highlights of commission activities little rock ashrae monthly meeting october 12, 2011 presented...
TRANSCRIPT
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Highlights of Commission Highlights of Commission ActivitiesActivities
Little Rock ASHRAE Monthly MeetingLittle Rock ASHRAE Monthly MeetingOctober 12, 2011October 12, 2011
Presented By: John P. BethelPresented By: John P. Bethel
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Topics AddressedTopics Addressed
Description of the Commission and utilitiesDescription of the Commission and utilities
Energy Efficiency ProgramsEnergy Efficiency Programs
Self Direct OptionSelf Direct Option
Net MeteringNet Metering
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Three CommissionersThree Commissioners
Colette Honorable, Chairman; Butch Colette Honorable, Chairman; Butch Reeves, Commissioner; Elana Wills, Reeves, Commissioner; Elana Wills, CommissionerCommissioner
Appointed by Governor to six-year termsAppointed by Governor to six-year terms
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Regulated UtilitiesRegulated Utilities
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Regulated UtilitiesRegulated Utilities
4 Investor Owned Electric Utilities4 Investor Owned Electric Utilities
17 Electric Distribution Cooperatives17 Electric Distribution Cooperatives
1 Electric Generation & Transmission Cooperative1 Electric Generation & Transmission Cooperative
1 Electric Regional Transmission Organization1 Electric Regional Transmission Organization
3 Investor Owned Natural Gas Distribution Companies3 Investor Owned Natural Gas Distribution Companies
3 Water Utilities3 Water Utilities
22 Natural Gas Operators (PSO Regulation)22 Natural Gas Operators (PSO Regulation)
158 Master Meter Gas Operators (PSO Regulation)158 Master Meter Gas Operators (PSO Regulation)
Approximately 300 Telecommunications UtilitiesApproximately 300 Telecommunications Utilities
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Energy Efficiency Energy Efficiency ProgramsPrograms
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Energy Conservation Energy Conservation Endorsement ActEndorsement Act
Ark Code Ann. §23-3-401 et seq.Ark Code Ann. §23-3-401 et seq.
Authorizes Commission to approve conservation Authorizes Commission to approve conservation and energy efficiency programs and measuresand energy efficiency programs and measures
Commission adopted rules and approved initial Commission adopted rules and approved initial utility administered and ratepayer funded utility administered and ratepayer funded programs in 2007programs in 2007
Commission recognizes energy efficiency Commission recognizes energy efficiency programs and measures as a resource programs and measures as a resource Comprehensive programs approved effective Comprehensive programs approved effective July 1, 2011July 1, 2011
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Energy Efficiency ProgramsEnergy Efficiency Programs Overall Cost Overall Cost
Approximately $31.2 million for 2011; Approximately $31.2 million for 2011; $57.5 million for 2012; and $77.4 million in $57.5 million for 2012; and $77.4 million in 20132013
Recovered through a monthly charge on Recovered through a monthly charge on customer billscustomer bills
Total cost of the energy efficiency and Total cost of the energy efficiency and conservation programs is approximately conservation programs is approximately $0.83 to $1.75 per month for an average $0.83 to $1.75 per month for an average residential customerresidential customer
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Goals for Energy Efficiency Goals for Energy Efficiency ProgramsPrograms
Electric Utilities: 2011 – 0.25%; 2012 – 0.50%; Electric Utilities: 2011 – 0.25%; 2012 – 0.50%; 2013 – 0.75%2013 – 0.75%
Natural Gas Utilities: 2011 – 0.20%; 2012 – Natural Gas Utilities: 2011 – 0.20%; 2012 – 0.30%; 2013 – 0.40%0.30%; 2013 – 0.40%
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Energy Efficiency ProgramsEnergy Efficiency Programs
Energy Efficiency ArkansasEnergy Efficiency Arkansas
Arkansas Weatherization ProgramArkansas Weatherization Program
Energy AuditsEnergy Audits
HVAC Tune UpHVAC Tune Up
Compact Fluorescent Light BulbsCompact Fluorescent Light Bulbs
Appliance ReplacementsAppliance Replacements
Custom Programs for Commercial & Industrial Custom Programs for Commercial & Industrial CustomersCustomers
Various Rate SchedulesVarious Rate Schedules
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Energy Efficiency ProgramsEnergy Efficiency Programs
Self Direct Option for Large Customers Self Direct Option for Large Customers
Evaluation, Measurement & VerificationEvaluation, Measurement & Verification
Lost Contribution to Fixed CostsLost Contribution to Fixed Costs
Energy Efficiency IncentivesEnergy Efficiency Incentives
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Self Direct OptionSelf Direct Option
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Self Direct OptionSelf Direct Option
Energy efficiency is a resourceEnergy efficiency is a resource
