Prepared by the NARUC Subcommittee on Renewable Energy
Arizona
Restructuring Plan Includes Solar
The ACC has taken the first step toward adopting rules that will phase
in customer choice of electric providers, beginning January 1, 1999, when
utilities will have to open 20% of their load to competition. All classes
of customers will be eligible to participate. Beginning January 1, 2003,
100% of the total electric supply market will be available for the competitive
market.
The proposal contains an initial requirement that all participating
suppliers obtain at least ? of 1% of power sold competitively from a photovoltaic
or solar thermal source. The solar requirement will increase to 1% in 2002.
ACC Contact:
David Berry, (602) 542-0742
California
Electric Restructuring Becomes Law
Culminating a summer of feverish legislative activity, Governor Wilson
signed into law a comprehensive bill to restructure the state's electricity
industry. The law, AB 1890, calls for the phase in of retail access, beginning
January 1, 1998 through 2001, and includes a nonbypassable ``competitive
transition charge'' for the state's three IOUs to recover their uneconomic
costs, estimated by the legislative conference committee to be about $22
billion, through 2001. Rates are frozen for all large industrial and agricultural
customers until 2003, and an immediate 10% rate cut is given to smaller
customers, with another 10% rate cut planned by 2002. The law also calls
for creation of two new entities, a Power Exchange, which will serve as
a market clearinghouse for power transactions, and an Independent System
Operator, which will coordinate power scheduling and dispatch and ensure
reliability of the electric grid.
The bill adopts a nonbypassable distribution charge for ``public interest'' research and development, ``cost-effective'' energy efficiency, low-income programs, and in-state renewable energy projects, and authorized $1.5 billion to be collected for this purpose over the 4-year transition period. Between $465 and $540 million of this total is earmarked for renewables. The legislature has asked the California Energy Commission to develop recommendations by March 31, 1997, on how to allocate the renewables funds.
Another aspect of the law provides for early direct access for any customer
willing to contract for more than 50% of its load from renewable resources.
CPUC Contact:
Jay Morse, (415) 703-1587
Colorado
PSCo Files Wind Energy Tariff
Public Service Company (PSCo) has filed an application with the PUC
for authorization to implement ``an optional, experimental'' program under
which the utility would either own or purchase power from small wind power
projects in northeastern Colorado to sell to interested ``subscribers.''
PSCo market research has found that about 5% of its residential customers want the utility to offer wind generation and that customers are willing to pay a premium in the range of 2.5 to 4.0/kWh for this energy. The utility proposes to have customers subscribe in advance for 100-kWh blocks on a monthly basis up to their total electric load. PSCo also proposes that the premium rate be ``market based,'' that is, that the utility be allowed to select a rate ``within these two ranges which maximizes growth of the market while minimizing loss and potentially yielding a profit.''
Several groups have intervened in the filing, which is scheduled for
PUC hearing in February.
PUC Contact:
Morey Wolfson, (303) 894-2000 x306
Iowa
IUB Reaffirms State Renewables Policy
Pursuant to the ``Alternate Energy Production'' (AEP) statute, which
requires the state's utilities to purchase a total of 105 MW of power from
alternate energy production facilities, the IUB has given the utilities
until February 1997 to enter into power purchase contracts with AEP developers.
The utilities have contested the power purchase requirement, claiming that
the mandated power purchase rate of 6.01/kWh is higher than their avoided
cost (SREN, Summer 1995).
In 1995, Midwest Power Systems filed a petition with FERC seeking to
invalidate the mandated purchase rate and the law, asserting that they
violate PURPA. Subse-quently, Midwest filed another petition with FERC
to enjoin the IUB from implementing the final orders, and filed a petition
for judicial review of the decision in Iowa district court.
IUB Contact:
John Pearce, (515) 281-5679
Maine
PUC Considers Portfolio Standard
The PUC released a draft report for comment representing its preliminary
view on how to restructure the electric utility industry to facilitate
competition and allow consumer choice in electricity supply. In the report,
the PUC recommends that all customers have choice of electricity supplier
by January 2000, that the state's largest utilities be required to structurally
separate and ultimately divest their generation assets from transmission
and distribution functions, and that utilities have a reasonable opportunity
to recover ``stranded'' generation-related costs.
The commission also suggests that all retail providers be subject ``to a minimum renewable supply, or portfolio, requirement (with trade-able credits) to ensure that (renewables) continue to be developed and available in the marketplace'' in order to limit ``the risk that the use of renewable resources to generate electricity would substantially diminish or fail to develop in a competitive market.'' Noting that customers may seek suppliers with renewables portfolios, the PUC also requests comment on whether and how suppliers should disclose their generation fuel mix.
After public comment, the commission plans to submit a final report
to the legislature in December.
