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Colorado’s Solar Policies

Colorado’s Solar Policies. Western Solar Policy Dialogue WCPSC Meeting 2008 Presentation of Ron Binz, Chairman Colorado Public Utilities Commission June 15, 2008. Outline of this presentation. Introduction to the Colorado PUC The Colorado Solar Energy Story Solar Drivers

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Colorado’s Solar Policies

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  1. Colorado’s Solar Policies Western Solar Policy Dialogue WCPSC Meeting 2008 Presentation of Ron Binz, Chairman Colorado Public Utilities Commission June 15, 2008

  2. Outline of this presentation • Introduction to the Colorado PUC • The Colorado Solar Energy Story • Solar Drivers • Solar Progress • Solar Impediments • Solar Opportunities • Lessons learned

  3. Caveat • I am one of three equal commissioners • My positions are my own • I am confused by many things and have not made up my mind on much at all • I don’t even agree with some of the things I say • Good advice: don’t believe everything you think

  4. The Colorado PUC The Public Utilities Commission's mission is to achieve a flexible regulatory environment that provides safe, reliable and quality services to utility customers on just and reasonable terms, while managing the transition to effective competition where appropriate. • Independent agency, created in the constitution • Three Commissioners, appointed by the Governor • Four year terms • Partly judicial, partly legislative • Ninety-member staff is an agency within the Department of Regulatory Agencies

  5. Colorado Commissioners Matt Baker Ron Binz Jim Tarpey

  6. What are the primary drivers behind the desire to increase solar activity in your state?    What is the level of consumer demand or RPS-driven demand for utility solar generation in your state? For all those who claim solar is just too expensive, how are you making it a cost-effective generation option?  How are the utilities under your regulation thinking about integrating solar resources into their business model? What were the major implementation barriers with utilities and then separately with the solar industry? What suggestions do you have for others about hashing out the complex details with utilities and the solar industry? How have rising costs for new generation, including the imminence of carbon controls and/or taxes, changed utilities’ and regulators’ outlook on solar generation? Are there flaws in the implementation of policies, incentives, or verification systems that you put in place that you would caution other states to avoid?

  7. Outline • Introduction to the Colorado PUC • The Colorado Solar Energy Story • Solar Drivers • Solar Progress • Solar Impediments • Solar Opportunities

  8. Solar Drivers in Colorado • Voter-approved Renewable Energy Standard (2004) • Solar set-aside • Net metering required • Rebate specified • Rate impact cap • Political Leadership • Governor Ritter • New Energy Economy (2006) • Climate Change Action Plan (2008) • General Assembly • Doubled RES requirement to 20% (2007) • Passed Utility Scale Solar Legislation (2008)

  9. Solar Drivers in Colorado, cont’d • Regulatory Response of the Colorado Public Utilities Commission • RES Rules (2006) • Revised Resource Planning Rules (2007) • The Commission Road Trip (2007) • Public Service Company ERP Filing (2008) • Xcel Energy – moving from opposition to support • Good solar resources • Healthy solar industry • Strong state research capability • Acceptable rate impact

  10. Reduce Colorado’s carbon emissions by 20% below 2005 levels by 2020 • Reduce Colorado’s carbon emissions by 80% below 2005 levels by 2050

  11. HB 1281 – Colorado’s Renewable Energy Standard • IOUs -- 20% renewables by 2020 • REAs, Munis -- 10% renewables by 2020 • For IOUs, 4% of renewables must be solar, half on-site • 1.25x for in-state resources • 1.5x for community-based projects • 3.0x for REAs use of solar • Maximum rate impact 2% for IOUs, 1% for Munis and REAs

  12. The Colorado Regulatory Response

  13. Elements Of A State Energy Strategy • Boost Efficiency • Customer: education • Utility: engagement • Rate structure changes • Stress renewable resources • Regulators and utilities with a commitment to addressing climate change • State RPS • Progressive resource planning at Commission • Healthy renewables industry • Advanced generation development • Research and demonstration for carbon sequestration

  14. Resource Planning in Colorado New Rule Prior Rule • Resource Planning • Least Cost Planning • Fuel Neutrality • Clean Energy Preference • Independent Evaluator • Utility models new portfolio • Optional Post-bid Review • Utility selects bid resources • New DSM emphasis

  15. Outline • Introduction to the Colorado PUC • The Colorado Solar Energy Story • Solar Drivers • Solar Progress • Solar Opportunities • Solar Impediments

  16. In 2007, Colorado ranked fourth in the nation, behind California, New Jersey and Nevada, in the amount of solar-power generation installed during the year, according to SEIA (Solar Energy Industries Association)

  17. Illustrative Solar Activity in Colorado • 8.2 MW SunE Alamosa PV project online in 2007 • Numerous other larger PV projects: • Denver Federal Center (1 MW) • Denver International Airport (2 MW) • Fort Carson Army Base (2 MW) • Belmar New Urban Development (1.7 MW) • Residential and agricultural solar continues to grow • Large utility-scale concentrating solar under consideration

