Net Metering & Compensation Seminar November 2, 2017 Eversource Energy Hadley, MA
Changes Are Here Market Net Metering Credit was introduced: 60% Market equal to 60% of distribution, transition, transmission and basic service rates Class III Solar Private now includes Distribution component 100% Market equal to former net metering credit If cap required, to be eligible for net metering under the old regime, the facility must meet three criteria: Submitted an Application for Cap Allocation (ACA) before the Notification Date of September 26, 2016 at 2:00 pm ACA must have been deemed complete by the Administrator of the System of Assurance Cap allocation must have been received by January 8, 2017 (Reserved) If cap exempt, to be eligible for net metering under the old regime, the facility must have been approved to operate by September 26, 2016 Net metering under old regime available for 25 years from date of interconnection Certain facilities have been grandfathered from the new credit Renewable facilities under 10 kw on a single phase circuit or 25 kw on a 3-phase circuit Municipality and Other Governmental Entities Wind and other non-solar technologies Grandfathered facilities are not subject to 25-year grace period 2
Other Notable Rule Changes Net metering facilities currently seeking an exemption from certain rules will be deemed eligible for net metering under the old regime by the DPU on a case by case basis Facility size is determined by aggregate nominal AC kw rating of inverters For customers with energy storage, the storage facility can neither charge from or discharge to the distribution grid Any expansions post Notification Date resulting in re-classification from Class I to as Class II or III will receive Market net metering credits Most recent Net Metering Tariff is posted on the Eversource website 3
Process Changes at Utility Prior to granting approval to operate to Net Metered Host Customers: The utility must: Verify that the Host Customer qualifies for Net Metering compensation Review and verify final Schedule Z. Determine if a Host Customer needs a cap allocation If cap required: Verify Public or Private Facility Verify the date that the cap allocation was submitted to Mass ACA Verify that the Host Customer has received a Reserved cap allocation Check the date that the Host Customer received the Reserved cap allocation Determine what type of Net Metering compensation the Host Customer will receive If cap not required: Check the date that the Host Customer will receive approval to operate Determine what type of Net Metering compensation the Host Customer will receive 4
Net Metering in Massachusetts Net Metering means the process of measuring the difference between electricity delivered by an investor owned Distribution Company and the electricity generated by a Class 1, Class II, or Class III Net Metering Facility and fed back to the Distribution Company. Three Classes of Net Metering Facilities in Net Metering Tariff: Class I: Any generation facility up to 60 kw is eligible (though compensation differs depending on type of generation). Class II: Agricultural, Anaerobic Digestion, Solar, or Wind Net Metering Facility over 60 kw but less than or equal to 1 MW (for Municipality or Other Governmental Entity it s per unit ). Class III: Agricultural, Anaerobic Digestion, Solar, or Wind Net Metering Facility over 1 MW but less than or equal to 2 MW (for Municipality or Other Governmental Entity it s per unit ). Compensation now varies for Class II and Class III depending on type of generation, Public / Private, date cap allocation was submitted / reserved, etc. 5
Net Metering in Massachusetts Facility is defined as one project on one parcel of land with one meter and one point of interconnection. Private limited to 2 MW per parcel, Public limited to 2 MW per unit and 10 MW on a single parcel and total in Massachusetts. Other non-net metered generation can exist on the same parcel as a Net Metering Facility if fed from separately metered service. Parcel boundaries needed to be set in January 1, 2010.* Established Public and Private Facilities (Class II and III only). Public: Host Customer is certified as a Municipality or Other Governmental Entity by the DPU and has Class II or Class III Facility. Host Customer may allocate only to customers who are certified as a Municipality or Other Gov. Entity. Ten MW limit per entity in Massachusetts. Private: All other Host Customers. Apply to DPU to be certified as a Public Facility. Host Customer of and those being allocated to by a Public Facility. Send copy of certificate(s) to utility. * NOTE: Eversource Energy requires applicants to include lot lines and all other generation on site plans. 6
