# EP

**A’ s Pr** **oposed St andar** **ds of**  **Pe rf** **ormance f or Gr** **eenhouse Gas Emissions fr** **om New St at**  **ionary Sour** **ces**

June 2014

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# Golden Spr**ead Electric Cooper** **at iv** **e,**

**Inc.**  **Mission:** To Pr ovide Ex cellen t S er vice to our Distribution Members b y Cr eating O pportunities , Cultiv ating C ooper ation , and Na vig ating I ndustry Risk s 

###  **Headquart er** **s:** Amarillo , Te xa s 

###  **Serv es**  **:** o Full R equirement S er vice to sixt een Electric Distribution C ooper atives (Members) o Members s er ve 223,000 Member C onsumer s and 24% of the ge ographic ar ea of T

exa s along with the Oklahoma P anhandle o Member Ser vice Areas are loc ated in Electric R eliability Council of T exa s (ERCOT) and Southwest Po wer Po ol (SPP) o 2013 Member Pe ak Demand

– 1,547 MW

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# Impacts of Pr**oposed NSPS on Na tur** **al Gas**  **- Fir** **ed Combus** **tion T urbines**   BSER for g as - fir ed combus tion turbines based on natur al ga s co mbined cy cle (NGCC) te chnology: o Large unit limit is 1,000 lbs CO2/MWh o Small unit limit is 1,100 lbs CO2/MWh  Applies to a unit that is “cons tructed fo r the purpose of supplying , and supplies, one - thir d or mor e of its potential electric output and mor e than 219,000 MWh net
- electrical output to a utility dis tribution syste m on a 3 y ear r olling a ve ra ge basis .”

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# Summary of Major P **oin ts**   Re st ricting SC operation to no mor e than 33% over a thr ee y ear period ma y r esult in higher GHG emissions, wher e the r equir emen t re sults in gr eater curt ailmen t of r enew able r esour ces o Fa stra mping SCs support r enewables mor e efficiently than combined cy cle 

###  Market fo rc es will naturally re st rict the dispat ch of SC units.  To support re newable energy generation, EP A should exe mpt SC units fr om its Pr oposed NSPS fo r EG Us

.

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# Golden Spr**ead’ s**  **Str ate**  **gy**  Golden Spr ead is pursuing a s tr ate gy t o co mbine its natur al

- ga s fir ed “fas t
- sta rt ” SCs with the abundan t wind gener ation in its re gion t o pr oduce “virtual baseload gener ation” that is r eliable

.  Because of its unique location, Golden Spr ead is “tip of the spear ” on this issue.

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###  Golden Spr ead is loc ate d in ar ea with high r enew able pot en tial.  ER COT and SPP ar e completing significant transmission grid upgrades, enabling incr eased re new able in te gration.  Golden Spr ead serves loads in two electric grids (SPP and ER COT) which ar e not synchronously c onnect ed.  Golden Spr ead is developing generation r esour ces which will be able t o connect to either grid. 

# Fa **ct or** **s Aff** **ecting R enew** **able P ot**  **en tial** 

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# Fa **st S** **ta rt**   SPP defines a “fas t
- sta rt ” r esour ce as one that ca n be s ta rt ed , synchr oniz ed and inject energy within t en minut es of notification.
o A modern SC unit can be at 70% load in 10 minutes and 100% load in appr ox imately 11 minutes. o Adv anced CC units can be at 75% of combus tion turbine capacity in 10 minut es and 100% load in appr ox imately 2 1/2 hours, fr om a cold state
.