Large commercial & industrial customers Large commercial & industrial customers have opportunities & incentive to have opportunities & incentive to implement measuresimplement measures
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Self Direct OptionSelf Direct Option
Eligible large commercial & industrial Eligible large commercial & industrial customers can self direct or opt out of customers can self direct or opt out of utility EE programsutility EE programs
Implement an EE measure that produces Implement an EE measure that produces energy savings equal to or greater than energy savings equal to or greater than Commission goalsCommission goals
Can obtain certificate of exemption for Can obtain certificate of exemption for duration of utility’s EE program planduration of utility’s EE program plan
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Self Direct OptionSelf Direct Option
Eligibility RequirementsEligibility Requirements
Single Metered LocationSingle Metered Location
1 MW Peak Electric Demand1 MW Peak Electric Demand
70,000 mmBtu annual natural gas consumption70,000 mmBtu annual natural gas consumption
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Self Direct OptionSelf Direct Option
Eligibility RequirementsEligibility Requirements
Aggregated LocationsAggregated Locations
1 MW Peak Electric Demand from multiple 1 MW Peak Electric Demand from multiple locations with a peak electric demand of 200 kW locations with a peak electric demand of 200 kW eacheach
70,000 mmBtu annual natural gas consumption 70,000 mmBtu annual natural gas consumption from multiple locations with annual natural gas from multiple locations with annual natural gas consumption of 14,000 mmBtu eachconsumption of 14,000 mmBtu each
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Self Direct OptionSelf Direct Option
New investment in EE measureNew investment in EE measure
Investment in EE measure within ten years of Investment in EE measure within ten years of request for certificaterequest for certificate
Investment to be made during the duration of Investment to be made during the duration of utility’s currently approved EE programutility’s currently approved EE program
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Self Direct OptionSelf Direct Option
File request by Sept 15 of any yearFile request by Sept 15 of any year
Show that it has implemented or will implement Show that it has implemented or will implement a measure that will produce savings that meet or a measure that will produce savings that meet or exceed Commission’s goalsexceed Commission’s goals
Show that it has exhausted all opportunitiesShow that it has exhausted all opportunities
If participating in utility EE programs from 2012 If participating in utility EE programs from 2012 forward, cannot request certificate for 5 yearsforward, cannot request certificate for 5 years
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Section 11Section 11
Commission may schedule hearingCommission may schedule hearing
Commission must issue its decision by Commission must issue its decision by December 15 unless waived by customerDecember 15 unless waived by customer
If approved, certificate effective January 1 of the If approved, certificate effective January 1 of the following yearfollowing year
No longer charged EECR rateNo longer charged EECR rate
Certificate good for duration of utility EE program Certificate good for duration of utility EE program planplan
Up to three yearsUp to three years
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Net MeteringNet Metering
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““Normal” Metering v. Normal” Metering v. Net MeteringNet Metering
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Electric Utility SystemElectric Utility System
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““Normal” MeteringNormal” Metering
Meter at residence or businessMeter at residence or business
Measures electricity delivered to customerMeasures electricity delivered to customer
Meter reading forms basis for billingMeter reading forms basis for billing
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Electric MetersElectric Meters
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Net MeteringNet Metering
Customer owns generating sourceCustomer owns generating source
Generating source supplies all or part of Generating source supplies all or part of customer’s needcustomer’s need
Excess generation delivered back to utilityExcess generation delivered back to utility
Meter runs backward to “measure” Meter runs backward to “measure” generation delivered back to utilitygeneration delivered back to utility
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Net Metering ExampleNet Metering Example
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Overview of Arkansas’ Overview of Arkansas’ Net Metering LawNet Metering Law
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Net Metering LawNet Metering Law
Arkansas Renewable Energy Arkansas Renewable Energy Development Act of 2001Development Act of 2001
Act 1781 of 2001Act 1781 of 2001
Act 1026 of 2007 amended lawAct 1026 of 2007 amended law
Arkansas Code Annotated §23-18-601 et Arkansas Code Annotated §23-18-601 et seq.seq.
