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Topics for Discussion Third-Party Ownership of DERs in Virginia Clean Power Plan Permitting/CPCN Requirements Community Solar Considerations Competitive Bidding Requirements for Utility-Scale Projects (Self-Build v. PPAs) Biomass Conversion Project Wind Permit by Rule/Solar Permit by Rule

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Page 1: Raleigh Slides

Topi

cs fo

r Disc

ussio

n

•Th

ird-P

arty

Ow

ners

hip

of D

ERs i

n Vi

rgin

ia

•Cl

ean

Pow

er P

lan

•Pe

rmitt

ing/

CPCN

Req

uire

men

ts

•Co

mm

unity

Sol

ar C

onsid

erat

ions

•Co

mpe

titiv

e Bi

ddin

g Re

quire

men

ts fo

r Util

ity-S

cale

Pro

ject

s (S

elf-B

uild

v. P

PAs)

•Bi

omas

s Con

vers

ion

Proj

ect

•W

ind

Perm

it by

Rul

e/So

lar P

erm

it by

Rul

e

Page 2: Raleigh Slides

Third

-Par

ty R

enew

able

Ret

ail S

ales

in V

irgin

ia

-O

verv

iew

:

-W

hile

Virg

inia

doe

s not

pro

vide

a w

holly

com

petit

ive

ener

gy m

arke

t, op

tions

exi

st in

Virg

inia

for a

ltern

ativ

e en

ergy

supp

ly.

-Ex

istin

g Vi

rgin

ia S

tatu

tes:

oVa

. Cod

e Se

ctio

n §

56-5

77 (C

ompe

titiv

e Su

pply

)

“Onl

y in

divi

dual

reta

il cu

stom

ers o

f ele

ctric

ene

rgy

with

in th

e Co

mm

onw

ealth

, reg

ardl

ess o

f cus

tom

er cl

ass,

who

se d

eman

d du

ring

the

mos

t re

cent

cale

ndar

yea

r exc

eede

d fiv

e m

egaw

atts

but

did

not

exc

eed

one

perc

ent o

f the

cust

omer

's in

cum

bent

ele

ctric

util

ity's

peak

load

dur

ing

the

mos

t rec

ent c

alen

dar y

ear u

nles

s suc

h cu

stom

er h

ad n

onco

incid

ent p

eak

dem

and

in e

xces

s of 9

0 m

egaw

atts

in ca

lend

ar ye

ar 2

006

or a

ny ye

ar

ther

eafte

r, sh

all b

e pe

rmitt

ed to

pur

chas

e el

ectr

ic en

ergy

from

any

supp

lier o

f ele

ctric

ene

rgy

licen

sed

to se

ll re

tail

elec

tric

ener

gy w

ithin

the

Com

mon

wea

lth …

“… In

divi

dual

reta

il cu

stom

ers o

f ele

ctric

ene

rgy

with

in th

e Co

mm

onw

ealth

, reg

ardl

ess o

f cus

tom

er cl

ass,

shal

l be

perm

itted

…to

pur

chas

e el

ectr

ic en

ergy

pro

vide

d 10

0 pe

rcen

t fro

m re

new

able

ene

rgy

from

any

supp

lier o

f ele

ctric

ene

rgy

licen

sed

to se

ll re

tail

elec

tric

ener

gy w

ithin

the

Com

mon

wea

lth, o

ther

than

any

incu

mbe

nt e

lect

ric u

tility

that

is n

ot th

e in

cum

bent

ele

ctric

util

ity se

rvin

g th

e ex

clusiv

e se

rvice

terr

itory

in w

hich

su

ch a

cust

omer

is lo

cate

d, if

the

incu

mbe

nt e

lect

ric u

tility

serv

ing

the

exclu

sive

serv

ice te

rrito

ry d

oes n

ot o

ffer a

n ap

prov

ed ta

riff f

or e

lect

ric

ener

gy p

rovi

ded

100

perc

ent f

rom

rene

wab

le e

nerg

y . .

.”

oVa

. Cod

e Se

ctio

n 56

-594

(Net

Met

erin

g)

Legi

slativ

e up

date

(Jul

y 1,

201

5):

Incr

ease

d fro

m 5

00 k

Wh

to 1

MW

, the

max

imum

gen

erat

ing

capa

city

of a

n el

ectr

ical g

ener

atin

g fa

cility

ow

ned

or o

pera

ted

by a

n el

ectr

ic ut

ility

’s no

nres

iden

tial c

usto

mer

that

may

be

elig

ible

to p

artic

ipat

e in

the

utili

ty’s

net m

eter

ing

prog

ram

.

“Elig

ible

cust

omer

-gen

erat

or” m

eans

a cu

stom

er th

at o

wns

and

oper

ates

, or c

ontra

cts

with

oth

er p

erso

ns to

own

, ope

rate

, or b

oth,

an

elec

trica

l gen

erat

ing

faci

lity

that

has

a ca

pacit

y of n

ot m

ore

than

20

kilo

watts

for r

esid

entia

l cus

tom

ers a

nd n

ot m

ore

than

one

m

egaw

att f

or n

onre

siden

tial c

usto

mer

s on

an e

lect

rical

gen

erat

ing

facil

ity p

lace

d in

serv

ice af

ter J

uly

1, 2

015

…”

Page 3: Raleigh Slides

Third

-Par

ty R

enew

able

Ret

ail S

ales

in V

irgin

ia-

Exist

ing

Virg

inia

Pro

gram

s:

-Do

min

ion

Pilo

t Pro

gram

–Al

low

s qua

lifie

d cu

stom

ers t

o en

ter i

nto

a Po

wer

Pur

chas

e Ag

reem

ent w

ith a

third

par

ty

rene

wab

le e

nerg

y su

pplie

r. T

he e

nerg

y su

pplie

d m

ust c

ome

from

a w

ind

or so

lar g

ener

ator

loca

ted

on th

e cu

stom

er’s

prem

ise.

