Glenn Spurlock June 10, 2013 1 FECA Engineers Conference SEMINOLE UPDATE

Glenn SpurlockJune 10, 2013

1 June 10, 2013

FECA Engineers ConferenceSEMINOLE UPDATE

SEMINOLE UPDATE

2013 – New General Manager

2014 – LCEC exit

2017 – Peaking needed (PPA vs. Build)

2020s – Combined Cycle and Peaking needed (PPA vs. Build)

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SEMINOLE UPDATENEW MEMBER INTERCONNECTS

CFEC – <2 MW Biogas (operational 2012) TCEC – 2 MW Solar CEC – 3.2 MW Landfill Gas SECO – 5 MW Solar (removed from

queue) CEC – 12 MW Solar GEC – 25 MW Co-Generation TEC – 60 MW Solar PRECO/SECI 160 MW IPP3

SEMINOLE UPDATE

FERC Order 1000– Regional & Interregional Transmission Planning– FERC Jurisdiction Entities Must Comply– Details:

Project Qualification Criteria Cost Allocation Process Project Justification:

– Reliability– Cost Effective/Efficient– Public Policy

Implementation thru OATT Attachment K Process4

OTHER INTERESTING FACTS

2013 – Duke Crystal River 3 decommission announcement

2016 – Duke Crystal River 1 shutdown 2016 – Duke Crystal River 2 shutdown

FRCC does not have models available for utilities to perform transmission planning studies5

QUESTIONS?

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7 June 10, 2013

FECA Engineers ConferenceSWECKER VS. MIDLAND

BACKGROUND

In 1998, the Sweckers, retail customers of Midland Power Cooperative in Iowa, purchased a 65 kW wind generator for their farm. The wind generator was a renewable resource which met the requirements of a qualifying facility (QF).

8 FECA ConferenceJune XX, 2013

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DISPUTES

Almost immediately after being connected to Midland’s system, the Sweckers began to have disputes with Midland concerning:(1) What connection fee the Sweckers need to pay, as a

qualifying facility (QF) or as a farm/residential connection;

(2) What avoided cost amount Midland should pay the Sweckers for purchasing electricity; and

(3) What venue certain legal actions must commence within, and more…

FECA ConferenceJune XX, 2013

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SWECKER POSITION

The Sweckers argue that the avoided cost that Midland is paying the Sweckers for the electricity produced by their wind generator is too low, and that Midland owes the Sweckers money.

The Sweckers stopped making payments for electric service to Midland, pending resolution of the issues.


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SWECKER POSITION

The Sweckers argue that because they have filed the avoided cost complaint, that the issue is still on going and thus Midland cannot disconnect the Sweckers until the issue has been fully vetted.


MIDLAND ACTIONS

In 2011: FERC published its intent not to take action on the

avoided cost dispute between the parties. Midland disconnected the Sweckers due to non-

payment of electric bills. Midland stated that the Sweckers could be

reconnected if the Sweckers paid their electric bill.


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PROPER DISCONNECT (?)

On December 9, 2011, the Sweckers filed a complaint that Midland trespassed on their property and locked the Sweckers’ disconnect switch without permission, thereby shutting off electric service to the Sweckers’ QF and residence.

PROPER DISCONNECT (?)

The Sheriff was called and Midland admitted that the disconnect switch was property owned by the Sweckers.

Midland’s crew, in the presence of the Sheriff, removed the lock on the disconnect switch.

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ISSUE PRESENTED

Can an electric utility unilaterally disconnect a QF for non-payment of past bills?


EXPLANATION

Answer: No

FERC reasons that termination, even a temporary termination, may only be accomplished by following the FERC’s rules for termination, i.e., applying to FERC for the ability to terminate.


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DEC. 15, 2011 FERC ORDERHOLDING AND ANALYSIS

“[W]e find Midland’s disconnection of the Sweckers’ QF to be inconsistent with its obligations under PURPA.”

Under section 210(a) of the Public Utility Regulatory Policies Act (PURPA,) Midland has an obligation to purchase from QFs and to sell electricity to QFs.


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Before the Energy Policy Act of 2005 (EPAct 2005), disconnection of QFs for non-payment of bills was left to State regulatory authorities.

