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Southwestern Utility Consortium CSP Initiative

Renewable Energy. Southwestern Utility Consortium CSP Initiative. Arizona Corporation Commission CSP Open Meeting Friday, October 6, 2006. Renewable Energy. Background. CSP facilities experience greatest cost efficiencies around 250 MW

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Southwestern Utility Consortium CSP Initiative

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  1. Renewable Energy Southwestern Utility ConsortiumCSP Initiative Arizona Corporation Commission CSP Open Meeting Friday, October 6, 2006

  2. Renewable Energy Background • CSP facilities experience greatest cost efficiencies around 250 MW • Today, few utilities have the appetite for a solar facility that large • Joint development allows greater scale, and therefore lower prices than can be achieved individually • Joint ownership is familiar to most utilities (i.e. Four Corners, Springerville, PVNGS)

  3. Renewable Energy Why CSP? • Solar is Arizona’s greatest renewable resource • CSP is the most cost-effective solar resource • Peaking capacity when paired with storage or natural gas • Potential for cost competitiveness in near future

  4. Renewable Energy Participating Utilities • Arizona - APS, SRP, TEP • Nevada - Nevada Power • New Mexico - PNM • Colorado - Xcel (PSC) • California - SMUD, LADWP, NCPA • Texas - El Paso Electric

  5. Renewable Energy Timeline of Events

  6. Renewable Energy RFI - Project Parameters • Concentrating Solar Power • Trough • Dish • Concentrating PV • 250 MW • Transmission to Participants • Arizona/Desert Southwest • Commercial operation in 2010

  7. Renewable Energy RFI Responses • 7 entities • 240 to 320 MWs • Technologies • 1 Dish Engine • 1 CPV • 5 Trough • Various levels of information provided

  8. Renewable Energy APS Preliminary Conclusions • Sufficient developer interest • Most cost effective solar technology • Higher “green premium” than non-solar alternatives (i.e. wind, biomass, geothermal) • Natural gas and/or thermal storage is necessary to maximize value

  9. Renewable Energy Location/Priority • Site Priorities • Transmission to NV & CA • Natural gas supply • Flat land - 1,500 to 2,000+ acres • Solar radiation • Water • Potential Sites: • Kingman • Red Lake • Bullhead City • Yuma • Snowflake

  10. Renewable Energy Critical Issues • Joint Development Group • Commitment • Legal Structure • PPA Structure • Site Location • Land • Transmission • Natural gas • Water • Regulatory Support

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