The PUC by dffhrtcv3

VIEWS: 5 PAGES: 15

									       CPUC Responsibilities for
   Renewable and Energy Efficiency
      Resource Commitments by
Investor-Owned Utilities and Ratepayers
           Hearing on Public Goods Charge & the
             Renewable Resources Trust Fund
                Senate Energy, Utilities and
                Communications Committee
                        March 29, 2011
           Jeanne Clinton, Climate Strategies Manager
      Molly Tirpak Sterkel, Distributed Generation Programs
  California Public Utilities Commission (CPUC) Energy Division
                                1
                  Cost Components of Electric Rates
        0.16
                                                            Purchased
                                                            Power
        0.14
                                                            Bonds & Fees
        0.12

                                                            Demand Side
        0.10                                                Management
$/kWh




                                                            Transmission
        0.08


        0.06                                                Distribution


        0.04                                                Utility Owned
                                                            Generation

        0.02
                                                            2003 Inflation-
                                                            adjusted rate
        0.00
           2003   2004   2005   2006   2007   2008   2009
  Electric Utilities Collect Program Funds through
Various Surcharges, Procurement Expenditures, and
                   Distribution Rates
Electric Public Goods Charge, a surcharge funding:
   – Electric energy efficiency (EE)
   – Public interest electric R&D (PIER)
Gas Public Purpose Program, a surcharge supporting:
   – Natural gas energy efficiency (EE)
   – Public interest gas R&D (PIER)
Funds collected through Electric Distribution component supports:
    – Self-Generation Incentive Program
    – California Solar Initiative
    – Low Emission Vehicle Program
Funds collected through Natural Gas Distribution component supports:
    – Self-Generation Incentive Program
    – California Solar Initiative Thermal program
Electricity “Procurement” component (generation and purchased power
components of electric rates):
   – Renewable Portfolio Standard (RPS) electric resource commitments
                                        3                               3
      Total Authorized 2010 Electric and Gas Revenue
        Collection for PG&E, SCE, SCG, and SDG&E
     •    Electric Energy Efficiency (EE):                                               $ 256 million
     •    Natural Gas EE*                                                                 $175 million
     •    Electricity Procurement EE                                                      $576 million
     •    Self-Generation Incentive Program (SGIP):**                                     $ 83 million
     •    California Solar Initiative (CSI) electric:***                                 $ 217 million
     •    CSI Thermal natural gas:***                                                     $ 31 million
     •    Renewable Power (Electricity Procurement):             AMF not specified;
            – included in total electricity procurement collections
     •    Low Emission Vehicle Program:                                                  $ 22 million
     •    Electric R&D (PIER):                                                            $ 69 million
     •    Natural Gas R&D (PIER)                                                          $ 24 million


* For FY 2011-12, Legislative action transfers $155 million to State General Fund for non-efficiency purposes
** Approximately 80% electric, 20% gas; 2011 is final year of authorized collections
* ** 10-year average for 2007-2016 for CSI Electric; 8-year average for CSI Thermal
                                                            4                                                   4
        Investor-Owned Utility 2010-12
   Energy Efficiency Program Commitments
                                   for Combined Funding Sources
                                     Energy Efficiency Budgets 2010-2012

                                    OTHER
                                     9%
               Evaluation, Meas. &
                   Verification
                       4%                             Residential
                                                                    Residential
                                                        23%
                          HVAC                                      Commercial
                           4%                                       Industrial
    Local Gov't Partnerships                                        Agriculture
              6%                                                    New Construction
Institutional - UC/CSU, DGS,                                        Institutional - UC/CSU, DGS, Etc
               Etc                                                  Local Gov't Partnerships
               4%
                                                                    HVAC
           New Construction                                         Evaluation, Meas. & Verification
                 4%
                                                                    OTHER
                    Agriculture                        Commercial
                        4%                                29%
                                  Industrial
                                    13%
                                                       5                                               5
                     Renewable Projects Allocated
                      “Above Market Funds” from
               $750 Million of PGC New Renewable Funds
                             Returned from CEC (SEP) Account (2007-09)
                                                        Min                       Contract
    Approved Contracts in       Online           Min  Expected                     Term
        Development              Yet?     IOU    MW   GWh/yr Technology Vintage   (years)                 Location
                                                                solar
Mt. Signal Solar                 No      SDG&E     49       168 thermal new         20       Fillaree Ranch, Imperial Valley

LACSD (LA County Sanitation)     No      SCE           2     13 biomass    new      10       Rolling Hills, CA
Green Volts                      No      PG&E          2      5 solar PV   new      20       Byron, CA
                                                                solar
Gaskell Sun Tower (eSolar)       No      SCE      175       368 thermal    new      20       Kern County, CA
Caithness Shepherd's Flat
(Hurlburt 1, 2, 3)               No      SCE      846      2097 wind       new      20       Arlington, OR