In implementing EPAct 2005, however, this issue was addressed, and provided specific FERC regulations on, how an electric utility may terminate its obligations to purchase from and sell to QFs.


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The Sweckers receive retail service from Midland, which is usually beyond the reach of FERC authority to regulate. However, the Sweckers also own a QF onsite with certain FERC buying and selling requirements.

PURPA does not allow services to a QF to be disconnected unilaterally by and at the sole discretion of the interconnected purchasing/selling electric utility, here Midland, merely because that electric utility also happened to be selling retail service.


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RECOMMENDATION

Seek legal advice prior to disconnection of a QF.

QUESTIONS



22 June 10, 2013

FECA Engineers ConferenceLOOPED DELIVERY POINTS

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LOOPED DELIVERY POINTS

Transmission facilities are deemed “integrated” if they meet any one of the Mansfield Test criteria

AND

Integrated transmission facility capital costs are rolled-in to transmission Rate-Base


Mansfield Test for Integrated Trans. Facilities– Facilities are looped– Energy can flow in both directions– Transmission Owner provides services over the

facility to other customers– Facility provides for higher system reliability– An outage of the facilities would have an adverse

effect on the system and to other customers

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WHAT DOES THIS MEAN TO US?

TDU cooperatives may want higher reliability that comes from looped Delivery Points

TOs are responsible for controlling their Rate Base charges and therefore determine when facilities are to be looped on their system (w/costs rolled into Rate Base)

FERC has no mechanism for TOs to accept CIAC for looping Delivery Points

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QUESTIONS



28 June 10, 2013

FECA Engineers ConferenceDUKE ENERGY FLORIDA

DUKE ENERGY FLORIDA

Seminole has 60-65% of its Member load imbedded in the Duke Florida transmission system.

Some Seminole Members seek a higher level of reliability via looped delivery systems.

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DUKE ENERGY FLORIDA

Progress Energy Florida has permitted the looping of wholesale-customer Delivery Points under limited circumstances

Seminole is strongly encouraging Duke to permit looping of cooperative Delivery Points

Seminole is strongly encouraging Duke to develop a written Looping Criteria Guideline document to assure equity of treatment

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DUKE ENERGY FLORIDA

If Duke agrees to loop delivery points:– Duke must role the costs into the Rate

Base– Duke must develop rules & regulations on

how looping will be done

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DUKE ENERGY FLORIDA

Duke Risk– A transmission customer may challenge

the looped facilities are “Gold Plated” reliability and should not be paid by all transmission customers.

– If Duke were to lose such a challenge, Duke shareholders may be on the hook to pay for all such loop facilities

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DUKE ENERGY FLORIDA

Possible Duke requirements:– Ownership of transmission line continuity

Duke owned transmission circuits (in & out) Duke owned substation facilities (in series with line)

– Duke standards for design/construction– Duke Facility Ratings– Duke approves all future connections and

modifications– Duke approves all maintenance and switching

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DUKE ENERGY FLORIDA

Under limited circumstances, Members may be permitted to perform necessary construction of Duke facilities (as a Duke contractor)

If existing cooperative owned line/substation facility is to be used to complete the transmission loop, Duke may buy facilities or pay credits for use of facilities

DUKE ENERGY FLORIDA

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June 10, 2013

FECA Engineers ConferenceLooped Substation Configurations

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Single Bus Configuration

The single bus substation configuration is the simplest of configurations, but is also the least reliable.

In the arrangement shown, the circuit must be de-energized to perform breaker maintenance, which can be overcome by the addition of breaker bypass switches, but this may then disable protection systems.

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Single Bus ConfigurationAdvantages & Disadvantages

Single Bus Advantages:

• Lowest cost

• Small land area

• Easily expandable

• Simple in concept and operation

• Relatively simple for the application of protective relaying

Single Bus Disadvantages:

• Single bus arrangement has the lowest reliability

• Failure of a circuit breaker or a bus fault causes loss of entire substation

• Maintenance switching can

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Sectionalized Bus Configuration

The sectionalized bus configuration is merely an extension of the single bus layout. The single bus arrangements are now connected together with a center breaker that may be normally open or closed.

Now, in the event of a breaker failure or bus bar fault, the entire station is not shut down. Breaker bypass operation can also be included in the sectionalized bus configuration.

