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A Look at Energy Policy Elements of a Balanced Policy Bush/Cheney Proposal NEMA

Policy Development Coordinating Committee. A Look at Energy Policy Elements of a Balanced Policy Bush/Cheney Proposal NEMA IEEE USA Alliance for Energy and Economic Growth Generation Plans Transmission Energy Efficiency Other. Energy Policy.

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A Look at Energy Policy Elements of a Balanced Policy Bush/Cheney Proposal NEMA

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  1. Policy Development Coordinating Committee • A Look at Energy Policy • Elements of a Balanced Policy • Bush/Cheney Proposal • NEMA • IEEE USA • Alliance for Energy and Economic Growth • Generation Plans • Transmission • Energy Efficiency • Other

  2. Energy Policy • Per DOE, US energy use ~ 100 Quads/yr in 1998 • (1) Quad = 1015 BTU • Balanced US Energy Policy needed

  3. Energy Policy Balance Requires 3 Ingredients • Energy Sourcing • Energy Conversion/Transportation Infrastructure • Energy Efficiency and Conservation

  4. Energy Policy • Energy Sourcing • Oil, Coal, Nuclear, and Natural Gas are basis of present economy • Each fuel/technology should be expanded • We should not concentrate all efforts on one singular choice • Alternatives, like renewables and the nuclear power option should be encouraged • We should favor domestic sources of BTU’s

  5. Energy Policy • Energy Conversion/Transportation Infrastructure • We need regulatory policies that encourage investment • Electric transmission is in direly short supply

  6. Energy Policy • Energy Efficiency and Conservation • 1998 total US energy consumption was 1017 BTU’s from all uses • Energy conservation is an important means of reducing demand • We must work to improve energy efficiency of all power products

  7. Energy Efficiency • Three Important Guidelines: • Doable with known technology • Pays for itself within 3-5 years • Results in real energy savings These guidelines are built into NEMA TP-1 distribution transformer energy efficiency These guidelines should be used by all power equipment

  8. A Look At the Bush / Cheney Energy Policy

  9. Bush/Cheney Energy Policy Conservation Sources Infrastructure

  10. Bush/Cheney Energy Policy Energy Efficiency Helps Meet Demand 3 % yr growth 1.3% yr growth

  11. Bush/Cheney Energy Policy Energy Efficiency Does Not Mean Sacrifice

  12. Bush/Cheney Energy Policy Wide-spread use of Energy Efficient Products has made a difference!

  13. Bush/Cheney Energy Policy Electric Generation from Multiple Energy Sources

  14. Bush/Cheney Energy Policy Combined Cycle Clean Coal Cuts Pollution and Costs High-tech power plants, like this combined cycle plant are signaling a new age in electric power generation. The capability to co-produce electricity and a slate of fuels and chemicals makes the technology economically attractive to a broad range of industrial applications.

  15. Bush/Cheney Energy Policy Nuclear Energy an Important Part Calvert Cliffs is the first US nuclear plant to receive license from the Nuclear Regulatory Commission. The renewal will allow the plant to continue producing environmentally sound electricity for an additional twenty years.

  16. Bush/Cheney Energy Policy Hydro-generation Renewable and Economical Renewable hydropower has long provided a significant contribution to the US energy supply. Today, hydropower is competitive with other forms of conventionally generated electricity.

  17. Bush/Cheney Energy Policy Transmission Infrastructure Upgrades Seriously Needed A pressing long-term electricity challenge is to build enough new generation and transmission capacity to meet projected growth in demand

  18. Bush/Cheney Energy Policy Infrastructure Siting a Very Critical Issue Several federal agencies are authorized to grant rights of way for oil and gas pipeline and electric transmission systems on federal lands and each approaches the issue from a unique perspective. Authorizing agencies include the Bureau of Land Management, the U.S. Forest Service, the National Park Service, the U.S. Fish and Wildlife Service, the Bureau of Reclamation, and the Bureau of Indian Affairs.

  19. NEMA Electrical Energy Policy • Contains the 3 Balanced Objectives • Compliments Bush/Cheney Policy

  20. NEMA Electrical Energy Policy Market Based Policy Issued May 2001emphasizing: • Energy Efficiency • Regulatory Policies encouraging growth in infrastructure of generation, transmission and distribution • Generation of power from all economically viable and socially acceptable sources.

