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North Carolina Renewable Energy Policy: Drivers for Change

North Carolina Renewable Energy Policy: Drivers for Change. Sam Watson North Carolina Utilities Commission. 11th Annual Sustainable Energy Conference. April 22, 2014. North Carolina Utilities Commission. Commissioners Edward S. Finley, Jr., Chairman

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North Carolina Renewable Energy Policy: Drivers for Change

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  1. North Carolina Renewable Energy Policy: Drivers for Change Sam Watson North Carolina Utilities Commission 11th Annual Sustainable Energy Conference April 22, 2014

  2. North Carolina Utilities Commission Commissioners Edward S. Finley, Jr., Chairman Bryan E. Beatty Don M. Bailey Susan W. Rabon Jerry C. Dockham ToNola D. Brown-Bland James G. Patterson Dobbs Building, 430 North Salisbury Street4325 Mail Service Center 27699-4325Phone: (919) 733-4249 Fax: (919) 733-7300www.ncuc.net

  3. Public Staff – North CarolinaUtilities Commission Representing the Using and Consuming Public Christopher J. Ayers, Executive Director Dobbs Building, 430 North Salisbury Street4326 Mail Service Center 27699-4326www.pubstaff.commerce.state.nc.us ■ ■ ■ Consumer Services Division (Consumer Complaints) Phone: (919) 733-9277 Toll Free: 1-866-380-9816 Fax: (919) 733-4744

  4. Outline • Renewable Energy and Energy Efficiency Portfolio Standard (REPS) • Solar set-aside • Swine and poultry waste set-asides • Avoided Costs • Net Metering • Interconnection

  5. Renewable Energy Concepts • “Renewable energy” is electricity generated from renewable resources, such as the sun, wind, water, geothermal, and biomass • A “renewable portfolio standard” (RPS) is a policy tool that requires retail sellers of electricity to obtain a portion of their electricity portfolio from renewable resources • A “renewable energy certificate” (REC) is a tradable instrument representing the renewable attributes associated with one unit of energy derived from a renewable energy resource

  6. Renewable Energy and Energy Efficiency Portfolio Standard (REPS) • In 2007, North Carolina became the first State in the Southeast to adopt a renewable portfolio standard – Session Law 2007-397 (Senate Bill 3) • REPS requirement may be met through a combination of renewable energy generation, the purchase of renewable energy or RECs, and energy efficiency savings • REPS requirement applies to investor-owned electric utilities (electric public utilities), electric membership corporations (EMCs), and municipally-owned electric suppliers

  7. REPS Compliance Requirement • General REPS requirement increases from 3% in 2012 to 10% by 2018, then to 12.5% by 2021 (for electric public utilities) • Specific set-asides established for energy derived from the sun (beginning in 2010) and from poultry and swine waste • REPS compliance costs are recovered through a rate rider • Cap imposed on incremental cost of compliance

  8. Solar Set-Aside Requirement Compliance • Solar set-aside requirement: • Each electric power supplier was found to have met its solar set‑aside requirements in 2010, 2011, and 2012, and appear on track to meet the 2013 and future solar requirements

  9. Swine and Poultry Waste Set-Aside Requirements • Orders issued November 29, 2012, and March 26, 2014, delaying swine and poultry waste set‑aside requirements

  10. 2012 Avoided Cost Docket • Order establishing 2012 Biennial Proceeding, Docket No. E-100, Sub 136, issued in June 2012 • Proposed rates filed in November 2012; evidentiary hearing held in October 2013 • Order issued on February 21, 2014, requiring “Option B” for solar, but no change to performance adjustment factor (PAF)

  11. 2014 Avoided Cost Docket • Order establishing 2014 Biennial Proceeding, Docket No. E-100, Sub 140, issued on February 25, 2014 • Evidentiary hearing scheduled for July 7, 2014: “to consider changes to the methodology used to calculate avoided cost payments, particularly capacity payments, including, but not limited to, • whether a 2.0 PAF for run-of-river hydroelectric facilities with no storage capability should be continued, • whether avoided capacity payments are more appropriately calculated based on installed capacity rather than a per-kWh capacity payment, and • whether the methodologies historically relied upon by the Commission to determine avoided cost capture the full avoided costs .”

  12. Net Metering • Initiated investigation in November 1998 • Order adopting initial net metering policy issued October 2005 (modified July 2006) • Order adopting current amended net metering policy issued March 2009 • NCSEA Motion for Disclosure and Equitable Relief filed February 2014 in response to public comments by Duke regarding “shifting of costs” from net metering customers to others • Comments received, decision pending

  13. Interconnection • Order adopting initial interconnection standard issued March 2005 (modified July 2005) • Order adopting revised interconnection standard issued June 2008 (modified December 2008) • NCSEA Petition to Modify Interconnection Procedures filed April 2014 in response to changes to the federal interconnection standard (FERC Order No. 792) • Comments due June, July 2014

  14. Contact Information North Carolina Utilities Commission http://www.ncuc.net Sam Watson General Counsel (919) 715-7057 swatson@ncuc.net

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