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Highlights of Commission Activities

Explore the key topics covered at the Little Rock ASHRAE monthly meeting on October 12, 2011, presented by John P. Bethel. Discover details about the Commission, energy efficiency programs, net metering, regulated utilities, and the Energy Conservation Endorsement Act.

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Highlights of Commission Activities

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  1. Highlights of Commission Activities Little Rock ASHRAE Monthly Meeting October 12, 2011 Presented By: John P. Bethel

  2. Topics Addressed • Description of the Commission and utilities • Energy Efficiency Programs • Self Direct Option • Net Metering

  3. Three Commissioners • Colette Honorable, Chairman; Butch Reeves, Commissioner; Elana Wills, Commissioner • Appointed by Governor to six-year terms

  4. Regulated Utilities

  5. Regulated Utilities • 4 Investor Owned Electric Utilities • 17 Electric Distribution Cooperatives • 1 Electric Generation & Transmission Cooperative • 1 Electric Regional Transmission Organization • 3 Investor Owned Natural Gas Distribution Companies • 3 Water Utilities • 22 Natural Gas Operators (PSO Regulation) • 158 Master Meter Gas Operators (PSO Regulation) • Approximately 300 Telecommunications Utilities

  6. Energy Efficiency Programs

  7. Energy Conservation Endorsement Act • Ark Code Ann. §23-3-401 et seq. • Authorizes Commission to approve conservation and energy efficiency programs and measures • Commission adopted rules and approved initial utility administered and ratepayer funded programs in 2007 • Commission recognizes energy efficiency programs and measures as a resource Comprehensive programs approved effective July 1, 2011

  8. Energy Efficiency Programs Overall Cost • Approximately $31.2 million for 2011; $57.5 million for 2012; and $77.4 million in 2013 • Recovered through a monthly charge on customer bills • Total cost of the energy efficiency and conservation programs is approximately $0.83 to $1.75 per month for an average residential customer

  9. Goals for Energy Efficiency Programs • Electric Utilities: 2011 – 0.25%; 2012 – 0.50%; 2013 – 0.75% • Natural Gas Utilities: 2011 – 0.20%; 2012 – 0.30%; 2013 – 0.40%

  10. Energy Efficiency Programs • Energy Efficiency Arkansas • Arkansas Weatherization Program • Energy Audits • HVAC Tune Up • Compact Fluorescent Light Bulbs • Appliance Replacements • Custom Programs for Commercial & Industrial Customers • Various Rate Schedules

  11. Energy Efficiency Programs • Self Direct Option for Large Customers • Evaluation, Measurement & Verification • Lost Contribution to Fixed Costs • Energy Efficiency Incentives

  12. Self Direct Option

  13. Self Direct Option • Energy efficiency is a resource • Large commercial & industrial customers have opportunities & incentive to implement measures

  14. Self Direct Option • Eligible large commercial & industrial customers can self direct or opt out of utility EE programs • Implement an EE measure that produces energy savings equal to or greater than Commission goals • Can obtain certificate of exemption for duration of utility’s EE program plan

  15. Self Direct Option • Eligibility Requirements • Single Metered Location • 1 MW Peak Electric Demand • 70,000 mmBtu annual natural gas consumption

  16. Self Direct Option • Eligibility Requirements • Aggregated Locations • 1 MW Peak Electric Demand from multiple locations with a peak electric demand of 200 kW each • 70,000 mmBtu annual natural gas consumption from multiple locations with annual natural gas consumption of 14,000 mmBtu each

  17. Self Direct Option • New investment in EE measure • Investment in EE measure within ten years of request for certificate • Investment to be made during the duration of utility’s currently approved EE program

  18. Self Direct Option • File request by Sept 15 of any year • Show that it has implemented or will implement a measure that will produce savings that meet or exceed Commission’s goals • Show that it has exhausted all opportunities • If participating in utility EE programs from 2012 forward, cannot request certificate for 5 years

  19. Section 11 • Commission may schedule hearing • Commission must issue its decision by December 15 unless waived by customer • If approved, certificate effective January 1 of the following year • No longer charged EECR rate • Certificate good for duration of utility EE program plan • Up to three years

  20. Net Metering

  21. “Normal” Metering v. Net Metering

  22. Electric Utility System

  23. “Normal” Metering • Meter at residence or business • Measures electricity delivered to customer • Meter reading forms basis for billing

  24. Electric Meters

  25. Net Metering • Customer owns generating source • Generating source supplies all or part of customer’s need • Excess generation delivered back to utility • Meter runs backward to “measure” generation delivered back to utility

  26. Net Metering Example

  27. Overview of Arkansas’ Net Metering Law

  28. Net Metering Law • Arkansas Renewable Energy Development Act of 2001 • Act 1781 of 2001 • Act 1026 of 2007 amended law • Arkansas Code Annotated §23-18-601 et seq.

  29. Net Metering Law • Must be a renewable resource • Solar, wind, hydroelectric, geothermal, biomass, etc.

  30. Net Metering Law • Maximum size 25 kW for residential customers and 300 kW for any others • Located in Arkansas

  31. Net Metering Law • Offset all or part of the net metering customer’s requirements for electricity

  32. Net Metering Law • Customer retains any renewable energy credit associated with generating facility

  33. Net Metering Law • Electric utilities required offer net metering • Commission establishes rates, terms, and conditions • Utilities may assess fees for additional costs

  34. Net Metering Law • Any generation from the customer’s facility is credited against usage at the retail rate • Customer may carry any excess generation for up to one year

  35. Overview of Commission’s Net Metering Rules

  36. Net Metering Rules • Net excess generation defined as the amount of electricity that a net metering customer has fed back to the electric utility that exceeds the amount of electricity used by that customer during the applicable period

  37. Net Metering Rules • kWhs provided by customer serve to offset kWhs provided by the utility and serve to reduce any kWh charges on the bill • Distribution Rate • Energy Cost Recovery Rate

  38. Net Metering Rules • Standard Interconnection Agreement • Facility must operate in parallel with utility • Prevent any back-feeding • Manual disconnect switch accessible to utility • National Electric Code • National Electric Safety Code • ICEEE & Underwriters Labs

  39. Net Metering Rules • Standard Rate Schedule • Each utility has comparable tariff • Availability • Monthly Billing

  40. Net Metering Rules • Reporting Requirements • Annual Reports by March 15 • Currently 141 net metering facilities • 120 Solar • 21 Wind • 138 Residential • 3 Commercial

  41. Net Metering Rules • 102 Under 5 kW • 37 @ 5 kW or greater • 1 @ 20 kW • 1 @ 30 kW • 1 @ 50 kW • 1 @ 100 kW

  42. Cost of Net Metering Facilities

  43. Cost of Net Metering Facilities • Very rough information from Internet research (do not rely upon me) • Tax credits of up to 30 % • Solar facilities $4,000 to $12,000 per kW • Wind facilities $3,000 to $10,000 per kW • AWEA $350,000 for 100 kW

  44. The End • Questions?

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