# EL PASO ELECTRIC COMPANY

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# Renewable Energy

## EP **E Today** 

**Serving the local community**  **for 110 years**   372,000 retail and wh olesale cu stom ers  10,000 - square - mile service terr itory  $1.5 million in annual charitable and econom ic developm ent contributions  $1.2 million to be spent in redesigning several key instruments and sensing lines to be protected to - 10 degrees F  Mo re than $800 million in capital investm ents through 2015: – New generation (i ncluding traditional & ren ewable energy) – Expansion and updating of transmission & distribution infrastructure – Capital investments at Pa lo Verde 2

## EP **E Ser** **vice Territ**  **ory**

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## EP **E’ s Current E**  **nergy Portfolio**

4 **EP E’**  **s Generation Su**  **mmer 2011 Nuclear**  **633 MW**  **Natural Gas** **1,053 MW Coal**  **108 MW**  **Renewable 26 MW** **(1) TOTAL**  **1,815 MW Note 1:**  **25MW**

**owned by other**  **parties. EPE buys all**  **output.**

## Renew**ab le** **En ergy** 

**Renewable energy sources regenerate**  **and can be sustained indefinitely** (unlike fossil fuels w hich are exhau stible)

**EP E**  **Service Territory** 

#  Solar 

#  Biomass 

# × Wi nd (not ty pically available in summer) 

# × Hydro (we live in a desert!) 

# × Geotherm al (l ittle underground activity) 5

## SOLAR  Advantages
– No emissions – Availability during peak summer demand – Can be integrated with ex isting generation – Fuel source is free  Disadvantages
– Large land requirements – No power at night – Re duced output on cloudy and dusty days – Limited or costly st orage capabilities – Re quires traditional generation backup 6

## BIOMASS Biomass (m anure from feed lots / trash fr om landfills)  Advantages
– High efficiency – Low emissions  Disadvantages
– Location needs to be near a fuel source – Un pr oven technology on large scale with dairy farms – Re quires traditional generation as backup 7

## WIND  Advantages
– No emissions – Low operating costs – Fuel source free  Disadvantages
– Wi nd is not constant ( El Paso is not in a wind corridor) – May notb e available during summer peak mont hs – New transmission lines add to the cost of wind energy – Re quires traditional generation as backup 8

## El **ectricit y**  **Cost Com pa**  **rison**

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**Indus try**  **Da ta**  **Capacity/ by Resour** **ce T**

**ype Av** **ailability Ins** **talled To** **tal** Costs are in 2010 $ **Fa ct** **or*** **$/kW*** **¢/kWh*** Solar (thermal) 25% 6,106 31.7 Solar (photovoltaic) 25% 6,014 11.0 - 27.9 Wind 36% 2.352 8.2 Biomass (landfill) 90% 1,350 5.9 Natural Gas CC 75% 1,076 10.1 Nuclear (advanced) 90% 4,181 11.6 Coal (scrubbed) 85% 2,468 8.3 *Source: Electric Power Research Institute / 2010 Technical Summary Reports (some values rounded).

## EP **E &**  **Renew ab**  **le En**  **ergy**

**EP E**  **is committed to**  **supporting the developm**  **ent of** 

**renewable energy projects in our**  **Texas & New Mexico service territories**  **Factors that im**  **pact EP**  **E’ s renewable energy**  **decisions:**
– Costi mpact on rate payers – Ongoing advancements in renewable energy tech nology – Identifying fe asible ren ewable projects forour territory 10

## State **Renew ab**  **le P** **ortfol io**  **Stand ards**  **Texas**  Electricity pr oviders mustme et collective renewable capacity requirements based on their market share of energy sales in TX  Mustbe mett hrough renewable energy credits (RE C’s) or generated/purchased in TX  EPE t o obt ain renewable energy capacity equaling approximately 2% o f its Te xas sales **New Mexico**  Re newable energy credits (R EC’s) and/or generated energy o 10% by 2011 o 15% by 2015 o 20% by 2020  Standards require diverse mix of renewable energy: o Atmi nim um 20% solar o Atmi nim um 20% wi nd o Atmi nim um10% other ( biomass, geothermal, landfill gas) 11

