Archive for the 'Resource Planning' Category

2013 looks to be a busy year for Tri-State’s transmission team

Editor’s note: The following has been excerpted from a recently published column by Tri-State senior vice president/transmission Joel Bladow that will appear in the spring 2013 issue of Tri-State’s quarterly magazine, Network.

Coyote-Junction-substationTri-State crews and contractors are ramping up for another busy year of transmission maintenance and improvement activities aimed at providing continued efficient and reliable service to our member systems.

Ongoing system improvements are necessary to keep pace with demands on our system and are required to serve the growing loads of our member co-ops.

In 2013 and beyond, increased activity is anticipated in the ongoing asset transfer program that was established in 2010. This is a voluntary program which allows Tri-State’s member systems the option of selling all of their existing power delivery equipment that is 100 kilovolts or greater to Tri-State.

PV-linemen-bucket-truckDuring the next several years, these transactions are expected to double the transformer inventory and add hundreds of miles of transmission and scores of circuit switchers, battery systems, substation control buildings and other equipment owned by our member co-ops.

Also in the pipeline, National Environmental Policy Act and local permitting activities are expected to be completed this year, which will enable construction in 2014 of the 65-mile, 230-kilovolt Burlington to Wray transmission line in eastern Colorado.

CNMIP-transmissionWe also have begun the planning process to provide vital system upgrades to southern Colorado’s San Luis Valley. The proposed 118-mile, 230-kV San Luis to Carson Transmission Project, which would extend along a southerly route from the San Luis Valley Substation into northern New Mexico, presents an alternative solution to bolstering reliability in that region.

Tri-State is guided in all of these endeavors by the primary goal of improving the performance and efficiency of the entire system while safely and reliably delivering power to our member systems at the lowest possible cost.

Major events that helped define 2012

Year after year, Tri-State strives to consistently deliver on its commitment to provide affordable and reliable electricity to its member co-ops while managing the risks facing the association (and the electric utility industry) and meeting its corporate objectives and financial goals. As always, there were significant events throughout the past year that shaped, impacted and defined the G&T’s operations — all of which have been captured in our annual “major events” document, housed in the media kit section of Tri-State’s web site (and a synopsis of which follows):

Craig-Annual-report-20031. Financial and operational results — Tri-State closed its 2012 books with $1.3 billion in total operating revenue and $52.8 million in net margins. Energy sales to the 44 member co-ops reached a record 15.7 million megawatt-hours, while non-member sales totaled 3.0 million megawatt-hours. The G&T’s member peak demand for the year occurred in July, topping out at 2,798 megawatts, up 5.4 percent from the previous year’s peak of 2,654 megawatts.

2. 2013 budget/rates — Tri-State’s board approved the association’s 2013 cost of service of $1.34 billion, the majority of which is allocated to fixed cost items and other committed expenses. The board also approved a 4.9 percent rate increase for 2013, which adjusts the average member whole rate to approximately 6.8 cents per kilowatt-hour. Overall, the G&T remains on solid financial footing, reflected by the three major rating agencies affirming Tri-State’s “A” rating during the year.

3. Integrating new resources — Tri-State made great strides throughout the year in integrating the operations of two facilities that were acquired in late 2011 – the Colowyo Mine in northwest Colorado and a 272-megawatt, natural gas-fired power plant located in Fort Lupton, Colo. (since named J.M. Shafer Generating Station in recognition of the former Tri-State general manager).

4. Power plant maintenance and upgrades — In power production, favorably priced blocks of replacement power – secured by Tri-State’s marketing group – allowed power plant employees to extend their planned outage timelines during the “shoulder” months (fall and spring). As a result, plant crews and contractors at Escalante, Craig and Nucla stations accomplished significantly more than the typical year of both critical and non-critical path projects aimed at boosting reliability and longevity at the facilities.

Nucla-Sunshine-construction5. Transmission improvements — Tri-State’s maintenance groups and contractors undertook a long list of improvement projects on the association’s network of transmission, substation and telecommunications sites throughout the service territory. Included in those projects was the long-awaited completion of the 51-mile, 115-kilovolt Nucla-Sunshine line and ancillary substations in southwestern Colorado.

