INDIANAPOLIS POWER & LIGHT COMPANY 2019 LOCAL GREEN POWER ADVISORY COMMITTEE February 22, 2019
MEETING AGENDA 9:00: Welcome, S afety Message & Introductions 9:25: Overall Advisory Committee Goals 9:40: Local Green Power (LGP) Advisory Committee 2016 & 2017 Recap 10:10: Break 10:25: Update to S olar Economic Model 10:55: Design Factors Worksheet 11:25: Next S teps 2
SAFETY MESSAGE • Evacuat ion and S evere Weat her Procedures • Wint er S afet y Tips – S now S hoveling • Warm up • Push rather than lift • Choose your shovel wisely • Hit the pause button • Consider multiple trips • Keep up with the snowfall • Wear layers • S tay hydrated 3
MEET DAN FAHRNER Big Tempo, LLC Roles: • Guide discussion • Facilitate exercises • Encourage sharing • Maintain meeting flow 4
INTRODUCTIONS • Name • Organization 5
OVERALL GOALS OF THE ADVISOR Y COMMITTEE Cause # 45029 IURC Order: Community Solar . IPL agrees to reconvene t he Local Green Power Advisory Committee for a minimum of two meetings within six months of receiving a Final Order in Cause No 45029 approving this S ettlement Agreement and will work in good faith with this Committee to develop a community solar pilot proposal within one year. The meetings with the Local Green Power Advisory Committee will be open to all interest ed stakeholders. 6
OVERALL GOALS OF THE ADVISOR Y COMMITTEE • Leverage work from 2016 & 2017 LGP AC • Gather input from Advisory Committee • Develop goals and desired outcomes for a community solar pilot proposal • Determine key parameters of community solar pilot proposal Today: • Recap 2016 & 2017 Advisory Committee efforts • Gather input to develop draft pilot proposal options • Establish next steps 7
ADVISOR Y COMMITTEE ROADMAP Meeting #1 Meeting #2 Meeting #3 February 2019 April 2019 TBD -Int roduct ions -Review design fact ors Pilot proposal worksheet submissions -AC Goals from AC members End of November 2019 -2016 & 2017 AC recap -Review ot her -Economic Model communit y solar Updat e programs -Input from AC -Discuss draft pilot proposal opt ions 8
LOCAL GREEN POWER (LGP) ADVISOR Y COMMITTEE 2016 & 2017 RECAP 9
LGP COMMITTEE –2016 & 2017 RECAP P ACKET • Please reference “ 2016-2017 LGP AC Recap Packet” for further information on previous LGP AC work with IPL and stakeholders. 10
SHARED SOLAR SIMPL Y STA TED S ource: S olar Elect ric Power Associat ion (S EPA), Communit y S olar Program Design Models 11
IPL ’S 2016 & 2017 LGP IDEAS • Local renewable resource • Volunt ary offering for all cust omer classes • S elf-sust aining subscript ion- based • IPL owned and operat ed – compet it ively sourced • 1 MW proj ect size (7 t o 10 acres per MW) • Cust omer t ransact ion based on energy produced • May include “ anchor” corporat e subscribers 12
SOLAR LGP PROVIDES SIGNIFICANT BENEFITS Customer Benefits Utility Benefits • Addit ional cust omer • Proact ive approach t o choice market disrupt ions • Overcomes barrier t hat • Posit ive cust omer and many homes are not communit y engagement conducive for rooft op PV • Cont rol power qualit y • All cust omers, not j ust homeowners, may • Pot ent ial t o mit igat e part icipat e impact of fut ure CO 2 • Lower capit al cost t han regulat ions dispersed small scale • Eases grid int egrat ion renewables (i.e. rooft op) • S olar product ion is opt imized 13
REVIEW OF 2016 LGP AC MEETINGS • Focused on education of renewable costs, benefits, challenges led to solar as likely option • Discussed Key Performance Indicators (KPI) • S takeholders ranked top 5 KPIs: – Financial – cost of proj ect – Access & equity – affordable for all customers – Displacement of fossil fuels/ emission reductions – Number of subscribers – Customer satisfaction • Costs were prohibitive to move forward 14
SEP A TECHNICAL ASSISTANCE FOR MARKET RESEARCH • IPL successfully secured $20,000 of Community S olar Technical Assistance funding from S EP A* to support market research • The US Department of Energy provides the funds to S EP A to administer • S EP A supported: – Cust omer surveys for resident ial cust omers and small Commercial & Indust rial (C & I) cust omers – Three focus groups: • Residential customers who rent their homes • Residential homeowners • S mall C&I customers *S mart Electric Power Alliance 15