  21. NEMA Electrical Energy Policy • Energy Efficiency: • National Concern • Should be driven by market forces • Must be based on three factors • Technological feasibility • Economic viability • Real energy savings • Federal Government’s Role • Promoting user education on energy efficiency • Supporting energy efficient upgrades through programs • such as the Federal Energy Management Program • Encouraging performance-based incentives in the private • sector and use of economically sound energy efficient • products and systems

  22. NEMA Electrical Energy Policy Generation, Transmission and Distribution Infrastructure NEMA’s Beliefs and Proposals • That technology can provide the basis for major capacity and • reliability improvements for the transmission and distribution systems • That siting permits for new transmission lines and generation • facilities need to be expedited • Market based incentives and regulatory policies are needed to • encourage investment into new infrastructure and allow cost recovery • States should be allowed to enter into regional compacts to address • siting issues.

  23. AEEG--Alliance for Energy and Economic Growth • Who Are They? • Who belongs to them? • Where are They Located? • What’s their position on Energy?

  24. AEEG--Alliance for Energy and Economic Growth Who Are They? • Broad coalition of interests that develop, deliver and • consume energy from all sources. • Works to build a National Consensus for a comprehensive • US Energy Strategy • Seeks a balance of supply, demand, and environmental • safeguards • Website: www.yourenergyfuture.org

  25. AEEG--Alliance for Energy and Economic Growth Who Belongs to Them? • Very large organization • 60 + members • Includes: • NEMA • EEI • Most American manufacturers-all industries • Many communities • Individual corporations and utilities

  26. AEEG--Alliance for Energy and Economic Growth Where Are They Located? U.S. Chamber of Commerce Environment, Technology & Regulatory Affairs 1615 H Street, NW Washington, DC 20062 Fax: (202) 463-5521 Luke Popovich or Chad McGinnis Ph: (703) 683-8934 e-mail: lpopovich@mindspring.com

  27. AEEG--Alliance for Energy and Economic Growth What’s Their Position on Energy? • Goals: • Increase energy efficiency and conservation • Assure adequate energy supplies and generation • Renew and expand the energy infrastructure • Encourage investment in new energy technologies • Provide energy assistance to low-income households • Assure appropriate consideration of the impacts of • regulatory policies on energy.

  28. IEEE USA Who Are They? • World’s largest technical professional society • Composed of 230,000 electrical, electronic, computer, • and software engineers • Power related membership approximately 16,000

  29. IEEE USA Comments on Bush/CheneyUS Energy Policy Proposal • IEEE-USA applauds the efforts of George W. Bush and • members of both parties in Congress to create a national • consensus on energy policy. • Believes policy should support a broad and balanced range of • electric generation and conservation options. • States that our nation must invest in new technologies needed • to satisfy future demand. • Specifically supports policies that promote: • Energy Efficiency • Cleaner conversion fossil fuels • Commercialization of renewable energy resources • Nuclear power • Advanced technologies such as fusion and hydrogen

  30. Electric Utility Deregulation • DOE Assumptions • Actual • > 3%/yr Nationwide • > 11% 1999-2000 CA • National energy shortages • 1997-8-9-00 • California reserve < 1.5% • Urgent needs for massive • installation of generation and • transmission year after year. 1. Electric Demand Growth 1.3%/yr 2. 25% Reserve Generation Capacity Excessive 3. Not much need for new infrastructure • Fuel costs especially Natural Gas inflated 2-10 times in 1 year due to shortages • Infrastructure costs to end consumer will be higher without a guaranteed customer base • Utilities must be allowed to earn a profit

  31. Electric Utility Deregulation • Base Generation and Transmission System Expansion are measured in Billion $ increments • Affordability and financing are the biggest issues: • 30 year amortization and 11.9% return on investment were common under regulation • 3 year amortization and 35% return on investment are needed with an uncertain customer base under Deregulation How can Deregulation be improved to accommodate expensive infrastructure requirements?

  32. Generation Projects Reported by Doug Logan • Doug is: • Principle Project Manager of RDI Consulting • RDI is a trademark of Financial Times Energy, Inc. • 3333 Walnut St. Bolder Colorado 80301 • ph: 720-548-5000 fax: 720-548-5001 • email: dlogan@resdata.com • Financial Times web: www.ftenergy.com RDI has developed a comprehensive database on the US and Canadian Electric Utility Systems

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