Net Energy Metering and Interconnections Community Solar in the District of Columbia Presented by: Virginia Burginger August 4, 2016 1
Welcome Overview of Community Net Metering in the District of Columbia Community Net Metering Participants How Community Net Metering Works The CREF Credit Rate What Forms are Needed Commonly Used Terms Frequently Asked Questions Questions? We support renewable energy and partner with our customers to ensure safe and reliable interconnection of renewable energy into the electric grid 2
Community Net Metering Overview 3
Community Net Metering History in the District of Columbia The Council of the District of Columbia enacted the Community Renewable Energy Act of 2013 (CREA) on October 17, 2013 and the Act became Law effective December 13, 2013 Rules were developed by Pepco and stakeholders and approved by the D.C. Public Service Commission Pepco began accepting applications for CREFs on June 1, 2016 4
Community Net Metering Overview Community Net Metering (CNM) provides an opportunity for Pepco customers in the District of Columbia to benefit from renewable energy production By purchasing a Subscription to a portion of the electricity generated by a Community Renewable Energy Facility (CREF), a customer will receive a credit on Pepco bills for that share of the value of the CREF s energy production 5
Community Net Metering Participants The four participants in Community Net Metering are: Community Renewable Energy Facility generates electricity using renewable sources, usually from solar arrays, although sources also include wind, tidal, geothermal, biomass, hydroelectric facilities, and digester gas. The CREF facility must be located in D.C., and will feed the electricity onto the grid to be used as part of Pepco s energy supply Subscriber Organization sells to Pepco s customers in D.C. shares in, or Subscriptions to, the electricity produced by a CREF 6
Community Net Metering Participants Subscribers Pepco customers within D.C. who have contracted with a Subscriber Organization for shares in, or Subscriptions to, the electricity generated by a CREF. Subscribers will receive a Community Net Metering (CNM) credit on their Pepco bills Pepco receives and processes the DC CREF Application and Contract, and the Subscriber Information; administers the allocation of customers CNM bill credits; and pays the Subscriber Organization for any unsubscribed energy the CREF produces 7
How Community Net Metering Works 8
How Community Net Metering Works in the District A Community Renewable Energy Facility (CREF) of 5 MW or less located in the District of Columbia generates electricity using renewable sources, usually solar arrays; wind, tidal, geothermal, biomass, hydroelectric, and digester gas facilities also are eligible. The electricity is fed onto the grid and used as part of Pepco s energy supply A Subscriber Organization sells to Pepco s customers in the District shares in, or subscriptions to, the electricity produced by a CREF. The Subscriber Organization coordinates the customer/subscriber information with Pepco 9
How Community Net Metering Works in the District Subscribers, or Pepco customers in the District, contract with a Subscriber Organization for shares in, or subscriptions to, the electricity generated by a CREF. Customers can subscribe to as many CREFs as you wish, as long as the total CREF subscriptions do not exceed 120% of your historical annual energy consumption. Subscribers receive on their Pepco bills a Community Net Metering (CNM) credit for your share of the electricity. Neither solar panels nor a net energy meter are installed at the Subscriber s premise Pepco receives and processes the DC CREF Application and the Subscriber Information, pays the CREF for the energy produced, prepares the Subscriber customers Pepco accounts to receive the CNM Credits, and applies the monthly credits 10
How Community Net Metering Works 11
The CREF Credit Rate 12
How the CREF Credit Rate is Calculated A customer can obtain subscriptions to more than one CREF and will receive a CNM Credit for each subscription, shown as separate lines on the Subscriber s Pepco bill. The CREF Credit Rate (in $/kwh) is applied to a Subscriber s allocation of the energy from the CREF to determine the Subscriber s monthly CNM Credit. The value of the CNM Credit for a subscription will equal the CREF s electricity production for the month times the Subscriber s subscription percentage times the CREF Credit Rate set by the Public Service Commission of the District of Columbia. Use the formula: [(CREF Output kwh x Subscription %) x CREF Credit Rate] 13
How the CREF Credit Rate is Calculated The CREF Credit Rate equals the Standard Offer Service (SOS) rate for General Service Low Voltage Non-Demand Customer (Schedule GS-LV-ND ) class or its successor, as determined by the Public Service Commission of the District of Columbia. The CREF Credit Rate is the sum of the volumetric (kwh) rates for Generation and Transmission services: BILLING MONTHS OF JULY - OCTOBER 2016 BILLING MONTHS OF NOVEMBER 2016 - MAY 2017 GENERATION - ALL KWH $ 0.06790 $ 0.06827 ADMIN CHARGE $ 0.00300 $ 0.00300 TRANSMISSION - ALL KWH $ 0.00550 $ 0.00550 CREF CREDIT RATE $ 0.07640 $ 0.07677 14
What Forms are Needed? 15
Forms a Community Renewable Energy Facility Completes The Generator Owner follows the standard interconnection application process, as defined in Title 15, Chapter 40 of the D.C. Municipal Regulations Most CREF facilities will qualify as a Level 2, 3, or 4 project The owner of the CREF must execute a DC CREF Interconnection Application and Agreement, and the CREF Addendum, available on pepco.com/dccref Read and understand the CREF Tariff. 16
Forms a Subscriber Organization Completes Submit a DC CREF Application and Contract to Pepco. This explains the terms under which the Subscriber Organization sells the electricity produced by the CREF to the SOS Administrator 17
Forms a Subscriber Organization Completes Submit a CREF Subscriber Information spreadsheet whenever there are new or deleted subscriptions, or changes to subscriber percentages Read and understand the CREF Tariff The forms and tariff are available on pepco.com/dccref 18
Information for a Subscriber A subscriber can buy their energy supply from Pepco or a competitive electricity supplier A subscriber enters into an agreement with a Subscriber Organization, and submits no forms directly to Pepco A customer may obtain subscriptions to more than one CREF you will receive a CNM Credit for each subscription, shown as separate line items on your Pepco bill Read and understand the CNM Rider, stated in the Rate Schedules for Electric Service, available on pepco.com/dccref 19
