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NWA Suitability Criteria

NWA Suitability Criteria. Distribution System Planning Engagement Group June 8, 2016. RI NWA Standards.

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NWA Suitability Criteria

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  1. NWA Suitability Criteria • Distribution System Planning Engagement Group • June 8, 2016

  2. RI NWA Standards • Rhode Island Standards for System Reliability Procurement established in 2011 provide a comprehensive framework for systematically identifying customer-side and distributed resources that may defer or eliminate distribution and transmission upgrades, as well as improve reliability and asset utilization • These Standards are a result of a joint effort between RI Energy Efficiency and Resource Management Council (EERMC) participants - including Acadia Center, Office of Energy Resources, and the NCEC - and National Grid • The Standards are continuously being revised and additional changes will be introduced later this year

  3. RI NWA Standards • The Standards include four key provisions: • NWA definition • NWA suitability criteria • Basis for comparing alternatives • Financial analysis

  4. Grid Needs Suitable for NWA • System capacity and load constraints • Distributed generation constraints • Operational considerations • Preventative measures, e.g. reducing load and increasing useful life of equipment • Reliability and resiliency

  5. NWA Suitability Criteria in RI • The need is not based on asset conditions • The wires solution will cost more than $1 mln • If load reduction is necessary, it is expected to be less than 20% of the relevant peak load in the area of defined need • Start of wires alternative construction is at least 36 months in the future • The utility may propose a project that fails to meet one or more of the above criteria if it has reason to believe that a viable NWA solution exists, assuming the benefits justify the costs

  6. NWA Suitability Criteria in RI • Since the criteria have been implemented, only one identified need has deemed suitable for NWA – the most limiting requirement is that the need is not based on asset condition • RI is currently considering relaxing the criteria as the load growth rate decreased significantly in recent year – peak load growth rate is currently 1% or less in RI –providing for longer time horizons for planning and implementing NWAs

  7. NWA Solicitation Process • Characterization of the need: • Identification of the need, including the magnitude of the need, the shape of the load curve, the projected year and season by which a solution is needed, and other relevant timing issues. • Identification of the level and duration of peak demand savings and/or other operational functionality required to avoid the need for the wires upgrade. • Other information needed for regulators/decision-makers in order to assess alternative solutions: • Description of the business as usual upgrade in terms of technology, net present value, cost (capital and O&M), revenue requirements, and schedule. • Identification and description of the wires solution and how it would change as a result of the NWA. • Description of the sensitivity of the need and T&D investment to load forecast assumption.

  8. NWA Solicitation Process • Information that should be solicited in NWA proposals: • Description of the NWA solution, including a description of the NWA in terms of technology, reliability, cost, net present value, and timing. • Ability of affected customers to participate. • Implementation plan, including ownership and contracting considerations and options. • NWAs should be compared to wires solutions based on the following: • Ability to meet the identified need. • Anticipated reliability of the alternatives; • Risks associated with each alternative (e.g. risks of stranded investments, sensitivity of alternatives to differences in load forecasts, emergence of new technologies) • Potential for synergy savings based on alternatives that address multiple needs. • Operational complexity and flexibility. • Implementation issues • Customer impacts to potentially modify usage.

  9. Contact Information Irina Rodina irodina@acadiacenter.org Abigail Anthony aanthony@acadiacenter.org Boston, MA • Hartford, CT • New York, NY • Providence, RI •Rockport, ME • Ottawa, ON, Canada www.acadiacenter.org

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