NorthWestern Energy Group, Inc. · NASDAQ:NWE
NorthWestern Energy — Investor Presentation (2015)
18 slides from NorthWestern Energy's investor presentation, 2015
Slide 1: 111(d)-EPA's Clean Power Plan
111(d)-EPA’s Clean Power Plan Jeff Blend Montana Department of Environmental Quality
Slide 2: U.S. Electricity Sector
U.S. Electricity Sector 2013 Net Electricity Generation by Energy Source 2013 Electricity Generation CO2 Emissions by Energy Source Petroleum 1.1% Natural Gas 21.7% Coal 77.2% Source: EIA Source: EIA 2
Slide 3: Electricity in Montana
Electricity in Montana Percent Montana Electric Generation from Primary Fuels-1990-2013 100 90 80 70 % Generation 60 Wind 50 Natural Gas 40 Oil 30 Coal HydroElectric 20 10 0 Year 3
Slide 4: EPA Clean Air Act & Electricity Sector
EPA Clean Air Act & Electricity Sector Regulated emissions include: • Particulate matter • Sulfur dioxide • Nitrogen oxides • Ozone • Mercury and Air Toxics Standard (MATS) • Regional haze • Carbon dioxide 4
Slide 5: Federal Clean Power Plan aka 111(d)
Federal Clean Power Plan aka 111(d) 5
Slide 6: In the beginning…
In the beginning… Clean Air Act of 1970 • Section 111: Standards of Performance for New Stationary Sources Directs EPA to regulate a list of source categories that cause or contribute to air pollution which may reasonably be expected endanger public health or welfare. o 111(b): New Source Performanc
Slide 7: Emission Guidelines
Emission Guidelines Carbon Pollution Emission Guidelines for Existing Stationary Sources: Electric Utility Generating Units (EGUs) Proposed June 2, 2014 (79 Fed. Reg. 34829-34958) Designated Pollutant Greenhouse gases, specifically carbon dioxide (CO2) Designated Facility An affected steam generatin
Slide 8: Affected Facilities
Montana has nine affected units at six existing power plants Affected Facilities
Slide 9: BSER (Best System of Emission Reduction)
BSER (Best System of Emission Reduction) Identify source Propose an emission category and reduction target pollutant achievable through application of BSER Determine best system of emission reduction States may take intoPublish guidance consideration directing states to submit the remaining useful f
Slide 10: Setting the Standard
Setting the Standard 2030 1,771 lb/MWh Increased energy efficiency Increased low- and no- carbon renewable or nuclear generation Re-dispatch from coal- fired units to existing natural gas combined cycle Efficiency improvements at coal-fired units 2012 2,245 lb/MWh
Slide 11: Meeting the Standard
Meeting the Standard 2030 1,771 lb/MWh Invest in energy efficiency programs New renewable energy development Co-fire natural gas at coal-fired units Efficiency improvements at EGUs 2012 2,245 lb/MWh
Slide 12: Meeting the Standard
Meeting the Standard Option 1 Option 2 Option 3 Option 4 Option 5 …
Slide 13: Timeline
Timeline 6/30/18 Plan due (multi-state extension) 6/30/16 Plan due (state only) 6/30/17 Plan due (state only extension) 12/1/2014 Comments submitted Mid-Summer 2015 Final rule 6/1/2014 Draft Rules Published
Slide 14: Target Calculation
Target Calculation (the technical stuff) In any given year Montana would use the following equation: Actual CO2 Emissions from affected EGUs Actual EGU MWh + RE MWh + EE Avoided MWh
Slide 15: Flexibility & Options
Flexibility & Options EGU Emission Rate 2030 Renewable 2030 Energy Corette Export 2030 Rate Scenario Name Improvement Generation Efficiency Savings Closed? Decrease Result Building Block 1 Building Block 3 Building Block 4 lbs/MWh Scenario 1 - Heavy EE 0% affected EGUs 2,859 GWh 2,532 GWh Yes, 2016
Slide 16: 111(d) at DEQ
111(d) at DEQ • The air program and energy program have partnered within DEQ to form a technical 111(d) team • This team has developed tools, evaluated scenarios, continually reviews any developments, and presents to groups on the draft rule • The team’s focus is a collaborative effort that draws on
Slide 17: Next Steps
Next Steps • The 111(d) team at DEQ will continue to meet – Making a plan for our plan (SIP) – Outreach – Develop tools including our Montana and multi- state models • Scoping and advisory groups will be formed and possibly report to a higher level advisory committee • Governor’s office involved
Slide 18: Questions?
Questions? Garrett Martin Jeff Blend Energy Analyst Economist and energy Department of analyst Environmental Quality, Department of Energy & Pollution Environmental Quality, Prevention Bureau [email protected] [email protected]
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