Interstate Renewable Energy Council » Connecting to the Grid Newsletter

March 2010 Connecting to the Grid Newsletter

LaurelV — Thu, 11 Mar 2010 17:59:18 +0000

WHAT’S NEW AS OF MARCH 2010?

Note from the Editor: Investor-Owned Utilities: Going Solar and Staying Profitable

Last month I posted an article about some of the constraints that electric cooperatives face when considering more renewable-friendly policies. Investor-owned utilities (IOUs) confront a somewhat different array of challenges because they are generally privately owned and state-regulated. According to EIA data, IOUs account for 6% of all utilities, 42% of generation, 66% of sales and 67% of revenue in the United States, ultimately serving about 100 million customers.

Like most private ventures, these utilities are profit-motivated, either distributing dividends to shareholders or reinvesting profits in their company. This for-profit structure has traditionally precluded many voluntary renewable energy incentives but, as state Renewable Portfolio Standard (RPS) benchmarks are coming due, utilities are starting to find more innovative ways to purchase or otherwise support green power. As of this month, 29 states plus D.C. have an RPS that requires utilities and/or electricity suppliers to invest in renewable energy or buy renewable energy credits (RECs) to account for a certain percentage of their retail electricity sales. Faced with these and other regulatory requirements, as well as the promise of possible profits, utilities must now decide if and how they will participate in the renewable energy industry. The situation is further complicated by electricity restructuring laws which may prohibit an electric distribution utility from owning generation assets, in which case the utility may have to consider other options. [Continued in Newsletter]

State News in Detail

Northeast States

Connecticut DPUC issues favorable draft decision on meter aggregation; town and utility reach agreement

New York removes peak load limitation for net metering

Maine PUC adopts rules for community-based pilot program

Mid-Atlantic States

Delaware finalizes net metering changes, allowing grid-integrated vehicles to net-meter

D.C. PSC releases proposed rules for net metering

Midwestern States

Illinois ICC adopts interconnection standards for large distributed generation facilities

Southern States

Louisiana PSC issues strawman RPS proposal

Mississippi net metering bill dies in committee

Western States

California increases aggregate participation cap

Montana PSC issues proposed interconnection standards for systems up to 10MW

Oregon PUC considers an array of Feed-in Tariff proposals

Other States

Hawaii PUC reaches decision on rate decoupling, increasing RPS Goal

Miscellaneous News and Events

NC report supportive of solar and wind increases

CPUC rejects fuel cell proposal

FERC seeks comments on integration of renewables

Download the full newsletter as a PDF: March 2010 Connecting to the Grid

FORMAT

While customer-sited net metering and interconnection policies are primarily addressed at the state level, they are also becoming important on a regional basis. This newsletter has been designed to provide state-level policy updates and capture emerging regional trends. Connecting to the Grid is a free, electronic newsletter published each month by the Interstate Renewable Energy Council (IREC) and the North Carolina Solar Center at North Carolina State University. Click here to subscribe.

Editor: Laurel Varnado
NC Solar Center, NC State University

February 2010 Connecting to the Grid Newsletter

LaurelV — Thu, 11 Feb 2010 19:46:19 +0000

WHAT’S NEW AS OF FEBRUARY 2010?

Note from the Editor: Innovative Utility Practices, a Focus on Co-ops

Our centralized-generation model of energy infrastructure was clearly a driving force behind the acceleration of American economic development in the 20th century. Considering the current media and political buzz around transitioning to a clean energy economy, the U.S. is in the midst of rethinking this model. Many forward-thinking utilities have already begun to transform their business-as-usual approach to fit the next-generation of power delivery needs.

The three main types of utilities, investor-owned, municipal and cooperative, are similar in many respects but their fundamental structure and purpose differs enough to cause variations in their approach to net metering and interconnection policies. Despite the inherent constraints of each utility type, some utilities have heeded the call for more and cheaper options to connect renewable energy to the grid. This month we begin to look at some of the constraints that bind utilities’ policy-making abilities and ways that utilities are working with the system to ramp up renewables. I’ll start the discussion with electric cooperatives and in subsequent months we will be following up with a look at municipal and investor-owned utilities. [Continued in Newsletter]