REVIEW OF 2017 LGP AC MEETINGS • Engaged LGP AC stakeholder group to collaborate on market research – S takeholders assisted with survey question development and participated in the viewing of customer focus groups – IPL conducted interviews with C & I customers • IPL updated the illustrative solar economic model • Concluded with discussion on ideas to consider for further details on important program design elements and research questions 16
SEP A COMMUNITY SOLAR RESEARCH (1 OF 3) • (1) Online S urveys – S ent electronically via S urvey Monkey to 84,000 customers – 4,000 Residential Customers Completed the S urvey – 37 S mall Business Customers Completed the S urvey • Key Findings – Interest: Customers have strong interest – Premium: Customers are less willing to pay a premium – Term: Commitment term is a barrier customers ranked 17
SURVEY RESULTS CUSTOMER INTEREST How interested are you in learning more about participating in an IPL community solar program? RESIDENTIAL SMALL BUSINESS 100% 3% 0% Uncertain 6% 11% 80% 33% 40% 60% 76% 81% Not 40% 57% Interested 49% 20% 4% 4% 20% 15% 0% S omewhat % % % % Interested interested interested interested interested & willing & willing Very to pay to pay Interested premium premium 18
SURVEY RESUL TS KEY BARRIERS How much would each of the following potential issues discourage you from participating in an IPL community solar program? RESIDENTIAL May cost t oo much May not offer a long-term financial benefit May require a long-t erm commit ment May be located out of sight 0% 20% 40% 60% 80% 100% No effect S omewhat discourage Greatly discourage SMALL BUSINESS May cost t oo much May not offer a long-term financial benefit May require a long-t erm commit ment May be located out of sight 0% 20% 40% 60% 80% 100% No effect S omewhat discourage Greatly discourage 19
SURVEY RESUL TS PREMIUM AMOUNT Assuming your bill mirrors the average IPL residential customer bill of $100 a month, what is the highest additional amount you would be willing to pay to power your home with solar energy? 30% 20% RESIDENTIAL 10% Sample Average Bill $115 Sample Median Bill $100 0% Sample Range $20 to $400 $1 to $5 $5 to $10 to $15 to $20 to More Not more $10 $15 $20 $25 than willing more more more more $25 to pay more 50% 40% SMALL BUSINESS 30% 20% Sample Average Bill $1,180 10% Sample Median Bill $500 Sample Range $50 to $20,000 0% $1 t o $20 to $40 to $60 to $80 to Not $20 $40 $60 $80 $100 willing more more more more more t o pay more 20
SURVEY RESULTS CONTRACT LENGTH … … what is the maximum length of time to which you would be willing to commit? 30% 25% 20% 15% RESIDENTIAL 10% 5% 0% 30% 25% 20% SMALL BUSINESS 15% 10% 5% 0% 21
SEP A COMMUNITY SOLAR RESEARCH (2 OF 3) • (2) Focus Groups – Group 1: 10 S mall Businesses – Group 2: 12 Homeowners – Group 3: 12 Renters • Key Findings – Interest: Interest in solar is primarily driven by saving money, followed at a distance by environmental concerns. – Premium: Customers were fairly split between interest in paying more and locking in a rate vs paying a bit less. – Term: Two to three year program terms were deal breakers for many of the participants. – Location: For the most part, customers were not concerned where the solar facility would be located. 22
SEP A COMMUNITY SOLAR RESEARCH (3 OF 3) • (3) C & I Customer Interviews – Completed five (5) interviews – IPL customers from across different industries • Key Findings – Interest: Most interviewed customers have explored investing in on-site solar energy in the past, but did not proceed due to cost. – Premium: Paying a premium can be a non-starter... Unless the organization has a history or value of investing in sustainability. – Drivers: Beyond cost, achieving sustainability goals and Public Relations value are the main drivers in solar adoption. 23
BIG TAKEA WA YS FROM RECAP • Interest across all customer classes • Location & visibility • Willingness to pay barrier 24
15 MINUTE BREAK 25
UPDA TE TO SOLAR ECONOMIC MODEL 26
ECONOMIC ANAL YSIS OVERVIEW • Update 2017 model with current data • Understand maj or drivers on local green power premium rate • Gain a high level understanding of the model • Gather feedback on economic analysis 27
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