Overview of Renewable Energy Tariff Pilot

Programs
January 24, 2019

WE 
Energy Group

 

 

Discussion topics


Two Renewable Pilots



Solar Now
Green Sleeve



Timeline
 Questions

1
1

 Solar Now Pilot

 

WE 
2-. Energy Group

 

Solar Now Pilot Proposal
 Focuses on customers who want solar at their
workplace/school/facility

 Initially designed to accommodate school districts
 Allows customer to received fixed leased payment for
hosting solar facilities
 Mirrors approach approved by Virginia regulators in 2012

3

 Solar Now Pilot Proposal—Key Elements
 Solar facilities connected to our distribution system
 Customer can elect to retain renewable attributes (RECs) in
exchange for a slightly reduced lease payment
 Limit of 35 MW
 10 MW for non-profit entities
 25 MW all other commercial & industrial customers

 Eligibility
 Each solar facility capped at the lower of:
 2.25 MW or
 The host customer’s firm load

4

 Solar Now Pilot Lease Payment
 Customer receives monthly payment that will equal the capacity
value of solar facility at its MISO accredited capacity level.
 The lease payment is available up to the host customer’s firm load.

 Produces customer benefit immediately

 Anticipated Customer Benefit over 20 years
 Approximately $ 450,000 per installed MW

5

  

?Green Sleeve? Pilot

 

WE 
2-. Energy Group

 

“Green Sleeve” Pilot Proposal
 Mirrors MGE proposal approved by PSCW last year
 Called a “sleeve” because offers a framework for WEPCo to
enter future service agreements with retail customers
 Service agreements will enable a dedicated group of customers
to pay for new larger scale renewable facilities in Wisconsin
 Not “community solar”
 Facilities are being constructed remote from customer premises
and are targeted at larger energy users

 Aggregation only allowed for multiple accounts of an individual
customer
 Trade Association / Purchasing Alliances can’t aggregate

7

 “Green Sleeve” Pilot Proposal—Key Elements
 Participants continue to pay current rates
 Incremental costs
 Participants pay full revenue requirement for new dedicated
renewable project(s)

 Credits
 Participants get capacity (up to firm load) and energy credits that
minimize any bill impact
 No “premium” like the Energy for Tomorrow program (EFT)

 Participants retain renewable attributes (RECs)
 Eligibility
 150MW
 Commercial and Industrial customers

8

 “Green Sleeve” Pilot Billing Impacts
“Base Bill” – Remains unchanged
•
•
•
•

Energy
Demand
Distribution / Facilities
Transmission

PLUS: Dedicated Renewable Resource(s)’ Revenue Requirement
• Return Of (Depreciation)
• Return On
• Operating & Maintenance Costs

LESS: Renewable Resource Generation Benefits
• Energy
• Capacity
*-Renewable Energy Attributes (RECs) also retained by participant.
9

 “Green Sleeve” Pilot Participant Benefits
 Participants realize value:
 Price predictability during service agreement term.
 Levelized fixed monthly payment – for profit entities.
 Levelized cost per unit produced (MWH) - non profit entities.

 Energy & capacity credit provided to the extent it matches
participant’s consumption.
 Energy: Any additional generation during a 60 minute interval not
credited even though sent to grid
 Capacity: Credit only provided to participant’s firm load level

 Anticipated participant benefit over 20 years
 Approximately $ 150,000 per installed MW (Solar)
 Approximately $ 105,000 per installed MW (Wind)

10

 Timeline

 

WE 
2-. Energy Group

 

Solar Now & “Green Sleeve” Pilot Timeline - PSCW
 October 12, 2018: Filed Proposed Pilots with PSCW
 November 1, 2018: PSCW Issued Notice of Investigation
 November 15, 2018: Intervention Request Due Date
 November 15, 2018 – Q1 2019: Discovery from Staff &
Intervenors
 December 20, 2018: PSCW Approval Granted.

12

  

Questions?

 

WE 
2-. Energy Group

 

APPENDICES

WE 


 

Other Benefits of the “Green Sleeve”
 Non-participating customers not harmed:
 Avoids / delays need for rate based generation investment.
 Upon service agreement expiration, depreciated generating asset added
to rate base at NBV

 Renewable generation beyond consumption during any 60 minute interval
reduces system-wide fuel costs.
 Capacity beyond billed demand used for non-participating customer
benefit

 Shareholders not harmed
 Investment earns same return as rate base investment.
 All O&M costs are recovered from participant through service agreement.

15