HomeMy WebLinkAboutMemo - Mail Packet - 5/29/2018 - Memorandum From John Phelan Re: Utility Rooftop Solar Business Models- Follow Up To May 15 Council MeetingUtilities
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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.
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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
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