State News in Detail

Northeast States

Connecticut to Hold Hearing on Network Interconnections

Con Edison Calls for More Solar Projects; PSC Approves Net Metering Tariffs

Rhode Island Releases State-Wide Energy Plan

Vermont PSB issues FIT order

Mid-Atlantic States

New Jersey Removes 2 MW Cap on Net Metering

Midwestern States

Michigan PSC Announces a Sharp Increase in Net Metering Participants

Southern States

Florida’s FKEC Initiates Solar Community Lease Program

Western States

California PUC Proposes Alternate Decision Approving PV DG Program; SMUD opens and closes FIT queue

Fort Collins, Colorado Adopts Formal Net Metering Provision into City Code

Utah PSC Issues Proposed Rules for Interconnection; RMP responds with proposed agreements

Other States

Alaska RCA Finalizes Net Metering Rules

Miscellaneous News and Events

NREL Releases FIT Report

President’s Office Requests Info on Smart Grid Interface

San Francisco Adopts PACE Financing Model

Download the full newsletter as a PDF: February 2010 Connecting to the Grid

FORMAT

Editor: Laurel Varnado
NC Solar Center, NC State University

January 2010 Connecting to the Grid Newsletter

LaurelV — Thu, 14 Jan 2010 20:44:24 +0000

Editor: Laurel Varnado
NC Solar Center, NC State University

HOW TO SUBSCRIBE

The Connecting to the Grid newsletter is published electronically every month by the Interstate Renewable Energy Council (IREC) and the North Carolina Solar Center at North Carolina State University. This is a free publication. Click here to subscribe.

FORMAT

While customer-sited net metering and interconnection are primarily state issues, they are also becoming important on a regional basis. This newsletter has been designed to capture any subtle, emerging regional trends. The state news is presented in geographic categories, primarily because the standard NERC and/or RTO/ISO regions do not always align with state boundaries. Please direct comments and questions about the newsletter to Laurel Varnado.

January 2010 Connecting to the Grid Newsletter (PDF)

January 2010 Connecting to the Grid Newsletter (MS Word)

WHAT’S NEW AS OF JANUARY 2010

Note from the Editor: Celebrating the Year’s and Decade’s Achievements

The New Year always provides good opportunity for reflection, so in keeping with “Best of” traditions, I thought I would highlight the major achievements that we witnessed in 2009 for Net Metering and Interconnection-related policies.

Several states improved upon their interconnection procedures, increasing the system cap to 10 MW or greater, including D.C, South Dakota, Virginia and Oregon.
After a brief legal battle, Missouri relaxed its insurance requirements for interconnecting DG systems.
We saw a surprising number of states that enacted or adopted policies for the first time, including Kentucky, Nebraska, Alaska, Kansas, and South Carolina
Several states formalized rules for shared system net metering including Maine, Vermont and Massachusetts. Rhode Island also passed legislation allowing virtual net metering for up to 10 accounts owned by government and certain other classes of utility customers.
Aggregate participation caps also got a boost in several states: New Hampshire (saw a small increase to 1%), Delaware (5%), Utah (for Rocky Mountain Power: 20%), and North Carolina (removed the cap altogether)
Delaware and California allowed indefinite rollover of net metering credits.
Michigan, North Carolina and West Virginia are working on REC tracking platforms
Several states are working on fixed price offerings or feed-in tariffs (FITs) including Hawaii, California, Oregon, Maine and Wisconsin

But wait, let’s not stop there! Not only was it the turn of a new year but it was also the turn of a new decade. Recently, I came across a net metering map that had been created by the folks at DSIRE, of course, showing states with net metering policies in the year 2000. Only 22 states were shaded. If you compare that to today’s DSIRE map you will see a remarkable difference; almost twice as many states have net metering now than did ten years ago. [Continued in Newsletter]

State News in Detail:

Northeast States

Connecticut utilities issue report on interconnection to networks

New York PSC expands RPS to 30%

Maine PUC adopts best-practices interconnection procedures

Massachusetts launches comprehensive solar program

Vermont PSB staff issue proposal for setting renewable energy FIT prices

Mid-Atlantic States

Maryland Governor accepts proposal to increase incentives for renewable energy in the state

New Jersey separates NM and IC rules, lifting 2MW cap on interconnection; proposes lifting 2MW cap on net metering.

