SPEED Goals & IncentivesSPEED Goals & Incentives

VEPP Inc.VEPP Inc.January 27, 2011January 27, 2011

S.52S.52July 1, 2005July 1, 2005

Added a new definition to V.S.A. 30 § Added a new definition to V.S.A. 30 § 80028002

SPEED Resources – In-State SPEED Resources – In-State renewable energy, coming into renewable energy, coming into service after Dec. 31, 2004, service after Dec. 31, 2004, whether or not “renewable energy whether or not “renewable energy credits” are attachedcredits” are attached

S.52S.52July 1, 2005July 1, 2005

Soft GoalsSoft Goals

• 1.1. Support the development of Support the development of renewable energyrenewable energy

• 2. 2. Provide an incentive for the Provide an incentive for the State’s retail electricity State’s retail electricity

providers providers to enter into long-term, to enter into long-term, stably stably priced renewable energy priced renewable energy contracts contracts

S.52S.52July 1, 2005July 1, 2005

Volume GoalsVolume Goals

Exceed total statewide [load] Exceed total statewide [load] growth between January 1, 2005 growth between January 1, 2005 and January 1, 2013and January 1, 2013

S.52 - SPEED GoalS.52 - SPEED GoalJuly 1, 2005July 1, 2005

S.52 - DisincentiveS.52 - Disincentive(6/1/2005)(6/1/2005)

Law required Utilities to obtain SPEED Law required Utilities to obtain SPEED Resources at:Resources at:

““. . . a specified margin below the . . . a specified margin below the hourly hourly spot market” and “anticipated to be below spot market” and “anticipated to be below

the the long-term market price. . . .”. long-term market price. . . .”.

New renewable energy costs more than New renewable energy costs more than spot market pricespot market price

Nobody knew what the long term market Nobody knew what the long term market price was going to be…price was going to be…

What Happened to Load Growth?What Happened to Load Growth?

Legislature Modified SPEED GoalLegislature Modified SPEED GoalS.209 S.209 (7/1/2008)(7/1/2008)

Kept the SPEED Goal of meeting all statewide Kept the SPEED Goal of meeting all statewide Load growth, and addedLoad growth, and added

SPEED At least 5% of 2005 total Statewide SPEED At least 5% of 2005 total Statewide electric retail sales by July 1electric retail sales by July 1stst 2012 2012

Projects with CPGs can count towards the goal Projects with CPGs can count towards the goal whether or not they are built,whether or not they are built,

Additional SPEED Goal of 20% total Statewide Additional SPEED Goal of 20% total Statewide electric retail sales by July 1electric retail sales by July 1stst 2017 2017

New Minimum SPEED GoalNew Minimum SPEED Goal

S.209 Creates Another GoalS.209 Creates Another Goal7/1/20087/1/2008

25 by 2525 by 25 - 25 % of energy - 25 % of energy consumed within the state produced consumed within the state produced from Renewable Resources by 2025.from Renewable Resources by 2025.

§580 of V.S.A. 10 (Title 10: Conservation and §580 of V.S.A. 10 (Title 10: Conservation and Development)Development)

Incentives in S.209 Incentives in S.209 (7/1/2008)(7/1/2008)

in the case of projects of less than 1 MW in the case of projects of less than 1 MW “. . . “. . . allow a long term contract allow a long term contract (further defined as (further defined as 15 years or greater)15 years or greater) . . . at a specified price . . . at a specified price determined by the Board to be adequate to determined by the Board to be adequate to promote SPEED resource development . . .”promote SPEED resource development . . .”

in the case of projects greater than 1 MW in the case of projects greater than 1 MW “. . . “. . . the Board shall create a standard contract the Board shall create a standard contract price, or set of maximum and minimum price, or set of maximum and minimum provisions or both, for qualifying SPEED provisions or both, for qualifying SPEED resources. . . .In setting the standard resources. . . .In setting the standard contract price . . . the Board shall consider contract price . . . the Board shall consider the goal of developing qualified SPEED the goal of developing qualified SPEED resources…”resources…”

H.446 H.446 (5/27/2009) (5/27/2009)

Creates SPEED Standard Offer Creates SPEED Standard Offer ProgramProgram

Law mandates the availability of 50 Law mandates the availability of 50 mW of Purchase Power Agreements mW of Purchase Power Agreements for SPEED projects 2.2 mW or less.for SPEED projects 2.2 mW or less.

Energy Pricing is determined using Energy Pricing is determined using Feed-in-Tariff methodology.Feed-in-Tariff methodology.

Projects must be commissioned Projects must be commissioned within 3 years of PPA signing.within 3 years of PPA signing.

Current SPEED Goal RevisitedCurrent SPEED Goal Revisited

Keep Up the Good Work- a New Keep Up the Good Work- a New SPEED Goal maybe coming !.SPEED Goal maybe coming !.

The Legislature is currently The Legislature is currently considering a bill (H.56 considering a bill (H.56 20112011) which ) which includes a new SPEED Goal.includes a new SPEED Goal.

1/3 of state’s highest annual energy 1/3 of state’s highest annual energy usage or, 6,000 GWH whichever is usage or, 6,000 GWH whichever is greater, by January 1, 2022.greater, by January 1, 2022.

Also, each utility must individually Also, each utility must individually make incremental progress towards make incremental progress towards meeting this goalmeeting this goal