CLEAN POWER PLAN

Reducing Carbon Pollution From Existing Power Plants

SPORD - P&R

Guam Power Authority 
Agenda 

• Governance & Environmental Stewards• Strategic Initiatives – Integrated Resource Plan – Grants – Organizational Infrastructure Developmen

– New Guam PUC Dockets

• Questions, Requests, & Issues

SLIDE - 2
Governance

• GPA’s Balanced Scorecard has a section 

Environmental Stewardship

• GPA has adopted several key strategic 

initiatives to reduce its environmental footprint

• These initiatives are heavily supported 

SPORD and its internal and external stakeholder partners

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Strategic Initiatives

• Integrated Resource Plan Initiatives 

– Demand-Side Management (Energy Efficiency) – Renewable Energy (Active Energy Generation Substitution) – Replacement of Legacy Generation Fleet with More Efficien

Generation Complying with New and Anticipated Emissions 

– Move to LNG (gas) – Leveraging Smart Grid Grant Technologies – Demand Response – Energy Storage System 

• Grants • Organizational Infrastructure Development • New Guam PUC Dockets 

4
Demand-Side Management

• DSM Programs

– Large Civilian Customers– Federal Customers– Public Streetlights

• IN 2009, GPA partnered with 2 ESCOs to d

Energy Conservation Measures to Custom

– Johnson Controls Inc.

– SAIC– Contracts in final year and up for re-procurem

5
Large Civilian Customers DSM Project

• Projects 

– ARRA Streetlight Retrofit– ARRA GovGuam Building Retrofits Phase 1– ARRA GovGuam Building Retrofits Phase 2– GIAA Energy Conservation Measures– Solar Water Heating Rebate Pilot Program

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Large Civilian Customers DSM Project

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• $15 MM Federal Grant Funded

– Streetlight Retrofit– GovGuam Building Retrofits Phase 1– GovGuam Building Retrofits Phase 2– Solar Water Heating Rebate Pilot Program

• Customer Funded

– GIAA Energy Conservation Measures
Virtual Power Plants

• Large Civilian Customers 

Energy Conservation Measures (Projects) Estimated Annual Energy Savings (kWh)

ARRA Streetlight Retrofit 529,906

ARRA GovGuam Building Retrofits Phase 1 4,008,107ARRA GovGuam Building Retrofits Phase 2 790,032GIAA Energy Conservation Measures 4,866,667Solar Water Heating Rebate Pilot Program 112,016Total: 10,306,728

Environmental Impact Equivalency Annual Environmental Benefits

Lbs. of CO2 Saved 17,237,156 

Acres of Trees Planted Equivalent 2,103 Automobiles Removed From Roadways 1031Gallons of Gasoline Saved 936,975 

8
Pending Large Customer Projects 

• Partnership with Guam Waterworks Au

– Interruptible Load (Reduce Generation Ca

Requirements)

– DSM MOU

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Federal Customer DSM

• Department of the Navy

– Letter Of Intent to Award Utility Energy Services Contract (

GPA

– Preliminary Audit Performed at DoD Facilities– Potentially More than $7 MM in projects

• Army Corps of Engineers

– Awarded GPA a UESC 

– Preliminary Audit Performed (Includes PV System)– In Discussions

• FAA

– Performed Preliminary Audit

– Insufficient Number of Projects to Proceed

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Public Streetlights

• Guam Law requires the Department of 

Works/Guam Power Authority to replaclegacy streetlights with efficient LED technology including the set up of a SpePurpose Entity (SPE)

• Guam Power Authority has begun to in

LED lights in its streetlight inventory

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Renewable Energy Program

• Phase I Renewable Acquisition 

– Awarded Contracts

• 25 MW Solar PV (NRG) - Commercial Operatio

January 2015 

• 9.3 MW WTG (PGR) -Commercial Operation by 

• Phase II Renewable Acquisition (40 – 45 

– Procurement Announced July 1, 2014 at U

http://guampowerauthority.com/gpa_autcurement/gpa_current_rfps.php

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Renewable Energy Program

• GPA Solar PV Program

– Approved by Guam PUC– Procurement Announcement Imminent 

• Week of 8 September 2014• Partnership with GCC

– Covered in more Detail in APPENDICES

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Renewable Energy Program

• Phase III Renewable Energy Acquisition

– GPA and DON partnership

• Up to 66 MW in potential renewable energy projects• Joint Preliminary Evaluation of Several Potential DoD si

Renewable Projects (In-Progress)

• Potential Partnership Models

– Amendment to Utility Services Agreement (USA)– New Green Energy Rates Approved through Guam – Utility Energy Services Contracting– Leaseholds– All of the Above

SLIDE - 14
Integrated Resource Plan

• Main Elements

– Replace Existing Generation with New Gen

• More Efficient• Less costly to Operate & Maintain• Outsourced Operations

– Convert from Residual Fuel Oil (RFO) to LN– Diversify Energy Production from 97% to 1

RFO to Renewable Energy, ULSD, and Gas

SLIDE - 15
Generation: Changing of the Guard

• The critical insight of the IRP is not mov

gas. It is changing to more efficient generation. 

