Highlights of Commission Activities Little Rock ASHRAE Monthly Meeting October 12, 2011 Presented...

Highlights of Commission Highlights of Commission ActivitiesActivities

Little Rock ASHRAE Monthly MeetingLittle Rock ASHRAE Monthly MeetingOctober 12, 2011October 12, 2011

Presented By: John P. BethelPresented By: John P. Bethel

Topics AddressedTopics Addressed

Description of the Commission and utilitiesDescription of the Commission and utilities

Energy Efficiency ProgramsEnergy Efficiency Programs

Self Direct OptionSelf Direct Option

Net MeteringNet Metering

Three CommissionersThree Commissioners

Colette Honorable, Chairman; Butch Colette Honorable, Chairman; Butch Reeves, Commissioner; Elana Wills, Reeves, Commissioner; Elana Wills, CommissionerCommissioner

Appointed by Governor to six-year termsAppointed by Governor to six-year terms

Regulated UtilitiesRegulated Utilities

Regulated UtilitiesRegulated Utilities

4 Investor Owned Electric Utilities4 Investor Owned Electric Utilities

17 Electric Distribution Cooperatives17 Electric Distribution Cooperatives

1 Electric Generation & Transmission Cooperative1 Electric Generation & Transmission Cooperative

1 Electric Regional Transmission Organization1 Electric Regional Transmission Organization

3 Investor Owned Natural Gas Distribution Companies3 Investor Owned Natural Gas Distribution Companies

3 Water Utilities3 Water Utilities

22 Natural Gas Operators (PSO Regulation)22 Natural Gas Operators (PSO Regulation)

158 Master Meter Gas Operators (PSO Regulation)158 Master Meter Gas Operators (PSO Regulation)

Approximately 300 Telecommunications UtilitiesApproximately 300 Telecommunications Utilities

Energy Efficiency Energy Efficiency ProgramsPrograms

Energy Conservation Energy Conservation Endorsement ActEndorsement Act

Ark Code Ann. §23-3-401 et seq.Ark Code Ann. §23-3-401 et seq.

Authorizes Commission to approve conservation Authorizes Commission to approve conservation and energy efficiency programs and measuresand energy efficiency programs and measures

Commission adopted rules and approved initial Commission adopted rules and approved initial utility administered and ratepayer funded utility administered and ratepayer funded programs in 2007programs in 2007

Commission recognizes energy efficiency Commission recognizes energy efficiency programs and measures as a resource programs and measures as a resource Comprehensive programs approved effective Comprehensive programs approved effective July 1, 2011July 1, 2011

Energy Efficiency ProgramsEnergy Efficiency Programs Overall Cost Overall Cost

Approximately $31.2 million for 2011; Approximately $31.2 million for 2011; $57.5 million for 2012; and $77.4 million in $57.5 million for 2012; and $77.4 million in 20132013

Recovered through a monthly charge on Recovered through a monthly charge on customer billscustomer bills

Total cost of the energy efficiency and Total cost of the energy efficiency and conservation programs is approximately conservation programs is approximately $0.83 to $1.75 per month for an average $0.83 to $1.75 per month for an average residential customerresidential customer

Goals for Energy Efficiency Goals for Energy Efficiency ProgramsPrograms

Electric Utilities: 2011 – 0.25%; 2012 – 0.50%; Electric Utilities: 2011 – 0.25%; 2012 – 0.50%; 2013 – 0.75%2013 – 0.75%

Natural Gas Utilities: 2011 – 0.20%; 2012 – Natural Gas Utilities: 2011 – 0.20%; 2012 – 0.30%; 2013 – 0.40%0.30%; 2013 – 0.40%


Energy Efficiency ArkansasEnergy Efficiency Arkansas

Arkansas Weatherization ProgramArkansas Weatherization Program

Energy AuditsEnergy Audits

HVAC Tune UpHVAC Tune Up

Compact Fluorescent Light BulbsCompact Fluorescent Light Bulbs

Appliance ReplacementsAppliance Replacements

Custom Programs for Commercial & Industrial Custom Programs for Commercial & Industrial CustomersCustomers