-Te

chno

logy

Lim

its-

Size

lim

its-

Cust

omer

lim

its-

SCC

Regu

lato

ry p

roce

edin

gs-

APCO

PPA

Rid

er (P

UE-2

015-

0004

0)

-20

16 Le

gisla

tion:

-Ho

use

Bill

No. 1

286

was

intr

oduc

ed o

n Ja

nuar

y 20

, 201

6.-

The

prop

osed

chan

ges p

rovi

de co

nsum

ers f

ull a

cces

s to

third

par

ty o

wne

d fin

ancin

g fo

r on-

site

rene

wab

le e

nerg

y, an

d el

imin

ates

bar

riers

to m

atch

ing

on-s

ite g

ener

atio

n w

ith o

n-sit

e de

man

d.

-Th

e Bi

ll pr

ovid

es th

e sa

me

acce

ss to

fina

ncin

g as

foun

d in

23

othe

r sta

tes.

-Th

e Bi

ll do

es n

ot im

pact

the

exist

ing

econ

omics

or v

alue

for t

he co

nsum

er o

r for

the

utili

ty.

-Th

e Bi

ll al

so d

oes N

OT im

pact

the

utili

ties’

oper

atio

ns o

r int

erco

nnec

tion

proc

edur

es in

exi

stin

g st

atut

es a

nd

regu

latio

ns.

Page 4: Raleigh Slides

Third

-Par

ty R

enew

able

Ret

ail S

ales

in V

irgin

ia

-20

16 D

river

s of T

hird

Par

ty S

ales

:-

User

Gro

up R

FP’s:

-Co

uncil

of I

ndep

ende

nt C

olle

ges i

n Vi

rgin

ia’s

RFP:

-

Issue

d No

vem

ber 1

6, 2

015,

resp

onse

s due

Janu

ary

22, 2

016.

-Go

al o

f ins

talli

ng 3

0 M

W o

f dist

ribut

ed so

lar g

ener

atio

n by

202

0 at

the

cam

puse

s of s

ome

of it

s mem

ber c

olle

ges.

-IT

C Ex

tens

ion:

-

On

Dece

mbe

r 18,

201

5, C

ongr

ess p

asse

d an

ext

ensio

n of

the

Sola

r Inv

estm

ent T

ax C

redi

t.

-Ex

tend

s the

30%

ITC

for b

oth

resid

entia

l and

com

mer

cial p

roje

cts t

hrou

gh th

e en

d of

201

9; d

rops

the

cred

it to

26%

in

2020

; dro

ps to

22%

in 2

021;

dro

ps p

erm

anen

tly to

10%

for c

omm

ercia

l pro

ject

s and

0%

for r

esid

entia

l pro

ject

s.-

Clea

n Po

wer

Pla

n Im

plem

enta

tion

in V

irgin

ia:

-Em

issio

ns S

tand

ard

Plan

v. S

tate

Mea

sure

s Pla

n-

Emiss

ions

Sta

ndar

d Pl

an:

Base

d on

the

sour

ce p

erfo

rman

ce st

anda

rd e

stab

lishe

d in

the

final

EPA

rule

for a

ffect

ed co

al

and

natu

ral g

as u

nits

. Re

new

able

ene

rgy

coul

d su

pple

men

t.-

Stat

e M

easu

res P

lan:

Rel

y on

stat

e ad

opte

d or

supp

orte

d m

echa

nism

s suc

h as

RPS

and

/or e

nerg

y ef

ficie

ncy

stan

dard

s to

mee

t the

stat

e go

al.

Page 5: Raleigh Slides

Gui

delin

es R

egar

ding

Not

ice

Info

rmat

ion

for a

Th

ird P

arty

PPA

On

Mar

ch 1

4, 2

013,

the

Vir

gini

a G

ener

al A

ssem

bly

appr

oved

Cha

pter

382

re

quir

ing

the

Vir

gini

a St

ate

Cor

pora

tion

Com

mis

sion

to c

ondu

ct a

ren

ewab

le

ener

gy p

ilot p

rogr

am f

or th

ird-

part

y po

wer

pur

chas

e ag

reem

ents

and

to

esta

blis

h ce

rtai

n gu

idel

ines

reg

ardi

ng it

s im

plem

enta

tion.

PUR

POSE

SCC

mus

t est

ablis

h gu

idel

ines

con

cern

ing

(i) in

form

atio

n to

be

prov

ided

in

wri

tten

not

ices

and

(ii)

proc

edur

es fo

r co

llect

ing

and

post

ing

info

rmat

ion

deri

ved

from

such

not

ices

to th

e C

omm

issi

on’s

web

site

.

Page 6: Raleigh Slides

APP

LIC

AB

ILIT

Y

App

licab

le to

any

ow

ner

or o

pera

tor

of a

sola

r-po

wer

ed o

r w

ind-

pow

dere

d el

ectr

ic g

ener

atio

n fa

cilit

y lo

cate

d on

pre

mis

es o

wne

d or

leas

ed b

y an

elig

ible

cu

stom

er-g

ener

ator

. Suc

h a

faci

lity

shal

l hav

e g

ener

atio

n ca

paci

ty o

f 50

kW to

1

MW

. An

elig

ible

faci

lity

shal

l pro

vide

ele

ctri

city

to o

nly

one

cust

omer

.

The

ow

ner-

oper

ator

shal

l be

perm

itted

to se

ll th

e el

ectr

icity

gen

erat

ed fr

om

such

faci

lity

excl

usiv

ely

to su

ch e

ligib

le c

usto

mer

-gen

erat

or u

nder

a p

ower

pu

rcha

se a

gree

men

t to

prov

ide

such

elig

ible

cus

tom

er-g

ener

ator

thir

d-pa

rty

finan

cing

of t

he c

osts

of s

uch

a re

new

able

gen

erat

ion

faci

lity.

The

pilo

t pro

gram

is li

mite

d to

50

MW

.

