book

Electric Utility Resource Planning

Name: Electric Utility Resource Planning
Author: Steven Sim
ISBN: 9781439884096

by Steven Sim

December 2017

Intermediate to advanced

332 pages

10h 17m

English

CRC Press

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Cover
Half Title
Title Page
Copyright Page
Table of Contents
Acknowledgments
Author
1 Introduction
Why Write This Book?Who Is This Book Written For?An Overview of the BookAre We Keeping It Simple?A Few Words Regarding Assumptions Used in the BookA Couple of Disclaimers
2 How Does an Electric Utility Actually “Work”?
Two “Types” of Electric UtilitiesWhose Perspective Will Be Taken?What Aspects of an Electric Utility Will We Focus On?Types of Generating Units a Utility May HaveHow Does a Utility Decide Which Generating Units to Use?Let’s Create a Hypothetical Utility SystemNow Let’s Operate Our Hypothetical Utility SystemUtility System Operation on the Summer Peak DayUtility System Operation over the Course of a YearSo What Have We Learned and Where Do We Go Next?
3 Overview of Utility Resource Planning
One More Assumption Regarding Our Hypothetical Utility SystemThree Questions Utility Resource Planning Must Always AnswerReliability Analysis: When Does a Utility Need to Add New Resources and What Is the Magnitude of Those Needed Resources?Reserve Margin Perspective (Simple to Calculate)Probabilistic Perspective (Not So Simple to Calculate)Which Reliability Perspective Is More Important?Resource Option Evaluation and Selection: What Is the Best Resource Option to Select for a Given Utility?Two Basic Types of Resource Options: Supply and Demand Side Management OptionsIntegrated Resource Planning (IRP)Economic EvaluationsPreliminary Economic Screening Evaluation of Supply OptionsPreliminary Economic Screening Evaluation of DSM OptionsFinal (or System) Economic EvaluationsNon-Economic EvaluationsNon-Economic Consideration Example (i): The Length of Time It Takes before a Resource Plan Becomes the Economic ChoiceNon-Economic Consideration Example (ii): The Utility System’s Fuel Usage Due to a Resource PlanNon-Economic Consideration Example (iii): The Utility System’s Air Emissions Due to a Resource Plan

4 Reliability Analyses for Our Utility System
When Does Our Utility System Need New Resources?What Is the Magnitude of the New Resources Needed by Our Utility System?What Have We Learned and What Is Next?
5 Resource Option Analyses for Our Utility System: Supply Options
Types of Supply Options under ConsiderationCapital Costs: Rows (1) through (3)Other Fixed Costs: Rows (4) through (7)Operating Costs: Rows (8) through (15)Preliminary Economic Screening Evaluation of the Supply OptionsCreating the Competing “Supply Only” Resource PlansFinal (or System) Economic Evaluation of Supply OptionsOverviewTotal Cost Perspective (CPVRR) for the Supply Only Resource PlansElectric Rate Perspective (Levelized System Average Electric Rate) for the Supply Only Resource Plans
6 Resource Option Analyses for Our Utility System: DSM Options
Types of DSM Resource Options Under ConsiderationPreliminary Economic Screening Evaluation of DSM Options: Understanding the Cost-Effectiveness Screening TestsPreliminary Economic Screening Analyses of DSM Options: ResultsCreating the Competing “With DSM” Resource PlansFinal (or System) Economic Analysis of DSM OptionsOverviewResults for the With DSM Resource Plan 1Results for the With DSM Resource Plan 2
7 Final Resource Option Analyses for Our Utility System
Economic Comparison of the Resource PlansNon-Economic Analyses of the Resource Plans“Cross Over” Time to Being the Most Economic Resource PlanSystem Fuel UseSystem Air EmissionsSummary of Results from the Resource Option Analyses for Our Utility System
8 Are We Done Yet? Other Factors That Can (and Will) Complicate Resource Planning Analyses
Constraints on Solutions: Six ExamplesExamples of “Absolute” ConstraintsSiting/Geographic ConstraintsPotential Tightening of Environmental RegulationsExamples of Legislative/Regulatory-Imposed Constraints“Standards”/(Quotas) for Specific Types of Resource OptionsProhibition of Specific Resource OptionsExamples of Utility-Imposed ConstraintsSystem Reliability ConstraintsThe Voluntary Nature of DSM OptionsIntermittent Nature of Renewable Energy Resource OptionsLoad Shape ConstraintWhat Are the Impacts of Addressing These Constraints?
9 Final Thoughts (Including Some Opinions)
Summary of the Key Points We Have Learned about Utility Systems in GeneralSummary of the Key Lessons We Have Learned Regarding Utility Resource PlanningA Few Opinions on Various TopicsWhat Lies Ahead for Electric Utilities and Utility Resource Planning?
Appendix A: Fundamental Principles of Electric Utility Resource Planning
Appendix B: Glossary of Terms
Appendix C: Mini-Lesson #1— Concepts of Revenue Requirements, Present Valuing of Costs and Discount Rates, Cumulative Present Value of Revenue Requirements, and Levelized Costs
Appendix D: Mini-Lesson #2— Further Discussion of the Limitations of a Screening Curve Analytic Approach
Appendix E: Mini-Lesson #3— Further Discussion of the RIM and TRC Preliminary Cost-Effectiveness Screening Tests for DSM
Appendix F: Mini-Lesson #4— How Can a Resource Option Result in Lower Costs, but Increase Electric Rates?
Appendix G: Mini-Lesson #5— How Can a Resource Option That Produces Emissions Lower a Utility’s Total System Emissions? (“The Taxi Cab Example”)
Index

Content preview from Electric Utility Resource Planning

Appendix C: Mini-Lesson #1— Concepts of Revenue Requirements, Present Valuing of Costs and Discount Rates, Cumulative Present Value of Revenue Requirements, and Levelized Costs

When discussing resource planning for electric utilities, a number of economic and financial terms are invariably used. Among the most commonly used terms are the following:

1. Revenue requirements;

2. Present valuing of costs and discount rates;

3. Cumulative present value of revenue requirements; and,

4. Levelized costs.

Each of these terms will be discussed in order to provide a basic understanding of the terms and how they are used throughout the book.

Revenue Requirements

The term “revenue requirements” is actually a very simple term. For a traditional regulated ...

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Electric Utility Resource Planning

by Steven Sim

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