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Net Metering LawNet Metering Law
Must be a renewable resourceMust be a renewable resource
Solar, wind, hydroelectric, geothermal, Solar, wind, hydroelectric, geothermal, biomass, etc.biomass, etc.
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Net Metering LawNet Metering Law
Maximum size 25 kW for residential Maximum size 25 kW for residential customers and 300 kW for any otherscustomers and 300 kW for any others
Located in ArkansasLocated in Arkansas
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Net Metering LawNet Metering Law
Offset all or part of the net metering Offset all or part of the net metering customer’s requirements for electricitycustomer’s requirements for electricity
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Net Metering LawNet Metering Law
Customer retains any renewable energy Customer retains any renewable energy credit associated with generating facilitycredit associated with generating facility
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Net Metering LawNet Metering Law
Electric utilities required offer net meteringElectric utilities required offer net metering
Commission establishes rates, terms, and Commission establishes rates, terms, and conditionsconditions
Utilities may assess fees for additional Utilities may assess fees for additional costscosts
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Net Metering LawNet Metering Law
Any generation from the customer’s facility Any generation from the customer’s facility is credited against usage at the retail rateis credited against usage at the retail rate
Customer may carry any excess Customer may carry any excess generation for up to one yeargeneration for up to one year
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Overview of Overview of Commission’s Net Commission’s Net
Metering RulesMetering Rules
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Net Metering RulesNet Metering Rules
Net excess generation defined as the Net excess generation defined as the amount of electricity that a net metering amount of electricity that a net metering customer has fed back to the electric utility customer has fed back to the electric utility that exceeds the amount of electricity used that exceeds the amount of electricity used by that customer during the applicable by that customer during the applicable period period
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Net Metering RulesNet Metering Rules
kWhs provided by customer serve to offset kWhs provided by customer serve to offset kWhs provided by the utility and serve to kWhs provided by the utility and serve to reduce any kWh charges on the billreduce any kWh charges on the bill
Distribution RateDistribution Rate
Energy Cost Recovery RateEnergy Cost Recovery Rate
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Net Metering RulesNet Metering Rules
Standard Interconnection AgreementStandard Interconnection Agreement
Facility must operate in parallel with utilityFacility must operate in parallel with utility
Prevent any back-feedingPrevent any back-feeding
Manual disconnect switch accessible to Manual disconnect switch accessible to utilityutility
National Electric CodeNational Electric Code
National Electric Safety CodeNational Electric Safety Code
ICEEE & Underwriters LabsICEEE & Underwriters Labs
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Net Metering RulesNet Metering Rules
Standard Rate ScheduleStandard Rate Schedule
Each utility has comparable tariffEach utility has comparable tariff
AvailabilityAvailability
Monthly BillingMonthly Billing
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Net Metering RulesNet Metering Rules
Reporting RequirementsReporting Requirements
Annual Reports by March 15Annual Reports by March 15
Currently 141 net metering facilitiesCurrently 141 net metering facilities
120 Solar120 Solar
21 Wind21 Wind
138 Residential138 Residential
3 Commercial3 Commercial
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Net Metering RulesNet Metering Rules
102 Under 5 kW102 Under 5 kW
37 @ 5 kW or greater37 @ 5 kW or greater
1 @ 20 kW1 @ 20 kW
1 @ 30 kW1 @ 30 kW
1 @ 50 kW1 @ 50 kW
1 @ 100 kW1 @ 100 kW
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Cost of Net Cost of Net Metering FacilitiesMetering Facilities
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Cost of Net Metering FacilitiesCost of Net Metering Facilities
Very rough information from Internet Very rough information from Internet research (do not rely upon me)research (do not rely upon me)
Tax credits of up to 30 %Tax credits of up to 30 %
Solar facilities $4,000 to $12,000 per kWSolar facilities $4,000 to $12,000 per kW
Wind facilities $3,000 to $10,000 per kWWind facilities $3,000 to $10,000 per kW
AWEA $350,000 for 100 kWAWEA $350,000 for 100 kW
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The EndThe End
Questions?Questions?