Financial Analysis of Experimental Releases Conducted at Glen Canyon Dam during Water Year 2017
- Argonne National Laboratory (ANL), Argonne, IL (United States)
This report examines the financial implications of the high-flow experiment (HFE) conducted at Glen Canyon Dam (GCD) during water year (WY) 2017. It is the eighth in a series of reports examining the financial implications of experimental flows conducted since the 1996 Record of Decision (ROD) was adopted in February 1997 (Reclamation 1996). The 1996 ROD implemented the Modified Low Fluctuating Flow (MLFF) regime. This is the first report since the 2016 ROD was adopted in January 2017 (Reclamation 2016). The 2016 ROD implemented the Long-Term Experimental and Management Plan (LTEMP) regime for monthly water releases, daily and hourly operating criteria, and experimental releases. A report released in January 2011 examined WYs 1997 to 2005 (Veselka et al. 2011); a report released in August 2011 examined WYs 2006 to 2010 (Poch et al. 2011); a report released in June 2012 examined WY 2011 (Poch et al. 2012); a report released in April 2013 examined WY 2012 (Poch et al. 2013); a report released in June 2014 examined WY 2013 (Graziano et al. 2014); a report released in September 2015 examined WY 2014 (Graziano et al. 2015); and a report released in November 2016 examined WY 2015 (Graziano et al. 2016). An experimental release may have either a positive or a negative impact on the financial value of energy production. Only one experimental release was conducted at GCD in WY 2017, specifically, a HFE release in November 2016. For this experimental release, financial costs of approximately $1.15 million were incurred because the HFE required sustained water releases exceeding the power plant’s maximum flow rate. In addition, during the month of the experiment, operators were not allowed to shape GCD power production, neither to follow firm electric service (FES) customer day-ahead energy deliveries nor to respond to market prices. This study identifies the main factors contributing to HFE costs and examines the interdependencies among these factors. It applies an integrated set of tools to estimate financial impacts by simulating GCD operations under two scenarios: (1) a Baseline scenario that mimics HFE operations both during the experiment and during the rest of the year when it complies with the 1996 daily/hourly operating criteria and the 2016 ROD monthly water release mandates, and (2) a counterfactual Without Experiments scenario identical to the Baseline scenario except it assumes that the HFE did not occur. The Generation and Transmission Maximization Superlite (GTMax SL) model was the main simulation tool used to simulate the dispatch of the GCD hydropower plant and associated water releases from Lake Powell. GCD is a Colorado River Storage Project (CRSP) power resource that is a component of the Salt Lake City Area Integrated Projects (SLCA/IP). In the modeling process the research team used extensive data sets and historical information on SLCA/IP power plant characteristics, hydrologic conditions, and Western Area Power Administration’s (WAPA’s) power purchase and sale prices. In addition to estimating the financial impact of the HFE, the team used the GTMax SL model to gain insights into the interplay among ROD operating criteria, exceptions made to criteria to accommodate the experimental releases, and WAPA operating practices.
- Research Organization:
- Argonne National Laboratory (ANL), Argonne, IL (United States)
- Sponsoring Organization:
- USDOE Western Area Power Administration (WAP)
- DOE Contract Number:
- AC02-06CH11357
- OSTI ID:
- 1526629
- Report Number(s):
- ANL-19/18; 151713
- Country of Publication:
- United States
- Language:
- English
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