The Future of Baseload Power Generation

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Workshop Speakers

Peter Evans | Director, Global Strategy and Planning, GE Energy

Peter C. Evans leads the Global Strategy and Planning team at GE Energy, which is responsible for tracking and analyzing political, economic and regulatory policy trends around the world.  Dr. Evans oversees the Economics, Carbon, Fuels, Policy, and Strategic Workforce Planning Centers of Excellence, as well as long term scenario planning for the business.  His is a member of GE’s Corporate Marketing Council.  Prior to joining GE, he was Director, Global Oil, and Research Director of the Global Energy Forum at Cambridge Energy Research Associates (CERA). He also worked as an independent consultant for a variety of corporate and government clients, including the US Trade Promotion Coordinating Committee, US Department of Energy, the Organization for Economic Cooperation and Development, and the World Bank. Dr. Evans has extensive international energy experience, including two years as a Visiting Scholar at the Central Research Institute for the Electric Power Industry in Tokyo, Japan. His many articles and policy monographs include Japan: Bracing for an Uncertain Energy Future (Brookings Institution, 2006), Liberalizing Global Trade in Energy Services (AEI Press, 2002), and “International Conflict and Cooperation in Government Export Financing” (Institute for International Economics, 2001). He is a member of the Council on Foreign Relations and Chair of the Corporate Planning Roundtable of the National Association for Business Economists.  Evans holds a BA from Hampshire College and a master degree and PhD from the Massachusetts Institute of Technology.

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Richard Lopriore | President, PSEG Fossil, PSEG

Richard P. Lopriore was elected president of PSEG Fossil in May 2007. He oversees operations for 13 generation facilities spanning four states. He is also responsible for the oversight of three service groups: Maplewood Testing Services, the Central Maintenance Shop and System Maintenance Division.

The PSEG Fossil fleet is comprised of natural gas, coal and oil-fired electric generating units that contribute about 10,000 megawatts of electricity to PSEG Power’s generation portfolio. This includes an ownership interest of 1,000 megawatts in three jointly-owned facilities. Nine LM6000 peaking units are also under construction.

Under Lopriore’s leadership, Fossil outfitted its two New Jersey coal plants with about $1.5 billion in new pollution control equipment resulting in substantial reductions in emissions.  These plants are among the cleanest, most responsible coal stations in the country.

Mr. Lopriore instituted an in-depth Operational Excellence Model (OEM), one of the first programs in the nation to drive standardization across a Fossil fleet.  The program resulted in consistent improvement in operating results, reliability and fleet performance and the achievement of all-time generation records. He also revamped PSEG Fossil’s training program. Two industry-first, award-winning mobile training trailers were developed to take training directly to the work sites reducing costs and increasing productivity.

Mr. Lopriore has been a valuable part of the electric generation industry for more than 40 years. Prior to joining PSEG Fossil, he had been senior vice president – mid-Atlantic operations for Exelon Nuclear, responsible for oversight of the Limerick, Peach Bottom, Oyster Creek and Three Mile Island stations.  During his tenure, Three Mile Island achieved INPO 1 status (2007).

Mr. Lopriore joined Exelon as plant manager of Byron Stations in 1999 and was promoted to site vice president in 2001. In 2003 he became corporate vice president – operations support at Exelon’s nuclear headquarters, responsible for both the Midwest and mid-Atlantic regions. He then became vice president – operations, Midwest boiling water reactors in 2004.

Prior to Exelon, Mr. Lopriore held several key management positions at the Brunswick Nuclear Plant in North Carolina, including plant manager. At Vermont Yankee, he served as the maintenance manager for eight years where he achieved an operational SRO certification for Boiling Water Reactors.

Mr. Lopriore received his Bachelor of Science degree from Southern Vermont College and is a member of the American Nuclear Society. He also served in the National Guard.

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Lawrence Makovich | Vice President, Founder of Power Practice, IHS CERA

Lawrence J. Makovich, IHS CERA Vice President and Senior Advisor for Global Power, is a highly respected expert on the electric power industry. He directs IHS CERA research efforts in the power sector as part of IHS CERA’s Office of the Chairman. He is an authority on electricity markets, regulation, economics, and strategy. His current research focuses on electric power market structures, demand and supply fundamentals, wholesale and retail power markets, emerging technologies, and asset valuations and strategies.

