For our 19 January Zoom meeting, Trista Fugate (formerly Director of Community & Government Affairs at Platte River Power Authority or PRPA) gave us a fact-filled summary of the history and near- to medium-term plans for Platte River, the Fort-Collins located, not-for-profit public power utility that generates and transmits electric power for the communities of Fort Collins, Estes Park, Loveland, and Longmont. As she pointed out several times, Platte River is owned by (and the board includes the mayors and utility directors of) the cities to which it provides electric power. (Fort Collins is unique in that Councilmember Julie Pignataro joins Mayor Jeni Arndt on the Platte River Board.) Platte River’s mission is to safely provide reliable, environmentally responsible, and financially sustainable energy to its owner communities including their +165,000 retail customers.
The evolution of its generation resources started in 1973 to manage distribution of some 90 MW (megawatts) of Federal hydroelectric power (the first increment of their baseload resources) to its owner communities. In 1979 – ‘80, with the addition of Craig units 1 & 2, they added some 151 MW of generation capacity. The completion of the Rawhide Unit 1 in 1984 added another 280 MW to their baseload capacity. Between 1998 and 2005, the completion of the Medicine Bow project, although only 6 MW, provided the first wind-generated power to customers in Colorado. With the increasing northern Colorado population, the addition of Peaking Units A – D and F to the Rawhide plant added another 388 MW to their generation capacity. Rotating toward noncarbon energy, they added wind projects at Silver Sage (12 MW in 2009) and Spring Canyon (60 MW in 2014) and a solar project adjacent to Rawhide Unit 1 called Rawhide Flats (30 MW in 2016). The adoption of the Resource Diversification Policy (RDP) in 2018 laid out a commitment to achieve a 100% noncarbon energy portfolio by 2030. To support this effort, they brought on the Roundhouse Wind facility (225 MW completed in 2020) as well as the Rawhide Prairie Solar project (22 MW generation plus 2 MWh of storage). Platte River is currently in the permitting process for the Black Hollow Solar project (150 MW, aiming for completion in 2024) and just issued a Request for Proposals (RFP) in December 2021 for some 250 MW of solar generation plus storage to be brought online by 2025. Currently, the 2022 Projected System Total energy production is approximately 53% coal and nearly 37% noncarbon, however, when the Black Hollow Solar project comes online, total energy production is projected to be around 60% noncarbon.
Looking toward the future, there are several different types of proposals or plans that have been or will be submitted. An Integrated Resource Plan (IRP) developed in alignment with the RDP and approved in October 2020 (and which must be re-submitted at least every five years to continue to receive the federal hydropower allotment) actually looks out some 20 years and includes a five-year action plan based on current technology and system capabilities. The plan includes retiring all coal by 2030, adding substantial renewables and batteries, potentially adding reciprocating internal combustion engine (RICE) capabilities for reliability, 94% CO2 reduction by 2030 (exceeding state requirements), 2 – 3% annual wholesale rate increases until 2030, and maintaining the usual requirements of reliable transmission, distribution and supply. The plan is sufficiently adaptable and flexible to allow for technology maturation/evolution and still meet the RDP goals. Although this plan is formalized every five years, there is actually continuous resource modeling outside the IRP process and two more will be submitted before 2030. Although this is a plan, it is understood that the actual trajectory may differ as technology evolves.
The 2020 IRP was developed prior to a Clean Energy Plan (CEP) that was a response to several legislative bills. One bill mandates CEPs from regulated electric utilities but permits CEPs from non-regulated electric utilities like Platte River (they had to notify the State of their intention to file a CEP by Aug. 1, 2021, which Platte River did), in either case emission reduction projections will be verified by the State Air Pollution Control Division (APCD). Utilities that don’t meet their CEP goals for two consecutive years will have to file an updated CEP. The Platte River plan, consistent with the board-approved zero coal portfolio adopted in the 2020 IRP, includes a range of expected CO2 reductions, allowing for effects of such disruptions as extreme weather, variation in hydro power allocations, load growth, and “dark calm” events (sun don’t shine and wind don’t blow). The plan includes a back-loaded increase in CO2 reductions (most of the gain shown in 2029 – 2030 when Rawhide Unit 1 is retired), but this is more of a place-holder projection (there is no known way to have a 40% decrease in one year outside of shutting down a generation unit). Future IRPs will seek to add noncarbon resources sooner.
Questions:
- Do the plans include a small nuclear plant? No, but that may be revisited in future IRP processes.
- In which renewable category are the largest investments planned? Currently we have more wind online, but looking forward, more solar generation is planned.
- Any comparison between home-based vs. utility-scale solar arrays? Utility-scale installation is apparently more cost-effective, but both will ultimately be needed. Currently, any financial consideration of home-based solar arrays are between individual home owners and their local distribution utilities, not Platte River.
- Any intention to replace coal with natural gas? No (but see the response about RICE below).
- A little more explanation of RICE? Given the inherent variability of most noncarbon energy generation, the system has to have the capability of virtually instant response to a decrease in electricity availability. The 2020 IRP showed that this can most effectively be provided by an internal combustion engine, currently expected to be powered by natural gas, to drive generator(s).
- Given the expected long-term reduction in water availability, and therefore land values, on the eastern plains, do the plans include any solar or wind installations out there? Platte River is currently awaiting responses from a Request for Proposals (RFP) for noncarbon projects. Responses may include projects on the eastern plains, but the details, including the financial aspects, will depend on the individual responses to the RFPs.
- Has there been any feedback or push-back from large industrial customers in response to the CEP? Platte River conducts an annual survey of customers in the four owner communities, including large industrial or commercial customers. Among other things, a number of questions are centered around Platte River’s core pillars to safely provide reliable, environmentally responsible, and financially sustainable energy. As one would expect reliability and cost are top priorities, but environmental responsibility isn’t far behind. Because the CEP is aligned with the 2020 IRP, which maintained Platte River’s three core pillars, there has been little negative push-back.