Various Rate SchedulesVarious Rate Schedules


Self Direct Option for Large Customers Self Direct Option for Large Customers

Evaluation, Measurement & VerificationEvaluation, Measurement & Verification

Lost Contribution to Fixed CostsLost Contribution to Fixed Costs

Energy Efficiency IncentivesEnergy Efficiency Incentives


Energy efficiency is a resourceEnergy efficiency is a resource

Large commercial & industrial customers Large commercial & industrial customers have opportunities & incentive to have opportunities & incentive to implement measuresimplement measures


Eligible large commercial & industrial Eligible large commercial & industrial customers can self direct or opt out of customers can self direct or opt out of utility EE programsutility EE programs

Implement an EE measure that produces Implement an EE measure that produces energy savings equal to or greater than energy savings equal to or greater than Commission goalsCommission goals

Can obtain certificate of exemption for Can obtain certificate of exemption for duration of utility’s EE program planduration of utility’s EE program plan


Eligibility RequirementsEligibility Requirements

Single Metered LocationSingle Metered Location

1 MW Peak Electric Demand1 MW Peak Electric Demand

70,000 mmBtu annual natural gas consumption70,000 mmBtu annual natural gas consumption


Eligibility RequirementsEligibility Requirements

Aggregated LocationsAggregated Locations

1 MW Peak Electric Demand from multiple 1 MW Peak Electric Demand from multiple locations with a peak electric demand of 200 kW locations with a peak electric demand of 200 kW eacheach

70,000 mmBtu annual natural gas consumption 70,000 mmBtu annual natural gas consumption from multiple locations with annual natural gas from multiple locations with annual natural gas consumption of 14,000 mmBtu eachconsumption of 14,000 mmBtu each


New investment in EE measureNew investment in EE measure

Investment in EE measure within ten years of Investment in EE measure within ten years of request for certificaterequest for certificate

Investment to be made during the duration of Investment to be made during the duration of utility’s currently approved EE programutility’s currently approved EE program


File request by Sept 15 of any yearFile request by Sept 15 of any year

Show that it has implemented or will implement Show that it has implemented or will implement a measure that will produce savings that meet or a measure that will produce savings that meet or exceed Commission’s goalsexceed Commission’s goals

Show that it has exhausted all opportunitiesShow that it has exhausted all opportunities

If participating in utility EE programs from 2012 If participating in utility EE programs from 2012 forward, cannot request certificate for 5 yearsforward, cannot request certificate for 5 years

Section 11Section 11

Commission may schedule hearingCommission may schedule hearing

Commission must issue its decision by Commission must issue its decision by December 15 unless waived by customerDecember 15 unless waived by customer

If approved, certificate effective January 1 of the If approved, certificate effective January 1 of the following yearfollowing year

No longer charged EECR rateNo longer charged EECR rate

Certificate good for duration of utility EE program Certificate good for duration of utility EE program planplan

Up to three yearsUp to three years

““Normal” Metering v. Normal” Metering v. Net MeteringNet Metering

Electric Utility SystemElectric Utility System

““Normal” MeteringNormal” Metering

Meter at residence or businessMeter at residence or business

Measures electricity delivered to customerMeasures electricity delivered to customer

Meter reading forms basis for billingMeter reading forms basis for billing

Electric MetersElectric Meters


Customer owns generating sourceCustomer owns generating source

Generating source supplies all or part of Generating source supplies all or part of customer’s needcustomer’s need

Excess generation delivered back to utilityExcess generation delivered back to utility

Meter runs backward to “measure” Meter runs backward to “measure” generation delivered back to utilitygeneration delivered back to utility

Net Metering ExampleNet Metering Example

Overview of Arkansas’ Overview of Arkansas’ Net Metering LawNet Metering Law

Net Metering LawNet Metering Law

Arkansas Renewable Energy Arkansas Renewable Energy Development Act of 2001Development Act of 2001

Act 1781 of 2001Act 1781 of 2001

Act 1026 of 2007 amended lawAct 1026 of 2007 amended law

Arkansas Code Annotated §23-18-601 et Arkansas Code Annotated §23-18-601 et seq.seq.