Pennsylvania PUC issues policy statement in support of solar projects

Midwestern States

Kansas public utility voluntarily adopts net metering, interconnection

Missouri PSC sends Renewable Energy Standard proposal to Secretary of State for approval

Wisconsin PSC notes that all utilities are meeting or exceeding RPS goals

Southern States

North Carolina’s Duke Energy begins second phase of Solar Distributed Generation Program

Western States

Arizona ACC rules on third-party arrangement for school districts

CPUC provides standard contract for CHP generation delivered to the grid

New Mexico PRC upholds ruling on third-party sales

Oregon PUC posts FIT workshop information

Washington UTC files NOPR on smart grid work

Miscellaneous News

China Increases Renewable Energy Goal

California to allow tradable RECs to meet RPS compliance

A Round-up of Feed-in Tariff news from Around the World

Conferences and Events

December 09 Connecting to the Grid Newsletter

LaurelV — Thu, 10 Dec 2009 21:08:28 +0000

Editor: Laurel Varnado
NC Solar Center, NC State University

HOW TO SUBSCRIBE

FORMAT

December_2009_Connecting_to_the_Grid

WHAT’S NEW AS OF DECEMBER 2009?

Note from the Editor: The 2009 annual report cards are in!

They’ve tallied the scores and the grades are in. Last month the Network for New Energy Choices (NNEC) released Freeing the Grid 2009, an annual report on state net metering and interconnection policies, which it has been publishing since 2007. It is remarkable to note the progress that states have made in such a short time span since the first edition was published. The sidebar below shows this progression by comparing the number of states that fell into each grade category in 2009 as compared with 2007.

As progressive states, like the 2009 best practices feature state of Oregon, improve their policies, they continually raise the bar for everyone else. In order to capture these trends NNEC works to fine-tune the scoring methodology. It is possible that some states might have moved up or down a grade even though they didn’t change their policy. The pertinent change was a new category that awards points for the allowance of power purchase agreements (PPAs) in state net metering policies. At the end of FTG ’09 (beginning on pg. 95) there is a great synopsis of the bolstering effect that PPAs have on solar markets in states where they are allowed to operate. [Continued in Newsletter]

State News in Detail:

Northeast States
Maine PUC rules on solar company’s petition to be classified as a distribution utility
Massachusetts net metering tariffs in effect
New York authorizes PACE financing model for renewable energy investments

Mid-Atlantic States
D.C. OPC Comments clarify net metering NOPR
New Jersey BPU answers questions and extends deadline for Renewable Energy Grid Connected Program
West Virginia enacts bill to establish REC tracking

Midwestern States
Missouri-based utility announces plans for solar projects, rebates for customers
Kansas to host Midwest electricity law seminar
Kentucky and TVA sign clean energy pact
Ohio PUC places net metering tariffs into effect
Wisconsin’s Advanced Renewables Tariff discussion recap

Southern States
Florida PSC notes that renewable energy and residential interconnections are on the rise
Georgia PSC approves “solar only” modification to Georgia Power’s green energy tariff

Western States
Arizona’s SRP announces installation of 14 solar PV systems at area schools
California’s PG&E increases net metering cap; CPUC approves space-based solar PPA
Montana Municipal utility fined for lack of RPS compliance
Nevada PUC issues draft rules for net metering in conjunction with incentives

Miscellaneous News
NREL State of the States Report Released
DOE Launches New Website to Bring Energy Technology Information to the Public
Neighborhood Batteries Coming to Ohio, Detroit
Solar Company Sells Solar Panels at Big-Box Retail Stores

Conferences and Events

November 09 Connecting to the Grid Newsletter

JaneP — Thu, 12 Nov 2009 13:56:57 +0000

Editor: Laurel Varnado
NC Solar Center, NC State University

HOW TO SUBSCRIBE

FORMAT

November_2009_Connecting_to_the_Grid (pdf)

November 2009 Connecting to the Grid (Word file)

WHAT’S NEW AS OF NOVEMBER 2009?

Supermodels of Renewable Energy Policy

As President Barack Obama declared October National Energy Awareness Month, I thought it was fitting that IREC released several useful documents last month. These reports should be of special interest to the readers of Connecting to the Grid because all of them touch upon net metering and interconnection and include: Connecting to the Grid Guide 6th edition, Net Metering and Interconnection Model Procedures, and the 2009 Updates and Trends Report.

