Net Metering Summary Within Northeast Utilities

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1 Net Metering Summary Within Northeast Utilities Gordon Belcher EEI/AEIC meeting Oct

2 Northeast Utilities Connecticut Light & Power CL&P s territory contains 85% of the state of CT EEI/AEIC meeting Oct

3 Northeast Utilities Western Mass Electric Company WMECo s territory follows the CT River Up to the NH/VT boarder. EEI/AEIC meeting Oct

4 Northeast Utilities NSTAR NStar s territory includes Boston, Cape Code and the surrounding areas. EEI/AEIC meeting Oct

5 Northeast Utilities Public Service of New Hampshire PSNH s territory includes all the major population centers in New Hampshire. EEI/AEIC meeting Oct

6 Summary of Programs Primary focus will be on CL&P and WMECo. 1. Traditional small Residential/Commercial Net metering 2. Larger dedicated Solar and other Generation projects 3. New/Special programs EEI/AEIC meeting Oct

7 Summary of Programs Why are we doing all of this?. In CT, the Renewable Portfolio Standard is calling for a 20% saturation of renewable power by the year From the 2012 Connecticut Comprehensive Energy Strategy: Providing CT s citizens with cheaper, cleaner, and more reliable electricity is a core focus. To advance this agenda, DEEP proposes to: * Use economic incentives (including reverse auctions, declining subsidies, Power Purchase agreements, etc.) to bring down the cost of renewable electricity, spur innovation, and promote a portfolio of alternative energy technologies that can compete with existing fossil fuel generation over time. EEI/AEIC meeting Oct

8 Traditional small Residential/Commercial Net metering CL&P and WMECO have designated traditional rates for net metering Traditional = replace existing KWH meter with a Net Meter Both CL&P and WM always measure both Delivered and Received KWHs as separate registers. We do not spin the disk backwards even if the Per unit price is the same. For Commercial accounts, we ll measure KWH Del, KW Del, and KWH Rec. Purchased Consumption is based on the average market clearing price over the billing period appropriately adjusted to reflect line loss savings. Trend is for solar, but net metering rates apply for any type of generation. Starting to see solar costs moving from ownership to leasing arrangement as a means of reducing start up costs. Counts: CL&P WMECO Residential Commercial Pending Installs EEI/AEIC meeting Oct

9 Larger dedicated Solar and other Generation projects Typically larger project, leaning more on dedicated generation such as Wind turbines Solar farms Fuel Cells Larger companies with some type of self generation. Metering Recording meters with Reactive metering For Locations that tend to lean more toward a pure generation situation. S/S type metering with full remote access. Counts: CL&P WMECO S/S type TOU/Recording EEI/AEIC meeting Oct

10 Larger dedicated Solar and other Generation projects EXAMPLE of a recent Announcement: DPU Approves WMECo Solar Expansion Plan Last Wednesday (09/04/2013), the Massachusetts Department of Public Utilities (DPU) approved a WMECo proposal to build a third solar generation facility and expand its solar energy portfolio from 6 MW to 8 MW. WMECo is hoping to construct a 3.9 MW facility. The project has begun and additional details, such as the location, will be forthcoming. The favorable decision supports the significant benefits that program delivers to WMECo customers. WMECo currently has two solar generation facilities in operation. The 1.8 MW Silver Lake solar facility in Pittsfield has been operating since October 2010 and the 2.3 MW Indian Orchard solar facility in Springfield has been generating electricity since November EEI/AEIC meeting Oct

11 New/Specialized programs Connecticut: LREC/ZREC (Low and Zero Renewable Energy Credit) programs Microgrids DG Grant/DG Rider Virtual net metering Submetering WMECO WMECO (Mass DPU) Net metering Neighborhood Net metering a form of virtual net metering EEI/AEIC meeting Oct

12 New/Specialized programs LREC/ZREC (Low Emission and Zero Emission Renewable Energy Credit) programs Commission approval of the LREC or ZREC program Target was to have all the metering and billing processes in place July LREC = includes Fuel Cells 2MW cap $8M ZREC = includes Solar, Wind, etc.. 1MW cap $4M All approved contracts are for a 15 year period periodic review of the program Current Status of LREC/ZEC program For Applicants 70%/30% split between small and larger generators Awarded contracts with meters installed to date for small LREC/ZREC locations and ~11 for Large. Current REC pricing is $ /rec Going Forward Expecting between awarded contracts over the next 6 years Leading to about scalar meters and interval meters installed. All REC pricing will be evaluated and determined annually. Pricing for individual REC may change, but the total dollars allocated are fixed. EEI/AEIC meeting Oct

13 New/Specialized programs LREC/ZREC (Low Emission and Zero Emission Renewable Energy Credit) programs Metering requirements: All metering is on the output of the generator within the customer s facility Four Levels of Metering: KW Requires only monthly KWH generation data. Net Meter KW Requires Interval (KWH only) data KW Requires Interval (KWH + KVAR) Data KW MW cap Requires Interval (KWH + KVAR) Data with real time access. CL&P has elected to rely on the customer for the installation of the metering. However, CL&P is reading the meter so all communications must be compatible with CL&P reading and data collection systems. Consumption information is reported directly to NE Power Pool (NEPOOL). The Gen (Seller) is responsible for all costs associated with calibration and testing of meter in accordance within CL&P s metering practices. EEI/AEIC meeting Oct