PUC Contact:
Faith Huntington, (207) 287-1373
New York
Governor Vetos Net Metering Legislation
Citing ``grave concerns relating to safety standards and the exposure
of citizens and utility workers to serious or fatal injury,'' Governor
Pataki vetoed net metering legislation that would have allowed home-owners
to sell solar-generated electricity back to utilities. The customer-generated
electricity would appear as a credit on their electric bill. The bill contained
explicit language prohibiting utilities from imposing special fees, such
as for providing system backup, or liability insurance, as long as the
systems met national safety and power quality standards (SREN, Summer 1996).
The safety issue had been raised by utilities in opposition to the bill.
The Governor plans to introduce alternative legislation early next year.
Governor's Press Office: 518-474-8418
Oregon
PGE to Offer Industrial Renewables Rate
Portland General Electric (PGE) has filed for PUC approval of an optional,
market-based renewable energy service for large industrial and commercial
customers. The renewable resources utilized may include wind, solar, and
geothermal energy. Under the tariff rider, participating customers would
pay a renewables price premium of about 1.0/kWh, which would not fully
cover the likely costs of power from the renewable energy projects, but
which matches a similar renewables service offered by the Bonneville Power
Administration for 3.5/kWh. PGE intends to make available up to 5 aMW of
renewable power under this market experiment.
PUC Contact:
Bill McNamee, (503) 378-6360
Rhode Island
Restructuring Bill Becomes Law
Governor Almond signed into law a bill that requires the state's utilities
to file plans to transfer ownership of generation, trans-mission and distribution
facilities into separate affiliates, and to provide nondiscriminatory access
to transmission and distribution facilities to wholesale and retail customers
and to nonregulated power producers. The law also requires utilities to
provide retail access to all customers within 3 months after such access
is available to 40% or more of New England, or by July 1, 1998.
The bill adopts a 5-year, nonbypassable distribution system benefits charge of 2.3 mills/kWh to fund energy efficiency and renewables. The PUC may increase this amount and will determine the allocation of the funds between the two resource types. After 5 years, the PUC will revisit the amount of the charge.
Separately, parties to the Narragansett Electric Collaborative have
reached a settlement that calls for the utility to spend $100,000 on a
scoping study to explore renewables commercialization possibilities in
the state in order to lay the groundwork for potential renewable acquisitions
in the future. The parties also propose to conduct a similar analysis that
will include the state's other utilities.
PUC Contact:
Mary Kilmarx, (401) 277-3500
Vermont
PSB Proposes Renewables Policies
The PSB released a draft report and order on its investigation into
electric utility restructuring, consisting of ``nine interrelated components
which together promise benefits for consumers and producers alike.'' Among
the nine components are to provide customer choice, with retail access
occurring as early as January 1998; to ``functionally separate'' utility
generation and distribution operations; to deliver cost-effective energy
efficiency programs to all customers; and to promote the continued use
and development of renewable energy technologies. The PSB notes that since
1980, the state has met 100% of its electric load growth ``through the
development of in-state, small-scale renewable resources and cost-effective
energy efficiency investments.''
For renewables, the PSB proposes a portfolio requirement under which all retail companies selling electricity in Vermont must secure a minimum percentage of their sales from renewable resources. The portfolio requirement will be facilitated by the sale of tradeable credits associated with the sale of renewable energy to Vermont end-users. The PSB also supports the creation of a nonbypassable charge on all electricity consumption to promote research and development of promising new technologies, favoring a national approach that would raise funds from all customers for regional- or national-based R&D programs.
After receiving public comment, the PSB intends to finalize the plan
by January, before the start of the next legislative session.
PSB Contact:
Rick Weston, (802) 828-2358
Texas Utility Finds Renewables Support
Central and South West Corporation (C&SW) completed a series of
three customer workshops and found that there is strong support among its
customers for including renewables and energy efficiency in the mix of
options to meet its future energy needs. To gauge customer opinions, C& SW's three Texas-based utility subsidiaries used a Deliberative Polling(TM)
technique, which combines statistically valid polling techniques with the
opportunity for survey participants to learn more about specific issues
surrounding the use of different energy resource options.
The utilities will use the polling results as input to their integrated
resource plans, which will be submitted to the PUC. In response to the
customer feedback, C&SW is considering options for its customers, including
rate-based renewables and voluntary green pricing options.
C&SW Contact:
Ron Ford, (214) 777-1148
NSP Adding More Renewables
Northern States Power (NSP) continues to move ahead on its legislative
commitment to build or purchase power from up to 950 MW of renewables-based
capacity by the end of 2002 (SREN, Summer 1994). NSP selected Minnesota
Valley Alfalfa Producers (MNVAP) to supply 75 MW of ``farm-grown, closed-loop
biomass'' generation using alfalfa stems as the primary energy source.
The MNVAP project will also receive a total of $44 million in grants from
the U.S. Departments of Energy and Agriculture. NSP also issued an RFP
for the development of up to 100 MW of wind-generated electricity at its
Buffalo Ridge site in southwestern Minnesota, to add to the 125 MW already
in place or under development.
