southern california energy summit palm springs, california october 4-5, 2012 jonathan m. weisgall...
Post on 03-Jan-2016
212 Views
Preview:
TRANSCRIPT
Southern California Energy SummitPalm Springs, California • October 4-5, 2012
Jonathan M. WeisgallVice President, Legislative & Regulatory Affairs
MidAmerican Energy Holdings Company
The dilemma: We spend more than we take in
2
3
MidAmerican Owned Wind Resources
MidAmericanEnergy CompanyIn-service –1,877.7 megawatts
199920042005200620072008200920102011
Total
2012
Total
PacifiCorpMidAmerican
Energy Total
32.1--
100.5140.4381.7265.5111.0
-
1,031.2
-
1,031.2
$2.1
-160.5200.099.0201.5623.3
--
593.4
1,877.7
407.1
2,284.8
$3.9
32.1160.5200.0199.5341.9
1,005.0265.5111.0593.4
2,908.9
407.1
3,316.0
$6.0Investment (billions)
Owned Wind Generation (MW)
In construction 2012 –407.1 megawatts
PacifiCorpIn-service at acquisition date –32.1 megawatts
In-service since acquisition –999.1 megawatts
–9 percent of total owned generation capacity
–In addition, 937 megawatts contracted through purchased power agreements
–385 megawatts planned 2018-22
–29 percent of total owned generation capacity
–In addition,109 megawatts
contracted through
purchased power
agreements
4
• No price on carbon• Natural gas• Customers• Climate change debate• Political arena• Renewables
– Tax incentives– Transmission
Uncertainties in the market
5
• Taxes:– PTC– ITC
• Spending:– Loan guarantees– Research and development
• Regulate:– Federal RPS– EPA regulations of coal plants – impact on renewables
What can Congress do?
6
• Year-end fiscal cliff• Tax extenders bill• Under construction by 12-31-13 – not on-line• Wide support among Democrats and Republicans –
but Romney opposition• How to justify against tax reform, deficit reduction,
corporate welfare• Phase-out • What happens if PTC isn’t extended?
PTC extension – wind
7
• Basic R&D funding• Regulatory certainty and longevity:
– PTC?– ITC?– Bonus depreciation?– Federal clean energy (or renewable portfolio)
standard? – Master limited partnership structure (or REIT)?
• Other ways to “de-risk” development
What does the renewable industry need?
8
• R&D funding?• Department of Defense spending?• PTC extension?• ITC?• Clean energy standard (renewable) standard? • Cap and trade? • More stimulus funding?• Loan guarantee program? • §1603 Treasury grant in lieu of credit?• Federal feed-in tariff? • Carbon tax?
What will the renewable industry get?
9
• MLP/REIT – counter to tax reform?• Treasury grants out; need partner with tax appetite• Risk mitigation• How to incorporate new technologies?• Other factors affecting industry• Backstop of state RPS programs• Certainty and longevity – California’s record
New business models needed
top related