Regulatory and Political Framework of Today’s Renewable Energy Projects

1. Regulatory and Political Framework of Today’s Renewable Energy Projects Geraldine Gauthier, Associate Counsel February 8, 2013

3. Created by Public Service Law § 5 in 1910 • 5 bipartisan Commissioners appointed by the Governor and confirmed by the Senate to serve 6-year terms. • Jurisdiction over electricity, gas, steam, telecommunications & water utilities • Staff arm is the Department of Public Service

4. Funded by assessment on the utilities it regulates. • Adjudicatory body; rate cases • Charged with encouraging public benefit, preservation of the environment and conservation of natural resources

5. 1998 Wholesale Electricity Market Restructuring • Competitive Market Structure • Lowers prices • Expands consumer choice • Increases rate of technological advancement

6. 1998 Wholesale Electricity Market Restructuring • Break up monopoly utilities • Divested utilities of generation capacity • Retained ownership of transmission and distribution • Became “T&D Utilities”

8. System Benefit Charge (SBC) • Public benefit programs previously provided by monopoly utilities • Billed monthly to NY customers based on use • PSC “Typical Bill” for 500 kWh $0.80 - $1.68/mo.

9. System Benefit Charge (SBC) • 1998 – 2005: $150 million/yr • 2006 – 2011: $180 million/ yr • 2012 – 2016: $ 99 million/ yr

10. System Benefit Charge (SBC) Total collected through 2016: $2.7 Billion

11. Created in 1975 • Former NY Atomic & Space Development Authority

13. Established by Gov. Pataki Exec. Order 2 • Reports in 2002, 2009 and 2013

14. 20

15. 15% by 2020

16. Renewable Portfolio Standard (RPS) • 2003 PSC Proceedings • 19.3% of NY retail electricity consumption from renewables

17. Renewable Portfolio Standard (RPS) 25% by 2013

18. Renewable Portfolio Standard (RPS) • Per kwh assessment on delivery charges

21. Renewable Portfolio Standard (RPS) 25% by 2013 • Voluntary Market: 1% • Main Tier 23% • Customer Sited Tier 1% • 25%

23. 200 Acres • 32 Megawatts

24. Renewable Portfolio Standard (RPS) • Estimated 12 million megawatt hours of renewable generation added by 2013 • Cost: $582 to $762 million or • $179 to $323 million

25. Renewable Portfolio Standard (RPS)2010 Adjustment • PSC extended program through 2015 • Increased renewables goal to 30% by 2015 • Reduced 12 Million megawatts to 10.4 million megawatts

26. Renewable Portfolio Standard (RPS)2010 Adjustment • Reason: Energy Efficiency Program Standard (EEPS) • When EEPS programs decreased NY overall consumption, the RPS goal expressed as a percentage of energy consumed became a correspondingly smaller number

27. Renewable Portfolio Standard (RPS) 2011 Status $2.998 billion • $582 to $762 million or $179 to $323 million

28. 2011 Progress toward goal • 47%

29. Incentives in downstate zones • Larger on-site wind and PV systems • Monthly incentives budget increased from$2 million to $3.5 million • Net-metered projects permitted

30. Energy Efficiency Portfolio Standard (EEPS) • 2008 PSC Proceedings • Consumption reduction target: • 15% by 2015

31. Energy Efficiency Portfolio Standard (EEPS) • Administered by utilities and funded by an additional SBC assessment • July 2011 PSC reported consumption reduction of 1 million megawatt hours -- or

32. Energy Efficiency Portfolio Standard (EEPS) • 49% of goal

33. Recent Legislation • Federal: Extension of Wind Power Subsidies in “Fiscal Cliff” deal • New York Power Act of 2011 • NY Tax Credit legislation

34. August 2011

35. $107 Million (total) for PV projects > 50 kWh • Available through 2013 • Not a new program; CST of RPS

36. “We want to extend the New York’s sun solar jobs program at $150 million annually for 10 years to increase solar panel installations for home and business.  It’s good for the environment and it’s good for the economy. ”

37. p PART 2 – SUNY

39. Online: April 17, 2012 • Capacity: 750 kW (747.3)

41. 100 100 kW Solar carport with charging stations

42. New York Energy Law § 9-101(4) • “Energy Performance Contract” • “Agreement for provision of energyservices. . . in which a person agrees to install, maintain or manage energy systems or equipment to . . . produce energy [for] a building or facility in exchange for a portion of the energy savings or revenues.”

43. New York Energy Law § 9-103(6) • Procurement • “In lieu of any other competitiveprocurement that may apply. . . an agency may procure an energy performance contractor by issuing and advertising a written RFP in accordance with [agency’s guidelines].

44. PLEASE DON’T DO IT ALONE!!

45. 7550 Acquisition and Disposal of Real Property Interests • 7554 Construction Contracting • 7561 Contract Award Protest Procedure • 7557 MWBE • 7553 Purchasing and Contracting • Energy Law • State Finance Law • Executive Law • Education Law

46. Oswego: 12 kW wind turbine; 36 & 43 kW PV • Cobleskill: 75 kW PV • Buff State: 50 kW PV • Delhi: 5 kW wind turbine; 22 kW PV • UAlbany: 49 kW PV • UB: 750 kW PV • Canton: 1.8 mW wind turbine

47. ing

48. Significantly contribute to State Goal of 10.4 Megawatts of Renewable Energy Generation by 2015

49. From the “Report Card” SUNY Renewable Energy Production/Utilization (kWh) Change from 2008-09

50. Contribute to Development of GREEN JOBS