Dr. Makovich is currently advising or has recently advised several large utilities in major strategic engagements. He has testified numerous times before the US Congress on electric power policy. He has advised the government of China on electric power deregulation and transmission in competitive markets, and the Brazilian Congress invited him to testify on power liberalization. He examined the impact of deregulation on residential power prices and the development of resource adequacy mechanisms in the IHS CERA Multiclient Study Beyond the Crossroads: The Future Direction of Power Industry Restructuring. He was also a project director for the IHS CERA Multiclient Study Crossing the Divide: The Future of Clean Energy, the author of the IHS CERA Multiclient Study Fueling North America’s Energy Future: The Unconventional Natural Gas Revolution and the Carbon Agenda, and the study director of the IHS CERA Multiclient Study Smart Grid: Closing the Gap Between Perception and Reality. Among Dr. Makovich’s other significant IHS CERA studies are examinations of the California power crisis in Crisis by Design: California’s Electric Power Crunch and Beyond California’s Power Crisis: Impact, Solutions, and Lessons.

Dr. Makovich has been a lecturer on managerial economics at Northeastern University’s Graduate School of Business. He holds a BA from Boston College, an MA from the University of Chicago, and a PhD from the University of Massachusetts.

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Charles Rossmann | Economist, Southern Company

Charles Greer Rossmann is Forecasting and Model Development Manager at Southern Company, a large electricity producer in the southeastern US. He manages the annual development of multiple long-term US electricity generation scenarios and fuel price forecasts. He manages the development of generation expansion scenarios for Southern Company’s fleet of power plants. He also manages Southern Company’s engagement in research related to electricity generation planning. He has been with Southern Company since 1998. He holds a Ph.D. in economics from the University of Colorado at Boulder. Prior to joining Southern Company he was Research Scholar at IIASA in Laxenburg, Austria. During 2010 he served as president of the US Association for Energy Economics.

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William Hogan | Raymond Plank Professor of Global Energy, Harvard Kennedy School

William Hogan is research director of the Harvard Electricity Policy Group (HEPG), which is examining alternative strategies for a more competitive electricity market. Hogan has been a member of the faculty of Stanford University where he founded the Energy Modeling Forum (EMF), and he is a past president of the International Association for Energy Economics (IAEE). Current research focuses on major energy industry restructuring, network pricing and access issues, market design, and energy policy in nations worldwide. Hogan received his undergraduate degree from the U.S. Air Force Academy and his PhD from UCLA. Selected papers are available on his Web site, www.whogan.com.

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Copyright: voestalpine Stahl GmbH

Baseload is the minimum sustained level of electricity needed by the system for all time periods.  It is often called the “backbone” of the grid.  The power plants that supply this load have high capacity factors due of the low marginal cost of production, and are typically coal and nuclear generating facilities.  This low cost is derived from the inexpensive fuel inputs and benefits of economies of scale of capital cost.

Baseload power generation is designed to operate efficiently and economically at a relatively stable output and consequently suffers with more ramping and unit shutdowns.  With increasing penetration of intermittent and non-dispatchable renewable energy sources, baseload is forced to operate in these off-design modes and generation flexibility becomes a critical issue for economic operation. Lower forecasted natural gas prices, more stringent environmental and safety regulations, and escalating capital costs put further uncertainty on the future of baseload investment. With continual change undergoing in the power sector, what role is traditional baseload going to play in the generation mix?   Will there be a transformation in the way traditional baseload generation is designed and operated?  Will natural gas-fired generation dominate new investment projects?  What are the key factors that drive investment in baseload generation?

Motivated by the uncertain landscape of power generation, the Future of Baseload Workshop will bring together panelists with experience in capacity resource planning, generation asset operations, large-scale system operation, renewable generation deployment, and financing to discuss these issues and to provide perspective on the near to mid-term future.