)
Exxon Joliet (IL) 238,000 (#23)
Marathon (IL) 206,000 (#32)
Murphy Superior (WI) 34,000 (#106)
Sources: EIA and Canadian National Energy Board
Utility Fuels: Electricity and Natural Gas
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Wisconsin is a regulated state
with municipal, cooperative
and investor owned utilities.
Regulated prices set by the PSC
Excess electrical capacity (24%
reserve margin in 2011) due to
recent expansions of coal,
natural gas and wind and the
economic slowdown.
In the last 10 years:
• 3 new supercritical
pulverized coal plants,
1,800 MW
• 2,400 MW of Natural Gas
Combined Cycle
• 500 MW of wind
• 100’s of miles of 345 kV
and interstate gas pipelines
2009 WI Electric Generation by Fuel
Source: WI PSC 2011 SEA
The Midwest’s Oil Supply
OPEC
108,682
(18%)
Other
19,328
(3%)
Canada
476,860
(79%)
Conven
tional
53%
Oil
Sands
47%
Midwest Oil Imports (Left) Canadian Imports by Resource (Right)
Source: EIA imports for PADD2 (2009) and Canadian National Energy Board (2009)
http://www.neb.gc.ca/clf-nsi/rnrgynfmtn/sttstc/crdlndptrlmprdct/crdlndptrlmprdct-eng.html
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The Midwest refines domestic and imported
crude oil
Conventional and light oil is decreasing
Heavy crude imports increasing from
Alberta’s oil sands
Bakken oil also increasing from North Dakota
Alberta’s Oil Sands
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Alberta’s estimated crude
oil reserves are the second
largest in the world (after
Saudi Arabia)
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On a full lifecycle basis,
gasoline from oil sands have
a carbon footprint between
15% and 30% higher than
conventional gasoline
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Wisconsin is a major
exporter of mining
equipment to Alberta
Conventional Oil Lifecycle Emissions
Confirmation: Lots of Btus (and
carbon) in Canada
Lifecycle Emissions of Transportation Fuels
Source: Argonne National Lab
Dairy Biogas CNG
Cellulosic Waste
Ethanol
Electricity (CA
Average)
Compressed Natural
Gas
Sugarcane Ethanol
(Average)
Soy Biodiesel
Corn Ethanol (CA
Average)
Gasoline
(Reformulated)
Carbon Intensity (grams/Megajoule)
Example Lifecycle Well-to-Wheels Analysis
California Low Carbon Fuel Standard Lifecycle Carbon Footprint
Analysis Results
120
100
80
60
40
20
0
Wisconsin Summary
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Wisconsin has no fossil fuel
production but produces
half a billion gallons of
ethanol
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Wisconsin has one small
refinery; most fuel is
imported as a finished
product. Total cost = $9 B
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Wisconsin has ample
electricity (and natural gas
capacity) for now….
2009 WI Energy Expenditures
Source: Wisconsin Energy Stats
http://energyindependence.wi.gov
Natural Gas Utility Questions
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CNG or LNG?
Light, Medium or Heavy vehicles?
Does the Midwest have the infrastructure for winter peak
day?
Are new utility tariffs needed to properly recover
infrastructure and demand costs?
Who will own the refueling infrastructure?
Electric Utility Questions
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2012-2018 Strategic Energy Assessment: impacts on load
factor/shape and gen. mix?
Carbon-impacts & benefits, who pays/benefits?
Utility PEV promotion: Customer service/education or
load building?
Mandatory TOU rates for PEVs or incentives for off peak
charging? Impact on adoption rates?
Residential demand rates for > level 1 charging?
Who pays to develop public charging infrastructure?
Resale of Electricity?