SLIDE - 16
Retooling the Generation Mix

• Reductio

ConventInstalled Generat

SLIDE - 17

Nameplate 

Capacity (MW)

Year 

Effective

Unavailable for Dispatch 

Marbo CT 16 2014Dededo Diesel Power Plant 10 2014Dededo CT (single Unit) 23 2014

Subtotal 49

Planned Removal from Service

Tanguisson Power Plant 53 2015Cabras 1&2 132 < 2022Cabras 3&4 (Candidate) 78.4 2022

Subtotal 263.4

Total 312.4

New Generation

120 2019

60 2021

Total 180

Generation Plant

Removal From Service

Dual-Fired (DFO-Gas) Combined 

Cycle Combustion Turbines

Additions 

(Conventional)
Moving to Gas & ULSD

• GHG ga

EmissioReductiStrategy

– Increa

Efficie

– Fuel S

SLIDE - 18

Nameplate 

Capacity (MW)

Year 

Effective

Existing Generation

TEMES CT 40 2019MEC 8&9 88 2020

Subtotal 128

New Generation

120 2019

60 2021

Subtotal 180

Total 308

Generation Plant

Retrofitted for 

ULSD & Gas

Additions Dual-Fired (DFO-Gas) Combined Cycle Combustion Turbines
Moving to Gas

• Opportunities – Hub for Natural Gas for Micronesia – Facilitate move: 

• Away from Diesel Fuel Use for Other Island Electri

Generation

• Towards Natural Gas and Electricity for Land Trans

and Heavy Equipment

• Towards Natural Gas for Ocean Transportation• Towards a Fuel Cells as Distributed Generation at S

SLIDE - 19
Leveraging Smart Grid Grant Technol

• Submitted Metrics & Benefits Report to 

– Guam Power Authority Narrative Case Stu

Deferral of Generation Capacity Summary

• Potential Energy and Capacity Savings

SLIDE - 20
SA/DA/DSM Projects

SLIDE - 21
Prepay Project

1. Participation in prepaid energy service re

an average reduction in energy usage of 

– (Ozog, Michael. 2013. The Effect of Prepayment on Energy Use (DEFG’s Prepay Working 

Washington, D.C.: Distributed Energy Financial Group LLC. Summary available from http://defgllc.com/publication/the-effect-of-prepayment-on-energy-use/ )

2. Over a fifth of a utility’s consumer base c

switch to a prepaid electricity account wifairly short period of time (2-3 years). – Wimberly, Jamie. 2014. Prepay Energy at an Inflection Point (DEFG’s Prepay Working Grou

D.C.: Distributed Energy Financial Group LLC. Summary available from http://www.ballardcreative.com/clients/paygo/ecopinion-consumer-survey-18-prepay.pdf

SLIDE - 22
Prepay Project

SLIDE - 23

Issues: Prepay $25 upfront Registration fee and $75 upfront deposit requiremeretarding penetration among customers
Demand Response 

• Smart Grid Grant infrastructure provides GPA w

capability for demand response for all custome

• All residential meters and most small commerc

customers have remote disconnect/reconnect 

• All smart meters support TOU and CPP rates• Smart meters have zigbee communications cap

to support Home Area Networks (HAN)

• Capability to support Load Control • Task order signed for DR

SLIDE - 24
Demand Response 

• DR strategic goals

– Peak shifting– Valley filling– Conservation– Load Building (Electric Vehicles)

SLIDE - 25
Energy Storage System

• Benefits

– Reduces 77% of UFLS outages– Decreases Spinning Reserve Requirements– Enhances System Capability for Integration with Non-Firm Renew

Generators

– Reduces Fuel Costs

• 40 MW, $35 MM Bond Project Approved (Phase I)• Multiple Phases

– 40 MW ESS supports up to 90 MW Non-Firm Renewables

– Latter Phases investigate Load Leveling

• Requires GPA Control of:

– Smart Inverters 

– Frequency and Voltage Ride-through Settings

SLIDE - 26
Grants

• $1.505 MM WTG Grant (OIA) – EIS and Permitting Completed – Construction Bid Awarded – 275 KW WTG with Capability to Cant Down and Lock for Sto• $2 MM Proposal (1701-1600) – Fund Strategic Plan for Increasing Solar Penetration for Gua

– Stakeholder-based – Awaiting Decision – Partners:

• Solar Electric Power Association• ScottMadden

• Want More Grants Awarded to GPA!