As many of you are aware, IREC strives to promote best practices in renewable energy policy. The net metering and interconnection models provide a detailed picture of what IREC considers best practices in these arenas. They provide a useful means for anyone interested in learning more about these tools, including policy makers, regulators, utilities, industry representatives and the general public. The following is a summary of some of the main provisions in each of the models:

Net metering

No hard cap on system size, instead systems are limited to the service entrance capacity
Indefinite rollover of net metering credits (this helps to prevent over-sizing of systems)
No aggregate limit on participation in net metering programs
No explicit prohibition of 3rd party ownership of net metered systems
Customer retains Renewable Energy Credits associated with production.
The aggregation of multiple meters is allowed on a customer-generator’s property or contiguous properties (i.e. one system may off-set multiple meters, regardless of rate schedule).

[Continued in the Newsletter]

State News in Detail

Northeast States

–Maine PUC issues proposed rules for the Community-Based Renewable Energy Pilot Program

–Massachusetts DPU announced deployment of 5 MW of utility solar installations

–New York DPS seeks to evaluate the permitting process for interconnecting generators

Mid-Atlantic States

–D.C. PSC issues Notice of Proposed Rulemaking for net metering regulations

–Maryland PSC will hold rule-making session on the state’s RPS modifications

–New Jersey BPU issues solicitation for grid-connected wind and biomass projects

Midwestern States

–Michigan PSC launches renewable energy tracking system

–Missouri PSC closes net metering docket

–Wisconsin PSC holds technical conference on Advanced Renewables Tariff

Southern States

–North Carolina Commission issues RFP for the development of a REC tracking system

–South Carolina utilities file net metering tariffs with the PSC

Western States

–California PUC releases report on CSI program

–Colorado re-issues interconnection rules

–Nevada PUC opens an investigation of Feed-in Tariffs

–Oregon PUC issues draft rule for pilot solar feed-in tariff

Other States

–Alaska RCA approves net metering modifications

–Hawaii Governor links with China for renewable energy partnership

Miscellaneous News

–Solar Advocates Applaud PG&E Commitment to Expand Net Metering Program in California

–DOE and NREL Announce Open PV Mapping Project

–Super Hub Planned to Move Renewable Energy

Conferences and Events

October 2009 IREC "Connecting to the Grid" Newsletter

admin — Tue, 13 Oct 2009 20:21:00 +0000

Editor: Laurel Varnado

NC Solar Center, NC State University

HOW TO SUBSCRIBE

FORMAT

Note: Scroll to the bottom of this page to download complete newsletter.

WHAT’S NEW AS OF OCTOBER 2009?

Readers, we’d like to hear from you!

First, please take a moment to fill out a quick six-question survey about how we can make the Connecting to the Grid newsletter a more useful tool for you.

Secondly, I would like to incorporate an interactive component to the newsletter. I know that Connecting to the Grid readers have a wealth of information and questions and I’d like to create a forum to discuss them. Please send any questions or comments to me at lavarnad@ncsu.edu; I will choose a handful and include them in future newsletters with a response. Please indicate if you would like your name or contact information included with your submission. I will certainly do my best to find answers for your questions and I believe this will help increase dialogue within the interconnection/net metering community.

Note from the Editor – Interconnection Policies, by the Numbers

Last month we looked at a general overview of net metering and I thought it only fair to give interconnection policies their share of the spotlight this month. Let’s begin with some numbers:

Three states adopted a standard for the first time in 2009.
Eleven states have enacted or adopted revisions in their interconnection policies in 2009.
Thirteen states allow interconnections to networks.
Twenty states plus D.C. have 3 or more technical screens process applications.
Forty-one states have an interconnection standard, guidelines or working draft rules in place.

[Continued in Newsletter]

State News in Detail

Northeast States

Maine PUC deliberating over community renewable energy act

Massachusetts DPU to hold public hearing on utilities’ proposed NM/IC tariffs

NY DPS will hold technical conference on the state’s RPS program; Governor announces release of funding for solar projects

Vermont PSB issues order setting interim standard offer prices for renewable energy

Mid-Atlantic States

New Jersey BPU announces solicitation results from solar financing program

Midwestern States

Indiana report released detailing renewable energy potential in the state

Iowa IUB uses Illinois’ interconnection standards as a starting point for IC rulemaking