Net Metering Caps Limits based on each Distribution Company s peak load; 7% cap for Private and 8% cap for Public Facilities. 80% of DC-STC rating used towards cap for capacity of Solar Facilities. For Eversource EM, peak was 4,978 MW. 7% is 348.46 MW and 8% is 398.24 MW. For Eversource WM, peak was 854MW. 7% is 59.78 MW and 8% is 68.32 MW. Interconnected generation which contributes towards limits are posted on each Distribution Company s web site. (For Eversource Energy: www.eversource.com *) Small Renewable Energy Facilities are excluded from Private cap. Up to 10 kw single phase Facility on single phase service, up to 25 KW three phase Facility on three phase service. (MassACA uses the nominal rating for solar facilities.) Private and Public Facilities can not receive net metering services from Company until they have a RESERVED cap allocation. Single phase Simplified applications > 10 kw require a cap allocation. All generation on service must qualify for same type of net metering compensation. * NOTE: On the Eversource web site, Set Location with the zip code of the customer to get information for the operating company which serves that customer. Also select Eastern Massachusetts or Western Massachusetts drop down menus. 7
Net Metering Requirements & Process Class II and Class III need to install their own revenue grade production meter on generation. One production meter required for the generation facility. Capacity registration is required and associated ISO-NE OP 18 metering. Class II and III will need communication to the Company revenue meter, such as a phone line. Eligible electric customer (Host Customer) submits Schedule Z to utility with interconnection application. Updated Schedule Z should be submitted a minimum of two weeks prior to scheduling net meter installation. Can submit up to two per calendar year once facility is on line. Dollar credits are applied to electric account(s), customer does not receive a check. No annual true up. (* NOTE = Distribution Company may elect to pay Host Customer of Class III Facility. Schedule Z must still be submitted and accurate Schedule Z kept on file going forward.) When required, apply for and receive a reserved Cap Allocation from the System of Assurance (SoA) at www.massaca.org MassACA send list to utilities weekly with the status. 8
Net Metering Process Customer is compensated for energy produced after receiving approval to operate and all other requirements have been met. If you have questions regarding billing, compensation for exported energy, and/or credit allocation contact: EM Customer Care: Residential: 800-592-2000 Business: 800-340-9822 WM Customer Care: Residential: 888-783-6616 Business: 888-783-6610 Net metering credits may not be applied to the Host Customer s account until the next billing cycle. Customers may be on different billing cycles. Credits allocated to other Eversource accounts may be applied on a different billing cycle than the Host Customer s account. Once online, review and implementation of a new Schedule Z will take a minimum of one billing cycle. Schedule Z must be correct and complete first. 9
Net Metering Credits Customer Class Class I (Cap Exempt) Class I Class II (Private) Class II (Public) Class III (Private) Class III (Public) Solar or Wind (renewable) Solar, Wind, Anaerobic Digestion, or Agricultural Solar, Wind, Anaerobic Digestion, or Agricultural Solar, Wind, Anaerobic Digestion, or Agricultural Solar, Wind, Anaerobic Digestion, or Agricultural Solar, Wind, Anaerobic Digestion, or Agricultural Facility Size (kw) <=10 kw single phase; <=25 kw three phase <= 60 kw 60<kW<=1000 kw 60<kW<=1000 kw 1000<kW<=2000 kw 1000<kW<=2000 kw Net Metering Credit Type Standard Credit net kwh by TOU period, if applicable, for Basic Service, Distribution, Transmission, and Transition Credit net kwh by TOU period, if applicable, for Basic Service, Distribution, Transmission, and Transition Credit net kwh by TOU period, if applicable, for Basic Service, Distribution, Transmission, and Transition Credit net kwh by TOU period, if applicable, for Basic Service, Distribution, Transmission, and Transition Credit net kwh by TOU period, if applicable, for Basic Service, Transmission, and Transition Credit net kwh by TOU period, if applicable, for Basic Service, Distribution, Transmission, and Transition Market Solar only = 100% Market is same as Standard