  18. Denver Museum of Nature and Science 100 KW Photovoltaic 134 MWh per year Hybrid Energy Group (Denver) There's probably no better place in this country to demonstrate the power of solar and wind energy than Colorado. -- Denver Mayor John Hickenlooper, 6/12/08

  19. DIA – Denver’s airport 2.0 MW Photovoltaic Tied with Fresno as largestsolar at an airport 7.5 acres 3500 MWh/year WorldWater and Solar, Inc.MMA Renewable Ventures Ready for DemocraticNational Convention

  20. Fort Carson US Army Base, Colorado Springs 2.0 MW Photovoltaic Largest Army solar facility 12 acre site of old landfill

  21. Outline • Introduction to the Colorado PUC • The Colorado Solar Energy Story • Solar Drivers • Solar Progress • Solar Opportunities • Solar Impediments

  22. Projected Colorado Electric Energy Growth 2007-2025

  23. The Take-Aways • Colorado’s demand for electric energy services is projected to grow 60% in the next seventeen years. • Think of this curve as demand for energy services denominated in kilowatt-hours • Projection does not include transportation applications for electricity (plug-in hybrids).

  24. Colorado Electric Generation by Fuel

  25. Generation Fuels in Colorado

  26. EPRI “Prism” Analysis

  27. San Luis Valley

  28. Progress of Concentrating Concentrating solar w/storage $ Other baseload (coal w CCS; nuclear)

  29. Solar Electric Density • Concentrating Solar • 100 MW/square mile (Ken Zweibel) • 128 MW/mile2 (Mark Mehos, NREL) • 136 MW/mile2 (Solar One, Nevada) • Photovoltaics • 67 MW(dc)/mile2 (SunE Alamosa) • 69 MW(dc)/mile2 (Nellis AFB) • 171 MW(dc) mile2 (DIA)

  30. Solar Electric Density • Use: 100 MW(ac)/mile2 • Colorado Peak Integrated Demand: 11GW • Result: 110 mile2 required land area

  31. San Luis Valley 2

  32. Testimony in the Pending Public Service Company ERP “…because we want to be able to effectively manage the integration and development of concentrating solar thermal with energy storage, … we request that the Commission limit the acquisition of this new clean energy technology to 600 MW during [2007-2015] and that it be brought on line in increments over time.” -Rebuttal Testimony of Karen T. Hyde, June 9, 2008

  33. Outline • Introduction to the Colorado PUC • The Colorado Solar Energy Story • Solar Drivers • Solar Progress • Solar Opportunities • Solar Impediments

  34. Solar Impediments(and growing pains) • Uneven requirements across utilities • RES levels • Solar requirements • Net metering policies • Utility rebate requirement for on-site solar • Rate structure challenges • Industry fears of solar boom and bust • Intra-industry competition • Customer understanding and acceptance

  35. Types of Colorado Utilities

  36. THIS SECTION DOES NOT EXPAND OR CONTRACT THE COMMISSION'S JURISDICTION OVER COOPERATIVE ELECTRIC ASSOCIATIONS UNDER THIS TITLE.

  37. Rate Structure Issues “Are those alien crop circles...?” Joes, Colorado

  38. ½ mile 126 acres 5.8 acres

  39. Electric Rate Structures • Net metering rules apply in this situation • “meter spins backwards” • Commercial rate (up to 25 kW demand) • $8.98 Service and Facility Charge • 9.3¢ per kWh • A 50 horsepower pump has a 40 kW demand • Secondary General (above 25 kW demand) • $25.00 Service and Facility Charge • $14.77/Monthly Peak KW • 3.0¢ per kWh

  40. New law effective July 1, 2008 (b) AS PART OF ANY INQUIRY OR INVESTIGATION INTO RATE STRUCTURES OF REGULATED ELECTRIC UTILITIES UNDERTAKEN ON OR BEFORE JULY 1, 2009, THE COMMISSION SHALL CONSIDER WHETHER TO ADOPT RETAIL RATE STRUCTURES THAT ENABLE THE USE OF SOLAR OR OTHER RENEWABLE ENERGY RESOURCES IN AGRICULTURAL APPLICATIONS, INCLUDING, BUT NOT LIMITED TO, IRRIGATION PUMPING.

  41. Colorado’s “Customer Incentive” Docket • Investigation of Rate Structures • Seasonal rates • “Inverted-block” rates • Time of use rates • Rate structures and renewable energy • Impact of smart grid technologies

  42. Longer-term Health of the Colorado Solar Industry

  43. Customer Education

  44. Two 75-watt Compact Fluorescent Lights will reduce CO2 emissions by One Metric Tonne over their lifetime

  45. Income Distribution of Customers with Small Solar Installations

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