Importance of New Baseload Generation

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Importance of New Baseload Generation
Transmission Expansion for Electricity Reliability
Clean Coal Technology ConferenceUniversity of
Arkansas Community College at HopeJuly 18,
2008Nicholas A. (Nick) BrownPresident Chief
Executive Officer
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(No Transcript)
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SPP Footprint
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SPP at a Glance

• Little Rock based
• 330 employees
• 100M operating,25M capital (2008)
• 24 x 7 operation
• Full redundancy and backup site

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SPP at a Glance

• 255,000 square miles of service territory
• 4.6 billion in transmission gross investment
• 52,301 total miles of transmission lines
• 4.5 million customers served
• 42.5 GWs of peak demand
• 46 GWs of generation capacity

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SPP Members
12 Investor-Owned Utilities 11 Cooperatives 8
Municipals 2 State Agencies 2 Independent
Transmission Companies 3 Independent Power
Producers/Wholesale Generation 1 Contract
Participant 11 Marketers 50
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Reliability Coordination
As Air Traffic Controllers, our operators
comply with

• Monitor interconnected network
• Anticipate problems
• Take preemptive action
• Coordinate regional response
• Independent administration

over 1,300 pages of reliability standards and
criteria.
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Transmission Service
As Sales Agents, we administer

• Provide one-stop shopping
• Consistent rates, terms, conditions
• Regional focus
• Independent administration
• Process gt 15,000 transactions/month

an 872 page transmission rate tariff on behalf
of our members and customers.
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Market Operation
SPPs Energy Market is like the NYSE

• Monitor resource / load balance
• Ensure the most economic dispatch, provided
  system reliability is met
• Provide settlement data for market services

and follows over 200 pages of market protocols.
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The Regional Outlook Assessment
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Actual Forecast Peak Demand
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Needed New Generation by 2017 (MW)
With an average size baseload unit of 500 MW, we
need more than 20 new units within 10 years!!
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Perfect Storm of Uncertain Complex Issues
Reduction in Carbon Emissions?
Demand Growth?
Variability of Renewables?
Technical Challenges?
International Competition?
Aging Infrastructure?
Lack of Transmission?
Rising Gas Prices?
Political Regulatory Uncertainty?
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There is no
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The solution will take
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EHV Map
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Immediate National Leadership Mandating

• A broad portfolio approach to electric generation
  resources to meet demand reduce emissions
• Expansion of bulk electric transmission to
  deliver remote renewables baseload generation
  alternatives
• Significant research, development and
  demonstration of carbon capture storage,
  renewables, and efficiency and demand response
  technologies

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Nicholas A. (Nick) BrownPresident Chief
Executive Officer501-614-3213nbrown_at_spp.org