co-ops & municipalities: models - solar power events · 2016-11-17 · consulting services llc....
TRANSCRIPT
Co-ops & Municipalities: Models for Success in the Midwest
Nick Hylla, Midwest Renewable Energy Association
Nathan Franklin, DairylandCooperative Electric
Pamala M. Sullivan, American Municipal Power, Inc.
Andy Olsen, Environmental Law & Policy Center
Neil Placer, Placer Consulting Services LLC
Protecting the Midwest’s Environment and Natural Heritage
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Andy Olsen
Solar Power PV Conference & Expo
Chicago, IL
November 10, 2016
Protecting the Midwest’s Environment and Natural Heritage
ELPC’s Farm Energy Program
Protecting the Midwest’s Environment and Natural Heritage
Co-op Solar Leadership
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Illinois Indiana Iowa Michigan MinnesotaWisconsin
Midwest Co-op Solar Commitments(MW)
Protecting the Midwest’s Environment and Natural Heritage
Protecting the Midwest’s Environment and Natural Heritage
Solar Farm Land Stewardship
• What happens to this soil now?
• What will this soil be like when the solar farm is gone?
• How does water behave?
Protecting the Midwest’s Environment and Natural Heritage
Solar Land Stewardship
• Solar can increase eco-system services
• Include low-mow pollinator gardens
• Build soils
• Reduce stormwater runoff
• Increase diversity
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Protecting the Midwest’s Environment and Natural Heritage
Land Stewardship Helps Permitting
• Land care builds community support
• Land care is water care
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Protecting the Midwest’s Environment and Natural Heritage
On-Bill Financing
• On-Bill Financing delivers cash-flow
– Recover improvement costs on utility bill
– Must realize cash flow
• Tariff-based model removes barriers
– Helps more members
– Avoids consumer lending role
Protecting the Midwest’s Environment and Natural Heritage 12
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Neil Placer
Solar Power PV Conference & Expo – Chicago
November 10, 2016
STRATEGY | DIRECTION | RESEARCH | ANALYSIS
Company Overview
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Front-end strategy development to assist
clients in shaping a proactive energy future
Bridge gaps and develop mutually
beneficial business partnerships between
electric utilities, corporations, governments,
and distributed energy resource (DER)
solutions providers
PCS
Create. Shape. Deliver.
STRATEGY | DIRECTION | RESEARCH | ANALYSIS
Finding Solar Energy’s ”Sweet Spot”
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STRATEGY | DIRECTION | RESEARCH | ANALYSIS
The Attractiveness of Solar PV
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STRATEGY | DIRECTION | RESEARCH | ANALYSIS
DER Pathway
“Stepping Stones” Approach
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DER Focus Areas How savvy is the utility?
How proactive is the utility?
Technology
Utilization
Financial Prudence
Customer Service
AMP Solar Initiatives
Coops & Municipals Models for Success
in the Midwest
Solar Power Conference
November 10, 2016
Pamala Sullivan, Executive VP Power
Supply & Generation
About AMP
• Provides wholesale power supply and services to
municipal electric utilities
• Owned and governed by its 135 members in nine
contiguous states
• Board of Trustees consists of 21 AMP members
• Headquartered in Columbus, Ohio
• Approximately 180 full-time positions at
headquarters and generating facilities
About AMP
• 2015 System Peak: 3,387 MW
• 2015 Energy Sales: 16.5 million MWh
• 2015 Power Sales Revenue: $1.1 billion
• Total Assets of more than: $5.6 billion
About AMP
• Projects-based organization
– Strategic generation asset development
– Members subscribe to projects of their choice
– All projects overseen by Participants Committee
• Financial strength
– Since 2000, all AMP construction project financing and
entity ratings have been in the “A” category
– $750 million line of credit to provide underlying support
• Operates in both PJM and MISO markets
• Equity Partner of The Energy Authority (TEA)
Prairie State Coal17%
Member Coal7%
Wind & Solar3%
Hydro (Including NYPA)16%
Fremont Combined Cycle
16%
Landfill2%
Purchased Power39%
Note:
- Member coal Includes Paducah and Princeton’s Prairie State through KMPA- Wind & Solar Includes Member Owned Solar
- Hydro Includes Member Owned Hydro
2007 2017
Landfill1% Wind & Solar
<1%
Purchased Power75%
Member Coal 17%
Hydro (including NYPA), 7%
AMPMember Energy Resource Mix (2007 – 2017)
Note:
- Member coal includes Paducah and Princeton’s Prairie State energy purchased
through KMPA
- Wind & Solar includes member contracted solar
- Hydro includes member owned hydro
- 2017 resource mix includes 60 MW of new solar 26
Solar Development
• Napoleon Solar Project (Phase I)– 3.5 MW ac in Napoleon, Ohio
– AMP developed/constructed
– COD august 2012
– Take or Pay contract with 3 Member Participants
– Financed on AMP line of credit
• AMP Solar Phase II– Multiple sites behind the Municipal Utility meter
– Initial plan was to utilize traditional tax-exempt financing
– Began exploring alternative financing structures with TEA that would include the benefits of ITC
– Opted to enter into a Joint Development Agreement and PPA with NextEra for the development of up-to 80 MW of solar
– NextEra will build, own and operate all solar sites
– AMP will purchase 100% of the output from the solar generation
– Take and Pay contracts with Member Participants
Current Status
• Executed agreements with NextEra on 4 sites– Includes largest solar
facility in Ohio – Bowling Green (20 MW)
• Performing due diligence on remaining sites for projected commercial operation in 2017
• Members still subscribing to Project