senate public utilities committee briefing march 12, 2013 presented by todd a. snitchler, chairman
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Senate Public Utilities Committee Briefing March 12, 2013 Presented by Todd A. Snitchler, Chairman. Ohio Alternative Energy Portfolio Standard. 25% by 2025 25% of retail electricity sold by: - PowerPoint PPT PresentationTRANSCRIPT
Senate Public Utilities Committee BriefingMarch 12, 2013
Presented by
Todd A. Snitchler, Chairman
Ohio Alternative Energy Portfolio Standard
25% by 2025 • 25% of retail electricity sold by:
– Ohio’s electric distribution utilities – American Electric Power, Dayton Power & Light, Duke Energy, and First Energy, or;
– Competitive electric service companies
• Must be generated from alternative sources:
– Renewable energy sources
– Advanced energy technology
SB 22125% (of total kWh) by 2025• Half may be from advanced energy resources• At least half from renewable, .5% solar• At least half of renewable through facilities
located in the state, remainder deliverable• Compliance payments/forfeitures• Cost of compliance not to exceed three percent
of otherwise acquired
Renewable Portfolio Standard Policies..www.dsireusa.org / February 2013.
29 states,+ Washington DC and 2
territories,have Renewable Portfolio
Standards(8 states and 2 territories have renewable portfolio
goals).
29 states,+ Washington DC and 2
territories,have Renewable Portfolio
Standards(8 states and 2 territories have renewable portfolio
goals).
Renewable Portfolio Standard Policies with Solar / Distributed Generation Provisions.www.dsireusa.org / February 2013.
16 states,+ Washington DC have Renewable
Portfolio Standards with Solar and/or
Distributed Generation provisions
16 states,+ Washington DC have Renewable
Portfolio Standards with Solar and/or
Distributed Generation provisions
By end of year
Renewable Energy
Solar Energy
2009 0.25% 0.004%
2010 0.5% 0.01%
2011 1% 0.03%
2012 1.5% 0.06%
2013 2% 0.09%
2014 2.5% 0.12%
2015 3.5% 0.15%
2016 4.5% 0.18%
2017 5.5% 0.22%
2018 6.5% 0.26%
2019 7.5% 0.3%
2020 8.5% 0.34%
2021 9.5% 0.38%
2022 10.5% 0.42%
2023 11.5% 0.46%
2024 + 12.5% 0.5%
Benchmarks
0%
2%
4%
6%
8%
10%
12%
2009
2011
2013
2015
2017
2019
2021
2023
Renewable
Solar
Alternative Energy Benchmarks (including advanced)
Renewable Energy Credits• New Ohio Renewable Energy Credit (REC) trading market
created by new law in 2009
• 1 REC = 1 mWh of electricity generated
• Utilities may own renewable facilities or purchase RECs to meet the renewable portion of the standard
• PUCO certifies resources; established tracking systems will issue and track RECs
• RECs have a 5-year lifetime following their acquisition
• Energy and RECs may be sold as separate commodities
Compliance PaymentsUtilities and electric service companies subject to compliance payments if annual renewable and solar benchmarks are not met.
Non Solar:•Started at $45/mWh in 2009•2012 compliance payment was $47.56/MWh
Solar:•$450/mWh in 2009 and declines over time•2012 compliance payment was $350/MWh for solar
Exceptions: force majeure; 3% cost cap
Certification Application• REN certification is not mandatory for any renewable project, but
necessary to create RECs eligible for Ohio utility compliance• No fee to apply• May certify facilities prior to commercial operation • Application will focus on:
– Resource/technology utilized– Placed in-service date– Deliverability to the state
• One-time review (unless significant change to facility in future)• Interested person may seek intervention and request hearing on
certification• Certification status will be conveyed to applicable attribute tracking
system
Facilities Certified Since June 2009
Wind Momentum
Federal PTC (Production Tax Credit)
State Renewable Portfolio Standards (RPS)
Technological Improvements
Price Volatility for Other Fuels (i.e., Natural Gas)
Interest in Green Power / Clean Energy Sources
Climate Change / Energy Independence 14
Wind farms in Ohio can help provide renewable resources to meet Ohio’s Alternative Energy Portfolio Standards
But Also:A small wind generator owned by a retail customer may enable the customer to use a renewable resource to offset his electrical demand and potentially earn a credit for net metering on his
electric bill.