SLIDE - 27
Organizational Infrastructure Develop

• SPORD Organizational Infrastructure 

Development (DSM & Renewable Energ

– 7 SPORD Technical Staff

• 5 Professional Engineers (Electrical/Mechanica• 3 Certified Energy Managers (CEM)• 5 Certified Energy Auditors (CEA)• 2 certified Building Analyst Professional (BPA)• 6 Enrolled in SEI Solar Professionals Certificate 

SLIDE - 28
New Guam PUC Dockets 

• PUC Docket 13-14 Demand Side Manag

– The PUC ALJ shall work collaboratively wit

and Lummus Consultants to develop and implement a DSM and Energy Efficiency pr

SLIDE - 29
Questions on EPA Plan

• Is the federal government going to provide any 

or subsidy to Guam to off-set the cost that GPA incur as result of implementing EPA’s plan?

• What is the “consistent national formula” (me

in Slide 12) used to calculate each of the propostate GHG emissions goals? Will this be the samformula used to determine the emission rates goal) for Guam?

• Please clarify, statement: 

– “In 2030, total amount of Carbon emission will be 

than 2005 level”

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GPA Requests (SPORD)

• GPA-EPA Partnership should Lead a Stakeholder-based Process 

– Mitigates Downsides– Mitigates Costs & Risk– Maximizes GHG Reductions– Reduces Total Energy Costs for Guam– Promotes a Healthy Power Grid– Serves as an Economic Catalyst

• Projects need external Funding

– GPA has not provided funding for large DSM Program

– $15 MM Federal Grant Funding– $11.9 MM Customer Funding– $1.505 MM WTG Funding– Demand Response not funded

SLIDE - 31
APPENDICES

Solar Partnership Model
Solar Partnership Model

Building Customer Partnerships to deploy solar for the 

benefit of all customers

A GPA Solar Leadership Model
Key Elements of the Model

The Plan• Add approximately 10-30 MW 

solar over the next 30 months

• Pilot the Partnership Model with 

Guam Community College (1-3 MW)

• Add incremental blocks (~5MW) 

at set intervals

Rationale• Fits with overall GPA go• Native load at risk from 

sources

• Net metering follows f

party installations

• Pilot allows go no/go p• Process controlled by G• Stepped MW blocks re

and help with price mi

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Deploying Solar for a Win-Win

Solar PPA

Fuel System Charge

System Charge

Price per kWh

Solar PPA

Green All cus

Solar Partnership Model

Not to Scale

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Program Overview – Phased Approac

Step 1

RFI

Pre-qualify 

bidders

Step 2

RFP GCC 

Pilot site

Step 3

PPA for 

GCC Solar

Step 4

GPA 

recruits 

sites in 5-7 

MW blocks

Step 5

RFP

5 MW 

blocks

Step 6 

PPA for 

~5MW o

additiona

projects

Hard stop depending on price

Multi-step Bid

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Program Overview – Considerations

Qualified bidder list (RFQ) will need to be refreshed after first yeas appropriate (can use QBL for multiple RFP’s depending on timPricing should decline as developers gain market knowledge Pricing will increase as optimal locations are exhausted; allows Gmonitor transitions and assess cost to resource fitGPA will recruit and evaluate which sites are used

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Outcomes

• Opportunity for all ratepayers to benefit from solar• Moderates net-energy metering concerns• Scalable with cost effective sites

Rates

• Creates a long-term solar partnership • Revenue from solar hosting• Visibility as community/solar leaders

Host Customer

• Integrates solar into GPA portfolio • Moderates current fuel price risk• Creates opportunity for asset control and system integra

Resource

• Direct channel for equipment standards and performanc• Creates opportunity for solar asset ownership (ownersh

Ownership • Converts a variable, pass-through fuel cost into GPA asse

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Move to LNG (Gas)

• 2012 IRP recommended GPA switch fro

petroleum based energy production to diversified portfolio

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