NSP Contact:
Audrey Zibelman, (612) 337-2167
MECO Green Providers Announced
Environmental Futures, Inc., announced the selection of four companies
to offer ``green'' service options in the Massachusett's Electric Company's
Choice: New England retail electric pilot program. The green (``environmentally
sensitive'') options are among several service options to be pre-selected
for participating residential and small business customers (SREN, Summer
1996).
Among the services being bundled by the green providers are permanent
retirement of SO2 emissions credits; community-based solar systems; an
energy/environmental survey; quarterly usage reports and rewards; matched
donations to environmental projects; a raffle for electric vehicles; 100%
hydropower; $30 worth of energy conservation products; a mail-in home energy
survey; donations to local community green projects, environmental groups,
and the American Lung Association; and a no-coal, no-nuclear, no-Hydro-Quebec
product. The energy-related service prices range from 2.50 to 3.41/kWh.
Environmental Futures Contact:
Steven Rothstein, (617) 443-1300
Vermont Wind Project In Place
Culminating more than 10 years of research and data collection, Green
Mountain Power (GMP) has completed installation of the largest commercial
wind-generation facility in the eastern United States. The 6-MW project,
consisting of 11 turbines, should be generating electricity by the end
of the year.
In remarks about the project, GMP Executive Vice President and COO A.
Norman Terreri noted that the project ``is absolute proof that when utilities
are willing to take the lead, windpower and other renewable resources can
be developed successfully and can assume the position they need to have
if we're serious about having a sustainable economy.''
GMP Contact:
Dorothy Schnure, 802-660-5672
Northwest Considers Restructuring Issues
A regional steering committee, appointed by the governors of Idaho,
Montana, Oregon and Washington, has issued a draft report of its Comprehensive
Review of the Northwest Energy System. The 20-member committee, broadly
representative of various power system interests, was formed to study the
regional power system and make recommendations about its transformation.
The committee made recommendations in five key areas, including how
to ensure electricity customers can choose providers and how to pay for
energy conservation, renewable resources, and low-income energy services.
The report calls for utilities and state regulatory commissions to voluntarily
commit 3% of electric sales revenues to continue funding these public interest
services. A new, non-profit entity would be formed to help develop conservation
and renewable resources. In addition, local utilities and other providers
would be encouraged to offer renewables generation services, or ``green''
power, to their customers.
NWPP Contact:
Jim Middaugh, (800) 222-3355
Western to Facilitate Renewables
After reviewing 150 comment letters, the Western Area Power Administration
has decided not to mandate power purchases from non-hydropower renewable
resources. Western had sought public comment on a policy proposal whereby
it would purchase a portion of its expected power purchase requirements
from non-hydropower renewable resource producers (SREN, Summer 1996).
Although Western notes that the rate impacts of the proposed 5% renewable
purchase requirement would have been ``minimal,'' the majority of Western
customer respondents ``strongly'' opposed the mandatory purchase concept
because ``of the increase in costs and lack of local choice for customers
to support renewables that make sense in their particular community.''
Instead of mandating pur-chases, Western adopted a policy of facilitating
transactions between renewable resource developers and customers interested
in purchasing renewables-generated power, including providing tech-nical
and marketing assistance.
Western Contact:
Mike Cowan, (303) 275-1630
Green Pricing Program Challenged
A Wisconsin environmental group filed suit against the PSC to block
implementation of the ``green pricing'' program offered by Wisconsin Electric
Power Company (WEPCO). The voluntary program, offered to residential, farm,
and small commercial customers, would cost participating customers an additional 2.0/kWh, on top of the existing rate of 6.7/kWh, for each green kWh subscribed from Minnesota-based, waste-wood-fired power and Canadian hydropower (SREN, Summer 1996).
The group, Wisconsin Environmental Decade (WED), alleges that the PSC
violated state statutes in approving the higher green rate without a hearing
or a prudence review. WED also objects to the lack of a competitive acquisition
process, in which projects using Wisconsin-based renewable resources could
have competed, and argues that the environmental benefits of the WEPCO
offering are dubious. Formal action on the suit is pending.
WED Contact:
Keith Reopelle, (608) 251-7020
State Renewable Energy News is prepared under the auspices of the NARUC Subcommittee on Renewable Energy to promote information sharing on state-level renewable energy activities. It is issued three times annually to coincide with the NARUC committee meetings.
The preparation and printing of this newsletter is sponsored by the Office of Power Technologies of the U.S. Department of Energy.
Comments can be directed to:
Blair Swezey
NREL
1617 Cole Blvd.
Golden, CO 80401
(303) 384-7455.
The newsletter is also available on NREL's home page: http://www.nrel.gov
The Subcommittee Chairman is the Honorable Renz D. Jennings, Chairman, Arizona Corporation Commission - (602) 542-3935.