IPL Generation Plan

Presented on ??

2022

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1

1/18/2022

Independence and SPP

• SPP coordinates all generation and transmission service within the region.
• SPP schedules generation resources to protect the stability of the grid and meet the energy needs of the entire region
• Independence purchases all energy consumed from SPP
• Independence is obligated to maintain generation assets capable of producing our maximum demand plus a reserve margin
• SPP credits Independence for any energy produced by Independence’s generation assets.

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1/18/2022

IPL Resource Portfolio (Accredited Capacity)

• IPL CT’s 93.5 MW
• Dogwood 80 MW
• Iatan II 53 MW
• Nebraska City II 57.6 MW
• Smoky Hills 4 MW
• Marshall Wind 6.7 MW
• Oneta (Capacity) 45 MW
• Solar Farms (2.9 MW) (reduces IPL demand)
• Total Capacity 339.8 MW
• Capacity Obligation 333.8 MW

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1/18/2022

Capacity Timeline

• Excess Capacity 2022 6 MW
• IPL CTs TBD (-93.5)
• Smoky Hills 2029 -4 MW -4 MW
• Oneta 2030 -45 MW -49 MW
• Marshall Wind 2036 -6.7 MW -55.7 MW
• Solar 2042/2043 -2.9 MW -58.6 MW
• Nebraska City II 2049 -57.6 MW -116.2 MW
• Iatan II 2050 -53 MW -169.2 MW
• Dogwood 2051 -80 MW -249.2 MW

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1/18/2022

5

1/18/2022

Adding Additional Capacity

• Capacity only contracts – ONETA
• Power Purchase Agreements - adds capacity plus market opportunity for any energy generated
• Ownership/Partnerships – Dogwood Energy
• City owned generation

6

1/18/2022

Considerations

• Timeline to design/build new assets
• Location – remote assets also have an added cost for Transmission service
• SPP Approval – engineering studies to determine the impact on the electric grid. Currently takes 4-5 years for new proposals plus mandatory cost share for any transmission improvements, 12-18 months for replacement of existing assets
• FERC waiver – granted for use of the Blue Valley site, 36 month window to put something into operation
• Market opportunity to offset costs
• Developing technologies for Renewable Energy

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7

1/18/2022

Annual Costs by Resource (3yr avg)

Cost Revenue Net Cost ($M) $/MW

• IPL CT’s $4.73 Million $0.37 M 4.36 46K
• Dogwood $9.32 Million $7.16M 2.16 27K
• Iatan II $19.66 Million $7.69M 11.97 226K
• Nebraska City II $15.23 Million $9.61M 5.62 97K
• Smoky Hills $2.22 Million $0.87M 1.35 337K
• Marshall Wind $2.48 Million $1.59M 0.89 133K
• Oneta (Capacity) $1.25 Million $0.00 1.25 28K
• Solar Farms $1.43 Million $0.58M 0.85 293K

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1/18/2022

IPL Staff Recommendation

• Multi-phased project to maintain the advantages of a diverse portfolio to meet our SPP capacity requirements
• Initial investment for new generation located in Independence
• Allow for strategic retirement of older assets and options for negotiating new/extended contracts
• Develop proposals for addition of Renewable resources such as batteries to complement Wind/Solar within SPP
• Allow time for continued technology improvements and clarification of regulatory environment

9

1/18/2022

Sustainability - Green Resource Initiatives

• Continued Investment in Wind/Solar
• Backfill Intermittent Green Technologies
• Energy Storage Resources (Batteries) - 4hr
• Current est. $1M/MW (NREL, Dept of Energy)
• Peaking Resources > 4hr
• Low-Carbon Resource Initiative (LCRI)
• New Resource Capable of Burning 30% Hydrogen

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10

1/18/2022

Resource Plans – Possible Future

Now - Gen Capable of Burning 30% Hydrogen (LCRI)

2024? – Sub J Retirement – Replace w/Battery 2027

2027? – Sub I Retirement

- Addition Wind Resource

- 2030 - Replace w/LCRI Gen

2029 – Renew/New Wind Contract

2030 – New Solar/Battery

2034 – Sub H Retirement

- 2037 - Replace w/LCRI Gen

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1/18/2022

Questions ?

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1/18/2022