OnceThrough Cooling and The California Electricity System

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Once-Through Cooling and The California
Electricity System

• Presentation to Joint Committee Hearing
• March 2, 2009
• Sylvia Bender, Deputy Director
• Electricity Supply Analysis Division
• California Energy Commission

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(No Transcript)
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20,400 MW at 19 OTC Facilities

• Produced 57,000 GWh in 2007 (20 of demand)
• 2 nuclear plants (4,400 MW, 35,700 GWh)
• 17 natural gas facilities
• 14 merchant plants, all more than 35 years old
  except 4 units at 2 facilities
• 3 LADWP facilities
• 16 of these facilities (15,000 MW) in
  transmission-constrained areas (local
  reliability areas)

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State Water Resources Control Board Compliance
Deadlines from March 2008 Proposal

• 2015 and 2018 for natural gas facilities,
  depending on capacity factor
• lt20 by 2015 ( 13,000 MW)
• gt20 by 2018 ( 3,000 MW)
• 2021 for nuclear facilities

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Retrofits as a Compliance Option

• January 2008 study of 15 OTC facilities
  commissioned by SWRCB indicated 12 could install
  wet cooling towers
• Capital costs range from 230m - 450m per
  facility
• Energy penalties and OM needs increase costs for
  nuclear facilities to gt1B

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Economic Considerations of Compliance

• Aging merchant plants will likely retire rather
  than
• Retrofit, unless capital costs are recovered
  under resource adequacy contract with utility or
  ISO
• Repower, unless capital costs and additional ERC
  costs are recovered under long-term contract (10
  years) with utility

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Emission Reduction Credit Availability

• 9,600 MW of OTC capacity is under SCAQMD
  jurisdiction
• SCAQMD has issued moratorium on release of ERCs
  from district bank, which precludes repowers (and
  construction of new plants) unless ERCs are
  bought on open market.
• Necessary ERCs are unlikely to be available,
  cost 100m - 200m per facility
• Conflict between SWRCB policy and apparent
  inability to construct and operate new plants in
  LA Basin

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Energy Agency Alternative Approach for Preserving
Reliability

• Links OTC shutdowns to creating replacement
  infrastructure rather than fixed schedule
• Coordinate multiple environmental goals while
  assuring sufficient capacity
• Examine plant transmission development with
  three key policies in mind
• Repower and/or retire all aging plants (2005 and
  2007 IEPR)
• Complying with air quality plans
• Implement AB 32 goals for GHG reductions