Gui

delin

es R

egar

ding

Not

ice

Info

rmat

ion

for a

Th

ird P

arty

PPA

(con

t’d)

Page 7: Raleigh Slides

CO

NT

EN

TS

OF

FIL

ING

The

ow

ner-

oper

ator

shal

l pro

vide

wri

tten

not

ice

to th

e C

omm

issi

on a

nd th

e Pi

lot

Util

ity n

ot le

ss th

an 3

0 ca

lend

ar d

ays b

efor

e th

e ef

fect

ive

date

of s

uch

agre

emen

t an

d sh

all i

nclu

de, b

ut n

ot b

e lim

ited

to, t

he fo

llow

ing

info

rmat

ion:

Iden

tity

of o

wne

r-op

erat

or o

f the

ren

ewab

le e

lect

ric

gene

ratio

n fa

cilit

y;T

he n

ame,

add

ress

, and

und

er se

al a

s “co

nfid

entia

l” o

r “e

xtra

ordi

nari

ly

sens

itive

” in

form

atio

n, th

e Pi

lot U

tility

ele

ctri

c ac

coun

t num

ber

of th

e el

igib

le c

usto

mer

-gen

erat

or;

Loc

atio

n of

the

prem

ise(

s) u

pon

whi

ch th

e re

new

able

ele

ctri

c ge

nera

tion

faci

lity

will

be

inst

alle

d;R

enew

able

sour

ce o

f the

ele

ctri

c ge

nera

tion

faci

lity;

Gen

erat

ion

capa

city

of t

he r

enew

able

ele

ctri

c ge

nera

tion

faci

lity

expr

esse

d tin

term

s of k

Ws a

vaila

ble

for

deliv

ery

to th

e en

d-un

der

stat

ed in

alte

rnat

ing

curr

ent (

AC

);E

xpec

ted

date

that

the

elec

tric

gen

erat

ion

faci

lity

will

be

plac

ed in

se

rvic

e (“

plac

ed in

serv

ice”

acc

ordi

ng to

26

U.S

.C. §

48)

Gui

delin

es R

egar

ding

Not

ice

Info

rmat

ion

for a

Th

ird P

arty

PPA

(con

t’d)

Page 8: Raleigh Slides

POST

ING

AN

D T

RA

CK

ING

VIA

SC

C W

EB

SIT

E

PRO

GR

AM

CA

P M

AN

AG

EM

EN

T

The

Com

mis

sion

beg

an re

view

of t

he p

ilot p

rogr

am in

201

5 an

d w

ill c

ontin

ue e

very

two

year

s th

erea

fter

.

Cur

rent

ly, t

he p

ilot i

s ava

ilabl

e on

ly in

Dom

inio

n’s s

ervi

ce te

rrito

ry.

DO

MIN

ION

PPA

s UN

DE

R C

UR

RE

NT

PRO

GR

AM

Sinc

e 20

13, n

ot a

sing

le fa

cilit

y ha

s gon

e on

line

. The

re a

re se

vera

l pro

ject

s in

the

queu

e.

VA S

CC

Cas

e N

o. P

UE

-201

1-00

107

Petit

ion

for

Dec

lara

tory

Jud

gmen

t

Gui

delin

es R

egar

ding

Not

ice

Info

rmat

ion

for a

Th

ird P

arty

PPA

(con

t’d)

Page 9: Raleigh Slides

Virg

inia

: Pr

opos

ed v.

Fin

al Ta

rget

Rat

es(p

ound

s per

meg

awat

t-hou

r)

884

810

1047

934

0

200

400

600

800

1000

1200

Inte

rim A

vera

ge (P

re-2

030)

Fina

l (20

30)

Prop

osed

Fina

l

Page 10: Raleigh Slides

Virg

inia

: Pr

opos

ed v.

Fin

al M

ass L

imits

(mill

ion

tons

, ex

istin

g un

its o

nly)

22.8

20.9

29.5

27.4

05101520253035

Inte

rim A

vera

ge (P

re-2

030)

Fina

l (20

30)

Prop

osed

Fina

l

Page 11: Raleigh Slides

Rate

-Bas

ed O

ptio

ns

Natio

nal

Subc

ateg

ory

Emiss

ion

Rate

s•

Coal

:

1,

607

1,30

5•

Gas:

87

7

771

(202

2)

(20

30)

Stat

e Em

issio

n Ra

tes

•Vi

rgin

ia C

oal

and

Gas:

1,12

0

934

(202

2)

(20

30)

Varie

d Em

issio

n Ra

tes A

mon

g Un

its

•O

vera

ll, th

e St

ate

mus

t stil

l ach

ieve

eq

uiva

lent

of

eith

er th

e st

ate

or

nat

iona

l su

bcat

egor

y ra

tes

Page 12: Raleigh Slides

Mas

s-Ba

sed

Opt

ions

Exist

ing

Virg

inia

Un

its O

nly

•Vi

rgin

ia C

oal

and

Gas:

31

.3 m

illio

n (2

022)

27.4

mill

ion

(203

0)•

Less

“lea

kage

” ad

just

men

t

Exist

ing

and

New

Vi

rgin

ia U

nits

•Br

ingi

ng in

new

un

its w

ould

in

crea

se

Virg

inia

’s m

ass

limit

by le

ss

than

0.5

mill

ion

“com

plem

ent”

Stat

e M

easu

res

•M

ust a

chie

ve

EPA’

s lim

its; b

ut,

to d

o so

, can

use

m

easu

res

impl

emen

ted

and

enfo

rcea

ble

only

und

er st

ate

law

Page 13: Raleigh Slides

CPP

-Six

Com

plia

nce

Opt

ions

Rat

e-B

ased

(Int

ensi

ty) C

ompl

ianc

e #

CO

2/M

Wh

1.St

ate

aver

age

emis

sion

s per

form

ance

rat

e (V

A =

934

#/M

Wh)

2.Su

bcat

egor

ized

per

form

ance

rat

es (d

ual r

ate)

Tra

ding

Rea

dy77

1 #/

MW

h ga

s CC

uni

ts13

05 #

/MW

h st

eam

uni

ts (c

oal,

gas b

oile

r, he

avy

oil)

3.U

niqu

e em

issi

on p

erfo

rman

ce r

ates

(not

to e

xcee

d st

ate

limit)

Mas

s-B

ased

Com

plia

nce T

on C

ap

1.E

mis

sion

s Cap

(exi

stin

g un

its o

nly)

Tra

ding

Rea

dyL

eaka

ge

2.E

mis

sion

Cap

(all

units

) Tra

ding

Rea

dyIn

clud

es n

ew C

Cs

App

rox

1.4

% in

crea

se in

tota

l cap

(not

per

yea

r bu

t tot

al e

ntir

e pe

riod

)

3.St

ate

mea

sure

d ap

proa

ch (u

niqu

e ap

proa

ch)

