--> Abstract: On-Site Electric Generation In Energy And Agriculture, by R. Priddy; #90928 (1999).

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PRIDDY, RITCHIE
KN Energy, Lubbock, TX

Abstract: On-Site Electric Generation in Energy and Agriculture

In a time of uncertainty and little construction of new power plants distributed generation (DG) has taken on an importance few people realized just a few years ago. In reaction to these uncertainties, and transmission constraints, opportunities for tapping into areas of trapped gas in production fields for fuel for rural DG purposes have risen dramatically. This presentation identifies these opportunities and describes how to overcome obstacles and work with key players (including electric companies).

Another opportunity for DG exists using financial tools to arbitrage natural gas for electricity on state-owned lands. This power could be used for self-generation in the production field, or could be transported to a larger grid for resell.

What were once fierce competitors are becoming close allies. Electric cooperatives in the Panhandle of Texas are summerpeaking due to heavy irrigation loads. Natural gas companies are winter-peaking. Under some deregulation scenarios onpeak power for these low load factor customers will rise 20 to 30 percent over present levels. The coops, being nongenerators, will likely see increased ratchet costs (from 60% to 80%) that forces them to pay literally millions of dollars per year for power they never take. Strategically located DG assets can help reduce purchased power costs during the summer by shaving peaks, and can be, perhaps, base-loaded. The goal is to optimize efficiencies between the two fuels by leveling load profiles.

AAPG Search and Discovery Article #90928©1999 AAPG Annual Convention, San Antonio, Texas