NorthWestern Energy Stakeholder Visioning Initiative Issues and Topics (Arranged by vote tallies )

Transcription

1 NorthWestern Energy Stakeholder Visioning Initiative Issues and Topics (Arranged by vote tallies ) Rates (17) Flexibility in rate structuring, especially under changing circumstances One at the lower cost (rates) utilities in the region Rate structures that avoid cross-subsidization among different users of the system as much as possible Rate structure should be menu-based so that customers have somewhat individualized options Incentives for smart/energy efficiency upgrades for low-income consumers Less dependence on throughputs/spinning meters Some number of additional products/tariffs Economically efficient rates Future rate design does not emphasize customer fixed changes Low cost provider Alignment of prices with underlying costs Supportive of low-income energy assistance programs or rates Better alignment of prices and underlying costs To have a rate system that is not pay as you go, but, rather recognizes need for capital investment Special rate for low income customers Searches for ways to make alternative fuels and sources cost effective and reliable Provides customers rate choices Better alignment of prices and public policy Customer service price and service offerings Revenue recovery not based on sales Reasonable Rates No meters charge Aggressive in using energy rates as incentive for economic development Deploy time of use rates Rate designs move to TOU rates to reflect fix costs of meeting peak loads Financial (15) Utility focused MPSC statement Financially sound (Illegible) of the (illegible) energy company healthy bottom line and a leader in the nation In 10 years not having any stranded assets Montana focus recognized as a strength, not a primary risk Financially sound MPSC statement

2 Energy is the foundation of a healthy economy and overall health. Therefore Northwestern needs to have the financial strength to continue to provide traditional and modern energy delivery Northwestern, in 10 years, should be financially strong, capable of making infrastructure and technology investments that meet customer and community needs Sound financially Triple bottom line: environment, social, economic Financially stable Financially strong Financially strong No longer reliant on selling electrons to make money Diminished monopoly and political power Management accountability, incentivized to reform in a way that services public interest Energy Efficiency (9) Energy efficiency promoter and practicer Sending appropriate price signals to encourage efficient use of energy Financially invested in energy efficiency/demand resources Distributed Energy Resource (DER) (9) Offering range of energy alternative Encouraging distributed resources where appropriate A utility that is not hostile to DERs or a utility that has a regulatory structure and revenue recovery certainty that enables it to co-exist w/others NWE willing to take some short-run risk to assist DER as infant industry Increased integrated DER Rate structures that fairly value DER Flexible enough to adopt and adapt to changes in technology (DER, storage, efficiency, etc.) Multiple renewable energy options for customers (e.g. DER, green tariffs, community solar) Residential consumers distributive energy platform (network) Smart home systems (integrated) NEW meeting the needs of customers with clean energy including with the added demand of beneficial electrification Infrastructure (7) Vis-à-vis infrastructure, is it adaptable in the long term AMI Smart small business systems (computerized, high-tech) Optimized infrastructure that enables flexibility in rate design Optimized infrastructure assists in business recruitment and reinvention/growth Fueling EVs Leader in research and development in infrastructure

3 Infrastructure in good condition and not necessarily cutting edge Smart grid Implementing latest proven technology in infrastructure EE/DSM technologies employed that enable meeting energy needs at least cost and least risk Optimized infrastructure should be a modern reliable grid that facilitates customer options Technologically advanced Smart grid infrastructure employed that gives customers info about where their energy comes from, how much it costs at different times of day/year, and odes so in real-time Reliable, resilient, infrastructure Optimized infrastructure results in more competitive rates and leading to consumer growth-more hook-ups Regulation and policy (6) Greater delineation of authority from/to PSC A regulatory environment that enables innovation and supports it on a more practicable planning horizon Enabled to be more flexible and creative as a business, service provider Rate structure with ability to attract/incentivize business growth (alternative energy, business/consumers) Regional Markets (4) Regional grid operator Member of NW regional market NWE being part of a larger, regional or west wide, energy market that efficiently meets customer demand Regional peak power demand supplier Reduce Carbon (4) Having an investment portfolio that promotes sustainability NWE making significant progress moving away from fossil fuel electric generation Increased renewable generation sources NWE owning more community solar 100% clean energy portfolio that is saving ratepayers money over current biz as usual Provider and supporter of alternative energy Vertically integrated with carbon free resources Minimal use of fossil fuels for generation Planning customer services (3) Having the strategic planning and execution platform to operate expeditiously Greater input from energy stakeholders in planning (and outcomes) processes Focusing more on reliability of energy rather than source Primary commercial industrial supplies ESP (energy service provider) like an ISP

