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I-937 Modification Discussion

I-937 Modification Discussion. NIPPC Board Meeting June 21, 2011. I-937. Initiative 937 passed on November of 2006

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I-937 Modification Discussion

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  1. I-937 Modification Discussion NIPPC Board Meeting June 21, 2011

  2. I-937 • Initiative 937 passed on November of 2006 • I-937 calls for electric utilities that serve more than 25,000 customers in the state of Washington to obtain 15% of their electricity from new renewable resources by 2020 and to undertake all cost-effective energy conservation. • Investor-owned utilities, municipal utilities, rural electric cooperatives, and public utility districts are subject to this standard. Of Washington's 62 utilities, 17 are considered qualifying utilities, representing about 84% of Washington's load. • Compliance is monitored by the Washington State Department of Commerce, the State Auditor, and the State Attorney General. • http://www.commerce.wa.gov/site/1001/default.aspx

  3. Electric Utilities in Washington with morethan 25,000 customers as of 2009

  4. Summary of I-937 Renewable Requirements • 3% of load by 2012, 9% by 2016, 15% by 2020 • Must have target years resources in hand (own, contract, RECs) in hand by Jan.1 of target year

  5. Summary of I-937 Renewable Requirements • Own, buy renewable power, buy RECs • If own or buy, generation must be within NW • can buy credits from anywhere in the WECC • Cost cap provides way out for those utilities for whom it would be very expensive to comply • Penalties ($50) if targets are not achieved http://www.bpa.gov/Energy/N/utilities_sharing_ee/Energy_Smart_Awareness/pdf/BPA_Brown_Bag_Mar_26.pdf

  6. I-937 Defined Renewable Resources • Incremental hydro • Wind • Solar energy • Geothermal energy • Landfill gas • Wave, ocean, or tidal power • Gas from sewage treatment facilities • Biodiesel fuel as defined in RCW 82.29A.135 that is not derived from crops raised on land cleared from old growth or first-growth forests where the clearing occurred after December 7, 2006 • Biomass energy based on animal waste or certain solid organic fuels

  7. Eligible Renewable Resource • Electricity from a generation facility powered by a renewable resource other than fresh water that commences operation after March 31, 1999, where: • The facility is located in the Pacific Northwest; or • The electricity from the facility is delivered into Washington state on a real-time basis without shaping, storage, or integration services; or • Incremental electricity produced as a result of efficiency improvements completed after March 31, 1999, to hydroelectric generation projects owned by a qualifying utility and located in the Pacific Northwest or to hydroelectric generation in irrigation pipes and canals located in the Pacific Northwest, where the additional generation in either case does not result in new water diversions or impoundments.

  8. I-937 Modification • Include non-federal hydro that is used to integrate renewable resources within an hour as I-937 compliant • Must be crafted to prevent gaming • Verifiable forecasting method must be used for scheduled hour • Aligns development community and the hydro generators • Positive: provide alternative to the BPA Balancing Authority at competitive pricing • Negative: would lessen the overall need for new renewable resources

  9. Example of Potential Impact • Assume that hydro would be used to make within hour under-scheduled wind firm and would be I-937 compliant

  10. I-937 Modification • Discussion • Next Steps

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