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Sectionalized Bus ConfigurationAdvantages & Disadvantages

Sectionalized Bus Advantages:

• Flexible operation

• Isolation of bus sections for maintenance

• Loss of only part of the substation for

a breaker failure or bus fault

Sectionalized Bus Disadvantages:

• Additional circuit breakers needed for

sectionalizing, thus higher cost

• Sectionalizing may cause interruption of non-faulted circuits

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Main & Transfer Bus Configuration

A main and transfer bus configuration means there are two separate and independent buses; a main and a transfer. Normally, all circuits, incoming and outgoing, are connecting the main bus.

If maintenance or repair is required on a circuit breaker, the associated

circuit can be then fed and protected from the transfer bus, while the original breaker is isolated from the system.

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Main & Transfer Bus ConfigurationAdvantages & Disadvantages

Main and Transfer Bus Advantages:

• Maintain service and protection during circuit

breaker maintenance

• Reasonable in cost

• Fairly small land area

• Easily expandable

Main and Transfer Bus Disadvantages:

• Additional circuit breaker needed for bus tie

• Protection and relaying may become complicated

• Bus fault causes loss of the entire substation

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Ring Bus Configuration

The ring bus configuration is an extension of the sectionalized bus. In the ring bus, a sectionalizing breaker has been added between the two open bus ends.

Now there is a closed loop on the bus with each section separated by a circuit breaker. This provides greater reliability and allows for flexible operation. The ring bus can easily adapted to a breaker-and-a-half scheme, which will be looked at next.

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Ring Bus Advantages & Disadvantages

Ring Bus Advantages:

• Flexible operation

• High reliability

• Double feed to each circuit

• No main buses

• Expandable to breaker-and-a-half configuration

• Isolation of bus sections and circuit breakers for maintenance without circuit disruption

Substation Configuration Reliability 7

Ring Bus Disadvantages:

• During fault, splitting of the ring may leave undesirable circuit combinations

• Each circuit has to have its own potential source for relaying

• Usually limited to 4 circuit positions, although larger sizes up to 10 are in service. 6 is

usually the maximum terminals for a ring bus

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Breaker-and-a-Half Configuration

A breaker-and-a-half configuration has two buses but unlike the main and transfer scheme, both busses are energized during normal operation. For every 2 circuits there are 3 circuit breakers with each circuit sharing a common center breaker.

Any breaker can be removed for maintenance without affecting the service on the corresponding exiting feeder, and a fault on either bus can be isolated without interrupting service to the outgoing lines. If a center breaker should fail, this will cause the loss of 2 circuits, while the loss of an outside breaker would disrupt only one. The breaker-and-a-half scheme is a popular choice when upgrading a ring bus to provide more terminals.

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Breaker-and-a-Half ConfigurationAdvantages & Disadvantages

Breaker-and-a-Half Advantages:

• Flexible operation and high reliability

• Isolation of either bus without service disruption

• Isolation of any breaker for maintenance without service disruption


• Bus fault does not interrupt service to any circuits

• All switching is done with circuit breakers

Breaker-and-a-Half Disadvantages:

• One-and-a-half breakers needed for each circuit

• More complicated relaying as the center breaker has to act on faults for either of the 2 circuits it is associated with

• Each circuit should have its own potential source for relaying

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Double Breaker-Double Bus Configuration

Like the breaker-and-a-half, the double breaker-double bus configuration has two main buses that are both normally energized. Here though, each circuit requires two breakers, not one-and-a-half.

With the addition of the extra breaker per circuit, any of the breakers can fail and only affect one circuit. This added reliability comes at the cost of additional breakers, and thus is typically only used at large generating stations.

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Double Breaker-Double Bus Advantages & Disadvantages

Double Breaker-Double Bus Advantages:

• Flexible operation and very high reliability

• Isolation of either bus, or any breaker without disrupting service


• No interruption of service to any circuit from a bus fault

• Loss of one circuit per breaker failure

• All switching with circuit breakers

Double Breaker-Double Bus Disadvantages:

• Very high cost – 2 breakers per circuit

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Comparison of Bus Configuration Costs

If one assumes that the Single Bus configuration costs $100k, then the math can easily be done by using the relative cost comparison.

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Questions?

Documents

Glenn Spurlock June 10, 2013 1 FECA Engineers Conference SEMINOLE UPDATE