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# U. **S. Wind Speeds**

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# Re **new able Ener** **gy in ER CO** **T**

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## SPP **and ER CO** **T Tr** **ansmission Map**

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## Golden **Spr ead Member Ser** **vice Te**  **rrit ories** 

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###  Single Gener at ion Plan t  Ve rtic ally Integr ated Electric Utility  Electric Grid  Independen t Syste m Oper ator (ISO) Coor dina ted Market  ISO Market with Utility Scale R enewable In tegr at ion  ISO Market with Distributed Gener at ion and Demand Re sponse 

# U. **S. Electric Mark** **et Ev** **olution**

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###  Steam Electric St at ion (Natur al Gas, Coal Nuclear)

11, 600 BTU/kwh  Combined Heat and P ower (Natur al Gas Cogener at ion)  Combined Cy cle (Natur al Gas fir ed) 7,000 BT U/kwh  Simple Cy cle (Na tur al Gas) 9,000 BT U/kwh 

# U. **S. Gener at**  **ion T**

**echnology E vo**  **lution**

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# ER **CO T Wind Dev** **elopmen t** 

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# Re **new able Gener** **at ion P**  **atte rns**  **ERCO T Load vs. Actual Wind Output**  Re newable Gener ation Units typically ex perience daily cy cles, with wind ge ner ation re sour ces often peaking out of sy nc with peak consumer electric demands and solar re sour ces peaking during the da ytime.

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# ER **CO T Mon**  **thly Wind Output** 

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# SPP Dispa **tc h**  **Mix**

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###  In the early morning hour s of June 7 th 

### , ERCOT e xperienced a wind gener at ion r eduction of appr ox imately 5,000 Meg awatt s*.  ERCOT total wind gener at ions dr opped by about half of its total peak, which e xc eeded the output of all four nuclear ge ner at ion units curr en tly oper at ional within ERCOT.

* ERCOT’ s all time wind output of 10,296 MW occurr ed on 3/26/2014 

# ER **CO T Wind E** **ve nt** **June 7, 2014**

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###  Golden Spr ead oper ates tw o types of quick st art g ener at ion units: o Re cipr oc ating Engines o Simple Cy cle Combustion Tu rbines 

###  SPP “Integr ated M arketplace” beg an Mar ch 1 st 

### , 2014 o Estimated to r educe c onsumer c os ts by $100 million annually

. o Impr ove market eff iciencies o Golden Spread’ s W artsila (R ecipr oc ating Engine) units ha ve increased their st arts fr om appr ox imately 200 starts/month to appr ox imately 1,200 st arts/mon th following the new market implemen tation. 

# Golden Spr**ead Quick St**  **art Usag**  **e**

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## Wa **rtsila Quick St art Gener** **at ion**  **Units**

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# GE 7F **A 5 Series Combus tion T** **urbine**

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###  Golden Spr ead’ s Pa nhandle Wind Ranch oper ates in the Southwest Po we r P ool and has curt ailed the output of the wind turbine ge ner at ion.  2013 Oper at ions
o Actual Pr oduction 48% c apacity , P ot en tial Pr oduction 56% c apacity 

###  2014 Jan
– Ma y Oper at ions
o Actual Pr oduction 46% c apacity , P ot en tial Pr oduction 62% c apacity 

# Golden Spr**ead Wind Curt ailmen**  **t**

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###  Dispat chable generat ion units need to be cy cled on and off mor e fr equently to maint ain grid r eliability and accommodat e va riable r enew able generat ion output.  Operat ing dispat chable units at minimum output levels ma y for ce r enew able units to curt ail their output to main ta in s yste m r eliability

.  Con ventional combined cy cle s ta rt
- up time  New d esign combined cy cle s ta rt
- up time 

# Combined Cy**cle vs. Simple Cy cle** 

23**Golden Spr ead Sample Grid**  **Fa ll/Spring Da**  **y in the Electric P ower Mark** **et with High Wind and High CC Capacity**