Sample Residential Bill with Two CREF Subscriptions 20
Sample Commercial Bill with Two CREF Subscriptions 21
Commonly Used Terms 22
Commonly Used Terms Community Net Metering (CNM) Credit: A line item on a Subscriber customer s Pepco bill that indicates the value of the customer s share in the CREF Facility s generation output for that billing cycle Community Renewable Energy Facility (CREF): A generator located in the District of Columbia that produces electricity using renewable sources, usually from solar arrays Competitive Electricity Supplier (CES): An entity, other than the SOS Administrator, including an aggregator, broker, or marketer, who generates electricity; sells electricity; or purchases, brokers, or markets electricity for sale to customers 23
Commonly Used Terms SOS Administrator: The entity that provides default electricity supply, also known as Standard Offer Service, to Pepco s distribution customers. Pepco is the SOS Administrator in the District of Columbia Subscriber: A Pepco customer within the District of Columbia who has contracted with a Subscriber Organization for shares in, or subscriptions to, the electricity generated by the CREF, and who has identified an individual billing meter within the District to which the subscription shall be attributed Subscriber Organization: The entity that facilitates Subscribers shares in, or subscriptions to, the renewable energy generated by the CREF and arranges for Pepco to apply CNM Credits to Subscriber customer bills 24
Commonly Used Terms Subscription: A percentage interest in a CREF s electrical production Unsubscribed Energy: The electricity produced by a CREF generator facility that has not been subscribed to by Pepco customers 25
Frequently Asked Questions 26
Frequently Asked Questions for Subscribers Does a Subscriber need to submit to Pepco an application, contract, or other documentation? Other than having an active Pepco account in good standing, you do not need to file any CREF paperwork with Pepco. The Subscriber Organization will include the Subscribers information in the documentation it files with Pepco Can Subscribers still buy electricity from a Competitive Electricity Supplier? Yes. Having a subscription does not impact a customer s right to choose an energy supplier How will Pepco know where to apply my CNM Credit? Pepco will apply the CNM Credit to the customer account number provided to Pepco by your Subscriber Organization 27
Frequently Asked Questions for Subscribers Where can I find my CNM Credits on my Pepco bill? Look in the Details of your Electric Charges section. Your bill will list each CNM Credit on a separate line Will Pepco charge a fee for administering my Subscription? Pepco can charge an administrative charge if approved by the DC Public Service Commission. However, Pepco has not filed a request to establish an administrative charge at this time Will I still have a Pepco bill to pay? Most likely, yes. You will be charged for the energy you consume off the grid and standard Transmission and Distribution Charges, Customer Charges, and taxes and fees. Your CNM Credit may not offset all of these charges 28
Frequently Asked Questions for Subscribers Can I purchase a subscription if I already participate in Net Energy Metering? Yes. However, your existing net energy metering generator will most likely reduce your historical annual energy consumption, which would reduce how large your total subscriptions can be As a Subscriber, will I need to install solar panels or other generating equipment at my premise? No. The generating equipment will only be required at the CREF Facility Will Pepco install a net-capable meter at my premise? No. All net-metering will be done virtually by applying your CNM Credits to your Pepco bill 29
Frequently Asked Questions for Subscribers Can a customer subscribe to more than one CREF? Yes. For each subscription, a customer will receive a CNM Credit on your monthly Pepco bill How many CREFs can a customer subscribe to? As many as a customer wishes, as long as the total CREF subscriptions do not exceed 120% of the customer s historical annual energy consumption How can I sell, transfer or cancel my subscription? Contact your Subscriber Organization for details 30
Frequently Asked Questions for Subscriber Organizations How many subscriptions can a Subscriber Organizer issue? As many subscriptions as it wishes, as long as the total subscriptions do not exceed 100% of the CREF s generation output How do I let Pepco know about changes to Subscriber information? Complete and submit to Pepco the CREF Customer Information spreadsheet to report subscriber additions, deletions, and subscription percentage changes Is there a minimum number of subscribers a CREF must have? Yes. A CREF has to have at least two (2) Subscribers at all times 31
Frequently Asked Questions for Subscriber Organizations What happens to the CREF energy if the CREF is not fully subscribed? Pepco will pay the Subscriber Organization for all unsubscribed energy. Compensation will be at the PJM Locational Marginal Price (LMP), adjusted for ancillary services 32
Frequently Asked Questions for CREF Generator Owners Can the electricity from a CREF directly feed into subscriber premises? No. The CREF must supply all its energy directly onto the grid to become part of Pepco s energy supply. The subscribers receive the energy virtually, through bill credits What is the maximum size of a CREF? A CREF can output no greater than 5 MW AC (alternating current) 33
Frequently Asked Questions for CREF Generator Owners When will the new CREF be able to begin providing the energy? Once the CREF owner has satisfied all requirements of the interconnection application process, including executing an Interconnection Agreement with CREF Addendum and providing an inspection certificate, and the Subscriber Organization has executed a CREF Contract with Pepco, Pepco will issue the CREF an Authorization to Operate. At that point, the CREF may begin generating the energy Who owns the renewable energy credits generated by the CREF? Either the Generator Owner or the Subscriber Organization, depending on the contractual arrangement between them 34
How Can I Learn More? Go to pepco.com/gpc, select Community Solar - CREF from the left side navigation; or Go to www.pepco.com/dccref Contact us: Green Power Connection Team www.pepco.com/gpc gpc-south@pepco.com (866) 634-6977 35
Questions? 36