Cimarron Solar ProjectCimarron Solar Projectjj

Rhonda MitchellRhonda MitchellSenior Government Relations AdvisorSenior Government Relations Advisor

Radioactive & Hazardous Materials CommitteeRadioactive & Hazardous Materials CommitteeAugust 15, 2011August 15, 2011g ,g ,

Tri-State O iOverview

Tri-State is a not-for-profit, wholesale power supplier owned by 44 electric owned by 44 electric cooperatives and public power districts serving a

l i f i l population of approximately 1.5 million people.

Tri-State’s mission is to provide reliable, cost-based electric energy to our member systems consistent with cooperative principles

Tri-State At a Glance

• Annual operating revenue $1 2 billion• Annual operating revenue $1.2 billion

• Assets $3.8 billion

• Average wholesale rate 6.5 cents/kilowatt-hour

• Member peak demand 2,568 megawatts

• Member service territory 200,000 square miles

Employees 1 200• Employees 1,200

Tri-State Resources

• 1,868 MW Coal-fired Generation• 915 MW Gas/Oil-fired Generation

• 600 MW Federal Hydro Power Purchase450 MW O h P h• 450 MW Other Purchases

• 30 MW Solar PV Purchase51 MW Wi d P h• 51 MW Wind Purchase

5 177 Miles of Transmission Line• 5,177 Miles of Transmission Line

Typical Daily Consumption Pattern AKA “Load”

Tri-State: December 10, 2009,

E i L d Pi k UEvening Load Pick‐Up:Lighting, Cooking, TelevisionMorning Load Pick‐Up:

Lighting, Heating, Business

Typical Daily Generation PatternPeaking Gas OilPeaking – Gas, Oil

Intermediate – Hydro, Gas

Baseload – Coal

RPS Mandates

• Applies to members in Colorado and New Mexico

• 5% renewable energy by 2015

• 10% renewable energy by 2020

• Socialization of cost• Socialization of cost

• Existing Renewables584 MW f WAPA (d ’ )- 584 MW of WAPA (doesn’t count)

- 11 MW Small PPAs (hydro/bio)

Tri-State Policy 115 – Member Generation• Allows members to provide own generation resources Allows members to provide own generation resources

up to 5% of their total annual load requirements– Distributed generation (DG) or renewable generation

• Tri-State’s Goals:– Facilitate members’ desire for local projects

No rate pressure on Tri-State’s Class A rate up or down– No rate pressure on Tri-State s Class A rate – up or down– Compatible with any rate design– RECs generally used for RPS compliance

• Results to Date:– 10 projects totaling about 11 MW

Small hydro heat recovery and solar– Small hydro, heat recovery and solar

Cimarron SolarCimarron Solar

• 30 megawatts00 000 hi fil l• 500,000 thin film panels

• 250 acres near Springer, N MN.M.

• 25-year PPA• Online Nov., 2010Online Nov., 2010• Justification

Ideal Timing

• Great solar resource• Minimal transmission cost

Federal and state incentives• Federal and state incentives• RPS multiplier (3x RECs)• Low-cost solar technologygy• Landowner involvement• Favorable interest rates• Solid partner in First Solar• Integration / Experience• No transmission required• No transmission required

On a Clear Day ……30 00

25.00

30.00

15.00

20.00

5.00

10.00

0.00

4:48

7:12

9:36

2:00

4:24

6:48

9:12

4 1 14 1 19

35 00

On a Clear Day ……

25 00

30.00

35.00

15 00

20.00

25.00

5 00

10.00

15.00

0.00

5.00

4:48

7:12

9:36

2:00

4:24

6:48

9:12

4 1 14 1 19

35 00

Partly Cloudy

25 00

30.00

35.00

15 00

20.00

25.00

5 00

10.00

15.00

0.00

5.00

4:48

7:12

9:36

2:00

4:24

6:48

9:12

4 1 14 1 19

35 00

Partly Cloudy

25 00

30.00

35.00

15 00

20.00

25.00

5 00

10.00

15.00

0.00

5.00

4:48

7:12

9:36

2:00

4:24

6:48

9:12

4 1 14 1 19

Fast Ramping (2/24/11)

35 0

30.0

35.0

20.0

25.0

10.0

15.0

0.0

5.0

4:48:00 7:12:00 9:36:00 12:00:00 14:24:00 16:48:00 19:12:00

Fast Ramping (2/24/11)

30.0

35.0

14:03:38 29.7

20.0

25.0 14:06:11 6.114:10:01 29.0

10.0

15.0

0.0

5.0

14 02 24 14 03 50 14 05 17 14 06 43 14 08 10 14 09 36 14 11 02 14 12 2914:02:24 14:03:50 14:05:17 14:06:43 14:08:10 14:09:36 14:11:02 14:12:29

2010 S l El t i P A i ti ’ 2010 Solar Electric Power Association’s Utility Solar Rankings

Top 10 U.S. utilities that added most new solar power to their systems last year• Tri-State ranked #6 nationally (30 MW)• Tri-State highest ranked cooperative utility

Ci l t l t i ti l PV j t• Cimarron largest electric cooperative solar PV project• Kit Carson Electric Cooperative (Taos) ranked #2

nationally with 22.2 watts per customer and #4 with nationally with 22.2 watts per customer and #4 with production of 620 kilowatts

Conclusions

• PV is a credible but not inexpensive resource• PV is a credible, but not inexpensive resource• Tri-State service territory is well suited

– latitude clouds inexpensive land– latitude, clouds, inexpensive land

• Geographically distributed arrays should help fast ramping issuesp g

• PV prices should continue to drop• Fixed array = no moving parts/low maintenance• Few permanent employees

Questions?Questions?Questions?Questions?

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