**Hour Ending**  **Demand Wind**  **Nuclear Coal**  **Gas SC Gas CC 2X2**  **Gas 1X1**  **Max Wind**

**Potential Wind** 

**Curtailed 1**  2700 450 250 1350 0 0 650 850 400 **2** 2700 450 250 1350 0 0 650 800 350 **3** 2700 450 250 1350 0 0 650 825 375 **4** 2700 450 250 1350 0 0 650 835 385 **5** 2700 450 250 1350 0 0 650 715 265 **6** 2900 500 250 1500 0 0 650 650 150 **7** 2975 450 250 1600 25 0 650 600 150 **8** 3125 475 250 1750 0 0 650 500 25 **9** 3265 315 250 1900 150 0 650 415 100 **10** 3485 385 250 2000 200 0 650 450 65 **11** 3475 325 250 2000 250 0 650 325 0 **12** 3700 350 250 2000 350 750 0 350 0 **13** 3775 345 250 2000 330 850 0 345 0 **14** 3915 300 250 2000 415 950 0 300 0 **15** 4090 265 250 2000 525 1050 0 265 0 **16** 4235 235 250 2000 675 1075 0 235 0 **17** 4500 200 250 2000 950 1100 0 200 0 **18** 4450 225 250 2000 860 1115 0 225 0 **19** 4135 300 250 2000 585 1000 0 300 0 **20** 3990 375 250 2000 315 1050 0 375 0 **21** 3650 415 250 1800 185 1000 0 415 0 **22** 3250 400 250 1600 50 950 0 400 0 **23** 2950 400 250 1500 0 800 0 525 125 **24** 2700 400 250 1350 0 0 700 675 275
**Total CC CO**  **2 emissions**  **in lbs** 19,540,000 Total MWh 5,865 11,690 7,850 11,575 2,665 **Total CT CO**  **2 emissions**  **in lbs** 7,624,500 **Total Combined**  **CO 2**  27,164,500 **Assumptions**

**Generation (MW)**  **Max**

**Load Output**  **(MW) Minimum** 

**Load Output**  **(MW) Nuclear**  250 250 **Coal** 2,000 1,350 **SC** 1,350 0 **CC 2X1** 1,600 750 **CC 1X1** 1,100 650 **Wind** 1,100 0

24**Golden Spr ead Sample Grid**  **Fa ll/Spring Da**  **y in the Electric P ower Mark** **et with High Wind and High SC Capacity**

**Assumptions**

**Generation (MW)**  **Max**

**Load Output**  **(MW) Minimum** 

**Load Output**  **(MW) Nuclear**  250 250 **Coal** 2,000 1,350 **SC** 2,350 0 **CC 2X1** 1,000 375 **CC 1X1** 700 300 **Wind** 1,100 0 **Hour Ending**  **Deman**

**d MW Wind**  **Nuclear Coal**  **Gas SC**  **Gas CC 2 x 2**  **Gas CC 1**

**x 1 Max Wind** 

**Potential Wind** 

**Curtailed 1**  2700 800 250 1350 0 0 300 850 50 **2** 2700 800 250 1350 0 0 300 800 0 **3** 2700 800 250 1350 0 0 300 825 25 **4** 2700 800 250 1350 0 0 300 835 35 **5** 2700 715 250 1350 0 0 385 715 0 **6** 2950 650 250 1500 125 0 425 650 0 **7** 2975 600 250 1600 200 0 325 600 0 **8** 3125 500 250 1750 250 0 375 500 0 **9** 3265 415 250 1900 275 425 0 415 0 **10** 3485 450 250 2000 285 500 0 450 0 **11** 3475 325 250 2000 350 550 0 325 0 **12** 3700 350 250 2000 450 650 0 350 0 **13** 3775 345 250 2000 480 700 0 345 0 **14** 3915 300 250 2000 565 800 0 300 0 **15** 4090 265 250 2000 675 900 0 265 0 **16** 4235 235 250 2000 750 1000 0 235 0 **17** 4500 200 250 2000 1000 1050 0 200 0 **18** 4450 225 250 2000 975 1000 0 225 0 **19** 4135 300 250 2000 635 950 0 300 0 **20** 3990 375 250 2000 515 850 0 375 0 **21** 3650 415 250 1800 350 835 0 415 0 **22** 3250 400 250 1600 200 800 0 400 0 **23** 2950 525 250 1500 50 0 625 525 0 **24** 2700 675 250 1350 0 0 425 675 0 **Total CC CO**  **2 emissions**  **in lbs**  14,770,00 Total MWh 8,130 11,010 3,760 11,575 110 **Total CT CO**  **2 emissions**  **in lbs** 10,569,000

