1. Puerto Rico Electric Power
Integrated Resource Plan: A vision of New Infrastructure Development for PREPA’S Transformation
December 15th, 2015

2. Core Objective and Agenda
This presentation provides a summary of the key recommendations of the Integrated Resource Plan (IRP) proposed for PREPA for the period from 2016 to 2035 and the underlying analysis and assumptions, especially focused in: The IRP report at PREPA’s website ( also includes:
Generation expansion plan
Transmission expansion plan
Renewable penetration for multiple years, transmission study details, distributed generation.
Complementary Studies:
Demand Forecast
Fuel Forecast
Fuel Infrastructure
Demand Response
Environmental Compliance 2

3. What is an Integrated Resource Plan?
An Integrated Resource Plan (IRP) is:
A long term planning assessment, typically covering a 20 year period, by which an electrical service company finds the optimal plan to:
Supply the current and forecasted electrical demand
Meeting regulatory requirements
Reliability criteria
The least cost possible
Usually subject to public review and final regulatory approval.
Essential to effectively plan any decision to replace, retire, or build new generation. 3

4. PREPA’s IRP PREPA’s IRP:
A requirement of Act 57 – 2014: PREPA must present an IRP to the Puerto Rico Energy Commission (PREC) by July 2015.
An essential part of the restructuring process that PREPA is currently undergoing. 4

5. PREPA’s IRP
According to Act 57 – 2014, PREPA’s IRP shall include the following, among others:
Evaluation of supply resources to satisfy Puerto Rico’s energy demand over a 20 year planning horizon
Current generation system evaluation, including improvements, replacements, and retirements, if necessary
Interconnection of renewable energy projects to meet law requirements, including distributed generation and utility scale producers
Compliance with environmental regulations
Energy source diversification, stabilize energy costs, improve system reliability and stability
Electric transmission system capacity and reliability
Evaluation of energy efficiency (EE) and demand side management (DSM) programs 5

6. PREPA’s IRP Main issues affecting PREPA’s IRP:
Environmental compliance:
MATS Rule
Clean Power Plan (CO2)
Regulatory compliance
PREC rules, as per Act
PREPA’s restructuring process
Forbearance Agreement with creditors
Business Plan
System costs, reliability, and safety
Renewable sources integration
Generation, transmission and distribution infrastructure
Fuel diversification
Energy demand forecast 6

7. Portfolio Selection Metrics
The performance of the portfolios under various futures was assessed based on the following main metrics:
Cost Metrics
Capital Cost
Total System Costs (Fuel, O&M, annualized CapEx, Purchased Power)
Operations Metrics
Reliability (LOLH / Reserve)
Curtailment (inability to accept renewable generation)
Environmental and Compliance Metrics
CO2 (Clean Power Plan and GHG New Source Standard)
Other pollutants (SOX, NOX, FPM) 7

8. PREPA’s IRP Recommended Main Projects 1st Five Years
Driver
Site
Project
COD
Fuel
Cost
MATS Compliance
AOGP and related
Gas Port
Jul-17 --
373.6
Aguirre Steam 1 Conversion
Oct-16
Gas
38.4
Aguirre Steam 2 Conversion
Aguirre CC 1 Dual Fuel Conversion
Gas/Diesel
24.1
Palo Seco
New Palo Seco F Class (359MW)
Jan-21
Diesel
369.3
Unit Retirements
FY21, FY27, FY31
135.6
Additional T&D Investments
FY16-FY20
262.4

9. PREPA’s IRP Recommended Main Projects Next 10 Years
Driver
Site
Project
COD
Fuel
Cost
Energy Efficiency, CPP & Improvements
Aguirre
Aguirre CC 1 Repowering
Jul-21
Gas
185.2
Aguirre CC 2 Repowering
Jul-22
New Aguirre 1 H Class (393 MW)
Jul-26
397.7
New Aguirre 2 H Class (393 MW)
Jul-27
Costa Sur
New Costa Sur 5 H Class (393 MW)
Jul-30
New Costa Sur 6 H Class (393 MW)
Jul-31

10. Puerto Rico’s Electrical SystemG
602
Palo Seco
Power Plant
400
San Juan Power Plant
San Juan Combined Cycle
440
115 kV G
247
Cambalache G 42
Vega Baja
38 kV
230 kV
1400 MW G 2
Culebra G
220
Mayagüez G 42
Daguao
1500 MW
1900 MW G 42
Yabucoa G 6
Vieques G
990
Costa Sur
Power
Plant G
507
Ecoeléctica
Power
Plant G 42
Jobos G
900
Aguirre
Power
Plant G
454
AES Power
Plant
Aguirre
Combined
Cycle G
592

11. Renewable Energy Portfolio Standard Compliance 20% Penetration
A 20% RPS Sensitivity was carried out for 2035 under all Futures:
This implies 23% renewable penetration and that 68% of the peak could be supplied from renewable for Future 1 to 3.
Futures 1 to 3 11

12. Renewable Integration Curtailment
If nothing is done to renew PREPA’s generation fleet, the situation is much worst, paying up to $250 million in curtailment penalties in a year for power NOT served. 12

13. PREPA’s IRP Benefits Environmental compliance:
MATS Rule
Clean Power Plan (CO2)
20% Renewable energy integration
Fuel diversification through use of natural gas and significant reduction in oil fuel dependency
Modern, highly efficient and flexible generation fleet
Modern and Reliable T&D System
Stable electricity cost and reliable power 6

14. PREPA’s IRP Benefits Main issues affecting PREPA’s IRP:
Environmental compliance:
MATS Rule
Clean Power Plan (CO2)
20% Renewable energy integration
Fuel diversification through use of natural gas and significant reduction in oil fuel dependency
Modern Generation Fleet and T&D System
More stable electricity cost and reliable power 6

15. Thank You!