Colorado-Highlands-Wind-project_1226. Renewable resources flourish — Tri-State’s renewable energy portfolio expanded in 2012 with the completion and addition of the 67-megawatt Colorado Highlands Wind project in northeast Colorado. In addition, by year-end Tri-State member systems had 28 local renewable projects – either on-line or planned – that are projected to provide up to a combined 41 megawatts of renewable generating capacity for their member-consumers.

7. Wildfires wreak havoc — Wildfires ravaged hundreds of homes, threatened lives and left a lasting scar across thousands of acres of torched timberland throughout several parts of Tri-State’s member service territory, in what was one of the worst fire seasons in recent history.  The two most devastating events in co-op territory – the High Park Fire and the Little Bear Fire – directly impacted the operations of member co-ops Poudre Valley REA (Fort Collins, Colo.) and Otero County Electric (Cloudcroft, N.M.), respectively, causing millions of dollars in property damage and disrupting service.

Tri-State transmission line upgrade complete, energized

The association's Big Sandy-Lincoln-Midway transmission line is back in service after being reconstructed to better withstand storms and wind prevalent to the area.

The association’s upgrade of its 79-mile, 230-kilovolt Big Sandy-Lincoln-Midway transmission line was recently completed and the eastern and southern Colorado power path was energized last week in time for the springtime irrigation loads that rely on its service to this largely agricultural region served by Tri-State member Mountain View Electric Association (Limon, Colo.).

During this project, approximately 56 miles of the line was upgraded from its original 1977 design. The remaining 23 miles of line was upgraded during the past five years after a series of storms damaged some of the 35-year-old structures supporting the line.

The upgraded power path also carries a new overhead optical ground wire to facilitate the G&T’s continuing efforts to improve its telecommunications system network.

The line rebuild included installation of improved transmission line structures that are designed to better withstand adverse weather conditions in this storm-prone area of the state.

Big Sandy Substation is located northeast of Limon, Colo. The line then extends south to Lincoln Substation, which is located near Tri-State’s Limon Generating Station. From that point, the line is strung along a 50-mile path to Midway Substation, located south of Fountain, Colo.

Misguided emissions rules repealed in New Mexico

With staff from Tri-State’s Environmental Services and Communications & Public Affairs groups in attendance, the New Mexico Environmental Improvement Board (EIB) this past Friday (March 16) repealed the last of four misguided regulations aimed at reducing greenhouse gas emissions. The unanimous 5-0 vote – with two EIB members recusing themselves – is considered a regulatory victory for the nearly 200,000 residential, agricultural and business member-owners of Tri-State’s 12 member cooperatives in New Mexico.

Tri-State's Escalante Station would have been one New Mexico facility impacted by the recently repealed carbon regulations.

Adopted in 2010, the first three regulations sought to impose a cap-and-trade system; that set of rules was repealed earlier this year by the EIB. The fourth regulation would have imposed a hard emissions cap that would have required power plants and other carbon emitters statewide to cut CO2 releases by three percent per year beginning in 2013. As several expert witnesses testified, however, the rule would have had few tangible benefits for the environment and little or no influence in encouraging other state or federal regulators to enact greenhouse gas initiatives of their own.

What the rules would have done is hurt small businesses, families and agricultural producers from many of the poorest parts of New Mexico. Tri-State’s own estimates predicted that imposition of the 2010 regulations would have caused the state’s GDP to decline by $317 million to $1.3 billion through 2030 and employment to generate 322 to 1,511 fewer jobs by 2020 – all while causing, at best, only a 0.004 percent to 0.006 percent average annual reduction in global greenhouse gas emissions.

Tri-State was joined by several partners in opposing the regulations and working to secure their repeal, including staff and members from the New Mexico Rural Electric Cooperative Association, New Mexico Oil & Gas Association, the City of Farmington, PNM, El Paso Electric and more than 18,000 followers of the Keep Electricity Affordable campaign who made their voices heard.

Members adding three local renewable sources

The association’s board of directors approved Policy 115 generation contracts between Tri-State and two of its member systems for a total of three renewable projects at the March board meeting held earlier this week (March 13-14) in Westminster.

Both Poudre Valley REA and San Miguel Power are adding community solar projects to their porfolios this summer.