**Total Combined**  **CO2** 25,339,000

25 Modern US LMP electric markets optimiz e the output of ge ner ators by location every fiv e minut es (or less).  Market design r ewards economic oper ation of electric ge ner ation units and incents inefficient gener ation units to be mothballed and r etir ed.  Gener ation units with the lowest v ariable cos ts will oper ate most often. Units with higher v ariable cos ts will gener ally oper ate less often. Gener ation units with longer start up times ma y not oper ate fr equen tly

, particularly if load fluctuates r apidly or if high lev els of low cost, v ariable r enewable r esour ces ar e ava ilable in the wholesale marketplace. Gener ation units with high s ta rtup costs will oper ate less often, unless they ha ve ex tr emely low v ariable oper ating costs. 

## US Locational **Mar ginal**  **Priced Wholesale**  **Electric Mark et**  **s**

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# Golden Spr**ead “ Virtual**  **Baseload ”** 
 Simple Cy cle + Wind Fa rm  Appr ox imate 4,500 BT U/kwh (assuming 50 % capacity fact or fo r wind fa rm)  600 lbs/C O 2 

### per MWh

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###  Because wind power is quickly assuming a gr eater ro le in the coun try ’sgenerat ion portfolio , r esour ces mus t be in place to main ta in grid s ta bility and meet load when weather conditions ar e not conducive to wind energy pr oduction.  Combined Cy cle units, due to their performance char act eris tics, do not supplemen t r enew able te chnologies as well as Simple Cy cle Combus tion Tu rbines in all cases, especially in ar eas of high re newable integr at ion.



# Summary

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# Summary c **on tinued...**   Fo rc ing generators to ins ta ll combined cy cle units wher e simple cy cle units ar e indicat ed and limiting the hour s of oper at ions fr om such fle xible r amping r esour ces will for ce curt ailmen ts of r enew able generat ion (because less gener at ion will be a va ilable to support grid s ta biliz at ion).  Because simple cy cle units ha ve high oper at ing cos ts, the y will be the las t to be dispat ched unless ther e is good r eason to dispat ch them out
- of

merit, such as to support grid r eliability or the use of r enew able r esour ces.

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###  To support re newable energy generation, EP A should exe mpt Simple Cy cle units fr om its Pr oposed NSPS fo r EG Us

. 

### o To fa cilit ate their support of r enewable energy re sour ces o Because simple cy cle units ar e not big contributor s to global warming pollut an ts o Because the newest simple cy cle units ha ve high energy efficiencies o Because their use is inher en tly limited by pr oduction economics 

# Conclusion

3031 New Electric Generating Plants in T exa s since 1995, PUCT (slide 9) http://www.puc. texa s.g ov/industry/maps/elecmaps/gentable.pdf  ERCOT, System Planning , Monthly Status R eport, April 2014 (slide 14) http ://www.er cot.com/calendar/2014/06/20140605

- RO S , page 11.  SPP St ate of the Market R eport, December 2013

– February 2014 (slide 17) http://www.spp.org/ publications/SPP_MSOM_R eport_2013_14_Wint er .pdf , p. 14.  Po tomac E conomics, Ltd. Independent Market Monitor , June 2013, ERCOT 2012 St ate of the Market R eport (slide 16) http ://www.potomaceconomics.com/uploads/er cot_reports/2012_ERCOT_SOM_ REPORT .pdf , page 66.  ERCOT News R elease, 2014 Mar ch 28, “Wind gener ation output in ERCOT t ops 10,000 MW

, br eaks record” (slide 18) http://www.er cot.com/news/press_releases/show/26611  GSE C comments filed with EP A, Docket No. EP

A

- HQ

- OA R

- 2013

- 0495, (slide 24

- 26) http://www.r egulations. gov/contentStreamer?objectId=09000064816ede96&dis position=attachment&contentT ype=pdf 

# Re **fe re**  **nces**

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