The Arizona Corporation Commission (ACC) has opened a docket and issued a memo on January 27, requesting comments on the process and methodology for establishing the costs and benefits of distributed generation (DG), including net metering systems. A number of DG costs and benefits were identified in an Arizona Public Service Net Metering Cost Shift Solutions docket that concluded late last year.
The ACC provided a list of potential DG benefits and cost categories in the memo:
Capacity
- Distributed Energy Capacity Value (MW)
- PV System Orientation
- Avoided Generation Capacity (new generation $)
Grid Support Services
- Ancillary Services
- Reactive Supply & Voltage Control
- Frequency Regulation
- Energy Imbalance
- Operating Reserves
- Scheduling / Forecasting
- DG System Integration Costs
Avoided Costs / Financial Risk
- Avoided Power Plant Capital Costs – Customer’s Capital Contribution
- Avoided Fuel / Purchased Power Costs
- Avoided Fuel Hedging Costs
- Avoided Line Losses
- Avoided / Delayed Transmission System Investment
- Avoided / Delayed Distribution System Investment
- Avoided Renewable Energy Standard Cost
- Avoided Utility Administration Costs
- Avoided Market Price Mitigation (reduction of wholesale market clearing prices for natural gas and electricity)
- Avoided Variable Operation & Maintenance Costs
- Avoided Fixed Operations and Maintenance Costs
- Avoided Power Plant Decommissioning Costs
Security & Reliability
- Grid Security
- Grid / Service Reliability
Environmental
- Water Consumption
- Cost of Environmental Compliance
- Health Effects (Benefits)
- Non-Compliance Environmental Effects
Social
- Economic Development and Jobs
- Civic Engagement / Conservation Awareness
- Ratepayer / Consumer Interest
- Ratepayer Cross-Subsidization
- Technology Synergies
- Energy Subsidies (incentives, rebates, tax credits, etc.)
Comments are due February 14, 2014.
