POWER January 2015 - 22

2015 INDUSTRY FORECAST
As our generation mix changes
and our jobs change, flexibility
in how we think, work,
and solve problems will continue
to be a key attribute.
-Sharon Pfeuffer, DTE Energy
60% of our generation mix comes from nonemitting
sources.
Pfeuffer: If the final plan is similar to what
has been proposed, it will be the most significant
piece of environmental regulation ever
imposed. The proposed plan has an aggressive
front-loaded schedule for full compliance
by 2030. We are still working through
how we would comply, while still maintaining
reliable and affordable generation for
our customers. In any timetable, 111(d) will
cause the retirement of many or most of our
coal assets, and additional build of renewable
wind and gas-fired generation.
Gillespie: It is too soon to tell. Once the
rule is finalized, states will have between one
to three years to develop a compliance strategy,
and the path they will take is unclear at
this time. It is early in the rulemaking process,
and a lot can change.
The global power industry is becoming
more concerned about water availability
and quality. Is your company
addressing water constraints now or
preparing for any in the future?
Green: CPS Energy has maintained a
strong sense of conservation, particularly
around water use. The power plants use a lot
of water in the once-through cooling process.
San Antonio's primary source of water is
from underground water storage aquifers. In
the 1960s, CPS Energy minimized the use of
aquifer water by using treated sewage effluent
to provide make-up water for the cooling
lakes at the plants. To date, CPS Energy has
saved more than 300 billion gallons of Edwards
Aquifer water by using recycled water
for plant needs.
Livingston: Absolutely. All of our owned
fossil resources already use dry cooling that
uses just 3% of the water that a conventional
cooling tower plant would use. We just experienced
the third year of low snowpack and
rainfall, and last season was the third-driest
in history. So we are carefully planning reservoir
elevations, and in-stream flow releases
so that we can carry sustainable stream flows
through the dry summer months. We are also
carefully conserving domestic water use at all
our facilities across the company and helping
our customers to do likewise.
22
Pfeuffer: Only one of our generating facilities
is located in an area where water
resources are constrained, representing less
than 1% of our total generating capacity. The
majority of operations take place in Michigan,
which has an abundance of high-quality
freshwater. Although there are factors that
can negatively affect this resource (such as
invasive species), the Great Lakes are believed
to be a valuable source of freshwater
for many years to come.
Gillespie: Water is a critical resource to
Duke Energy and the communities we serve.
Rivers and reservoirs serve as the backbone
of our generation fleet by providing hydropower
and cooling water for our nuclear and
fossil plants. As part of being a good environmental
steward, we use models that quantify
water needs/use and quality during both normal
and drought conditions, and work with
stakeholders to ensure our impact on this
shared resource is minimized. Additionally,
we continuously evaluate new technology
that will allow us to use less water in generating
electricity.
In a word-followed by a one-sentence
explanation-how do you feel
about your utility's portfolio as you anticipate
its operation in 2015?
Green: Confident. CPS Energy is fortunate
to have a diverse blend of generation that
will enable us to continue to provide low-cost
power to our customers.
Livingston: Challenged. But still optimistic.
There are a lot of new dynamics being introduced
to the grid and generation mix, but I
believe we've got the right things in place for
2015. Hydro availability will be a key factor
for us in California.
Pfeuffer: Transition. Continued focus on
reducing customer cost, addition of DSI/ACI
systems, and adding to our gas-fired plants
and renewable wind fleet are all transitions
from how we've operated in the past.
Gillespie: Economical. Our mix of energy
sources provides a good foundation of predictable,
low-priced electricity.
Let's shift to the people who produce
the power. As more of the Baby Boom
generation transitions to retirement and
you add younger employees, do you find
they are less interested in thermal plants
than renewable generation? If so, what
strategies have been effective in recruiting
younger workers to your traditional
generation facilities?
Green: We have long recognized the challenges
of recruiting new engineers to our
conventional, fossil-fired generating plants.
We recruit locally and are fortunate to have
engineering graduates in the San Antonio
area. We sponsor a number of college students
as interns each year and have been able
to retain some as full-time employees. CPS
Energy also has a program that brings high
school students interested in pursuing careers
in the energy industry into the workplace.
They receive scholarships and are afforded
the opportunity to gain relevant experience.
Livingston: It's the diverse resource mix
of our portfolio that's attractive. We have the
latest technology in our thermal plants, our
hydro has both environmental and heritage
aspects that are appealing and unique, our
solar assets have a new and unique character
that attracts talent, and the quality of our
nuclear operations helps attract top talent. I
also believe our newer employees view themselves
as joining the overall company, not
just the generation department, and we are
able to offer a unique and diverse career path
for early career path employees.
Pfeuffer: Based on what is published in
the mass media, we do get a lot of questions
about jobs in renewable generation. However,
fossil generation employs many more people
per megawatt than renewables, so most of our
hiring continues to be in that area. For our
engineering positions, we have a lot of coop
and summer intern positions, and the stuThe
effluent regulations appear
to have the most potential
to significantly increase
power cost due to the high
cost of compliance.
-Melanie Green, CPS Energy
www.powermag.com
POWER | January 2015
http://www.powermag.com
POWER January 2015

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