Desert Topaz                     No      PG&E     550      1066 solar pv   new      20       San Luis Obispo County, CA

CalRenew America                 Yes     PG&E          5      9 solar PV   new      20       Mendota, CA
Rattlesnake Road (Horizon)       Yes     PG&E     103       240 wind       new      15       Arlington, OR
Hatchet Ridge                    Yes     PG&E     103       303 wind       new      20       Shasta County, CA




                                                               6
          RPS Procurement Process

    CPUC                                                 IOU rank bids
                            IOUs hold                                                IOUs negotiate
approves RPS                                               pursuant to
                              annual                                                  bids, execute
 procurement                                           “least-cost, best-
                           solicitation                                                 contracts
    plans                                              fit” methodology


       • Independent evaluator oversees solicitation, bid evaluation, and negotiations
       • Bilateral contracts (negotiated outside of a competitive solicitation) are also eligible




   Once the IOU executes contract, submits to the CPUC for approval


                                                   7
                        1,702 MW of new capacity online
                                 since 2003*
                 1800
                                                                                                                  1702     New 2010 capacity, by region
                 1600
                                                                                                                                                 Number of
                                                                                                                                                             MW     GWh/y
                                                                                                                                                  Projects
                 1400                                                                                                           In-State                 7    172      351




                                                                                                                   653
                                                                                                                              Out-of-State               4    218      672

                 1200
                                                                                                                                  Total                 11    390     1023
 Capacity (MW)




                                                                                                                           Percentage In-State         64%   44%      34%

                 1000




                                                                                                      357
                  800


                                                                                                                            * More projects – over 1,000 MW –
                  600
                                                                                                                            have delivered renewable power


                                                                                                                   1,049
                                                                                          353




                                                                                                                            since 2003 under short-term
                  400                                                                                                       contracts. CPUC Energy Division
                                                                                                     692




                                                                                                                            generally does not credit the RPS
                                                                           113




                                                                                                                            program with having incented the
                  200
                                                                    75




                                                                                         339




                                                                                                                            development of these mostly-existing
                                                                          226
                                                     100 51




                                                                   151




                                                                                                                            projects.
                                     66




                        33
                    0
                        2003       2004             2005           2006   2007          2008         2009         2010

                          Cumulative Capacity Added in Prior Years               Capacity Added In Current Year
Source: California Public Utilities Commission, 4th Quarter 2010                                     8
                               2009 RPS Procurement by Fuel Type
                             18%

                             16%

                             14%
% of Renewable Procurement




                             12%

                             10%

                             8%

                             6%

                             4%

                             2%

                             0%
                                   Large Investor-Owned Utilities          Electric Service Providers            Multi-Jurisdictional Utilities
                                             Geothermal             Wind   Small hydro         Solar    Biogas          Biomass


Note - The small utilities did not procure any RPS-eligible generation in 2009.
                                                               9
Go Solar California campaign
       SB 1 (Murray, 2006) and AB 1470 (Huffman, 2007) set broad solar goals for CA
            •   3,000 MW of new customer-owned solar DG – electric
            •   A self-sustaining solar industry
            •   200,000 solar water heating systems – gas

                         California Public          California Energy      Publicly Owned
                                                                                                       Total
                       Utilities Commission           Commission            Utilities (POU)

                     California Solar Initiative    New Solar Homes
    Program                                                                    Various          Go Solar California
                          (CSI) Programs           Partnership (NSHP)
                      $2,167 million – electric                                               $3,351 million – electric
    Budget                                             $400 million          $784 million
                         $250 million - gas                                                      $250 million – gas
                       1,940 MW – electric                                                          ~3,000 MW
    Solar Goals      200,000 Solar Hot Water             400 MW                700 MW            200,000 Solar Hot
                          systems - gas                                                           Water systems

                        All solar systems in        Solar systems on          All solar
    Scope                IOU areas except            new homes in            systems in           All of California
                         PV in new homes             IOU territories         POU areas


       Note: The electric budgets are for 2007-2016, and the gas budgets are for 2010-2017.

                                                                                                          10          10
CPUC’s California Solar Initiative (CSI) Budget
 Program Components:
                  Various program subcomponents fund solar PV and solar thermal
                   (including solar hot water) technologies from IOU electric and gas
                   ratepayers
                  Low-income solar programs serve affordable housing

                                                                                                      Budget
                                                                                                                       Goal
                                                                                                    ($ Millions)

 CSI Electric Budget (2007-2016)                                                                          $2,167          1,940 MW

 General Market Solar Program (includes PV and electric-displacing CSI-Thermal program)                   $1,897          1,750 MW

 Single-family Affordable Solar Homes (SASH)                                                                $108           ~15 MW
 Multifamily Affordable Solar Housing (MASH)                                                                $108           ~30 MW
 Research, Development, Demonstration, and Deployment (RD&D)                                                 $50                   ~

 CSI Gas Budget (2010-2017)