Kansas KCC seeking clarity on net metering/interconnection rulemaking

Michigan PSC seeking comments on interconnection proposal

Nebraska PPD receives renewable energy proposals

Wisconsin PSC continues work on the Advanced Renewables Tariff

Southern States

New Orleans City Council raises system size caps for commercial facilities

Tennessee’s Volunteer State Solar Initiative approved by DOE

Western States

Arizona’s ACC allows SolarCity to enter into PPA with school district

California governor signs net metering, feed-in tariff laws

Idaho’s RMP seeks discount on avoided cost payment to wind generators

Oregon PUC approves interconnection forms and agreements for systems up to 10 MW

Utah PSC working on rulemaking for interconnection up to 20 MW

Other States

Hawaii PUC finalizes feed-in tariff decision

Miscellaneous News

New Jersey Leads Nation in Solar Energy per Square Mile

Toward better solar cells: Chemists gain control of light-harvesting paths

Gov. Schwarzenegger and Secretary Salazar Sign MOU

Conferences and Events

Files:: October_2009_Connecting_to_the_Grid.doc

September 2009 IREC "Connecting to the Grid" Newsletter

admin — Thu, 10 Sep 2009 18:29:00 +0000

Editor: Laurel Varnado

NC Solar Center, NC State University

HOW TO SUBSCRIBE

FORMAT

Note: Scroll to the bottom of this page to download complete newsletter.

WHAT’S NEW AS OF SEPTEMBER 2009?

Note from the Editor – Zooming out for a broader perspective of net metering

For the last few months we have delved into some specific net metering issues such as Renewable Energy Credit (REC) ownership, third-party arrangements and net excess rollover. While it is important to explore the finer points of such issues, it can also be useful to widen our scope and see how they’re currently addressed in the patchwork of state net metering policies. This month, I looked at some of the main issues surrounding net metering, tallied the number of states that fit into various categories and offer the following insights. These graphics are based on data from the infinitely-useful Database of State Incentives for Renewables and Efficiency (www.dsireusa.org) on the 42 state-wide net metering policies (plus the District of Columbia). Voluntary utility policies were not included.

For the first graph, I looked at the number of states that allowed various renewable technology types to net meter. All of the states included PV and wind systems, and most included hydro, biomass, solar thermal and fuel cells. While some of the technologies on the lower end of the graph may not be viable for certain areas of the country, certainly they represent possible growth areas in the future. We’ve seen that combined heat and power (CHP) is certainly on the rise in net metering policies; just this month New York authorized CHP as an eligible technology, following on the heels of several other states this year alone. [Continued in newsletter]

State News in Detail:

Northeast States

Connecticut IOU’s note intention to suspend insurance requirements for small generators

Massachusetts DPU adopts model NM/IC tariffs

New York includes legislation to allow fuel cells and Micro-CHP to net meter; PSC releases funds for RPS program

Rhode Island’s National Grid submits revised QF tariff for consideration

Mid-Atlantic States

D.C. neighborhood’s Solar Cooperative begins PV installations

Pennsylvania PUC gives utility the green light to purchase solar credits for AEPS compliance

Midwestern States

Michigan PSC requests comments on utility plans to utilize dispatchable, customer-owned DG

Southern States

Georgia PSC modifies terms of solar purchase tariff

Austin, Texas investigates a sharp increase in solar commitment

Western States

Arizona ACC continues examination of third-party regulation; ACC renewable energy ratemaking authority held up in court decision

California continues feed-in tariff discussion

Colorado PUC issues emergency rules that pertain to net metering; Xcel Energy requests that third-parties be eligible for SolarRewards Program incentives

Oregon PUC directed to establish pilot production incentives for solar energy producers

Utah PSC issues proposed new rules for interconnection

Miscellaneous News

Maine signs agreement with FERC to speed development of tidal energy resources

China launches differentiated wind energy tariffs

Research Shows Distributed Solar Energy Market to Reach $55 Billion by 2012

Solar Decathalon competition adds a net metering component in 2009

Conferences and Events

Files:: September_2009_Connecting_to_the_Grid.doc; September_2009_Connecting_to_the_Grid.pdf

August 2009 IREC "Connecting to the Grid" Newsletter

admin — Tue, 11 Aug 2009 19:16:00 +0000

Editor: Laurel Varnado

NC Solar Center, NC State University

HOW TO SUBSCRIBE

FORMAT

Note: Scroll to the bottom of this page to download complete newsletter.

WHAT’S NEW AS OF August 2009?

Note from the Editor – How Does FERC Influence State Policy?

