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Distributed Resources at Richard Seguin - Principal Engineer Distributed Resources Planning DTE Energy – Detroit Edison 313-235-9598.

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Presentation on theme: "Distributed Resources at Richard Seguin - Principal Engineer Distributed Resources Planning DTE Energy – Detroit Edison 313-235-9598."— Presentation transcript:

1 Distributed Resources at Richard Seguin - Principal Engineer Distributed Resources Planning DTE Energy – Detroit Edison 313-235-9598 DTE Energy

2 2 Agenda DTE Energy Background Integration into Planning & Operating Process Discussion Break Detroit Edison DG Experience –Distribution Solutions Siting Load Following –Premium Power Discussion Break Other fancy work –DoE DER Aggregation, Communication, Control and Sale Discussion Break

3 3 DTE Energy Business Segments Detroit Edison Power Generation Energy Services Coal Services Biomass Energy Trading & Co- Energy Portfolio Energy Resources Detroit Edison Power Distribution Energy Distribution MichCon Gas Distribution Non Reg Energy Gas Energy Gas Energy Tech Investments Holding Company Corporate & Other Regulated Non Regulated

4 Michigan Service Area: 7,600 Sq. Miles Customers: 2.1 million System Peak Load: 12,132 MW Annual Sales: 56,000 GWH 37% Commercial 29% Residential 29% Industrial 5% Wholesale & Interconnection Detroit Edison Service Area Distribution Substations 662 Distribution Circuits 2,808 1,876 @ 4.8kV 932 @ 13.2kV Distribution Circuit Miles38,939 20,184 @ 4.8kV 18,755 @ 13.2kV Subtransmission 2,664 @ 24 kV 797 @ 41.6kV Distributed Generation: 1,427 MW or 12 % of Peak Load (Does not include < 100kW units) 750 MW interruptible

5 5 DTE Energy’s DG Commitment “ Several years ago, the leadership at DTE tried to envision what the electric utility business would look like in a decade. One of our conclusions was that this industry would go through the same transformation that the computer business has experienced. There, mainframe computers gave way to desktops which gave way to laptops. In the electric industry, the day of large central station power plants has already given way to modular, combined cycle gas powered plants. We envisioned a day when the next step, distributed (or personal) generation would play a major role. In fact utilities may be among the first real-world, large scale users of distributed generation. Distributed generation will increasingly become a cost-effective alternative to the expansion and reinforcement of T&D infrastructure” Anthony F. Earley, Jr. Chairman & CEO, DTE Energy

6 6 Traditional Electric System + Personalized Power through Distributed Generation (DG) DTE’s Vision for Distributed Generation (DG) Traditional Electric System Just another tool

7 7 DG Vision Let’s imagine a semi-truck load of new DG technology starting up and heading toward the utility; there are 3 ways to deal with it: Throw yourself in front of the truck and hope it stops Grab on to the back bumper and drag your feet Jump into the cab of the truck and help to steer it. The latter is the way that DTE Energy chooses to deal with this new technology. DG Technology

8 8 Integration into the Planning & Operating Process

9 9 The Utility Today Many utilities’ capital budgets are decreasing as their customer’s expectations are increasing Utilities must balance the need for new distribution and caring for existing distribution We can’t afford to solve every 1MVA problem with traditional T&D 30MVA solution –Problems that may only exist for a few hours per year –Capacity that may not be fully utilized for several years. DG is one way of delivering just-in-time and “right- sized” capacity to resolve smaller short falls while minimizing the initial capital outlay Freeing dollars for reliability and maintenance

10 10 DG Integration – 2003 Review Project No vs Project Cost per kW Avg Cost of new distribution

11 11 Distribution Capital Budget Items Included in Cost per kW All New Business Projects and their installed capacities All Overload Projects and their installed capacities All Increase Load Blanket cost @ NO capacity addition All System Improvement Blanket cost @ NO capacity addition All Blanket Land Purchases @ NO capacity addition All project cost (includes prior, current and future year expenditures) plus land, transformers and all project specific overheads Utilized Capacity (capacity available for use) only not total installed capacity