At Poudre Valley REA (Fort Collins, Colo.), the co-op recently announced the development of a 100-kilowatt solar garden by Clean Energy Collective, LLC, to be constructed this summer adjacent to the co-op’s headquarters building in Fort Collins. Under the terms of the agreement, Clean Energy Collective will own and operate the solar site and sell the output to Poudre Valley. The co-op, in turn, will provide its member-consumers with the opportunity to purchase solar panels to offset their electric use.

Within the service territory of San Miguel Power Association (Nucla, Colo.), a larger scale – one megawatt – community solar project, in which its members will be invited to subscribe, is also being developed this summer by the aforementioned Clean Energy Collective. The solar facility will be constructed in the Paradox Valley, west of Nucla.

Also, being added to San Miguel’s renewable portfolio is the 500-kilowatt output of one of the nation’s oldest hydroelectric facilities. Constructed in the late 1800s, the owners of Bridal Veil Hydro Project near Telluride, Colo., have inked a power purchase agreement with the Nucla-based co-op that is scheduled to begin by the end of this month and extend through the end of 2026.

 

Tri-State adds 67 megawatts of wind power

Tri-State has signed a 20-year power purchase agreement to buy the electricity from the state’s newest planned renewable energy resource, the 67-megawatt Colorado Highlands Wind project.  The facility will be built on a 5,200-acre site in northeast Colorado’s Logan County, within the service territory of Tri-State member co-op Highline Electric Association, and is scheduled to be operational by the end of the year.

The project will use GE wind turbine generators and will be developed by Colorado Highlands Wind, LLC, which is jointly owned by Alliance Power, Inc. of Littleton, Colo., and GE Energy Financial Services of Stamford, Conn.  Financial terms of the contract are being held confidential and were not disclosed.

“Increasing the amount of renewable resources in our energy mix further diversifies our overall generation portfolio,” said Tri-State executive vice president and general manager Ken Anderson.  “It not only attracts investment to the communities our member co-ops serve, but it also keeps us on schedule in assisting our members to meet their obligations under state renewable portfolio standards,” he said.

“Highline Electric is pleased to be in position to provide service to Colorado Highlands Wind and we’re looking forward to working with them during the construction process,” said Mark Farnsworth, manager of the local electric co-op.  “We also appreciate the economic development opportunities that the project provides in our service territory.”

The agreement culminates a process begun in October 2011 when Tri-State issued a request for proposals for renewable energy supply, which resulted in nearly 50 responses consisting of a variety of technologies and potential locations.

Colorado Highlands Wind will be the third utility-scale renewable energy facility from which Tri-State receives all of the electrical output and renewable energy credits.  In 2010 the wholesale power supplier began purchasing the electricity generated at the 51-megawatt Kit Carson Windpower Project in eastern Colorado as well as the 30-megawatt Cimarron Solar Facility in northeastern New Mexico.

10-year transmission plan filed with Public Utilities Commission

On Feb. 1 Tri-State filed its first 10-year transmission planning document with the Colorado Public Utilities Commission in compliance with CPUC Rule 3627. In support of that filing, and in an effort to update the public and interested parties on the association’s future transmission projects, an extensive revamping of the transmission planning section of Tri-State’s Web site has been completed.

The first ever filing for the PUC Rule 3627 was the culmination of an extensive planning process, mainly by the system planning, transmission engineering and the public affairs groups. Several stakeholder outreach meetings were held in 2011 to engage interested parties, followed by a comment period for people to provide their input on various projects that are on the association’s 10-year planning horizon.

“Through the eyes of the PUC, the purpose of the filing is so that stakeholders – including elected officials, county commissioners and city administrators – are engaged early and often in the transmission planning process,” said Sarah Carlisle, public affairs coordinator. “Since other utilities in the state must also file under this rule, it also may provide the commission with an opportunity to identify mutually beneficial projects in which utilities might partner and provide economic benefits to electric consumers in Colorado.”

Western Fuels-Colorado closes on purchase of Colowyo Mine

Western Fuels-Colorado LLC, a fuel supplier that delivers coal under contract to Tri-State’s Craig Station and Nucla Station power plants in western Colorado, has completed its purchase of the Colowyo Mine from Rio Tinto.

