Lebanon Community Power & Liberty Utilities TOU Rate & Battery Pilot

1. Lebanon Community Power & Liberty Utilities TOU Rate & Battery PilotDecember 11, 2018by City Councilor Clifton Below, Chair, Lebanon Energy Advisory Committee

2. Lebanon’s VISION for its ENERGY FUTURE • Overall Long-Term Goal of Master Plan: “Lebanon is a leader in energy efficiency, renewable energy reliance, and innovation across municipal, commercial, institutional, and residential sectors.” • A key outcome: “The City relies upon as much local renewable energy as possible.” • Sustainability Principles • Support for Paris Climate Agreement

3. Lebanon Community Power: what is it? • A proposed municipal electric aggregation for electricity supply (“G” for Generation) & services authorized by RSA 53-E open to all customers. • Purpose: to accelerate cost-effective adoption and integration of local renewables & other Distributed Energy Resources (DERs) for all. • A proposed local Transactive Energy (TE) Platform to enable direct producer to consumer (P2P) retail sales of local renewable energy. • Enable retail access to and use of Real Time Pricing (RTP) for electricity (G), TOU rates for Transmission & Distribution & serve as a PUC NM pilot.

4. T R A N S A C T IVE E N E RGY S Y S T E MS EVOLVING APPROACHES FOR IMPLEMENTING TRANSACTIVEENERGY Transactive EnergyDefinition • A system of economic and control mechanisms that allows the dynamic balance of supply and demand across the entire electrical infrastructure using value as a key operationalparameter. • Transactive Energy ≠Blockchain • Blockchain ≠ TransactiveEnergy • We have challenges to address across the electricalinfrastructure • We need a loosely coupled set of controls with (just) enough information exchange to allow for stability and global optimization through localaction • Transactive Energy is a tool to address thosechallenges • Blockchain may provide mechanisms to facilitate some TErequirem(ents • [Adapted from: https://s3.amazonaws.com/2018-transactive-energy-conference/01+TESC+18+GWAC+Foundational.pdf] MIT, Cambridge,MA

5. Electric Grid is Sized for Highest Hour ofDemand Whole Energy System (T, D & G) Sized to Meet Peak Demand, With a Safety Margin Top 1% of Hours accounts for 8% of Massachusetts Spend on Electricity Top 10% of Hours accounts for 40% of ElectricitySpend 5 Slide borrowed and adapted from MA Energy Storage Initiative 9/27/16 presentation: https://www.mass.gov/files/documents/2016/09/xd/9-27-16-storage-presentation.pdf

6. NH Capacity Factor or Asset Utilization Rate has declined from 67% for decade ending 2000 to 57% for decade ending 2015

7. While Energy Efficiency has Decreased Average EnergyConsumption, Peak Continues to Grow (1.5% peryear) Capacity Factors of GeneratingResources National Monthly Average, January 2013 – January 2016(EIA) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% PeakerPlants operateonly 2-7% ofthe time Nuclear LandfillGasand Muncipal Solid Waste NaturalGasFired Combined Cycle Conventional Hydropower Petroleum- Steam Turbine NaturalGasFired Combustion Turbine Coal Wind Solar Photovoltaic (Massachusetts) Source: ISO-NE State of the Grid-2016 Growing peak results in inefficient use of grid assets, including generation, transmission and distribution, increasing the cost toratepayers MA Energy Storage Initiative slide 7

9. New England’s changing load shape Historic N.E. peak load shape: summer vs. winter Summer impact of solar as more is installed L: ISO-NE provided to C Below, R: www.iso-ne.com/about/what-we-do/in-depth/solar-power-in-new-england-locations-and-impact

10. The Duck Curve & the Need for TVRIllustrative Winter Impact of Solar at Different Levels of Dev. (from ISO-NE) https://www.iso-ne.com/about/what-we-do/in-depth/solar-power-in-new-england-locations-and-impact

11. Vermont’s Duck Curve Problem: a cloudy day followed by a sunny one:

12. The Need for Time Varying RatesIllustrative Winter Impact of Solar at Different Levels of Dev. (from ISO-NE) from: https://www.iso-ne.com/about/what-we-do/in-depth/solar-power-in-new-england-locations-and-impact New England’s Duck Curve D.R. Shift flexible loads off-peak (D.R.: Elec. Vehicles, HWH, TES for A.C. etc.) DischargeSTORAGE CHARGE STORAGE + Flex. Load + Charge STORAGE

13. MA Energy Storage Initiative slide

14. TVR unlocks the Temporal Value of Flexible Demand, Storage & Solar

18. Liberty Utilities Battery Pilot (DE 17-189)Proposed Summer TOU Rates

19. L.U. Winter TOU

20. L.U. TOU for Weekends & Holidays

21. LU Battery Pilot Key Points 1 • Originally proposed 5 MW of Battery Capacity (1,000 5kW Tesla Powerpacks) BTM residential, owned by LU • Most of value from reducing monthly coincident peak hour of demand that is basis of Transmission charges & reducing annual peak hour of demand to reduce G capacity charges • Settlement split 1,000 batteries into 2 phases: • Phase 1: 100 min. @ 2/customer, max. 200 bat. by LU • BYOD program to be developed, max. 200 batteries by other aggregators in Phase 1; paid for performance • Phase 2 depends on LU success at dispatching batteries to meet ≥75% of coincident peaks & revised B/C test w/+NPV

22. LU Battery Pilot Key Points 2 • Phase 2 LU can deploy up to 300 more batteries & BYOD another 300 (up to 500 total) for original • Liberty takes control of battery day before likely peaks to dispatch (inc. to grid) to reduce peaks a few times/mo. • Customer can use battery otherwise to reduce load during critical peak (CPP) and charge off-peak if no net metered DG. If NM, then can charge from renewable source during off- or mid-peak and discharge to grid during CPP (or just use to offset load). NM credits given at G+T+25% of D. • Cost to customer: $4,866 (37% of $16,300/install) or $50/mo. for 10 yrs. for a pair of batteries (10 kW, ~27kWh useable energy initially). No charge years 11-15. Early termination (<10 yrs.): $900 charge to remove 2 batteries. • Customer cost should be covered by reduced average rates.