Qualified Biomass Resources• Biogas: landfill methane gas or anaerobic digestion
of organic materials such as animal waste, bio-solids, food waste, agricultural crops and residues, solid waste
• Agricultural crops, tree crops, crop by-products and residues
• Wood and paper manufacturing waste• Forestry or vegetation waste• Algae
Ohio EDU 2009 - 2011 Requirements and Performance under the Alternative Energy Portfolio Standard (AEPS)ORC 4928.64
Note: Contents based on Companies' annual compliance filings - numbers may be adjusted following Commission review & decision
2011 Renewable Requirement - Net of Solar Solar RequirementObligation (MWHs) Performance (MWHs) Obligation (MWHs) Performance (MWHs)
AEP-Ohio Columbus Southern Power 186,036 186,036 5,754 5,754Ohio Power 235,108 235,108 7,271 7,271Total AEP-Ohio 421,144 421,144 13,025 13,025
Dayton Power & Light 109,190 109,190 3,337 3,337
Duke - Ohio 155,338 155,338 4,804 4,804
First Energy Cleveland Electric Illuminating 124,773 124,773 4,428 4,428Ohio Edison Company 161,708 161,708 5,707 5,707Toledo Edison Company 65,830 65,830 2,338 2,338Total FE (Ohio EDUs) 352,311 352,311 12,473 12,473
EDU TOTALS 1,037,983 1,037,983 33,639 33,639
* CRES numbers not portrayed on this summary sheet* Solar compliance shortfalls addressed via force majeure requests* 2010 Solar Obligation includes compliance shortfalls from 2009* CONTENTS BELIEVED TO BE CORRECT, BUT INTERESTED PARTIES SHOULD REFER TO APPLICABLE ANNUAL COMPLIANCE FILINGS
Advanced Energy Resources• Clean coal• Advanced Nuclear• Fuel cells• Customer co-generation• Advanced solid waste conversion• Utility generation plant or demand-side management
efficiency measures• Uprated capacity of an existing electric generating facility
resulting from the deployment of advanced technology • Any new, retrofitted, refueled or repowered generating
facility in Ohio• Note: RECs are not created from advanced resources
Energy Efficiency and Demand Reduction Benchmarks - SB 221 (OAC 4901:1-39)
• Establishes requirements and processes to determine specific benchmarks for energy efficiency and peak reduction programs
• Establishes energy usage and demand baselines for measuring annual energy savings and demand reductions
• Provides mechanisms by which investments achieve energy savings and demand reductions by mercantile customers in their own facilities and can be recognized in electric utility programs as contributing to specific levels of energy savings and demand reductions.
Senate Bill 315 and EE
Gov. Kasich signed June 2012:
•CHP and waste energy recovery can be counted toward the state’s Energy Efficiency requirements.•Waste energy recovery facilities qualify as renewable energy sources under Ohio’s Alternative Energy Portfolio standard.
Electricity Consumption in Investor-Owned Electric Utility Service Areas in Ohio
October 2008 – December 2009
Energy Efficiency Requirement
•22% + Reduction by 2025•Could result in annual usage at 13.8 million mWh below 2007
Peak Demand Reduction Standard
•7.75% by 2018•Tariffs and special contracts available to commit the demand reduction•Customers enrolled in RTO demand response programs are counted if customer commits the peak demand reduction
Peak Demand Reduction and Energy Efficiency Benchmarks
Peak Demand Reduction and Energy Efficiency Benchmarks
Each Electric Distribution Utility filed a report identifying the 2009 baselines and benchmarks.
Each Electric Distribution Utility filed a program portfolio plan for energy efficiency and peak reduction programs.
Upon approval of the program portfolio plan, an Electric distribution utility may seek cost recovery.
Each year, on April 15, the Electric Distribution Utility must file a portfolio status report that demonstrates its compliance status with its benchmarks and provides an assessment of its performance.
