Eugene Water & Electric Board

The Future of Utilities in the Pacific Northwest

November 10, 2015 1

The Future of Utilities

in the Pacific Northwest

Mark Freeman, EMS & CS Manager

Dan Morehouse, EMS Program Supervisor C&I

Eugene Water & Electric Board

2

Industry Challenges

1. Forecast of energy prices

continue to decline in the NW

2. Flat or modest load growth

3. Increasing RPS requirements

(esp CA)

4. Integrating renewables and

associated system carrying

capacity

5. Technological advances in

storage & DG

6. Changing customer priorities

7. Aging Infrastructure

8. Hydro Relicensing & BPA fish

mitigation costs

9. Emissions trading & EPA Clean

Power Rule

10. 7th Power Plan

11. BPA Energy Efficiency

Incentives

12. Competition from natural gas

3

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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

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Annual Average of Price Forwards

12/24/2007 1/2/2009 1/4/2010 1/3/2011 1/3/2012 1/2/2013 1/2/2014 1/2/2015 7/14/2015

Forward Price Curves Trends Annual Views of the FPC from 2007 to 2015

Basic Charge Comparison

(Residential)

$4 $7 $8

$11 $11 $11 $11 $12 $14 $15

$18 $20 $20 $20

$23

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The Big Question:

Why do energy conservation when we

are long on power?

• Customer Value – Customer Satisfaction

• Regional Alignment

• Legal/Legislative Requirements

• Load Management

• BPA Reimbursement

• Test/Build DR Capacity

Triple bottom line case for meeting future growth

Demand Response

(DR)

Conservation

Energy Efficiency (EE)

Decreasing electricity use for short

periods of time in response to

temporary system load peaks.

Modify regular behaviors to

conserve energy such as shutting off

equipment when not in use or lower

thermostat settings when not home.

Installing equipment or using

building practices to

permanently reduce

consumption.

Incorporate Demand

Two components of incentives:

• Energy

• Coincident peak demand targets

Examples:

Commercial Lighting Incentives

Commercial VRF

Residential HPWH

New Technology: Market & Regulatory Drivers

Two way

communications

& system

automation

Battery

Storage

Photovoltaics Sensors &

Devices

Electric Vehicles

9

EWEB R&D

Cold Storage

Demand

Response

Time of Use

Pricing

Community Solar

Water

Heaters as

Thermal

Storage

Grid Edge

(Microgrid)

Demonstration

Project

10

The Eugene Water & Electric Board

• Electric Utility

- 89,000 Meters (XX,XXX customers)

- 70% power purchased from BPA

- 23% owned & co-owned generation

- 7% power contracts

• Water Utility

- 52,000 Meters (XX,XXX

customers

- McKenzie River

- 26 Reservoirs

12

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$/M

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Market Price Forecasts and Historic

Hourly Prices Historic Hourly Average

IERP Average Price Forecast

March 2015 Low Carbon Price

Forecast

2008 Medium Forcast