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HomeMy WebLinkAboutMemo - Mail Packet - 9/6/2016 - Memorandum From Lance Smith Re: Platte River Power Authority Owner Cities Net Metering ProgramsUtilities electric · stormwater · wastewater · water 700 Wood Street PO Box 580 Fort Collins, CO 80522 970.221.6700 970.221.6619 – fax 970.224.6003 – TDD utilities@fcgov.com fcgov.com/utilities M E M O R A N D U M DATE: August 23, 2016 TO: Mayor Troxell and Councilmembers FROM: Lance Smith, Utilities Strategic Finance Director THROUGH: Darin Atteberry, City Manager Kevin R. Gertig, Utilities Executive Director RE: Platte River Power Authority Owner Cities Net Metering Programs This memo is in response to Mayor Troxell’s question at the August 15 Leadership Planning Team meeting requesting further details on Platte River Power Authority (Platte River) owner cities net metering programs; specifically, “…what are the net metering best practices used? Are there a set of operating metrics that should be collected from all four municipalities to compare best practices?” All Platte River owner cities offer net metering. Attached is each cities respective tariff detailing the application of net metering. Utilities staff recognized the following distinctions associated with net metering, including City of Fort Collins, in comparing the four cities. Common to Platte River Owner Cities:  Manage a monthly fixed charge, associated with interconnection  Manage an energy charge or charges associated with “credit” for solar energy produced. Recognized Differences with Platte River Owner Cities:  City of Estes net metering policy states they shall pay for the excess electricity generated at avoided cost per kWh; the avoided kWh rate they are using is 2.1 cents. Appears the credit is applied annually if a customer has a “banked” amount of kWh remaining, when reconciled.  City of Longmont has a fixed charge for net metering customers that are twice the typical residential customer.  City of Loveland pays back what appears to be wholesale cost (3.98 – 4.7 cents/ kWh).  City of Fort Collins offers a retail rate credit that is applied monthly to the utility bill. DocuSign Envelope ID: 217A57DE-14BE-48A9-B70B-D4F64DF15876 Net Metering Best Practices: In reviewing national net metering best practices Colorado is ranked an “A” based on the publication produced by Freeing the Grid titled “Best Practices in State Net Metering Policies and Interconnection Procedures” published in November 2014. Utilities staff will continue to explore best practices that recognize benefits net metering customers create, not just whether they consume less kilowatt hours than the average customer in their class. Examples of key analysis components consist of:  Individual System Capacity  Total Program Capacity Limits  Rollover Restrictions  Metering  Metering Time-of-Use  Renewable Energy Credit ownership  Eligible Technology  Eligible Customers  Aggregate Net Metering  Community Shared Renewables  Standby Charges, Misc. fees  Policy Coverage  Third Party Model If you need further clarification on the Net Metering program please contact John Phelan at jphelan@fcgov.com or call 416-2539. For questions on the Net Metering rate structures please contact Lance Smith at lasmith@fcgov.com or 221-6524. c: Lisa Rosintoski, Customer Connections Manager Norm Weaver, Senior Energy Services Engineer Pete Hoelscher, Platte River Power Authority DocuSign Envelope ID: 217A57DE-14BE-48A9-B70B-D4F64DF15876 ESTES PARK 47 Residential --> 44 are solar, 3 are wind turbine 0 Commercial Per Estes, We do not have a net rate. We just bank the KWH and apply it against usage. DocuSign Envelope ID: 217A57DE-14BE-48A9-B70B-D4F64DF15876 LONGMONT 104 Residential 4 Commercial DocuSign Envelope ID: 217A57DE-14BE-48A9-B70B-D4F64DF15876 DocuSign Envelope ID: 217A57DE-14BE-48A9-B70B-D4F64DF15876 DocuSign Envelope ID: 217A57DE-14BE-48A9-B70B-D4F64DF15876 DocuSign Envelope ID: 217A57DE-14BE-48A9-B70B-D4F64DF15876 DocuSign Envelope ID: 217A57DE-14BE-48A9-B70B-D4F64DF15876 DocuSign Envelope ID: 217A57DE-14BE-48A9-B70B-D4F64DF15876 LOVELAND 37 Residential 3 Commercial DocuSign Envelope ID: 217A57DE-14BE-48A9-B70B-D4F64DF15876 DocuSign Envelope ID: 217A57DE-14BE-48A9-B70B-D4F64DF15876