## Custom **er Pa**  **rt icipat**  **ion in** 

**Renew ab**  **le En**  **ergy EP**  **E’ s Voluntary**  **Renewable En**  **ergy (VRE)** **Tariff** • VRE Ta riff enables customers to support the use of electric energy produced by renewable energy resources such as: • Solar • Wi nd • Biomass • Mo ney is banked for fut ure projects • EPE is wo rking on new projects for voluntary tariff 12

## EP **E’s Current** 

**Renewable En**  **ergy Projects**
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## Hueco **Mountai n Wind**  **Ranch**  2 wi nd tu rbines  Located east of Horizon, TX  Began operating in 2001  Cost: $2 million  Capacity: – 1.32 M W – 660 kWe ach turbine – 438 homes/year 14

## El **P aso Zoo P**  **roject**  Solar PV & Wind dem onstration building  Located in the El Paso Zoo African Exhibit  Educates visitors about renewable energy  Began operating in 2010  EPE contribution: $750,000  Capacity – 3 kW solar photovoltaic panels – 3.5 kWw ind turbine 15

## Southw**est En**  **vironment al**  **C enter**  **(SWEC)**  Solar Ph otovoltaic System  Located in Las Cruces, NM  Began operating in 2008  Capacity: – Approx11.57 MW h /yr – 2 homes/year 16

## Cam **ino Real**  **L andfi**  **ll (CRLE**  **F) Project**   Me thane harvested fromlandfill gas  Located in Cam ino Real Landfill, Sunland Park, NM  Ow ned by Fou r Peaks Energy, Inc  Began operating in 2008  Capacity: – 1 - 3 MW – 1,190 homes/year 17

## Sol **ar P V**  **System s at**  **New ma**  **n**

**& Ri**  **o Grande**  **Po we**  **r Pla**  **nts**  2 Solar Ph otovoltaic System s  Located at New ma n & Rio Grande Powe r Stations  Cost: $7,238/kW  Began operating in 2009  Capacity: – 130,000 kWh/year per system – 260,000 kWh/year total – 40 homes/year 18

## EP **E’s Planned**  **Renewable En**  **ergy Projects**
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## Hatch P **roject**  Solar Ph otovoltaic System  Located in Hatch, NM  Ow ned by Nextera Energy  On - line Date: Ju ly 8, 2011  Capacity: – 5 MW – 1,600 Homes/year 20

## NRG Sol **ar P roject**   Solar Ph otovoltaic System  Located in Santa Te resa, NM  Ow ned by NRG Energy  On - line: Au gu st, 2011  Proposed Capacity: – 20 MW – (~ 6,600 homes/year) 21

## SunEd **is on Sol**  **ar P roject**   Solar Photovoltaic System  Located in Las Cruces & Chaparral, New Me xico  Owned by SunEdison  On - line: – Las Cruces: M arch 2012 – Chaparral: April 2012  Pr oposed Capacity: – 22 M W – 7,300 Homes/year 22

## Project **s in**  **the El**  **P aso Area**  **PROJE CT**  **INFORMATION** • Project Type: Solar Phot ovoltaic System s • Fu el Source: Sun • Project Locations: • EPE Stanton Building Downtown El Paso • Pr oposed Capacity: 33 kW(~ 11 homes/year) • Owner : EPE • On - line Date: September 2011 • EPE Wrangler Substation (east El Paso near I - 10) • Pr oposed Capacity: 53 kW(~ 18 homes/year) • Owner: EPE • On - line Date: September 2011 23

## Project **s in**  **the El**  **P aso Area**  **PROJE CT**  **INFORMATION** • Project Type: Solar Phot ovoltaic System s • Fu el Source: Sun • Project Locations: • El Paso Community College ( EPCC)ATC Building (i n discussion phase) • Pr oposed Capacity: Pe nding discussions with EPCC • Owner : EPE would own and maintain • EPE would also donate two pedestal mountsyst em s t o EPCC that may be used for instructional purposes. 24

## Thank you for your **ti me**  **.**

**QU ESTIONS???**  25