Community Solar Update Jeff Karloff Division Manager Production - PowerPoint PPT Presentation

Community Solar Update Jeff Karloff Division Manager Production Engineering, Fuels and Renewables 12/14/2017 1

Community Solar • Objective • Design Principles • Customer Market Research • Request for Proposals • Customer Solicitation • Next Steps 12/14/2017 2

Objective Develop a Community Solar Program (CSP) that will provide a solar option for all customer classes. Design program fully funded by participating customers to ensure five-year no general rate increase. Meet OPPD’s mission to provide affordable, reliable, and environmentally sensitive energy services. 12/14/2017 3

Design Principles • Avoid cost shifting to non-participants • Make available to all customer classes • Simple to explain • Transparent and based on actual results • Use learnings to inform future Distributed Energy Resources (DER’s) pricing options 12/14/2017 4

Qualitative Market Research Stakeholder workshop findings: • Simple, transparent, and availability to all customers is important • Customer demand is high • Project size is not critical • Visibility may be physical or virtual • Affordability and educational value is needed Customer Power Panel findings: (Phase I) • Indication of higher interest from environmental advocates and higher income customers 12/14/2017 5

Quantitative Market Research Customer Power Panel findings: (Phase 2) • Pay-As-You-Go model preferred over Pay Upfront model • Interest level showed little change across price levels tested • With a bill increase of 15% or 20%, about 15% of those surveyed indicated a likelihood to participate • Participation terms not critical • Physical location not critical • Of those surveyed, 53% felt that program should be funded by program participants, while 38% felt it should be funded by all customers. 12/14/2017 6

Proposal Details • Locations considered – I-80 rest area near Gretna – City of Fort Calhoun – Bellevue landfill • Ten developers over 100 proposals • Electrical interconnection costs will be added to RFP prices 12/14/2017 7

Pricing methodologies considered • Avoided Cost • Embedded Cost Methodology • Solar Valuation Methodology 12/14/2017 8

Peak distributed solar PV generation does not offset OPPD’s peak demand OPPD System Load Shape Vs. Omaha Center Solar Tracker 2,500 2,000 1,500 1,000 500 0 H1 H2 H3 H4 H5 H6 H7 H8 H9 H10 H11 H12 H13 H14 H15 H16 H17 H18 H19 H20 H21 H22 H23 H24 OPPD System (MW) 8/11/16 Solar Tracker (W) 8/11/16 12/14/2017 9

Proposed Program Components • Refundable deposit • Contract term – three, five or ten year contract • Develop contract minimum & maximum • Transferrable within the service territory • Terms may differ by customer class 12/14/2017 10

Customer Acquisition Strategy • Develop Acquisition strategies for: – Residential – Commercial & Industrial (C&I) 12/14/2017 11

Next Steps • Q1 2018 – Present business case and formula rate to Board of Directors 12/14/2017 12