12 12 Items NOT Included in Distribution Cost per kW Street Lights Relocations (required removal of facilities located in public R/W) Transmission (Not our company not all cost is associated with increased distribution load) Subtransmission (Not all cost is associated with increased distribution load) *impacts of including evaluated Reliability Projects (Cost does not result in significant capacity increase) *impacts of including evaluated Distribution Transformers Service Standards (Small Reliability projects - MPSC required capital to resolve frequent outage pockets) Tree Trim (Capital Tree Trim) Maintenance (Primarily Pole Top Maintenance) DWRP(Downed Wire Replacement Program) URD Replacement (end of life replacement of failing URD cable) NURC (Normal Unit Retirement Changeout) EURC (Emergency Unit Retirement Changeout) Secondary Improvement (Replacement & rebuilding of old secondary system) CIAC (Contribution In Aid of Construction)

13 13 Graph represents Overload and New Business Projects Not Reliability Projects. The cost per kW for Reliability projects is typically very high. DG Integration – 2003 Review Project No vs Project Cost per kW Avg Cost of new distribution

14 14 Project No 1 Cost/kW Capacity vs Cost/kW Short fall 0 $20/kW Replace 2.5 MVA Transformer with existing 5 MVA Install Portable Substation$ 5K Remove existing 2.5 MVA Transformer$ 20K Install stock 5 MVA Transformer$ 20K Remove Portable Substation$ 5K Total Project Cost$ 50K Capacity added 2,500KW Cost per Capacity Added $50,000 / 2500 kW = $ 20 per kW Cost per Shortfall $50,000 / 500 kW = $100 per kW @ 10% Growth this last 4-5 years $100/kW

15 15 Example of Cost per Shortfall Traditional T&D Substation$6,000,000 Capacity Added 30,000kW T&D Cost per kW added $ 200/kW Traditional T&D Substation$6,000,000 Capacity needed (Short fall) 1,000kW T&D Cost per kW Shortfall $ 6,000/kW

16 16 Keys to DR integration Real Management Support is a must Name a champion to shepherd the integration Change the measure - $/kW capacity shortfall not $/kW capacity added It’s just like a portable Consider utility, customer, or premium power shared DR Effective use of manpower & resources –Standardize the design & operation –Construct with a generation knowledgeable contractor Build community partnerships - a temporary solution with minimum usage Communicate, Communicate, Communicate DR is distribution capacity! not generation for generation sake

17 17 Possible DG Solutions For Maintenance –Small substation –Facilitating shutdowns In an Emergency –Saving or minimizing emergency outage or equipment damage –Relieving overload or low voltage condition Temporary use –We can’t get a permanent fix done in time –DG and Differ Permanent –Redundant Service –Long term solution Alternative to T&D Replacement of old generation with DG

18 18 Potential DG Solutions Utility Owned –Distribution solutions for load relief Utility and Customer Joint ownership –Premium Power - utility owned DG leased by customer Utility Benefit –Non Sellback NEGAWATTS or Load offset –Sellback MEGAWATTS or total available DG Customer Benefit –Standby –Lower rate if interruptible Customer owned DG –No formal customer relationship exist –Informal request for DG use and/or load reduction have been done –Negotiated with Water Board and established formal DG lease as a temporary distribution solution Customer Interruptible –Interruptible rate primarily for generation shortfalls, but….

19 19 Premium Power Ed Henderson Detroit Edison’s “Premium Power Presentation” Distributed Generation Conference May 6, 2004

20 20 Premium Power Structure Detroit Edison’s Premium Power Service offers onsite standby generators that can prevent costly disruptions to business and commercial operations Equipment is installed, owned, operated, & maintained by Detroit Edison Every project is uniquely tailored to meet customer’s needs For a simple monthly fee, Premium Power provides the customer with an alternative to a second utility feed Standard contract length is seven to ten years; contract continues year-to-year thereafter Provides a dispatchable asset to address generation, transmission and/or distribution constraints Available to bundled tariff customers only

21 21 Premium Power & Interruptible Rates Detroit Edison offers interruptible rates to all commercial and industrial customers –Energy is discounted for ability to interrupt customers in times of system need –Current electricity market supply exceeds demand, so interruptions have been minimal –Potential transmission constraints and/or a hot summer could result in interruptions Interruptible rate discounts on all kWh vary from approximately 10% to 25% depending on tariff Net effect of Premium Power Service-breakeven to 10% premium Service guarantee covers tariff performance penalties

