Transcript Net Metering and Interconnection A Policy Perspective

Net Metering and Interconnection
A Policy Perspective
Brad Klein
Staff Attorney
Envt’l Law & Policy Center
March 28, 2007
Policy and market mechanisms
affecting distributed generation (DG)
Interconnect
Standards
Green Power
Marketing
Output-Based
Emissions
Standards
Tax
Provisions
Sitting and
Permitting
Diagram from Dick DeBlasio, NREL (2004)
Net Metering
RealTime/Congestion
Pricing
Renewable
Portfolio
Standards
Production
Incentives
Demand-side
Bidding
Public
Benefits
Funds
Transmission
Access and
Pricing
Interconnection Basics
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Interconnection = the physical connection between
the customer-sited generator and the utility grid.
Interconnection problems one of the “principal
obstacles” to effective adoption of DG (NREL, 2000)
–
Redundant and excessive technical requirements
(e.g. safety studies, equipment testing and approval, engineering
analysis, transmission studies, system upgrades)
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Uncoordinated and expensive procedural requirements,
fees, and application process delays
Insurance and indemnification requirements.
Standardized Interconnection Rules
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Establish clear and uniform technical requirements &
approval procedures
FERC Small Generator Interconnection Procedures
(Orders 2006 a & b)
– Apply to “small” generators = 20 MW and under
– Generally apply to transmission level interconnections
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State rules
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Usually administered by state utility commission
Generally apply to distribution level interconnections
“Model” state rules: e.g. IREC (2005); MADRI (2005); ELPC
Interconnection Rules – important
elements
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Standardized technical requirements
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“Expedited” review pathways
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Often based on IEEE 1547 and UL 1741 standards
“plug & play” for small (e.g. <10 kW) pre-certified equipment
Streamlined review if pass technical screens
Separate pathway for non-exporting applications (e.g. CHP)
Clear fees and timelines
Standardized application forms and interconnection
agreements
No discriminatory / redundant requirements (e.g.
external disconnect switches, additional insurance requirements)
States with Standardized
Interconnection Rules
Standards for
net-metered
systems only
Standards for
net-metered
systems and
other DG
(November 2006)
Net Metering – basics
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Economic arrangement to simplify the
reconciliation of value of customer produced
power.
“True” net metering: 1:1 offset of power
consumed by power produced
(contrast to “dual” metering as in MO)
Net Metering – Policy considerations
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Eligible technologies?
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Aggregate caps?
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Flat rate, time of use, who pays?
Reconciliation of NEG?
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often limited to 0.1% to 5% of utility max peak load
Metering considerations
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Wind, solar, biomass, digesters, fuel cells, etc?
System size caps? (2 MW is now “best practice”)
Monthly, annual, carry forward, utility give-back?
Treatment of RECs?
www.dsireusa.org
Net Metering
100
50
25
150
1,000
VT: 15/150
100 *
*
*
20
40
25/100
*
25*
*
10
25
*
500
2,000*
*
100
8,000
50
*
50
40
30
* *
10
*
15
25
20/100
*
25/100
10/100
State-wide net metering for certain utility types (e.g., IOUs only)
**
* PA:
* NJ:
*
no limit
25/100
100
10/400
*
State-wide net metering for all utility types
*
February 2007
DE:
MD:
DC:
VA:
NH: 25
MA: 60
RI: 25 *
CT: 100
50/1,000/2,000
2,000
25
500
100
10/500
10
Net metering is
available in
41 states + D.C.
Net metering offered by one or more individual utilities
#s indicate system size limit (kW); in some cases limits are different for residential and commercial as shown
Net Metering – Best Practices
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Max system capacity > 2 MW
All renewables eligible (+ CHP)
All utilities must participate
All customer classes eligible
No limit on aggregate capacity
Annual reconciliation of NEG, or no expiration
Interconnection standards
No application fees, special charges, or tariff
changes
Customer retains RECs
Energy Policy Act of 2005
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Section 1254: Interconnection
PUCs and certain nonregulated utilities must “consider” an
interconnection standard. Must complete “determination” by
8/8/07.
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Section 1251: Net Metering
PUCs and certain nonregulated utilities must “consider” a netmetering standard. Must begin “consideration” by 8/8/07. Must
complete “determination” by 8/8/08.
(The other new PURPA standards relate to fuel diversity; fossil fuel
generating efficiency; and time-based metering and communications –
see EPAct §§ 1251-52)
EXAMPLES

Iowa -- interconnection
Iowa Utility Board Docket NOI-06-4
– Issue: Should standards apply to Rural Electric
Cooperatives?
 Illinois -- interconnection
– Illinois Commerce Commission Docket 06-0525
– Issue: How should standards be implemented?
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Statewide administrative rule?
utility tariff?
utility website?
Missouri – See Warren Wood’s presentation at 1:30
Resources
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IREC: www.irecusa.org
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Tracking state “consideration” of EPAct standards
Model net metering and interconnection rules
State-by-state tables of state rules & policies
DSIRE: Database of State Incentives for
Renewables and Efficiency –
www.dsireusa.org
Contact information:
Brad Klein
Staff Attorney
[email protected]
312-673-6500
www.elpc.org
Thanks to:
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
Chris Cook, SunEdison LLC / IREC
Rusty Haynes, N.C. Solar Center, N.C. State
University

Brad Johnson, ACN Energy Ventures / NREL