Certainly changes in Federal policy (like PURPA and EPAct 2005) directly impact states’ abilities to enact, adopt or modify net metering and interconnection policies. There are a number of other direct and indirect mechanisms through which the federal government can influence state policies though, without the need for legislative authority. What are some of these methods and how do they work given the divide between state and federal jurisdiction over net metering and interconnection matters?

The Federal Energy Regulatory Commission (FERC) is one of the more significant voices states hear when setting energy policies. FERC, an independent U.S. government agency that regulates the interstate transmission of electricity, natural gas, and oil, has three overarching goals: 1) Promote the Development of a Strong Energy Infrastructure, 2) Support Competitive Markets, and 3) Prevent Market Manipulation in the energy industries. The Federal Power Act, Section 824 (b), gives FERC jurisdiction in cases of wholesale or interstate commerce power transactions, though it has generally been interpreted to mean that FERC has jurisdiction when a system is interconnected to transmission lines that are capable of transmitting power across state lines. If the transaction is retail or solely intrastate in nature, it is within state jurisdiction. Given this divide, what different hats can FERC wear to influence state policy? [Continued in Newsletter]

State News in Detail:

Northeast States

Maine legislature increases RPS credit for community-owned systems

Massachusetts DPU holds technical hearing on net metering and interconnection model tariffs

New Hampshire PUC formally adopts net metering rule

New York’s ConEd to deploy AMI pilot in NYC

Rhode Island Governor signs legislation that broadens scope of net metering

Vermont PSB continues work on Feed-in Tariff rulemaking

Mid-Atlantic States

New Jersey approves SREC purchases

Midwestern States

Illinois ICC extends deadline for large generator interconnection docket finalization

Kansas KCC begins net metering investigation, issues order on EISA 2007 smart grid consideration

Michigan’s Consumers Energy begins experimental feed-in tariff

Minnesota PUC invites comments on wind turbine setbacks

South Dakota PUC is accepting comments on Interconnection, via the Small Renewable Energy Initiative

Wisconsin PSC continues discussion of Advanced Renewable Tariff

Southern States

Florida’s LCEC cooperative offers net metering for systems up to one MW

Georgia PSC approves expansion of Georgia Power’s solar purchase program for customers

South Carolina PSC approves net metering settlement

Western States

Colorado PUC files supplemental NOPR for interconnection docket

Nevada PUC opens several renewables dockets

New Mexico Governor lobbies against PPA regulation

Oregon Governor vetoes renewable energy bills

Other States

Hawaii allows preferential rates for agriculturally produced power

Miscellaneous News

Feed-in Tariff planned for UK?

Xcel Proposes then withdraws net metering charge

DOE announces nearly $12M for solar grid integration development

Conferences and Events

Files:: August_2009_Connecting_to_the_Grid.doc; August_2009_Connecting_to_the_Grid.pdf

July 2009 IREC "Connecting to the Grid" Newsletter

admin — Mon, 13 Jul 2009 18:20:00 +0000

Editor: Laurel Varnado

NC Solar Center, NC State University

HOW TO SUBSCRIBE

FORMAT

Note: Scroll to the bottom of this page to download complete newsletter.

WHAT’S NEW AS OF JULY 2009?

Note from the Editor – Indefinite rollover, the great equalizer

As summer turns up the sun’s rays for PV systems across the country, let us briefly consider how a net metering policy’s provision for Net Excess Generation (NEG) rollover can affect the financial outlook for different types of DG systems. If a customer-generator sizes a system to meet average annual onsite energy consumption, ideally the customer would benefit most from an annualized period that starts before the peak production season of the generation unit so that the excess energy carries forward to the less productive months ahead. Because the seasonal output of solar-energy systems is much different than that of wind-energy or other systems, it is next to impossible to define an annual period that would benefit all customer-generators equally.

Indefinite rollover is therefore considered a best practice, from IREC’s perspective. With the addition of Delaware this month, by our count, 11 states and the District of Columbia allow indefinite rollover of NEG, with no monthly or annual settlement for net metering credits. The next best scenario, as in the case of New Jersey, is to allow customers to choose their own annual period so that they can optimize the use of any excess generation. Arizona requires a calendar year true-up at the end of December, and other states, such as Pennsylvania and North Carolina, set an annualized period beginning in June and ending in May of the following year. Some states do not allow retail credits to roll over at all; New Mexico currently requires monthly settlement at avoided cost (though this may be changing through a PRC rulemaking), and Alaska’s proposed rules also stipulate monthly settlement. The following is a brief look at how a few generation types differ regarding peak performance.