4 Energy provider > energy service provider Energy packet provider in that regional markets (customers) can select energy from portfolio options Multiple services offered by NWE Network onboarding company Customer focus with choices and flexibility Reliability (1) Highly reliable energy provider 100% reliability on electrical system Community Respected participant in its communities Customer focused MPSCA Statement Culturally part of the fabric of the communities it serves Partner in community planning In the future NWE is much better at understanding and meeting customer needs than its DSM program has shown in the past Community focused MPSCA Statement Tied to the community and state Reputation Attracts the best of the best for team members Employer of choice within the state To encourage an entrepreneurial attitude in the marketplace, have incentivized rate opportunities Respected Trusted Seen as trusted energy advisor by customers Capitalizes on advances in alternative (illegible) and sources See as a technology company To be a model for other energy companies to emulate To be viewed across Montana as a good corporate citizen Operationally excellent MPSC Statement Opportunities Stakeholder meetings Upcoming legislative session in which to consider statutory changes Changing customer attitudes NEM policy in statute Existing high voltage line infrastructure Existing production facilities West coast wants renewables Plenty of stakeholder engagement

5 It s windy in MT! Lots of low-hanging fruit in EE Montana has lots of water, sun, wind, coal NWE owns the dams NWE has infrastructure in place that can be built upon An engaged customer base that wants the utility to be able to be innovative and future looking Abundant resources Technology Leadership Public opinion/attitudes Capable intelligent people Montana is generally supportive of low income support Pumped hydro electric facility (can t do it everywhere!) Very low cost wind energy Existing portfolio standards Interest in region and west wide for expanded energy markets Strong leadership Production tax credits Existing EE/DSM technology ready to go Customer interest is heavy for low-cost, low-carbon utility Stakeholders willing and wanting to support the utility in reaching a low-cost, clean energy future (the utility can be the hero!) Young, smart people engaged on the issue Rapidly declining cost of battery energy storage COS ratemaking to encourage low cost options Rapidly changing energy landscape Increasing clean energy deployment is about saving customers money as much as reducing climate emissions Imperative to change/recognition of the need to change Utility is at least nominally supportive of EE, DER, and renewables Challenges Public opinion/attitudes Attitudes Barrier: mechanisms in rate system to support transformation and lack of incentives to be entrepreneurial and innovative Regulation Too hard attitude Legislature To small attitude Cost/finance Short term > long term thought process Capital needs for infrastructure

6 Litigation Capital requirements Company culture resists change Lack of understanding Right of way access into future Bankruptcy stipulation Regulatory dysfunction Dysfunctional regulatory environment Uncertainty with regulation The existing regulatory paradigm that makes revenue recovery dependent on sales Antiquated regulatory structure Challenging regulatory environment Competing and varying economic interests Culture (illegible) in part, established ways of doing things Montana is rural and at the end of grid. It has difficulty taking lead in energy policy Already high retail rates Lack of a holding company structure Commission doesn t believe in human-caused climate change Bankruptcy stipulation Revenue based model (throughput) Ideological inflexibility Restrictive NEM policies and regulations Resource intensive process to be involved in or make regulatory changes Lack of advanced infrastructure (for something like AMI) Distrust between utility, regulators, stakeholders NWE sees DER as a threat Downgrade by Moody s Cross-subsidization concern between those who (illegible) and those who don t NWE does not fully embrace residential energy efficiencies