Arizona Commission Opens Benefit/Cost docket for DG
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 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.
