Waste-to-Energy Workshop Interconnecting with Ameren Rich Wright, General Executive August 30th and 31st, 2006
Overview of Ameren Parent Company to Central and Southern IL Distribution Utilities: AmerenCILCO, AmerenCIPS, AmerenIP Ameren Corporation: Employees: 9,300 Electric Customers: 2.3 million Natural Gas Customers: 900,000 Territory: 64,000 square miles Generation: 15,200 MW 2
Overview of Ameren s Renewable Program Tasked with developing a corporate strategy to include renewable energy as part of Environmental Leadership. Primary objective to establish means of integrating renewable energy resources into the Ameren generation portfolio. Ameren and others will have an interest in purchasing RECs associated with manure methane digestion generation. 3
Voltage Interconnection Options Transmission Connections (High Voltage) MISO rules handle all generation requests for transmission connections (Not common for methane digester applications below 1 MW) Distribution Connections (Low Voltage, generally < 69 kv) Most Applicable Ameren Utilities in Illinois are indifferent to a customer s choice of energy supply. Safety and recovery of expenses are the issues significant to the Ameren Utilities. 4
Most Common Operating Options for methane digestion Operate in Parallel with Ameren s System with sales back to the Ameren Utility. Operate in Parallel with Ameren s System with no sales back to Ameren Utility. Bypass farm s load and sell all generation to a 3rd party or an Ameren Utility 5
Operate in Parallel with Ameren s System with sales back to Ameren Offset farm s load Sell generation that exceeds farm load to Ameren as Qualifying Facility (QF), approximately 2 /kwh. However, starting 2007, these rates will likely reflect market prices and be much higher than today. Possibly eligible for 0.9 /kwh federal tax credit for energy sold to Ameren, if placed in service between 10/22/04 and 1/01/08, section 45 of the federal tax code No separate distribution fees MUST provide FERC Qualifying Facility certification (FERC for 556) Must Enter into an Ameren Connection Agreement 6
Operate in Parallel with Ameren s System with no sales back to Ameren Load will always exceed generation Offsets farms load No out metering required Reverse Power relay prevents generator from energizing Ameren system (low cost) Must Enter into an Ameren Connection Agreement 7
Bypass farm s load and sell all generation to 3rd party or an Ameren Utility Does not offset farm s load Enter into a Power Purchase Agreement with a 3 rd Party MISO Market Participant or QF Supply to Ameren Utility Possibly eligible for 0.9 /kwh federal tax credit for energy sold to 3 rd party, if placed in service between 10/22/04 and 1/01/08, section 45 of fed tax code MISO is still debating if it will allow a generator to sell into MISO through the utility distribution system If sold to 3 rd party there will be a distribution charge Must Enter into an Ameren Connection Agreement 8
General Interconnect Requirements Application for interconnect 10kW to 2 mw - $500 fee System Impact Study Fee Actual Study Cost Less Application Fee (Waived in CIPS & CILCO if under 20 MW) Metering depends on operating mode Customer Charge System upgrade (if needed) Customer Charge Ameren approval of Customer plans required Ameren inspection of final installation required Qualified Facility (QF) Application 9
How do I get the process started with Ameren? Contact me Rich Wright, General Executive Renewables 314-554-3250 rwright@ameren.com 10