ELECTRIC UTILITY BASICS
Indiana Electric Utility Basics • 5 Investor-Owned Utilities (IOU) which serve approximately 80% of Indiana electric customers – Duke Energy (812,430 customers) – Indianapolis Power & Light (486,336 customers ) – NIPSCO (463,637 customers) – Indiana Michigan Power (461,141 customers) – Vectren or “SIGECO” (148,270 customers )
Indiana Electric Utility Basics • The remaining customers are served by: – 40 Rural Electric Cooperatives (REMC or Co-Op) • Largest is South Central REMC w/approx. 33,000 customers – 72 Municipal Utilities (MUNI) • Largest is Anderson with approx. 30,000 customers • The 5 investor-owned utilities are subject to the jurisdiction of the Indiana Utility Regulatory Commission (IURC)
Indiana Electric Utility Basics • None of the REMCs are subject to the jurisdiction of the IURC. They are controlled by the board of directors, which is elected by the customers, or members, of each REMC • Only 9 of the 72 municipal utilities are subject to the jurisdiction of the IURC regarding basic rates & charges. Elected Officials and, in most cases, a Utility Services Board or Office, make the decisions regarding the municipal utilities • Utilities Subject to IURC jurisdiction: https://secure.in.gov/iurc/files/Electric_Regulated_Utilities_7-8-13.pdf
NET METERING What is it?
Net metering What is it? • Net metering is a billing arrangement that credits owners of renewable energy systems for the electricity they add to the grid. • When the system is generating more electricity than a customer is using, the energy is added to the grid and the customer is credited at the retail rate…or the same rate that they pay for the energy they consume from the grid. An even swap.
Interconnection of Solar Panels
Net metering Versus other arrangements • Net Billing – Similar physical arrangement as net metering, primary difference is the amount credited for excess energy added to the grid • Buy All/Sell All – All energy generated by renewable energy system is added to the grid. All energy used by customer comes from the grid. Customer does not use the energy from their system to offset their own household energy use
Net metering Versus other arrangements • Generally, the amount credited for energy added to the grid under net billing and/or “buy-all sell-all” is at the utilities “avoided cost.” • Those arrangements are unlike net metering where the utilities’ retail rate is used to credit customers for excess energy
Net metering Retail Rate versus Avoided Cost • Retail Rate – The rate that customers pay for the energy used from the grid. – For residential customers, the average retail rate in June 2016 was 11.1 cents per kWh in Indiana according to the Energy Information Administration (EIA) • Avoided Cost – The price a utility would pay if it had to produce the power itself or buy the power on the wholesale market – Avoided costs are generally set once a year, and can vary greatly from approx. 3-6 cents per kWh Note : • Each utility has their own retail rates & avoided cost rates, which are sometimes called – power purchase rates. Check with your local utility to learn what their rates are.
The Many Categories of Net Metering & Meter Aggregation
INDIANA NET METERING HISTORY
Indiana’s First Net Metering Rule • IURC Administrative Rule, Not State Law • Rule adopted in March 2005, and Became Effective in May 2005 • Limitations – Applicable to Investor-owned utilities only – System Size limited to 10 kW – Only Residential Customers and K-12 Schools eligible – Total Capacity Limited to 0.1% of utilities’ annual peak load
Net Metering at the #INLegis 2004-2010 • 2004-2009, multiple legislative hearings, no success • 2010 Legislative Session, we were close! • HB1094 (Rep. Ryan Dvorak, D-South Bend) passed House 78-21 • SB313 (Sen. Jim Merritt, R-Indianapolis) passed Senate 49-0. passed House 68-31, died in conference committee • There were significant areas of disagreement, beyond partisan politics
Net Metering at the #INLegis Areas of Disagreement • Eligible size of the renewable energy system, 100kW to 5MW • Total amount of aggregate capacity that would be allowed to net meter, 0.1% to 5% of utility peak load • Costs to connect to the grid, also known as interconnection costs • Aggregation, or grouping, of meters • Carry-over of bill credits
Over at the IURC Regulatory discussions • March 2010: Sen. Jim Merritt (R, Indianapolis) writes letter asking Gov. Daniels “ to do what lawmakers ultimately could not during the recently concluded legislative session - push for progress on the issue of net metering. ” • June 2010: IURC begins review process – Three Field hearings held – Formal comments filed at IURC • May 2011: final net metering rule adopted
Indiana’s Updated Net Metering Rule • Eligibility expanded to include all customers • Eligible system size increased from 10kW to 1MW • Increased total system capacity from 0.1% to 1% of the utilities peak load (to address “ subsidy ” issue) • Prohibition on additional fees for Level 1 interconnections, systems under 10 kW • Indefinite carry-over of bill credits
SO WHERE DOES INDIANA STAND?
IURC 2015 Net Metering Report
Freeing the Grid, Best Practices in State’s Net Metering Policies
Less than 1/10 th of the 1% cap of net metering capacity
Limitations of Updated Net Metering Rule • Silent on meter aggregation (not prohibited, utilities could allow) • Limited to system size of 1 MW • Not a Statewide Rule applicable to all utilities, limited to customers of investor owned utilities only • Silent on ownership of Renewable Energy Credits (RECs)
WHY ARE WE HERE? Here come the monopolies
Why Are We Here? “As Conservation Cuts “Utilities fight Electricity Use, for revenue Utilities Turn to lost to solar Fees” power” OCT. 20, 2015 JAN. 3, 2015 JANUARY 2013 MAR. 7, 2015 Disruptive “Utilities wage Challenges: campaign Financial against Implications rooftop and Strategic solar” Responses to a Changing Retail Electric Business
The Utilities Approach Obstruct Customer-Owned Solar Raise “fairness” as an issue • Raise “class” issue, those without solar (low-income) are subsidizing • those with solar (rich suburbanites) Challenge net metering as a “subsidy” • Propose monthly solar fees • Change rate design, increase monthly fixed costs on everyone •
The assault on solar Comes to Indiana • HB1320 in the 2015 session of the Indiana legislature – Allow utilities to add a monthly charge – Allow utilities to add onerous and unnecessary fees and rules for interconnection to grid – Change from retail rate to avoided cost rate – Bill died on House floor, Speaker Bosma removed it from further consideration, saying it had become a “ little weighty ”
WHERE DO WE GO FROM HERE?
Sustainable Energy Policy Barriers in Indiana Limitations under current net metering rule • No Renewable Energy Mandate (RES) • No Energy Efficiency Resource Standard (EERS) • No State Tax Credits for Sustainable Energy • Few administrative or legislative “champions” •
What can you do for solar in Indiana? Protect what we’ve got – current net metering rule • Advocate for Statewide net metering law/rule to include REMCs and MUNIs, policy from • Indiana Legislature Advocate for meter aggregation -- community-owned solar, school corporations, • municipalities and local government, renters Advocate for state tax credits, grant programs, incentives -- especially for emerging • technologies like energy storage Ask your elected officials to be “champions”, form a sustainable energy or energy freedom • caucus Work with your local utility, they’re a monopoly and make the rules, they can do more • Advocate for increasing customer control over energy bills and energy usage •
Above all else, we need Good Process Assessment and analysis – state conditions, sound data • Collaboration – open, transparent, all stakeholders at the table • Data-driven – identify data needed, collect and report data, use data for decision • Testing – pilot projects before wide-scale adoption • Special attention to low income/vulnerable population impact • Consumer education •
? Thank You For Lıstenıng We’ll be answerıng questıons now
Recommend
More recommend