Page 14: Raleigh Slides

CPP

-Virg

inia

Bes

t Com

plia

nce

Opt

ions

Rat

e-B

ased

(Int

ensi

ty) C

ompl

ianc

e (#

CO

2 / M

Wh)

Subc

ateg

oriz

ed n

atio

nal p

erfo

rman

ce r

ates

(dua

l rat

e)A

llow

s for

gro

wth

with

in V

irgi

nia

Trad

ing

read

yC

an e

arn

Gas

Shi

ft E

RC

sB

enef

icia

l to

Ren

ewab

le G

ener

ator

s and

Ene

rgy

Eff

icie

ncy

Hel

ps p

rese

rve

optio

n of

new

nuc

lear

Stak

ehol

ders

can

pla

nIm

plem

enta

tion:

EM

&V

and

uni

t tra

ckin

g

Mas

s-B

ased

Com

plia

nce

(Ton

Cap

)

Em

issi

ons C

ap: e

xist

ing

units

onl

yA

llow

s for

gro

wth

with

in V

irgi

nia

Trad

ing

read

yC

an e

arn

Gas

Shi

ft A

llow

ance

s (as

sum

ing

set a

side

)Im

plem

enta

tion:

Les

s EM

&V

but

Set

Asi

des a

nd L

eaka

ge

Page 15: Raleigh Slides

CPP

-Virg

inia

Bes

t Com

plia

nce

Opt

ions

A r

ate-

base

d ap

proa

ch m

ay b

e be

tter

for

econ

omic

gr

owth

, bet

ter

for

prom

otin

g re

new

able

s and

ene

rgy

effic

ienc

y, a

nd b

ette

r fo

r cu

stom

ers a

nd V

A's

eco

nom

y.

Cur

rent

ly w

orki

ng a

s par

t of a

stak

ehol

der

team

with

DE

Q

who

is e

valu

atin

g al

l opt

ions

. Thi

s may

cha

nge

once

the

final

tr

adin

g ru

les a

re k

now

n. A

ny st

ate’

s pre

fere

nce

will

de

pend

on

man

y fa

ctor

s, in

clud

ing

gene

ratin

g m

ix.

Page 16: Raleigh Slides

Dom

inio

n’s I

RP

offe

red

leas

t-co

st “

non-

com

plai

nt”

plan

that

rel

ied

sole

ly o

n na

tura

l gas

-fir

ed g

ener

atio

n, a

s wel

l as f

our

alte

rnat

e re

sour

ce p

lans

–ea

ch d

esig

ned

to c

ompl

y w

ith th

e C

lean

Pow

er P

lan

–w

hich

som

e ca

ll th

e C

arbo

n R

ule.

As o

f the

end

of l

ast y

ear,

Dom

inio

n ha

d so

lar

faci

litie

s in

serv

ice

in se

ven

stat

es –

from

C

alifo

rnia

to C

onne

ctic

ut –

with

mor

e in

dev

elop

men

t.

All

told

, Dom

inio

n ex

pect

s to

inve

st a

bout

$3

billi

on in

var

ious

sola

r pr

ojec

ts –

in V

irgi

nia

and

beyo

nd –

with

$70

0 m

illio

n sl

ated

for

proj

ects

that

will

gen

erat

e po

wer

for

its c

usto

mer

s.

Plan

s cal

l for

dev

elop

ing

mul

tiple

, lar

ge-s

cale

sola

r pr

ojec

ts to

talin

g 40

0 m

egaw

atts

of

gene

ratin

g ca

paci

ty. T

hese

pro

ject

s sho

uld

be o

pera

tiona

l by

2020

and

be

capa

ble

of

prod

ucin

g en

ough

pow

er to

supp

ly a

bout

100

,000

hom

es.

CPP

-Virg

inia

Bes

t Com

plia

nce

Opt

ions

Page 17: Raleigh Slides

162

Virg

inia

Leg

isla

tion –

•Cha

pter

771

ofth

e20

11Vi

rgin

iaA

cts

ofA

ssem

bly

•Cha

pter

382

ofth

e20

13Vi

rgin

iaA

cts

ofA

ssem

bly

•Cha

pter

s43

1an

d43

2of

the

2015

Virg

inia

Acts

ofA

ssem

bly

Rene

wab

le D

istrib

uted

Ene

rgy

Page 18: Raleigh Slides

163

Virg

inia

Sta

te C

orpo

ratio

n C

omm

issi

on D

ocke

ts –

•P

UE

-201

1-00

117:

DV

P D

G S

olar

Par

tner

ship

Pro

gram

•P

UE

-201

2-00

064:

DV

P D

G S

olar

Pur

chas

e P

rogr

am•

PU

E-2

012-

0014

2: D

VP

Ren

ewab

le G

ener

atio

n P

ilot P

rogr

am•

PU

E-2

013-

0004

5: 3

rdP

arty

Ren

ewab

le G

ener

atio

n P

PA P

ilot

Pro

gram

•P

UE

-201

5-00

005:

DV

P D

CS

Pilo

t Pro

gram

•P

UE

-201

5-00

006:

DV

P R

emin

gton

Sol

ar C

PC

N•

PU

E-2

015-

0004

0: A

PC

o R

enew

able

Gen

erat

ion

Pilo

t Pro

gram

•P

UE

-201

5-00

057:

Am

ende

d N

et M

eter

ing

Rul

es•

PU

E-2

015-

0010

4: D

VP

Sol

ar P

roje

cts

CP

CN

Rene

wab

le D

istrib

uted

Ene

rgy

Page 19: Raleigh Slides

Com

mun

ity S

olar

Con

sider

atio

ns

-O

verv

iew

of C

omm

unity

Sol

ar:

-An

arr

ange

men

t whi

ch a

llow

s num

erou

s cus

tom

ers t

o in

vest

in o

ne so

lar p

roje

ct a

nd sh

are

the

bene

fits

(pow

er a

nd/o

r fin

ancia

l) in

retu

rn.

Com

mun

ity so

lar a

llow

s acc

ess t

o so

lar e

nerg

y by

cust

omer

s who

may

ot

herw

ise la

ck su

fficie

nt ca

pita

l to

inst

all t

heir

own

sola

r pro

ject

s or w

hose

pro

pert

y m

ay b

e un

suita

ble

for

sola

r ins

talla

tion.