Solar –At first glance, it would seem that an annualized period beginning in the late spring would best suit PV systems, due to summer’s longer days. NEG credits can be a complex issue though, even if the annual period starts at the beginning of the summer. Here in North Carolina, for example, if you look at the PV Watts calculation for peak solar production, you’ll find that peak production months (using the optimal panel tilt for the latitude) occur in March, April and May. This time period also correspond to some of residents’ lowest energy consumption months, in part, because we don’t need air conditioning yet. North Carolina’s net metering policy, however, requires that all NEG be surrendered to the utility on May 31, with no compensation for the customer. This annualized period would therefore probably be the least optimal situation for PV system owners in that they may not carry forward all their accrued NEG throughout the high-energy cost summer months. [Continued in Newsletter]

State News in Detail:

Northeast States

Massachusetts DPU issues net metering order

New Hampshire PUC submits proposed net metering rule to JLCAR for approval

New York DPS approves net metering tariffs

Vermont PSB opens dockets for Feed-in Tariff implementation

Mid-Atlantic States

Delaware bills allow for indefinite NEG rollover, increase aggregate cap and provide net metering-like credits for grid integrated vehicles

New Jersey resumes discussion on Community Renewables Program

West Virginia Legislature requires PSC to consider net metering advancements

Midwestern States

Michigan PSC authorizes munis’ renewable energy plans

Missouri PSC issues order on liability insurance requirements

South Dakota PUC requests comments on Small Generator Interconnection forms

Southern States

South Carolina: Net metering settlement signed by Office of Regulatory Staff and utilities

Tennessee signs ‘Clean Energy’ bill

Western States

Arizona ACC approves APS’s net metering tariff

California PUC approves SCE’s plan for 500 MW of distributed solar installations

Idaho PUC asked to rule on ownership of RECs under PURPA contracts

Miscellaneous News

East Africa: Region’s States Pursue Joint Power Supply Plan

DOE Approves $508M for 16 States’ Spending

‘Fast-Track’ Initiatives for Solar Energy Development on Western Lands Announced

Conferences and Events

Files:: July_2009_Connecting_to_the_Grid.doc; July_2009_Connecting_to_the_Grid.pdf

June 2009 IREC "Connecting to the Grid" Newsletter

admin — Wed, 10 Jun 2009 19:11:00 +0000

Editor: Laurel Varnado

NC Solar Center, NC State University

HOW TO SUBSCRIBE

FORMAT

Note: Scroll to the bottom of this page to download complete newsletter.

WHAT’S NEW AS OF JUNE 2009?

Note from the Editor – FAQ’s on REC Ownership

The topic of Renewable Energy Credits (RECs), a.k.a Green Tags or Tradable Renewable Energy Certificates, has spurred some serious dialogue in the net metering policy sphere over the past few months. In short, REC’s enable the environmental (non-power) attributes of renewable generation to be unbundled or considered separately from the associated energy commodity. Below I have compiled a list of questions frequently asked about RECs and provided some brief responses.

What constitutes a REC? One REC is almost always equal to one MWh of renewable generation; beyond that however, the exact make-up and definition of a REC varies by state. There has been considerable debate over whether a REC is synonymous with, or at least includes, a carbon emission reduction or whether the carbon piece can be unbundled and sold separately from the REC. Most state statutes do not specify this in their definition of a REC, leaving the definition somewhat ambiguous such as ‘environmental attribute of renewable generation’. Delaware and North Carolina specifically state that a REC does not include an emission reduction credit while several others (CO, NY, WA, AZ) declare that REC’s include all non-power attributes, including carbon emission reduction.