Solar only = 60% Solar only = 60% Market, Credit net Market, Credit net kwh by TOU period, if kwh by TOU period, applicable, and 60% of if applicable, for 60% Basic Service, of Basic Service, Distribution, Distribution, Transmission, and Transmission, and Transition Transition Solar only = 100% Market is same as Standard Solar only = 60% Market, Credit net kwh by TOU period, if applicable, for 60% of Basic Service, Distribution, Transmission, and Transition Same as Standard Energy use is netted over the billing period, typically a month - If there is net energy usage, Host Customer is billed for net purchases. - If there is net energy sales, credit is net kwh export multiplied by components of the Host Customer s rate. Customer still responsible for customer charges and demand charges, even if net export Class I non-renewable = Monthly clearing price set by ISO-NE. 10
Net Metering Production Reporting Net Metering Tariff requires reporting of generator s kwh output. Reporting required by January 31 and September 30. Eversource is encouraging customers to participate in the MassCEC Production Tracking System (PTS). Eversource currently obtains production data from PTS, not directly from Net Metered Customers. 11
Alternatives Forms of Compensation No compensation - If the customer will never export power, there will be no compensation. Wholesale Market A customer can sell energy and/or capacity to ISO-NE. Power Purchase Schedule (PPS) rate A customer with a Qualifying Facility (QF) can become certified by FERC for the generator and receive compensation under the local utility s PPS rate. (The PPS Short Run Energy rate is the ISO-NE locational marginal price (LMP).) Fill out Form 556: Certification of QF Status for Small Power Production and Cogeneration Facilities at FERC website: http://www.ferc.gov/docs-filing/forms.asp Submit two Eversource forms For generation facility up to 60.0 kw, sales/purchases are netted. Compensation for generation facility less than 1 MW is the monthly average rate. Compensation for generation facility 1 MW or greater is at the rates for hours with output. Term of contract is one year and thereafter until Eversource receives a minimum of one months notice of termination. 15
Power Purchase Schedule Rate - Customer Information Requirements For Power Purchase Schedule MDTE 1014C By Credit, Check or Electronic Bank Deposit FACILITY INFORMATION Facility Legal Name: Facility Tax ID#: Facility Address (include City, State and Zip Code) Western Mass Electric Company DBA Eversource Energy - Electric Account Number: Electric Meter Number: Rate: Power Purchase Schedule MDTE 1014C Power Purchase Schedule effective date: 06/01/2000 Monthly Customer Charge for Reading & Handling: $0 Purchase Voltage: kv primary or V secondary. MAILING ADDRESS & CONTACT INFORMATION (for invoices and correspondence) Name of Owner or Manager: Mailing Address: Telephone No.: ( ) Email address: PAYMENT INFORMATION: Please indicate your preference for payment: Credit on electric account Check Payable to: Mail to address: If payment will be by ACH or Wire Transfer (Electronic Bank Deposit): Bank: Bank Address: ABA Number: Bank Account #: 16
Power Purchase Schedule Rate - PART B Form PART B Facility Name: CS Account Number: Purchasing Company: Western Mass Electric Company DBA Eversource Energy Purchase Rate: Power Purchase Schedule MDTE 1014C Service Level: Primary Secondary Transmission Bulk Substation Generation Busbar Facility In-Service-Date: Meter Number: Line Loss %: 17
Net Metering Summary If planning to Net Meter, submit Schedule Z with interconnection application. Correctly fill out Schedule Z. Host Customer is primary account holder on the electric account. Must be signed by Host Customer. If new electric service being installed, make sure Primary Account Holder s name matches the Host Customer s name. If allocating, verify name/address/account information of electric customer(s) or will need to submit corrected form. Allocation percentages limited to no more than 2 decimal places (i.e. 5.25%). Verify allocations add up to the percentage being allocated by Host Customer. Host Customer of Public Facility must apply to DPU for certification as a Municipality or Other Governmental Entity and submit confirmation to Distribution Company. If Public Facility is allocating credits to customers, those customers must also obtain certification. Electric account name must match name of certified Public Facility. Obtain a cap allocation from Mass ACA when required. Production reporting is required. 18