-M

odel

s:-

Utili

ty S

pons

ored

Mod

el: a

util

ity p

rovi

des t

heir

cust

omer

s with

the

optio

n of

pur

chas

ing

rene

wab

le e

nerg

y fro

m a

shar

ed g

ener

atin

g fa

cility

.-

On-

Bill

Cred

iting

: a sh

ared

gen

erat

ing

facil

ity e

nabl

es cu

stom

ers t

o in

vest

in a

por

tion

of th

e so

lar f

acili

ty a

nd

rece

ive

a cr

edit

for t

hat p

ortio

n of

the

ener

gy p

rodu

ctio

n fro

m th

e so

lar f

acili

ty o

n th

eir u

tility

bill

.-

SPE

Mod

el: c

usto

mer

s cre

ate

a bu

sines

s ent

ity to

dev

elop

a sh

ared

sola

r fac

ility

.

Page 20: Raleigh Slides

Com

mun

ity S

olar

Con

sider

atio

ns

-M

inne

sota

’s Co

mm

unity

Sol

ar P

rogr

am:

-En

acte

d in

200

5, a

nd su

bseq

uent

ly a

men

ded,

the

Com

mun

ity-B

ased

Ene

rgy

Deve

lopm

ent (

C-BE

D) Ta

riff (

Min

n. S

tat.

§216

B.16

12) p

rovi

des t

hat a

tarif

f is t

o be

est

ablis

hed

to “o

ptim

ize lo

cal,

regi

onal

, and

stat

e be

nefit

s fro

m re

new

able

en

ergy

dev

elop

men

t and

to fa

cilita

te w

ides

prea

d de

velo

pmen

t of c

omm

unity

-bas

ed re

new

nabl

e en

ergy

pro

ject

s th

roug

hout

Min

neso

ta.”

-Th

e C-

BED

Tarif

f pro

vide

s tha

t eac

h pu

blic

utili

ty in

Min

neso

ta is

requ

ired

to fi

le w

ith th

e M

inne

sota

Pub

lic U

tiliti

es

Com

miss

ion

to cr

eate

a 2

0-ye

ar p

ower

pur

chas

e ag

reem

ent f

or co

mm

unity

-ow

ned

rene

wab

le e

nerg

y pr

ojec

ts.

-Th

e C-

BED

tarif

f rat

e m

ust b

e hi

gher

in th

e fir

st 1

0 ye

ars o

f the

PPA

than

the

final

10

year

s.-

2009

legi

slatio

n re

quire

s all

utili

ties t

o fil

e st

anda

rd co

ntra

cts w

ith th

e Co

mm

issio

n fo

r the

pur

chas

e of

ele

ctric

ity fr

om

proj

ects

with

a ra

ted

capa

city

of 5

MW

or l

ess.

-In

ord

er fo

r a re

new

able

ene

rgy

proj

ect t

o be

cons

ider

ed co

mm

unity

-bas

ed a

nd e

ligib

le fo

r C-B

ED ta

riffs

:-

(1) 5

1% o

f the

reve

nues

from

the

PPA

mus

t flo

w to

Min

neso

ta-b

ased

ow

ners

and

oth

er q

ualif

ying

loca

l ent

ities

;-

(2) n

o sin

gle

win

d pr

ojec

t inv

esto

r can

ow

n m

ore

than

15

% o

f a p

roje

ct co

nsist

ing

of tw

o or

mor

e w

ind

turb

ines

, exc

ept f

or lo

cal

gove

rnm

ents

whi

ch m

ay b

e th

e so

le o

wne

rs o

f com

mun

ity-b

ased

pro

ject

s;-

(3) t

he p

roje

ct m

ust h

ave

a re

solu

tion

of su

ppor

t ado

pted

by

the

coun

ty b

oard

of e

ach

coun

ty in

whi

ch th

e pr

ojec

t is t

o be

loca

ted,

or

in th

e ca

se o

f a p

roje

ct lo

cate

d w

ithin

the

boun

darie

s of a

rese

rvat

ion,

the

trib

al co

uncil

for t

hat r

eser

vatio

n; a

nd-

(4) a

ll ow

ners

of p

rope

rty

trave

rsed

by

trans

miss

ion

lines

serv

ing

the

proj

ect m

ust b

e gi

ven

the

oppo

rtun

ity to

inve

st.

-[A

s of S

epte

mbe

r 201

1, 2

66.3

0 M

W o

f C-B

ED p

roje

cts h

ad b

een

com

plet

ed.]

Page 21: Raleigh Slides

Com

mun

ity S

olar

Con

sider

atio

ns

-N

ew Y

ork’

s Com

mun

ity S

olar

Pro

gram

:-

As p

art o

f the

NY

SUN

Initi

ativ

e, a

imed

at s

timul

atin

g Ne

w Yo

rk’s

sola

r mar

ket,

the

New

York

Pub

lic S

ervi

ce

Com

miss

ion

intr

oduc

ed th

e NY

-SUN

Ince

ntiv

e Pr

ogra

m to

hel

p re

duce

the

cost

s of i

nsta

lling

sola

r sys

tem

s in

New

York

.-

As p

art o

f suc

h ef

fort

s, th

e NY

Com

miss

ion

rece

ntly

laun

ched

Com

mun

ity S

olar

NY,

a pr

ogra

m w

hich

seek

s to

mak

e so

lar e

asie

r and

mor

e af

ford

able

thro

ugh

com

mun

ity-d

riven

initi

ativ

es.

Mor

e pa

rticu

larly

, the

Sh

ared

Ren

ewab

les i

nitia

tive

(also

kno

wn

as C

omm

unity

Dist

ribut

ed G

ener

atio

n or

Com

mun

ity D

G) p

rovi

des

oppo

rtun

ities

for c

usto

mer

s to

part

icipa

te d

irect

ly in

off-

site

rene

wab

le p

roje

cts t

hrou

gh n

et m

eter

ing.

-

Com

mun

ity D

G w

as e

nabl

ed b

y th

e NY

Com

miss

ion

thro

ugh

its Ju

ly 2

015

Ord

er (C

ase

15-E

-008

2).