  CSI-Thermal Program (Gas-Displacing solar thermal/hot water)                                              $250 585 million therms
 Total CSI Budget                                                                                         $2,417

Note: CPUC D.06-12-033, FOF 15, p. 28 established goal of the general market program as 1,750 MW.
The CPUC decisions on MASH and SASH did not explicitly adopt a 95 MW per program goal; however,
the CPUC did adopt a total CSI program goal of 1,940 MW in D.06-12-033.                                              11       11
In addition, D.10-01-022 established the CSI Thermal Program pursuant to AB 1470 and SB 1.
  CSI Program Incentives decline as demand grows:
CPUC General Market Program has a goal of 1,750 MW
                    PBI: Paid     ¢/kWh   $/watt
                    based on
                    actual                          EPBB: Paid upfront
                    output over                    based on expected
                    5 years                        output using
                                                   installation design
                                                   characteristics




 CSI has installed 500
MW of new solar PV since
2007.
 CSI has an additional
400 MW of additional
projects in the pipeline.
 CSI program installs
more MWs each year with
less incentive funding.
 Average $/watt paid has
gone down each year
 Incentives offered today
are mostly in Step 8 at
$0.35/watt.



                                                                         12
                                                             12
Ratepayer Support as a Percent of System Costs
  Average systems are down ~20%+ in 3 yrs (now cost $7.50 to $8.00/watt ).
  CSI Rebate has reduced faster than system cost, and now covers just
 4-5% of system cost, on average.
  CSI provides other benefits besides rebate: consumer protection, warranty
 requirements, equipment and performance standards, data transparency.

 Ratepayer Support as % of System Costs ($/watt)


                                                        Federal
                                          Ratepayer                 Average
                                                      Investment
                                         Funded CSI                 System
                                                       Tax Credit
                                           Rebate                    Cost
Application Type                                         (ITC)
Residential                                 $0.35       $2.39        $7.96
 Percentage                                   4%         30%         100%

Non-Residential                             $0.35       $2.26        $7.42
 Percentage                                   5%         30%         100%

Non-Tax Entity                              $1.10         0          $7.96
Percentage                                   15%           0         100%
Date: January 6, 2011
                                             13
Self-Generation Incentive Program (SGIP)
SGIP provides incentives for non-solar Distributed Generation (DG) technologies.
Goals of SGIP
 Reduce peak load demand (historical goal from inception in 2001)
 Reduce greenhouse gas emissions (per SB 412 in 2009)
Budget
 $83 Million program budget per year
     $75 Million for incentives, $8 Million for program administration
     Incentive budget split 50% for renewable and 50% for non-renewable
 Budget allocated across IOUs as % of natural gas sales.
 No new budget collection allowed after 12/31/2011 per SB 412.
 SGIP Program authorized to operate through 2016.
Incentives Offered on a Capacity basis (not Performance)
     Wind = $1.50/Watt
       Fuel Cells = $2.50/Watt (+ $2.00/watt if using biogas)
       Storage = $2.00/Watt
       + 20% incentive adder for California Suppliers (per AB 2667, 2008)
 14    Fuel Cells using biogas with a California Supplier = $5.00/watt
                                               14
                                                  SGIP Program Data
            SGIP Program has completed 1,320 self-generation projects (for 355 MW)
            Program has an additional 169 pending projects (for 82 MW).
Technology                        Complete                                            Active                                            Total
                 No.              MW       $ Million   No.                            MW           $ Million No.                     MW          $ Million
     PV                       889     136.6 $      459                            0             0.0 $       0                 889          136.6        $459
   Wind                          6             2.4 $              3             12             20.6 $          33               18           23.0         $36
  Fuel Cell
      RE                        10             6.3 $            27              66             35.5 $        166                76           41.7        $193
 IC Engine
     RE                         17             9.2 $              9               6             3.3 $            3              23           12.6         $12
Microturbine
      RE                        18             3.2 $              4               1             0.8 $            1              19             4.0         $5
Gas Turbine
     RE                          0             0.0 $              0               0             0.0 $            0               0             0.0         $0
  Fuel Cell
   Fossil                       22            10.6 $            25              70              5.7 $          16               92           16.3         $41
 IC Engine
   Fossil                     225           140.1 $             80                6             2.7 $            2            231          142.8          $82
Microturbine
   Fossil                     123             20.3 $            17                2             0.8 $            1            125            21.1         $17
Gas Turbine
   Fossil                     10             26.5 $              7               1              4.4 $           1             11            30.8           $7
    AES                        0              0.0 $              0               5              8.1 $         13               5             8.1          $13
Total                       1320            355.1 $           631              169             81.7 $        234            1489           436.9         $865
   15
 SGIP Program Data is shown as cumulative combined statewide totals (2001-2010), and it consist of PG&E and SCE data thru 11/1/2010, SDG&E (CCSE) data
 through 12/1/2010, and SCG data as of 12/15/2010.
                                                                                   15

								
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