Must be a renewable resourceMust be a renewable resource

Solar, wind, hydroelectric, geothermal, Solar, wind, hydroelectric, geothermal, biomass, etc.biomass, etc.


Maximum size 25 kW for residential Maximum size 25 kW for residential customers and 300 kW for any otherscustomers and 300 kW for any others

Located in ArkansasLocated in Arkansas


Offset all or part of the net metering Offset all or part of the net metering customer’s requirements for electricitycustomer’s requirements for electricity


Customer retains any renewable energy Customer retains any renewable energy credit associated with generating facilitycredit associated with generating facility


Electric utilities required offer net meteringElectric utilities required offer net metering

Commission establishes rates, terms, and Commission establishes rates, terms, and conditionsconditions

Utilities may assess fees for additional Utilities may assess fees for additional costscosts


Any generation from the customer’s facility Any generation from the customer’s facility is credited against usage at the retail rateis credited against usage at the retail rate

Customer may carry any excess Customer may carry any excess generation for up to one yeargeneration for up to one year

Overview of Overview of Commission’s Net Commission’s Net

Metering RulesMetering Rules

Net Metering RulesNet Metering Rules

Net excess generation defined as the Net excess generation defined as the amount of electricity that a net metering amount of electricity that a net metering customer has fed back to the electric utility customer has fed back to the electric utility that exceeds the amount of electricity used that exceeds the amount of electricity used by that customer during the applicable by that customer during the applicable period period


kWhs provided by customer serve to offset kWhs provided by customer serve to offset kWhs provided by the utility and serve to kWhs provided by the utility and serve to reduce any kWh charges on the billreduce any kWh charges on the bill

Distribution RateDistribution Rate

Energy Cost Recovery RateEnergy Cost Recovery Rate


Standard Interconnection AgreementStandard Interconnection Agreement

Facility must operate in parallel with utilityFacility must operate in parallel with utility

Prevent any back-feedingPrevent any back-feeding

Manual disconnect switch accessible to Manual disconnect switch accessible to utilityutility

National Electric CodeNational Electric Code

National Electric Safety CodeNational Electric Safety Code

ICEEE & Underwriters LabsICEEE & Underwriters Labs


Standard Rate ScheduleStandard Rate Schedule

Each utility has comparable tariffEach utility has comparable tariff

AvailabilityAvailability

Monthly BillingMonthly Billing


Reporting RequirementsReporting Requirements

Annual Reports by March 15Annual Reports by March 15

Currently 141 net metering facilitiesCurrently 141 net metering facilities

120 Solar120 Solar

21 Wind21 Wind

138 Residential138 Residential

3 Commercial3 Commercial


102 Under 5 kW102 Under 5 kW

37 @ 5 kW or greater37 @ 5 kW or greater

1 @ 20 kW1 @ 20 kW

1 @ 30 kW1 @ 30 kW

1 @ 50 kW1 @ 50 kW

1 @ 100 kW1 @ 100 kW

Cost of Net Cost of Net Metering FacilitiesMetering Facilities

Cost of Net Metering FacilitiesCost of Net Metering Facilities

Very rough information from Internet Very rough information from Internet research (do not rely upon me)research (do not rely upon me)

Tax credits of up to 30 %Tax credits of up to 30 %

Solar facilities $4,000 to $12,000 per kWSolar facilities $4,000 to $12,000 per kW

Wind facilities $3,000 to $10,000 per kWWind facilities $3,000 to $10,000 per kW

AWEA $350,000 for 100 kWAWEA $350,000 for 100 kW

The EndThe End

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Highlights of Commission Activities Little Rock ASHRAE Monthly Meeting October 12, 2011 Presented...

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