-Ph

ase

1 of

Com

mun

ity D

G be

gan

on O

ctob

er 1

9, 2

015

and

allo

ws p

roje

cts t

o in

terc

onne

ct if

they

: -

Are

loca

ted

in th

e ne

w C

omm

unity

DG

Opp

ortu

nity

Zon

es d

esig

ned

by th

e ut

ilitie

s; o

r-

Inclu

de lo

w-in

com

e re

siden

tial c

usto

mer

s, de

fined

as a

cust

omer

par

ticip

atin

g in

a S

tate

or u

tility

ene

rgy

assis

tanc

e pr

ogra

m, a

s at l

east

20%

of t

he p

roje

ct m

embe

rshi

p.-

Com

mun

ity D

G pr

ojec

ts m

ay in

terc

onne

ct st

atew

ide

begi

nnin

g on

May

1, 2

016.

Page 22: Raleigh Slides

Com

mun

ity S

olar

Con

sider

atio

ns

-Ne

w Y

ork’

s Com

mun

ity S

olar

Pro

gram

, con

tinue

d:

-Ea

ch p

roje

ct m

ust h

ave

a sp

onso

r, w

ho o

wns

or o

pera

tes t

he p

roje

ct, o

rgan

izes t

he m

embe

rshi

p an

d co

llabo

rate

s w

ith th

e ut

ility

.-

The

spon

sor w

ill p

rovi

de th

e ut

ility

with

a li

st o

f the

mem

bers

and

thei

r per

cent

allo

catio

n of

the

proj

ect’s

net

m

eter

ing

cred

its p

rior t

o in

terc

onne

ctio

n.

-Ea

ch p

roje

ct m

ust h

ave

at le

ast 1

0 m

embe

rs, a

nd e

ach

mem

ber m

ust b

e al

loca

ted

at le

ast 1

,000

kW

h pe

r yea

r (no

t to

exc

eed

thei

r hist

oric

aver

age

annu

al co

nsum

ptio

n); p

rovi

ded,

how

ever

, no

mor

e th

an 4

0% o

f the

Com

mun

ity D

G ho

st’s

exce

ss g

ener

atio

n m

ay se

rve

mem

bers

with

an

aver

age

mon

thly

pea

k de

man

d of

25

kW o

r gre

ater

.-

The

term

s of t

he C

omm

unity

DG

mem

bers

hip

(e.g

., pa

ymen

t str

uctu

re) a

re g

over

ned

by th

e ag

reem

ent b

etw

een

the

spon

sor a

nd m

embe

rs.

-Ne

t met

erin

g cr

edits

are

allo

cate

d to

mem

bers

eac

h m

onth

bas

ed o

n th

e pe

rcen

tage

pro

vide

d to

the

utili

ty b

y th

e sp

onso

r.

Diag

ram

: fil

e://

/C:/

User

s/bw

orth

am/D

ownl

oads

/Com

mun

ity-

Dist

ribut

ed-G

ener

atio

n-Pr

ojec

t-Dev

elop

ers.p

df

Page 23: Raleigh Slides

Com

mun

ity S

olar

Con

sider

atio

ns

-Vi

rgin

ia’s

2016

Com

mun

ity S

olar

Legi

slatio

n:-

Hous

e Bi

ll No

. 128

5 w

as in

trod

uced

on

Janu

ary

20, 2

016.

-Au

thor

izes i

nves

tor-o

wne

d el

ectr

ic ut

ilitie

s and

ele

ctric

coop

erat

ives

to e

stab

lish

a co

mm

unity

ene

rgy

prog

ram

. -

A su

bscr

iber

acq

uire

s a su

bscr

iptio

n th

at e

ntitl

es th

em to

a p

ropo

rtio

nal i

nter

est i

n a

rene

wab

le e

nerg

y ge

nera

tion

facil

ity

and

they

rece

ives

a cr

edit

on th

eir e

lect

ric u

tility

bill

.

-So

lar C

o-O

ps in

Virg

inia

:-

A so

lar c

o-op

is a

gro

up o

f hom

eow

ners

in a

def

ined

geo

grap

hic a

rea

who

use

thei

r com

bine

d bu

lk b

uyin

g po

wer

to re

ceiv

e di

scou

nts o

n th

e ho

meo

wne

r’s in

divi

dual

pur

chas

e of

a so

lar s

yste

m fo

r the

ir re

siden

ce. T

he co

-op

grou

p w

ill p

ut o

ut a

requ

est

for p

ropo

sals

from

sola

r ins

talle

rs.

Each

bid

from

the

sola

r ins

talle

r will

cont

ain

a se

t pric

e pe

r the

am

ount

of s

olar

the

inst

alle

r w

ould

inst

all o

n th

e in

divi

dual

resid

ence

’s ho

me.

In

othe

r wor

ds, t

his a

llow

s the

inst

alle

rs to

mak

e in

divi

dual

ized

prop

osal

s to

each

of t

he co

-op

mem

bers

. Th

e co

-op

mem

bers

will

sele

ct a

n in

stal

ler t

o in

stal

l the

syst

ems o

n ea

ch o

f the

hom

es, p

ursu

ant

to w

hich

eac

h m

embe

r will

ent

er in

to th

eir o

wn

cont

ract

with

the

inst

alle

r. In

add

ition

, co-

op m

embe

rs h

ave

the

bene

fit o

f w

orki

ng w

ith a

gro

up to

poo

l edu

catio

n an

d gu

idan

ce th

roug

hout

the

inst

alla

tion

proc

ess.

-Ex

ampl

es:

-Ri

chm

ond

Sola

r Co-

Op

-M

assa

nutte

n So

lar C

o-O

p-

Rock

brid

ge A

rea

Sola

r Co-

Op

Page 24: Raleigh Slides

Com

petit

ive

Bidd

ing

Requ

irem

ents

for U

tility

-Sca

le P

roje

cts

-Ex

istin

g St

atut

ory

Requ

irem

ents

to A

sses

s Thi

rd-P

arty

Alte

rnat

ives

:-

Va. C

ode

§56

-585

.1 A

6-

Va. C

ode

§56

-585

.1 D

-W

hat’s

hap

pene

d re

cent

ly?

