DISTRIBUTED GENERATION POLICY2017

Review Panel July 25, 2017

Paula Laschober

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CUSTOMER SOLAR GENERATION

• Washington State law requires net metering for o Installations <= 100 kWoMinimum total of 10 MW (0.5% of peak load)oCurrently at ~18 MW

• Customer interest in new large-scale solaro Installations > 100 kWoRequest for standard pricing and process, avoid

need for individual contract approval by Council• Linked to PURPA obligations

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SOLAR IN SEATTLE

• Around 2,900 net metered installations

• 3 large installations oCentury Link (800 kW, 2011) net metered at Large

General Service ratesoBullitt Center (244 kW, 2013) net metered at Small

General Service rates more or lessoUS GSA Federal Center South (200 kW, 2011) net

metered at Large General Service rates

• Until now: mandate + pilot programs

• Policy Question: What to do going forward?

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THE VALUATION DEBATE

0

2

4

6

8

10

12

14

ResidentialNet Metering

Small GeneralService NetMetering

UnbundledEnergy Value

Avoided Cost(Long Term)

WholesaleMarket

Avoided Cost(Near Term)

¢/kW

h

How Much is it Worth?

For illustrative purposes only

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COSTS VS RATES

22%7%

5%

7%

27%

30%

10%

43%

93%

59%

90%

Cost Revenue Cost Revenue

Residential Non-Residential

Energy

Distribution

Conservation

UDP

CustomerService2%

2%

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SOLAR OUTPUT AND PEAK DEMAND

0

50

100

150

200

250

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

1 3 5 7 9 11 13 15 17 19 21 23

Sola

r Out

put (

aW p

er in

stal

led

kW)

Peak

Sys

tem

Loa

d (M

W)

Hour

Solar Production and Peak System Load for December

12/16/2016

12/9/2016

12/14/2016

12/8/2016

12/13/2016

Solar

• Solar output does not align with peak demand.

• Little to no distribution system benefit for solar generation

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POLICY ISSUES

• Current directionoDevelop standard contract process for installations

over 100 kW oBuy All / Sell All

• Compensation rate would be solar avoided cost

• Future policy questions oHow to treat new solar installations < 100 kW