22 Questions & Discussion

23 Distributed Generation at DTE Energy Substation Applications Temporary & Maintenance Circuit Applications Emergency & Temporary Premium Power Customer Partnership Applications Technology Testing Union Lk ENR2000 2MW Diesel Adair ENI1000 1MW NG Emergency ENR2000 2MW Diesel Grosse Ile High School ENI1000 1MW NG Wayne State Univ ENI 75 Dialysis Center ENI 150Service Center ENI 150 & 75 Assumption Church ENI1000 1MW NG Substation Islanding ENR2000 2MW Diesel Southfield Solar & Future H Power Park ZBB Flow Battery Substation Battery Replacement Project Distribution Solutions

24 24 Michigan UnionLk 3 2 yr diesel Adair 2 yr NG Richville Maintenance Grosse Ile 5 yr NG Shores 3 yr NG Quail Maintenance Wayne Emerg diesel Collins Emerg diesel DTE Distribution Solutions Milford 3 yr NG Water Bd 2 yr diesel

25 25 Internal to Distribution Circuit Collins – Previous Emergency Installation An emergency installation of a 2MW DG ending daily circuit outages forced by overload to 3500 customers on a 13.2 kV multi grounded Y. The $500K spent on an emergency generator and circuit work were roughly equivalent to annual charges for a one year delay of the $6.4M Collins substation project. If planned the this emergency alternative including the DG installation would have been more economical. Grosse Ile - Current Temporary Installation A five year project, on high school property, deferring eventual T&D expansion on the island. A $3.8M Grosse Ile 4.8 kV substation expansion project is planned. The project involves bringing in another marine cable feed to the Island. The DG installation cost is $900K. St. Clair Shores – Current Temporary Installation A three year project, on church property, to manage loading on a land locked 4.8 kV delta circuit in need of relief before the new $4.0M Erin substation is built. No other cost effective solution existed. Wayne Circuit – Temporary/Emergency Installation A 4 month installation to provide 13.2 kV circuit relief due to R/W delay in a new $5.2M Zebra Substation Project. No other cost effective Solution (1 mile of new overhead – $180k) to prevent rotating blackouts to 2100 customers. Milford – Temporary Installation A three year project, on School property, to manage loading on a overloaded 13.2 kV Y circuit in need of relief before the new $3.8M Milford substation expansion is built. No other cost effective solution existed.

26 26 Substation Applications Adair – Previous Temporary Installation A two year project, a traditional 4.8kV Delta substation expansion solution could not be completed in time to relieve the transformer emergency overload. Costs were approximately breakeven. The substation budget cost was $800k, and DG project was $870k. The DGs installation allowed for the deferral of the substation project an additional year. Union Lake – Current Temporary Installation A three year project, traditional Union Lake 4.8kV to 13.2kV conversion project to relieve a exit cable emergency overload could not be completed before summer overload. The equivalent annual cost of the Union Lake conversion project as proposed was $137k ($1.7M over 60 years @ 8%). The equivalent annual cost of the interim DG solution was $61k ($600K over 20 years @ 8%). The DG will allow further deferral of the T&D project. Quail – Previous Emergency/Maintenance Installation Islanded small substation Saved 800 customers served from this 4.8kV substation from having 2-10 hour outages and the importing of addition crews in order to repair a 40kV feed damaged by a tornado. Richville – Maintenance, Islanded small substation Same situation as Quail above

27 27 Collins ENR 2000 – Emergency 2 MW DG

28 28 Adair ENI 1000 - 1MW DG Installation

29 29 Quail 1.5 MVA, 41.57/4.8 kV Substation 2MW Diesel Islanded to perform emergency repairs & maintenance 17.5 miles of radial 41.57kV exposure feeds Richville and Quail Substations Quail Substation (rural substation in Michigan’s Thumb region) 68.2 miles of 4.8kV delta Feeds 571 customers A peak load of 1.4 MVA

30 30 DG Connection Trailer – Dual Voltage, OH/UG Connection, Protection & Communication

31 31 Grosse Ile DC 2842 - 1 MW Nat Gas DR M0001 - LW E. River, 8PN Grays Grosse Ile Schools

32 32 Shores DC 1770 - 1 MW Nat Gas DR B0001, St Joan(ext), 5PE Marter Assumption Greek Orthodox Church

33 33 Union Lake DC 1688 - 2 MW Diesel DR H0004 Union Lake Substation

34 34 Wayne - ENR 2000 Diesel Installation

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