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The Results Center, Profile #29 1
Western Area
Power Administration
Solar DSM
Profile #29,1992
Executive Summary
2
Utility Overview
3
Western 1991 Statistics Table
Utility DSM Overview
4
DSM Overview Table
Program Overview
5
Cost Effective PV Applications for Electric Utilities Table
Implementation of Solar DSM
6
Measures Installed; Staffing Requirements
Monitoring and Evaluation
7
Data Quality; Costs Overview Table; Conventional Service Costs (chart); Photovoltaic Service Costs (chart)
K. C. Electric Association Case Study
8
Implementation; PV Pumping System Specifications Table; Cost Comparison (chart); Measures Installed
Lessons Learned / Transferability
12
References
13 2
Conventions
For the entire 1992 profile series all dollar values have
been adjusted to 1990 U.S. dollar levels unless otherwise
specified. Inflation and exchange rates were derived from the
U.S. Department of Labors Consumer Price Index and the
International Monetary Funds International Financial Statis-
tics Yearbook: 1991.
The Results Center uses three conventions for present-
ing program savings.
Annual savings
refer to the annual-
ized value of increments of energy and capacity installed in
a given year, or what might be best described as the first full-
year effect of the measures installed in a given year.
Cumu-
lative savings represent the savings in a given year for all
measures installed to date.
Lifecycle savings are calculated
by multiplying the annual savings by the assumed average
measure lifetime.
Caution: cumulative and lifecycle savings
are theoretical values that usually represent only the technical
measure lifetimes and are not adjusted for attrition unless
specifically stated.
Executive Summary
Western Area Power Administration (Western) is a federal
power marketing agency that was created in 1977 and is
responsible for marketing energy to 615 wholesale power
customers. These wholesale customers provide retail energy
service to millions of customers in the central and western
states, an area covering 1.3 million square miles. Western
markets power from 50 power plants and sells 15% of the
nations hydroelectric generation.
The Hoover Power Plant Act of 1984, which has been
superseded by the 1992 Energy Policy Act, required that all of
Westerns customers develop conservation and renewable
energy programs (C&RE) as a prerequisite for purchasing
Westerns low-cost, preference power. Western estimates that
over 3,000 customer C&RE activities are currently under way as
a result of this contract requirement. Western assists in cus-
tomer C&RE programs by providing peer matches, workshops,
informational services, customer visits, technology transfer,
and equipment loans.
Nearly 50 rural electric cooperatives (RECs) in Westerns
service area are now investigating the use of photovoltaic (PV)
power as both a cost cutting and new service option. To date,
14 rural electric cooperatives in Westerns service area have pilot
PV programs which account for approximately 80 PV installa-
tions. These small utilities recognize that PV power can greatly
reduce the cost of service to small outlying or difficult to serve
loads. Often, a PV powered system is the least expensive
solution for the load requirement due to either the cost of
extending the utility line to the site, or the recurrent cost of
repairing existing power lines which are damaged by storms.
Examples of these loads include water pumps, communica-
tions, cathodic protection, battery charging, off grid residential
(often summer cabins), sign and security lighting.
Westerns involvement with PV applications began in 1989
with a request for technical assistance from K.C. Electric in
Hugo, Colorado. K.C. Electric got the notion for remote PV
applications in 1989 after a series of winter storms in which the
utility lost close to 1,000 power poles. The resulting K.C. Electric
program has served as a model for others looking to evaluate
and implement PV programs. K.C. Electric identified 511 utility-
powered stock well or fence charger services, and 90 miles of
distribution line that included approximately 65 well services.
Since these 511 services totaled more than a half a million
dollars in plant investments (3% of total coop plant investment),
and annual revenues of only $78,000 (0.3% of annual rev-
enues), remote PV applications seemed to be a logical solution
to the problems confronting K.C. Electric.
This profile introduces the concept of solar demand-side
management, explores various opportunities for its application,
and also presents the case study of K.C. Electric and its
photovoltaic installations. This profile presents the important
interface between renewable energy and DSM.
Solar DSM Program
Utility:
Western Area Power
Administration
Sector:
Agricultural
Measures:
Photovoltaic systems for small,
remote loads.
Mechanism:
Information provided and
portable demonstration systems
installed for participants who
ultimately purchase their own
systems.
History:
Pilot program began in 1989 at
K.C. Electric Cooperative in
eastern Colorado, various pilot
programs running presently.
Participation:
14 rural electric cooperatives
currently have solar DSM
programs.
Installations:
80 P.V. systems
Funding:
Program supported by Western
Area Power Administration and
installations paid for by
individual ranchers. 3
Utility Overview
WESTERN 1991 STATISTICS
Number of Customers
615
Energy Sales
33,858 GWh
Energy Sales Revenue
$614.030 million
Peak Demand
6,872 MW
Generating Capacity
10,407 MW
Reserve Margin
51 %
Western Composite Wholesale Rates
Billings Area
1.05-1.14 ¢/kWh
Loveland Area
1.80-1.89 ¢/kWh
Phoenix Area
0.84-0.96 ¢/kWh
Sacramento Area
3.06 ¢/kWh
Salt Lake City Area
1.56 ¢/kWh
[R#1,3]
Western Area Power Administration (referred to through-
out this profile as Western) is a federal power marketing
agency created in 1977 with the passage of the Department
of Energy Organization Act. Western markets energy to 615
wholesale power customers. These wholesale customers
provide retail energy service to millions of customers in the
central and western states. Westerns service area covers
approximately 1.3 million square miles and includes the
states of Arizona, California, Colorado, Iowa, Kansas, Minne-
sota, Montana, Nebraska, Nevada, New Mexico, North
Dakota, South Dakota, Texas, Utah, and Wyoming. Western
markets power from 50 power plants run by the U.S. Army
Corps of Engineers, the Bureau of Reclamation, and the
International Boundary and Water Commission.
Western sells 15% of the nations hydroelectric genera-
tion and 75% of the regional hydroelectric generation. In
1991, Western marketed 33,858 GWh of power which
accounted for more than $614 million in gross revenues. Peak
demand for the year was 6,872 MW while Westerns
generating capacity was 10,407 MW. Western operates more
than 16,550 miles of transmission lines. Western energy sales
for 1991 were as follows: municipalities 10,248 GWh, coop-
eratives 7,518 GWh, state agencies 4,519 GWh, public utility
districts 3,642 GWh, irrigation districts 2,487 GWh, investor
owned utilities 2,245 GWh, federal agencies 2,072 GWh, the
Bureau of Reclamation 636 GWh, and interdepartmental
transfers 487 GWh. Westerns electricity rates are very low.
Composite wholesale rates for Westerns five area offices
range from a high of 3.06 cents per kWh for the Sacramento
area office to a low of between 0.84 and 0.96 cents per kWh
for the Phoenix area office.
Western dealt with many environmental concerns in
1991. The environmental issue having the greatest direct
effect on Western was the continued drought that has
plagued the west for the past six years. Western was forced
to buy over 10,000 GWh of power in large part because of
generating restrictions caused by the drought. Hydro genera-
tion for Fiscal Year 91 was 23,000 GWh compared with an
average generation of 30,100 GWh for the years 1986 to 1990.
Additional environmental issues led to reductions in
power marketed by Western. Central Valley power plants
were temporarily bypassed to ensure the correct temperature
for spawning winter run salmon in California rivers. Similar
water flow adjustments were made to protect endangered
species in the Missouri River and Upper Colorado River
basins.[R#1,3] 4
Utility DSM Overview
Westerns involvement with DSM programs began in
1981 with the creation of the Conservation and Renewable
Energy Program (C&RE Program). The C&RE Program was
d