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HomeMy WebLinkAboutMemo - Mail Packet - 5/29/2018 - Memorandum From John Phelan Re: Utility Rooftop Solar Business Models- Follow Up To May 15 Council MeetingUtilities electric · stormwater · wastewater · water 222 Laporte Avenue PO Box 580 Fort Collins, CO 80522 970.212.2900 utilities@fcgov.com fcgov.com/utilities M E M O R A N D U M DATE: May 22, 2018 TO: Mayor Troxell and Councilmembers FROM: John Phelan, Utilities Energy Services Senior Manager THROUGH: Darin Atteberry, City Manager Jeff Mihelich, Deputy City Manager Kevin R. Gertig, Utilities Executive Director RE: Utility Rooftop Solar Business Models – Follow up to May 15 Council meeting During the citizen comment section of the May 15 Fort Collins City Council meeting, a citizen inquired about the status of Utilities analyses of rooftop solar business models. This memo summarizes policy or technical issues related to rooftop solar in general along with those specific to the utility-owned rooftop model. Bottom Line: Utilities staff recognizes there are interrelated policy and technical issues related to distributed energy resources, including rooftop solar. Staff will be managing the development of a distributed energy resources roadmap, in collaboration with the Energy Board through the end of 2018. This roadmap will also be integrated with the Energy Policy, Climate Action Plan Framework and Platte River Integrated Resources Plan updates. Summary: Staff presented an update regarding Fort Collins adoption of distributed solar and solar business models at the May 8 Work Session (agenda materials at fcgov.com/cityclerk/agendas.php). The topics focused on potential long-term financial issues related to local solar, and on issues specific to various solar business models. The presentation focused on the technical infrastructure, policy, and program planning necessary to address the changing landscape of solar adoption and expansion.  Technical – the business model for solar is generally not a factor with regards to the technical feasibility of the amount of solar deployed in Fort Collins. Light & Power tracks the hosting capacity of electrical feeders monthly, as well as distribution transformers based on incoming solar applications. While there are several distribution feeders that may not be able to accept large solar systems, there are no restrictions on small scale solar applications based on hosting capacity. DocuSign Envelope ID: D1F1AC38-44E8-4A37-931D-02CDB3A73505 5/23/2018 5/24/2018 5/24/2018 5/24/2018 2  Policy – There are several policy issues to be addressed in order to implement a utility- owned rooftop solar program. These include: o Coordination with Platte River Power Authority regarding provisions of the All- Requirements Contract. Options include applying the solar to Fort Collins capacity ownership limit of one percent, increasing the agreed upon limit for Fort Collins buy-sell memorandum of understanding (MOU) with Platte River, or engaging Platte River to own the solar. o City Code would need to be revised in order accommodate anticipate rules and rate structure modifications.  Program – There are program development elements which would need to be addressed to implement a utility-owned rooftop solar program. These include: o Budget and procurement: Pathways to procure the solar include raising necessary capital, developing the ability to provide bulk purchase discounts, or selecting a provider to supply solar electricity via a power purchase agreement. Pending budget offers do not include funding for a utility-owned rooftop program. o Program details: A program would need to be developed, including participation criteria and benefits, billing system capabilities review, and operations and maintenance (O&M) requirements. Ongoing O&M was noted as a significant cost in the sample programs. CC: Lisa Rosintoski, Utilities Deputy Director, Customer Connections Tim McCollough, Utilities Deputy Director Light & Power Operations DocuSign Envelope ID: D1F1AC38-44E8-4A37-931D-02CDB3A73505 5/23/2018 5/23/2018