-Do

min

ion’

s 201

5 So

lar R

FP-

ODE

C So

lar R

FP

-Re

cent

regu

lato

ry p

roce

edin

gs?

-Re

min

gton

Cas

e (P

UE-2

015-

0000

6)-

New

CPC

N fil

ings

(PUE

-201

5-00

104)

-W

hole

sale

PPA

act

ivity

in V

irgin

ia

-Am

azon

’s fa

cilit

y in

Acc

omac

k Co

unty

-Cl

uste

r of p

roje

cts (

250,

000

sola

r pan

els)

ove

r app

roxi

mat

ely 9

00 a

cres

in A

ccom

ack

Coun

ty-

80 M

W (A

C) e

noug

h to

pow

er 1

5,00

0 ho

mes

a y

ear (

repr

esen

ts m

ore

than

5 ti

mes

of a

ll th

e so

lar e

nerg

y cu

rren

tly in

stal

led

in

the

Com

mon

wea

lth)

-Am

azon

to p

urch

ase

the

ener

gy g

ener

ated

from

the

facil

ity a

s par

t of A

maz

on’s

plan

to u

se re

new

able

ene

rgy

for a

ll its

in

frast

ruct

ure,

inclu

ding

man

y da

ta ce

nter

s in

Nort

hern

VA

-To

be

com

plet

ed b

y O

ctob

er 2

016

Page 25: Raleigh Slides

Bio

mas

s

SUM

MA

RY

In J

une

2011

, D

omin

ion

filed

with

the

SCC

an

appl

icat

ion

to a

men

d an

d re

issu

e ce

rtifi

cate

s of p

ublic

con

veni

ence

and

nec

essi

ty fo

r ap

prov

al to

con

vert

thre

e el

ectr

ic

coal

-fir

ed g

ener

atio

n fa

cilit

ies i

nto

biom

ass-

burn

ing

faci

litie

s. T

he c

onve

rsio

n w

ould

de

crea

se th

e ne

t cap

acity

rat

ing

for

each

faci

lity

from

63

MW

to 5

1 M

W, b

ut

incr

ease

exp

ecte

d en

ergy

pro

duct

ion.

The

est

imat

ed c

onst

ruct

ion

cost

of t

he C

onve

rsio

ns is

app

roxi

mat

ely

$165

.8 m

illio

n,

excl

udin

g fin

anci

ng c

osts

. Pur

suan

t to

§56

-585

.1 A

6 of

the

Cod

e of

the

Com

mis

sion

’s R

ules

Gov

erni

ng U

tility

Rat

e App

licat

ions

and

Ann

ual I

nfor

mat

iona

l Fi

lings

, the

Com

pany

seek

s app

rova

l of a

rat

e ad

just

men

t cla

use,

des

igna

ted

Rid

er

B,

for

the

reco

very

of c

osts

ass

ocia

ted

with

the

Con

vers

ions

.

Page 26: Raleigh Slides

Alta

vist

a, H

opew

ell,

and

Sout

ham

pton

Pow

er S

tatio

n w

ere

conv

entio

nal s

team

un

its w

ith c

oal s

toke

r bo

ilers

and

ass

ocia

ted

equi

pmen

t. T

he st

atio

ns w

ere

conv

erte

d to

bur

n vi

rgin

bio

mas

s, re

quir

ing

maj

or c

onve

rsio

ns:

The

stat

ion

fuel

han

dlin

g eq

uipm

ent w

as c

hang

ed o

ut in

its e

ntir

ety

to

acco

mm

odat

e th

e de

liver

y, p

roce

ssin

g, a

nd d

istr

ibut

ion

of fu

el to

the

boile

rs to

be

burn

ed.

Com

bust

ion

syst

ems a

nd c

ompo

nent

s wer

e ch

ange

d/co

nver

ted

to

acco

mm

odat

e th

e ne

w fu

el.

Alta

vist

a be

cam

e op

erat

iona

l Jul

y 12

, 201

3, H

opew

ell O

ctob

er 1

8, 2

013,

and

So

utha

mpt

on N

ovem

ber

28, 2

013.

Pos

t com

mis

sion

ing,

Dom

inio

n co

ntin

ues t

o id

entif

y, a

naly

ze, a

nd r

esol

ve is

sues

to o

ptim

ize

oper

atio

n of

thes

e fa

cilit

ies.

Bio

mas

s (co

nt’d

)

Page 27: Raleigh Slides

Para

llel G

ener

atio

n:

Inte

rcon

nect

ion

with

the

Gri

d

Page 28: Raleigh Slides

Para

llel G

ener

atio

n w

ith th

e G

rid

•U

tility

Con

side

ratio

ns–

Safe

ty–

Rel

iabi

lity

of th

e gr

id fo

r all

cust

omer

s–

Grid

mod

ifica

tions

nee

ded

to a

ccom

mod

ate

gene

rato

r in

terc

onne

ctio

n

•R

egul

ated

Inte

rcon

nect

ion

Proc

edur

es–

Cha

pter

314

of t

he V

irgin

ia A

dmin

istra

tive

Cod

e (d

istri

butio

n vo

ltage

)–

PJM

Ope

n A

cces

s Tra

nsm

issi

on T

ariff

(tra

nsm

issi

on

volta

ge)

Page 29: Raleigh Slides

Hig

h L

evel

Vie

w o

f Int

erco

nnec

t Pro

cess

Cha

pter

314

& P

JM

-135

Bus

ines

s Day

s

Mul

tiple

stud

ies m

ay b

e re

quir

ed

•Com

plet

ed R

eque

st

Form

•Pro

of o

f Site

C

ontr

ol•F

ee/D

epos

it

•Rev

iew

app

licat

ion

•Dis

cuss

pot

entia

l sc

ope

•Det

erm

ine

scop

e,

prot

ectio

n re

quir

emen

ts, c

ost

estim

ates

and

co

nstr

uctio

n tim

e es

timat

es

•Int

erco

nnec

tion

Agr

eem

ent e

xecu

tion

•Pay

men

t of c

harg

es

•Con

stru

ctio

n o

f req

uire

d ut

ility

upg

rade

s•U

tility

witn

essi

ng o

f O

pera

tiona

l Tes

ts to

en

able

ope

ratio

n of

ge

nera

tion

faci

lity

App

roxi

mat

e Tim

e Fr

ames

(in

mon

ths)