Mercantile Customer Applicationsto commit Energy Efficiency and
Peak Demand ReductionOhio Administrative Code 4901:1-39-05(F) Permits a mercantile customer to file individually or jointly
with an electric utility, an application to commit the customer’s existing demand reduction, demand response, and energy efficiency programs for integration with the utility’s program
Expectation the mercantile customers were to be exempt from the EE/PDR Rider of the tariff they are taking service
Pilot Program adopted by the Commission for ease of application and administration
Energy Efficiency Historic Mercantile Applications
Total filed to date* 1585
Total Mercantile Cases Complete 1507
Total Mercantile Cases Suspended 9
Total Mercantile Cases Pending 69
*As of 2/15/2013
Ohio EDU 2009 & 2010 Requirements and Performance under the Energy Efficiency and Peak Demand Reduction program requirements, ORC 4928.66Note: Contents based on Companies' annual compliance filings - numbers may be adjusted following Commission review & decision
2009 Energy Efficiency Requirement Peak Demand Reduction RequirementObligation (MWHs) Performance (MWHs) Obligation (MWs) Performance (MWs)
* AEP-Ohio Columbus Southern Power 60,000 121,000 40 24Ohio Power 77,000 132,000 46 366Total AEP - Ohio 137,000 253,000 86 390
Dayton Power & Light 43,919 40,442 29.6 168.4
Duke - Ohio 68,233 293,023 44.6 97.4
** First Energy Cleveland Electric Illuminating 58,155 207,795 42 72.1Ohio Edison Company 76,783 102,933 53 73.5Toledo Edison Company 31,349 39,921 20 150.3Total FE (Ohio EDUs) 166,287 350,649 115 295.9
EDU TOTALS 415,439 937,114 274.7 951.7
2010Obligation (MWHs) Performance (MWHs) Obligation (MWs) Performance (MWs)
AEP-Ohio Columbus Southern Power 104,000 163,000 71 122Ohio Power 124,000 143,000 81 382Total AEP-Ohio 228,000 306,000 152 504
Dayton Power & Light 71,717 101,061 50.3 74.6
Duke - Ohio 109,536 310,755 33.2 40.2
** First Energy Cleveland Electric Illuminating 150,576 273,076 71.7 71.7Ohio Edison Company 197,959 164,365 90.2 73.3Toledo Edison Company 81,204 129,964 35.2 148.9Total FE (Ohio EDUs) 429,739 567,405 197.1 293.9
EDU TOTALS 838,992 1,285,221 432.6 912.7
* Utility reports that PDR Obligation (benchmark) has been met because actual peak demand did not exceed baseline minus 1%.** 2009 Energy Efficiency Obligations (Benchmarks) were amended to zero by Commission order. 2009 and 2010 performance values include projects not yet approved by the Commission. Ohio Edison 2010 benchmarks were amended to actual levels achieved.
Energy Efficiency Requirement Peak Demand Reduction Requirement
To support sound energy policies that provide for the
installation of energy capacity and transmission
infrastructure for the benefit of the Ohio citizens,
promoting the state’s economic interests, and
protecting the environment and land use.
Ohio Power Siting BoardMission Statement
Ohio Power Siting BoardMember Agencies
OPSB Jurisdiction
Definition of “Major Utility Facility:”•A generating plant of 50 megawatts or more
•An electric transmission line of 125 kilovolts or greater
•Intrastate gas or natural gas transmission line capable of transporting gas at or greater than 125 pounds per square inch of pressure (does not include production, gathering or liquids lines)
HB 562 (2008)
• Gave the Board additional oversight regarding commercial wind farms
• Wind facilities greater than 5 MW
• This bill also directed the Board to adopt certification rules for the construction, operation and maintenance of wind-powered electric generation facilities
• The rules outline requirements for aesthetics, setback, noise levels, ice throw, blade sheer and shadow flicker
OPSB Benefits• One-Stop Siting Process• Timely action: Approximately 6 to 12 months for applications, with
statutory time mandates; accelerated schedules an option under certain circumstances
• Regulatory certainty: process is known and practiced• Sole jurisdiction: local and public participation welcome in the
process, but sole decision rests with the state (OPSB)• Our siting process is fair and efficient and has been put forth as an
example for others to follow• Having seen our success, several states and countries have
adopted new siting legislation modeled after Ohio’s statute
OPSB Electric Generation Applications
(1998-2013)
Generation by Facility Type Number of Active Cases Capacity (MW) Estimated Costs
Coal (i.e. IGCC) 3 1,540 $2,800,000,000
Cogeneration-Waste Heat 3 338 $477,271,197
Combined-Cycle 8 5,978 $3,296,000,000
Compressed Air 1 2,700 $1,650,000,000
Simple-Cycle 11 4,585 $1,537,190,000
Wind* 22 1,886 $3,082,780,000
Facility Totals 48 17,027 $12,843,241,197
* Includes Amendment Applications