14 New/Specialized programs Microgrids The state of CT has accepted applications as part of a pilot program promoting microgrids. Target is to keep critical facilities and core services at designated locations in operation when the grid is down. The state of CT has currently approved $18M toward the first wave of applicants with 9 approved pilot projects 6 within CL&P territory. An additional $30M has just recently been approved. So additional applicants will be coming. Metering: At this point, there is very little impact to metering other than the requirement for a bidirectional meter. Where applicable, CL&P is essentially utilizing the distribution line between buildings/facilities. CL&P will be buying excess energy returned to the distribution line at a wholesale rate and selling at a retail rate other customers connected to the microgrid based on what is recorded by our bidirectional meters. Customer pays for all generator, installation and fuel costs. EEI/AEIC meeting Oct

15 New/Specialized programs Microgrids Metering: Each project is different. One project has an offsite fuel cell, another is primary metered. The following is a simplified one line example: Facility 1 Facility 2 During Emergency, an order from the state will be issued to activate Microgrid; Switch is opened to isolate the loads Gen 1 and Gen 2 are started G1 M1 G2 M2 Bi directional meter, M2 Records Energy from Gen2 sold to the grid Isolation Device Distribution line Bi directional meter, M1 Records Energy purchased By Facility 1 from the grid. Isolation Device EEI/AEIC meeting Oct

16 New/Specialized programs DG Grant/DG Rider Like the LREC/ZREC program, we re measuring at the output of the generator. Gas rebate available Demand forgiveness available if generation is at 80 90% of the nameplate output during annual peak periods Summer Metering: Metering owned and installed by customer. Per NU specifications, meeting NU corporate communications requirements. Programmed by NU Meter Engineering dept. Currently ~ 90 meters installed. EEI/AEIC meeting Oct

17 New/Specialized programs Virtual net metering CL&P has established a new rate targeting Virtual Net Metering. Effective June, 2012 AVAILABLE to a Municipal Customer who seeks to allocate Virtual Net Metering Credits produced by an Eligible Facility to other Municipal Customers, pursuant to Public Act 11 80, Sec Customers seeking to receive service under this Rider must qualify for, and maintain eligibility for, service as provided herein. The rate allows excess generation from one facility to be applied to another. Metering: At this point, there is very little impact to metering. All Virtual Net Metering (VNMC) credits are determined by billing. If a VNM (host) customer supplies more electricity than it uses, then the host location will see a zero bill for generation. The excess will create a VNM credit which is applied to the beneficiary account. If the host does NOT supply more than it consumes, then nothing is credited to the beneficiary account, and the net difference is applied to the balance of the HOST at year end. Currently None are inservice. EEI/AEIC meeting Oct

18 New/Specialized programs Submetering Currently is only permitted under specific conditions approved by the commission. Current docket expand permissible submetering conditions. Still pending. State Objective is to use submetering as another means for lowering energy costs. EEI/AEIC meeting Oct

19 New/Specialized programs WMECO Net Metering Tariff approved in 2009 Three Classes of Net Metering Facilities in WMECo Net Metering Tariff: Class I = Any generator up to 60 KW. Class II = Agricultural, Biomass, Solar, or Wind Net Metering Facility over 60 KW but less than or equal to 1 MW Class III = Agricultural, Biomass, Solar, or Wind Net Metering Facility over 1 MW but less than or equal to 2 MW Metering: Class I Metering provided by WM. Details are outlined under traditional small Res/Com Net Meter Class II & III Metering provided by WM. Typically a 4 quadrant metering. Note: For more of a pure generation situation, we will specify a S/S type meter with real time access available to the meter and some PQ measurement. EEI/AEIC meeting Oct

20 New/Specialized programs WMECO Net Metering (con t) Depending on the class and size, the generator, may also apply to FERC for certification as a qualifying facility thereby receiving compensation under WMECo s Power Purchase schedule. (PURPA act 1978) info/qual fac.asp The consequence for metering is that this customer then falls under the purview of ISO NE metering requirements same as a utility interchange meter requiring the Meter to be tested on a 2 year schedule. EEI/AEIC meeting Oct

21 New/Specialized programs WMECO Neighborhood Net metering Neighborhood net metering is an expansion of the net metering concept which allows groups of customers to take advantage of net metering from a single renewable energy facility (e.g., residents of a neighborhood served by a wind machine). In Massachusetts, neighborhood net metering must serve a minimum of 10 residential customers, but may serve additional residential and commercial customers. All customers served must be within the same municipality and the service territory of a single electric company Matches goals of CT s Virtual Net metering, where host customers can allocate credits to other customers. Purpose is to allow excess net generation to benefit other customers and promote the deployment of on site renewable resources. All customers must be within the same distribution company Currently ~10 customer have been approved to use this rate option 9 are Municipalities 1 is a commercial account EEI/AEIC meeting Oct

22 Special conditions/issues Encountered Customer adherence of the required interconnection process and meter procurement steps is time consuming and sometimes places NU Engr in an adversarial position Examples: Proper location of required AC Emergency switch. Physically Electrically Proper sizing of CTs for IT rated services. Ensuring the interconnection point is behind the metering Obtaining proper type of one line diagrams from customers Interconnections performed within Meter trough or within metering socket. Oversizing the generation for the size of the service Improper voltage mismatch between inverter and provided service. Single phase inverters being installed on poly phase services. Net metering installed on distribution networks. Combination of multiple sets of solar panels as a means of combining RECs. Mixed Generation at the same location both renewable and non renewable. EEI/AEIC meeting Oct

23 Thank you for your time. EEI/AEIC meeting Oct

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