How to Serve Natural Gas How to Serve Natural Gas Pipeline Compression Loads?Pipeline Compression Loads?

Energy Transfer Technologies, LtdEnergy Transfer Technologies, Ltd

Energy Transfer Technologies, LtdEnergy Transfer Technologies, Ltd

Started in 1995 Started in 1995 Energy Management by Means of Energy Management by Means of

ESelectESelectTM TM Dual DriveDual DriveTMTM

Currently 70,000 HP of Compression in Currently 70,000 HP of Compression in OperationOperation

31 Million KW Hrs of Monthly Usage31 Million KW Hrs of Monthly Usage50+ MW of Installed Capacity 50+ MW of Installed Capacity

ETT’s ESelectETT’s ESelect™™ Dual Drive Dual Drive™™

Electric Compression w/ Runtime Flexibility Electric Compression w/ Runtime Flexibility ““Perfect Rural Co-op Load” Perfect Rural Co-op Load” …Electric Power Engineers, Inc.…Electric Power Engineers, Inc.

Relationship w/ G&T’s & Distribution Co-ops:Relationship w/ G&T’s & Distribution Co-ops:

Brazos - United, TX - Kiwash, OK Brazos - United, TX - Kiwash, OK Western Farmers - Navasota Valley, TX - Northfork, OKWestern Farmers - Navasota Valley, TX - Northfork, OK LCRA - Fayette, TX - Point Coupee, LA LCRA - Fayette, TX - Point Coupee, LA STEC - Central Texas, TX - DEMCO, LASTEC - Central Texas, TX - DEMCO, LA ETEC - Southwest TX, TX - Central Valley, NMETEC - Southwest TX, TX - Central Valley, NM Golden Spread - CoServ, TX - Arkansas Valley, AR Golden Spread - CoServ, TX - Arkansas Valley, AR

U.S. Historical Natural Gas Consumption U.S. Historical Natural Gas Consumption By UseBy Use

0

5

10

15

20

25

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Year

Vol

ume

(Tcf

)

Power Gen

Industrial

Comercial

Residential

Gas Compression

Annually 10% of all Natural Gas is Consumed by Compression

Major Natural Gas Pipelines and Major Natural Gas Pipelines and Compressor StationsCompressor Stations

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Strategic Analysis UnitSeptember 2007

Co-op Service Areas85% Land Area of U.S.

Challenges for Gas OperatorsChallenges for Gas Operators

EmissionsEmissionsBroader & More Restrictive RegulationsBroader & More Restrictive Regulations Electric Drive (only) Perceived Option.Electric Drive (only) Perceived Option.

Firm Electric PricesFirm Electric PricesHistorically IncreasingHistorically Increasing

Electric System ReliabilityElectric System ReliabilityOutagesOutages InfrastructureInfrastructure

Challenges for Co-OpsChallenges for Co-Ops

New “Firm” Load can be New “Firm” Load can be UnattractiveUnattractiveAvailable “On Peak” generating capacity is Available “On Peak” generating capacity is

costly.costly. Infrastructure RequirementsInfrastructure Requirements

Starting current on large HP motors is taxing Starting current on large HP motors is taxing to the system.to the system.

System Reliability RequirementsSystem Reliability RequirementsThe single most important measure to a gas The single most important measure to a gas

operator is runtime.operator is runtime.

Mutually Beneficial Solution Mutually Beneficial Solution

Utilization of Existing Generation CapacityUtilization of Existing Generation Capacity Increased Load FactorIncreased Load Factor Reduced EmissionsReduced Emissions

Minimal Infrastructure RequirementsMinimal Infrastructure Requirements Minimal to No InrushMinimal to No Inrush

System ManagementSystem Management Economic—Interruptible Power RatesEconomic—Interruptible Power Rates Demand Side Management—Peak and Emergency Demand Side Management—Peak and Emergency

Load ReductionLoad Reduction Multiple Power Sources for Maximum ReliabilityMultiple Power Sources for Maximum Reliability

ESelectESelectTMTM Dual Drive Dual DriveTMTM

Major ComponentsMajor Components

Estimated NOx EmissionsEstimated NOx Emissions

400

500

600

700

800

900

1,000

0 2 4 6 8 10 12 14 16

Years

Mill

ions

of T

ons

of N

Ox

With Out Dual Drive

With Dual Drive

Motor Starting Methods Motor Starting Methods EffectivenessEffectiveness

5

50

120

250

5

0

1

2

3

4

5

6

Across Line Reduced Voltage(AutoTX)

Reduced Voltage(Electronic)

Full VFD Eselect™ DualDrive™

Inru

sh

(N

X F

LA

)

0

50

100

150

200

250

300

Co

st

(Th

ou

sa

nd

s)Cost

Inrush Current

Load Profile ImpactLoad Profile Impact

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

1 31 61 91 121 151 181 211 241 271 301 331

Time (days)

Load

(Meg

awat

ts)

Modified System Demand

Normal System Demand

An addition of 25 Megawatts of interruptible load equates to an 15% increase in load factor.

Peak

Demand ManagementDemand Management

ESelect™ DualDrive™ Offers:ESelect™ DualDrive™ Offers:

Co-Ops:Co-Ops:New Customers New Customers Increase Load Increase Load

Factor… Not PeakFactor… Not PeakMinimal “In-Rush” Minimal “In-Rush”

Current Current Limited Capital Limited Capital

Investment in Investment in InfrastructureInfrastructure

Gas Operators:Gas Operators:Redundant Drivers Redundant Drivers

Increase ReliabilityIncrease ReliabilityEnhanced RuntimeEnhanced RuntimeReduced Reduced

EmissionsEmissionsOperational Operational

FlexibilityFlexibility