Presentation to Lafayette City Council. Amy Dao Community Energy Manager Jan. 26, 2015

Transcription

1 Presentation to Lafayette City Council Amy Dao Community Energy Manager Jan. 26, 2015

2 CA s Renewable Portfolio Standard (RPS) Established in 2002; expanded in 2006 and 2011 Requires all utilities to procure 33% of retail sales with eligible renewables by 2020 Eligible renewables include: Solar PV and solar thermal Wind Small Hydroelectric Landfill Gas Biomass Geothermal Municipal Solid Waste Energy Storage Anaerobic Digestion Tidal Energy, Wave Energy, Ocean Thermal Biodiesel Fuel Cells using Renewable Fuels 2

3 Active RPS Contracts 101 active RPS contracts totaling over 6,600 MWs (1) Technology # MW Bioenergy Geothermal Small Hydro Solar PV 47 3,090 Solar Thermal Wind 26 1,971 Total 101 6,646 1 Table does not include renewable Feed-in Tariff (AB1969) PPAs, amended post-2002 Qualifying Facility contracts and REC-only contracts. 2 Bioenergy includes biomass, biogas and landfill gas Note: Data tables and map are current as of October 2, Excludes terminated & expired contracts. 3

4 PG&E s Renewable portfolio: past, present and future % of total bundled retail sales % of total bundled retail sales 2020 Projected 33% of total bundled retail sales Total RPS-Eligible Procurement 7,504 GWh Total RPS-Eligible Procurement 17,056 GWh Projected RPS-Eligible Procurement ~26,500 GWh Note: Generic means PG&E will procure from sources TBD. Data Sources: PG&E s 2002 Corporate Environmental Report, PG&E s 2013 Power Source Disclosure Report (The 2013 data is subject to an independent audit and verification that will not be completed until October 1, 2014.) PG&E s % RPS Procurement Progress Report. Last updated June

5 PG&E s Renewable portfolio: past, present and future Projected * Total GWh: 76,000 Total GWh: 81,000 *Other includes market purchases, other fossil resources Data Sources: 2013 delivery statistics are preliminary and subject to an independent audit and verification that will not be completed until October 1, data from PG&E s 2013 IEPR Forecast. 5

6 PG&E CO2 / MWh is 27% below CA average and 64% below U.S. average 6

7 What affects PG&E s costs? How does PG&E manage rates? Procurement (ERRA) Mandated Programs e.g. AB 32 Cap and Trade Infrastructure Upgrade and Maintenance (GRC) - PG&E rates are regulated by the CPUC - PG&E must file an application in order to recoup costs and propose any kind of rate change - Energy Resource Recovery Amount (ERRA) o o PG&E makes 40% of energy and purchases 60% of energy Filed annually so that we can purchase energy for customers in the next year 7

8 What is a General Rate Case? - State-mandated process to request funding for costs every 3 years - PG&E is required to provide a detailed forecast of structure of operations and investments for the upcoming 3-year period - Infrastructure - Technology - People - Operational changes - Investments are focused on safety and reliability - Reviewed by CPUC Public input from customers, business groups, cities and agencies, and other special interest organizations 8

9 GRC Timeline 9

10 PG&E Rates Over Time 10

11 Green Option

12 Status Update February 2015 PG&E received a Decision from the California Public Utilities Commission on January 29 th approving its Green Option program. PG&E intends to begin signing up customers late this year. 12

13 PG&E s Green Option Programs A way to buy 100% solar power that Ensures new incremental solar will be developed Requires minimal effort on the part of the customer Enables the customer to benefit from the generally declining costs of solar 13

14 What is PG&E s Green Option? The Green Option is an umbrella term for a set of renewable power program options. Both options will enable any PG&E bundled electric customer to purchase up to 100% of its electricity from new solar projects within PG&E s service area. 2 Customer Green Tariff Shared Options Renewables Program ( GTSR )* Pool of projects 0.5 to 20 MW Enhanced Community Renewables ( ECR )* Option 1 project near customer 0.5 to 3 MW * Customer-facing name not yet determined 272 MW Customer may enroll in a single project, by working with a solar developer and PG&E 14

15 GTSR Program Features First-Come First-Served 272 MW program cap, of which 125 MW reserved for residential customers. Enrollment open until 2019 or until cap is reached, whichever comes first. Once a customer enrolls, he/she may stay on the program beyond this date. Incremental, New Solar Projects In response to customer enrollment, PG&E will sign long-term contracts for new solar resources, sized from 0.5 to 20 MW, within our service area. All program resources are above and beyond PG&E s renewables portfolio requirements. Local Project Development Projects will be solicited in the communities with the highest level of enrollment, and elsewhere as demand warrants. Deliveries from Day 1 Prior to new projects coming online, participants to be served by solar resources from PG&E s Renewables Portfolio Standard (RPS) program. These deliveries will not be counted towards PG&E s RPS. 15

16 GTSR Pricing Specifics Customers may enroll for 50% or 100% of their electric usage Customer remains on regular rate schedule (e.g. E-1, E-19, E-20, etc.) In addition to regular charges, is assessed the following charges and credits on enrolled kwh every month Component Name Illustrative 2015 Pricing* Basis 1 Solar Power Charge ~ 10 cents/kwh Weighted average price of delivering solar resources, from 0.5 to 20 MW 2 Program Charge ~ 2 cents/kwh CPUC-mandated charges to ensure nonparticipants are held indifferent 1 3 Generation Rate Credit ~(10 cents)/kwh Avoided costs of PG&E s standard generation (based on class average generation rate) Net 2015 Cost (sum of 3 values): ~ 2 3 cents/ Depending on customer class kwh 2 The net cost per kwh will likely decrease over time, as the price of solar declines, and as the generation rate credit changes 1 Power Charge Indifference Adjustment, Resource Adequacy, Program Admin, CAISO and WREGIS fees, less solar value adjustments. 2 Varies by customer class. Final rates to be determined after CPUC decision. 16

17 PG&E s Solar Procurement Seeking the Best Pricing and Terms for our Customers PG&E will issue competitive solicitations for the power Procurement is triggered at the earlier of 30 MW of incremental program demand, or end of a calendar year, whichever comes first. PG&E will sign long-term Power Purchase Agreements for the power; will not own the projects. Local Procurement Emphasized GTSR Option: Projects will be solicited in the 4 communities with the highest enrollment each year Environmental Justice Provision 100 MW statewide (45 MW for PG&E) reserved for procurement in the 20% most impacted areas as identified by Cal EPA Each project 1 MW max 17

18 Enhanced Community Renewables (ECR) Option Supporting Local Projects A separate option that allows customers to contract for a share of the output of local solar projects built by third-party developers. Customers will be able to purchase power from a particular solar project, sized from.5 to 3 MW in their community. Customers will enter into a Customer Developer Agreement with a solar developer. Several aspects of this program option are still under consideration at the CPUC. My piece of the project 18

19 Thank You Amy Dao