What’s the status with state net metering policies and REC ownership? State net metering policies are fairly equally divided between addressing and ignoring REC ownership. Currently, 22 states have laws that permit net metering customers to keep all or a portion of RECs, though some have creative caveats for the treatment of those credits. Over half of these 22 states confer outright ownership of all RECs to the customer-generator. A few have provisions in which customers must surrender RECs for a certain number of years when accepting investor-owned utility incentive payments (the utility is essentially paying for those RECs upfront). Others have alternative arrangements that require the utility to pay the customer for RECs or delineate a method by which the customer and utility may share customer-sited RECs. [See newsletter for complete article]

Legislative Round-up

The legislative season is winding down in most states and we’ve seen quite a few updates to net metering and interconnection policies as a result. So far we’ve seen interesting developments with some common themes of allowing third-party participation in net metering and expanding net metering to larger sizes and more types of renewable generation. We’ve also seen more interest in allowing shared net metering systems. Here are the highlights from the legislative season:

Northeast: Recently Maine enacted LD 336, which allows shared ownership of net billing facilities up to 660 kW and includes Micro CHP as an eligible facility. Vermont made the legislative news this month by passing an energy bill (H.B. 446) that requires retail utilities to offer a Feed-in Tariff for renewable generators.

Mid-Atlantic: In May, Maryland enacted HB 1057 and SB 981, which clarify the definition of a net metering customer to include those working with third-party contractors, and add micro CHP as an eligible system type. Last month Virginia enacted HB 2155 which included provisions to allow utilities to approve higher system caps, allows customers on TOU tariffs to participate in net metering and specified customer ownership of RECs. Virginia also enacted H.B. 2171, which specifies that a farm, or aggregation of farms, operating a waste-to-energy facility may not be considered a public utility. Now that the SCC has adopted comprehensive interconnection rules, Virginia is really stepping up as a key policy player in the region.

Midwest: Last month Kansas and Nebraska made headlines by enacting state-wide net metering laws. The addition of these two states to the net metering map bring the nation’s total up to 42 state-wide net metering polices (plus a few other states in which utilities voluntarily offer programs). Minnesota also enacted a comprehensive energy bill that authorizes a community-based wind project and requires utilities to develop standard offer contracts for projects under 5 MW, among other things.

Southern: We have seen a whole slew of NM/IC bills try and then fail at state legislatures around the South. There has been some advancement; however, through other renewable energy policies like tax credits. Refer to DSIRE for more information on these.

Western: In April, Colorado enacted SB 51 which codifies that third-party developers are not public utilities so long as the systems they own supply no more than 120% of the customer’s average annual consumption and allows a customer to make a one-time election to have indefinite rollover of excess generation instead of an annual true-up at avoided cost rates. Nevada enacted a bill (AB 186) that specified third-party-owned systems are eligible for net metering. This was ruled upon last year through a Nevada PUC ruling but this legislative action strengthens the rule considerably.

Other: Hawaiian Governor Linda Lingle has so far signed legislation (HB 1270) which removes a statutory cap on rates paid to independent renewable energy power producers. On a related note, she has also signed legislation (SB 1260) that sews up a loophole that existed in the state’s air pollution laws, which allowed large polluters — such as power plants and refineries — to avoid paying per-ton penalties on excessive emissions.

State News in Detail:

Northern

Maine – Governor signs net metering bill, authorizing shared system net metering

New Hampshire – PUC schedules public hearing on proposed Net Metering rules

New York – DPS issues favorable order regarding standby charges for renewable generation

Vermont – Energy bill enacted, creating a Feed-in Tariff; Proposed net metering rules become effective

Mid-Atlantic

Maryland – Governor signs bill to expand definition of customer-generator for NM

Virginia – SCC adopts comprehensive interconnection procedures

West Virginia – Governor rejects net metering legislation

Midwestern

Kansas – Governor signs net metering legislation

Minnesota – Governor signs energy bill

Nebraska – Net metering bill signed into law

South Dakota – PUC approves Small Generator Interconnection Rules for systems up to 10 MW

Southern

Georgia – PSC wins DOE award to study barriers to solar energy deployment

North Carolina – NCUC approves NM tariffs

Western

California – Report issued on FiT policy options

Nevada – Governor signs bill regarding 3rd party ownership of net metering

New Mexico – PRC opens docket to address NEG rollover for net metering

Washington – Community solar bill signed

Other

Hawaii – Governor signs bill to lift avoided-cost payment cap for certain renewable generation

Miscellaneous News

Xcel asks state PUC to rule on ownership of renewable energy credits

China eyes 20 % renewable energy by 2020

U.S. demand for residential solar rising in ‘09

Schools Line Up to Install Solar Panels

Conferences and Events

Files:: June_2009_Connecting_to_the_Grid.pdf; June_2009_Connecting_to_the_Grid.doc