July 2001 issue

 NWCouncil.org NeWs    July 2001 index

Bridging the generation gap

Energy analysts have dubbed the unusual set of circumstances that brought about the West Coast?s current energy crunch this year the "perfect storm." The combination of dry weather in the hydropower-dependent Northwest, generation plant construction that has not kept pace with demand, and California?s ill-conceived deregulation plan, all converged this year resulting in the threat of rolling blackouts and reduced spill at dams this spring to aid the migration of endangered fish. The Northwest Power Planning Council?s June analysis predicts a 17 percent chance of a power shortfall next winter, more than three times the electricity industry standard.

The good news is that the Pacific Northwest?s power outlook for summer has improved, in part because many utilities and companies have installed temporary generators, and several permanent power plants are due to come online this summer and over the next two years. The Northwest Power Planning Council estimates that temporary generating capacity through 2001 will reach 1,306 megawatts, more than enough power for a city the size of Seattle. The net anticipated capacity, temporary and permanent, to be added through 2002 is about 3,100 megawatts.

While there is satisfaction in knowing we are not expected to experience the kind of rolling blackouts and disruptions in service this summer that have plagued California, it is important to consider the price we are paying to keep the lights on.

Most immediately, what are the consequences of using these temporary diesel generator sets, the choice for many commercial operators trying to meet their load requirements? Long used as back-up generation by businesses requiring uninterrupted service, the current energy shortage has sparked an expansion in the use of this well-established technology, for they are relatively easy to install.

Typically, a diesel generator set, which is around seven feet high and 25 feet long, is installed in a semi-truck trailer that can be easily sited at a substation or other point of easy interconnection. Trailer-mounted oil tanks are located nearby for those installations using fuel oil, and portable transformers and switchgear are used for interconnection to the transmission grid. The individual generator sets typically produce from one to two megawatts. The units are sited in clusters ranging in size from one to 50 units. Both Clark Public Utilities, Vancouver, Washington and Tacoma Power are using generators ? Clark?s uses natural gas and Tacoma?s, fuel oil ? that produce 50 megawatts of electricity.

The downside to diesel generators is that they are less efficient and more polluting than other types of generation, since the fuel most often used, diesel oil, produces particulates, sulfur dioxide, nitrogen oxides and heavy metals. The use of natural gas, although cleaner, is more expensive and not always available.

Another downside is the cost of providing power ? about $150.00 per megawatt hour. Earlier this year that was about half the market price; at the end of June it was about double the market price, making the plants uneconomical to operate.

Washington Governor Gary Locke signed an order earlier this year that allows utilities and private developers to begin the installation of temporary generators without an air permit, although they are required to secure a permit once it is installed. Jeff King, the Council?s senior resource analyst, estimates that there are approximately 68 temporary generators that are either operating or are planned.

Clark Public Utilities Director of Operations Andy Huck (left) shows a local reporter the inner workings of one of the natural gas powered temporary generators the utility will use to augment its power supply this summer

The timeframe of permits for temporary generators varies from state-to-state: Permits for Washington and Idaho last for up to one year; the length of time varies in Oregon; and in Montana a permit lasts two years.

The scenario for building permanent power plants is also robust. Many are planned to come online in the next two years: 21 in Washington, 12 in Oregon, three in Idaho, and one in Montana. In all, the Council expects the added capacity from these plants to be more than 4,000 megawatts.

While there is no question the need for more generating capacity is warranted, according to King, "The downside to all this activity may be seen in the loosening of environmental regulations for both temporary and permanent generation. This may result in some poorly sited and inadequately controlled permanent plants."

But there may be some positive developments to come from our energy woes as well. King sees the renewed interest in conservation as an economical and effective means to acquiring power as encouraging. Also encouraging is the development in what he terms, "controlled demand reduction." One way this works is when utilities offer special compensation to customers, usually industrials, to interrupt their service during peak periods of use with little or no impact to the customer. It is part of a growing trend to better manage electricity demand.

Another area that has received greater focus of late is investment in renewables such as wind. In response to its request for proposals for wind generation projects, the Bonneville Power Administration received 25 proposals adding up to about 2,600 megawatts of wind power. Most of the proposed sites are in Oregon (10) and Washington (8). The rest are distributed among Idaho, Montana, Wyoming and Canada. Because wind speed varies, the 2,600 megawatts capacity of the proposals will likely translate into about 850 average megawatts of power?more than enough power to meet the needs of the city of Portland. And PacifiCorp also has agreed to purchase 350 megawatts of power from two wind farms, Stateline on the Washington/Oregon border, and Rock River, located in Wyoming. Wind has become more competitive, both because of the current energy market, and as a result of technological advances and reductions in the cost of wind power development.

Finally, with the greater emphasis on efficiency, co-generation ? the process of capturing and using the heat produced from electrical generation, a by-product that is normally wasted ? also could become more widely used as people are encouraged to reap the most from their energy investments. Several high-efficiency cogeneration projects are planned for completion in the next two years.