Tri-State is the majority owner of Western Fuels-Colorado, which delivers coal produced at Colowyo Mine to the 1,304-megawatt Craig Station.

“Electricity responsibly produced with coal remains a remarkable value to serve the power needs of the region,” said Ken Anderson, executive vice president and general manager of Tri-State.  “The purchase of Colowyo Mine ensures Tri-State will have a cost-based supply of coal to generate affordable power for the benefit of our member electric cooperatives.”

In 2010, the Colowyo Mine produced approximately 1.5 million tons of coal under contract for Western Fuels-Colorado for delivery to Tri-State.  Total production of Colowyo Mine in 2011 was 2.3 million tons.

“The Colowyo Mine will help supply clean-burning coal to Craig Station for the expected life of the power plant,” said Mike McInnes, senior vice president of production at Tri-State.  “Tri-State will continue to invest in Craig Station and in the development of clean coal technologies.” Continue reading ‘Western Fuels-Colorado closes on purchase of Colowyo Mine’

G&T holds annual transmission planning outreach meeting

Tri-State staff members conducted their annual Transmission Planning Stakeholder Outreach Meeting earlier this week (Oct. 17) in Westminster — a public forum in which interested members of the community can participate and learn about the association’s future plans for its transmission system.

Mark Detsky, a Boulder attorney, asks a question at the recent annual transmission planning outreach meeting held in Westminster.

Main topics covered during the meeting’s half-day agenda included an overview of Tri-State, the overall planning process, the 2011–2020 loads and resources assumptions,  the transmission capital construction plan, generation interconnections and an update on the OATT (open access transmission tariff) system.

Tri-State presenters at the public meeting were Blane Taylor, senior manager of power systems planning; Ray LaPanse, transmission interconnection administrator; and Ron Steinbach, senior manager, transmission contracts, rates & policy. Sarah Carlisle, public affairs coordinator, organized the event.

Among some of the noteworthy statistics presented at the meeting included the fact that average annual transmission usage has increased from a coincident peak network load of 2,442 megawatts in 2007 to 2,626 megawatts through August of 2011. Generation interconnection requests on the Tri-State system as of Oct. 12, 2011, totaled 21 (13 in Colorado, three in New Mexico, five in Wyoming and zero in Nebraska) for a total projected capacity output of 2,683 megawatts.

The 2011–2020 loads and resources assumptions call for the following new generation additions: 50 megawatts of wind at Lamar, Colo., by 2015; 50 megawatts of wind at Archer, Wyo., by 2015; 588 megawatts of combined-cycle generation at Lamar, Colo., by 2017; 100 megawatts of wind at Archer, Wyo., by 2018; and 200 megawatts of wind at Lamar, Colo,. by 2020.

Tri-State-backed southwestern transmission project could go on fast track

The proposed SunZia Southwest Transmission Project could eventually move up to 3,000 megawatts of renewable generation across the southwestern U.S. It is slated to go into service by 2016.

The proposed SunZia Southwest Transmission Project, in which Tri-State is one of four sponsors, could be put on the development fast track by the Obama Administration. Last week, the administration’s new Rapid Response Team for Transmission named SunZia and six other large-scale transmission projects in the U.S. as priority projects that would be given accelerated permitting and construction treatment.

“Transmission is a vital component of our nation’s energy portfolio, and these seven lines, when completed, will serve as important links across our country to increase our power grid’s capacity and reliability,” said U.S. Interior Secretary Ken Salazar. “This is the kind of critical infrastructure we should be working together to advance in order to create jobs and move our nation toward energy independence.”

Transmission projects of this scope involve reviews by multiple federal, state and tribal agencies. Nine federal agencies and the White House Council on Environmental Quality will be a part of the Rapid Response Team. The team’s charge is to resolve inter-agency conflicts, coordinate reviews, permitting and other processes.

The SunZia project consists of two transmission lines and substations that will transport primarily renewable energy from Arizona and New Mexico to customers and markets across the southwestern United States. The length of the proposed route is approximately 460 miles. In addition to Tri-State, partners in the SunZia project are Shell WindEnergy, Southwestern Power Group and Tucson Electric Power.