Inte

rcon

nect

ion

requ

estt

o ex

ecut

ion

of a

gree

men

t7

-12

Con

stru

ctio

n (d

epen

ding

on re

quire

men

ts

dete

rmin

ed b

y st

udie

s)9

-24

Tota

l tim

efr

om r

eque

st to

com

plet

ion

16 -

36

Gen

erat

or

Inte

rcon

nect

R

eque

st &

A

naly

sis

Cus

tom

er

Mee

ting

Stud

yA

gree

men

t E

xecu

tion

&

Paym

ent

Con

stru

ctio

n of

In

terc

onne

ctio

n Fa

cilit

ies

Page 30: Raleigh Slides

Inte

rcon

nect

ion

and

Net M

eter

ing

-Ex

istin

g Re

gula

tions

:-

20VA

C-5-

315

(Net

Met

ered

Sys

tem

s)-

Tim

ing

and

Notic

e iss

ues

-20

VAC5

-314

(Non

-Net

Met

ered

Sys

tem

s )-

Tim

ing

and

Notic

e iss

ues

-20

16 L

egisl

atio

n:-

Hous

e Bi

ll No

. 128

6 w

as in

trod

uced

on

Janu

ary

20, 2

016.

-W

ould

crea

te n

ew N

et-M

eter

ing

class

ifica

tion

of “e

ligib

le m

ulti-

met

er c

usto

mer

-gen

erat

or.”

-Fa

cilita

te n

et m

eter

ing

for c

usto

mer

s with

mul

tiple

met

ers t

hat a

re lo

cate

d at

sepa

rate

but

cont

iguo

us si

tes

to a

ggre

gate

in a

sing

le a

ccou

nt fo

r net

met

erin

g pu

rpos

es.

Page 31: Raleigh Slides

Win

d Pe

rmit

by R

ule/

Sola

r Per

mit

by R

ule

-VA

DEQ

Per

mit

by R

ule

Ove

rvie

w:

-Th

e Vi

rgin

ia D

epar

tmen

t of E

nviro

nmen

tal Q

ualit

y (“

DEQ

”) w

as in

stru

cted

by

the

Virg

inia

Gen

eral

Ass

embl

y to

dev

elop

per

mit

by ru

le

(“PB

R”) r

egul

atio

ns t

o im

plem

ent V

irgin

ia’s

2009

“Sm

all R

enew

able

Ene

rgy

Proj

ects

” le

gisla

tion

(Va.

Cod

e §

10.1

-119

7.6)

. -

The

stat

ute

mov

ed a

utho

rity

from

the

Stat

e Co

rpor

atio

n Co

mm

issio

n (“

SCC”

) to

DEQ

ove

r pro

tect

ion

of n

atur

al re

sour

ces (

spec

ifica

lly

wild

life

and

hist

oric

reso

urce

s) w

ith re

spec

t to

rene

wab

le e

nerg

y pr

ojec

ts.

-DE

Q h

as ju

risdi

ctio

n to

app

rove

PBR

app

licat

ions

for s

olar

pro

ject

s with

a ra

ted

capa

city

of 1

00 m

egaw

atts

or l

ess,

whi

le th

e SC

Cre

tain

s ju

risdi

ctio

n fo

r pro

ject

s with

a ra

ted

capa

city

over

100

meg

awat

ts (i

.e. a

ltern

ativ

e to

CPC

N pr

oces

s).

-Pr

oced

ure:

-9

VAC

15-6

0 se

ts fo

rth

the

proc

edur

e an

d re

quire

men

ts fo

r an

owne

r or o

pera

tor o

f a sm

all s

olar

ene

rgy

proj

ect t

o ap

ply

for a

PBR

. -

The

regu

latio

n pr

ovid

es 1

4 ba

sic a

pplic

atio

n re

quire

men

ts.

-Th

ese

crite

ria in

clude

requ

irem

ents

such

as c

ertif

icatio

n by

the

gove

rnin

g bo

dy o

f the

loca

lity

whe

re th

e pr

ojec

t will

be

loca

ted

that

the

proj

ect c

ompl

ies w

ith a

ll ap

plica

ble

land

use

ord

inan

ces,

a co

py o

f the

fina

l int

erco

nnec

tion

agre

emen

t, a

cert

ifica

tion

signe

d by

a

prof

essio

nal e

ngin

eer l

icens

ed in

Virg

inia

that

the

max

imum

gen

erat

ion

capa

city

of th

e pr

ojec

t doe

s not

exc

eed

100

meg

awat

ts, a

n an

alys

is of

the

bene

ficia

l and

adv

erse

impa

cts o

f the

pro

pose

d pr

ojec

t on

natu

ral r

esou

rces

, a ce

rtifi

catio

n th

at th

e ap

plica

nt h

as

appl

ied

for a

ll ne

cess

ary

envi

ronm

enta

l per

mits

, etc

.-

The

regu

latio

ns fu

rthe

r pro

vide

that

with

in 9

0 da

ys o

f rec

eivi

ng a

ll of

the

requ

ired

docu

men

ts a

nd th

e ap

prop

riate

fee,

DE

Q sh

all d

eter

min

e (a

fter c

onsu

ltatio

n w

ith o

ther

age

ncie

s in

the

Secr

etar

iat o

f Nat

ural

Res

ourc

es) w

heth

er th

e ap

plica

tion

is co

mpl

ete

and

whe

ther

it m

eets

the

requ

irem

ents

of t

he re

gula

tions

. If

DEQ

det

erm

ines

that

it d

oes,

then

DE

Q “s

hall

notif

y th

e ap

plica

nt in

writ

ing

that

he

is au

thor

ized

to co

nstr

uct a

nd o

pera

te a

smal

l sol

ar e

nerg

y pr

ojec

t.”

Page 32: Raleigh Slides

Win

d Pe

rmit

by R

ule/

Sola

r Per

mit

by R

ule

-DE

Q’s

Ove

rvie

w o

f Pro

cedu

re:

-Re

cent

Exa

mpl

e: A

maz

on’s

Faci

lity

in A

ccom

ack

Coun

ty-

Tim

ing

-Fi

nal P

erm

it