DistributedOnsite Generation Options Identification and Consultation Services

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Distributed/Onsite GenerationOptions
Identification and Consultation Services

• Scott AlbertGDS Associates, Inc.1181 Elm
  Street, Suite 205    Manchester, New Hampshire
  03101(603) 656-0336www.gdsassociates.com

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Distributed Generation An Overview

• Distributed Generation (DG) is not a new concept
  but is receiving increased attention as the
  electric power industry begins to consider
  fundamental changes to its business practices to
  meet the new era of competition. What is now
  considered distributed generation has taken on
  many names in the past, including back-up or
  stand-by generation, cogeneration, combined heat
  and power, renewable generation, and remote
  power.

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Distributed Generation An Overview contd

• A broader definition of Distributed Generation
  is referred to as Distributed Energy Resources
  (DER) and encompasses not only generation but
  also tools for reducing energy usage on the
  customers side of the meter such as storage
  technologies, end-use technologies and Demand
  Side Management (DSM) concepts.

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Distributed Generation An Overview contd

• Distributed Energy Resources, unlike
  traditional large-scale central generation
  sources, are small, modular, and are typically
  located on-site or near large energy end users.
  There are a number of technologies, both
  renewable and fossil fueled, that make up the
  current, and near future, portfolio of
  distributed generation plants.

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What Can GDS Associates, Inc. Do For You?

• Provide Identification and Assessment of
  Distributed Generation Technologies

• Characterization of Clientele's Customer
  Spectrum

• Spreadsheet Modeling to Visualize the
  Systematic Analysis of Data

• Calculation of Market Potential for Clients

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Identification and Assessment

• Provide Client With Distributed Generation
  Possibilities to Satisfy Their Business Needs

• Researching to Establish a Comprehensive List
  of Potential Customers

• Researching and Providing Up to Date
  Technological and Advancement Information for
  Application of DG Technology

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Characterization

• Create Distributed Generation Technology Profiles
  for Review

• Provide Detailed Factual Information to
  Distinguish Customer Types

• Characterization of Costs Associated With
  Each Customer Type

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Potential Geothermal Heat Pump Installation
Candidates
This table identifies the customer categories and
building types that were considered for potential
geothermal heat pump installation candidates.
For modeling purposes, each building type was
broken into sub-groups and facility square
footages were identified.
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Mock Technology Availability and Target Customer
Sectors Chart
This table identifies the different technologies
available and matches them to their targeted
customer sectors.
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Modeling

• Evaluate Each Possibility Through Feasibility,
  Cost Comparisons, Reliability, and Efficiency
  Studies

• Prioritized Ranking of Separate Scenarios to
  Assess All Unique Combinations of
  Customer/Technology Type Applications

• Generate Customer/Technology-Specific
  Simple Payback Charts

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Mock Simple-Payback Chart
Using Geothermal Heat Pump Technology
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Calculation of Market Potential

• Market Potential Derived From Calculated Payback
  Period and Estimated Market Participation Rates

• Financial Analysis, Forecasting, and
  Marketing Costs Calculations

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Mock Geothermal Heat Pump Technology Market
Potential Chart
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Outstanding DG-Related Issues for Utilities

• Design of Innovative Electric Utility Pricing and
  Rate Structures
• Interconnection Regulations, Including a Full
  Assessment of Associated Costs and Risks
• Opportunities for Utilities as DG
  Owners/Operators
• Rate Base Erosion Impacts and Compensation for
  Stranded Costs Associated with DG Installation

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Outstanding DG-Related Issues for Customers

• Accurate/Unbiased Equipment Selection and
  Determination of the Economic Viability of the DG
  Investment
• Is the Technology Capable of Providing the
  Required Service?
• Risk Associated With Substantial Initial
  Investment
• Lack of Standardized Interconnection Requirements
• Equipment Certification Requirements
• Status of Net Metering Not Necessarily Paying
  Market Price
• Siting and Permitting of Equipment
• Who Should Own and Operate the DG Plant (Not Part
  of Customers Core Business)?

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Methodology of Recent Geothermal Heat Pump Project

• Secondary Research
• Customer Group and Technology Screening/Prioritiza
  tion
• Market Potential Assessment

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Secondary Research

• Research Was Done to Identify Various Applicable
  Geothermal Heat Pump (GHP) Technologies and Key
  Performance/Cost Input Information for Use in the
  Screening/Prioritization Task.

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Customer Group and Technology Screening/Prioritiza
tion

• Determining Which Geothermal Heat Pump
  Technologies Had Potential for Application Within
  Various Customer Groups.
• Using Spreadsheet Models to Calculate a Simple
  Payback for Each Technology Selected for
  Installation at Specific Customer Type
  Locations.
• Ranking, Prioritizing, and Summarizing Each
  Technology Modeled to Show Those Most Likely to
  be Viable Within Specific Customer Categories.

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Market Potential Assessment

• The Estimation of Market Potential for Geothermal
  Heat Pumps Individually Within Each Service
  Territory

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Who are We?

• GDS Associates, Inc. is dedicated to providing
  comprehensive, expert utility services, enhanced
  by state-of-the-art resources. In the evolving
  utility industry, GDS provides a solid foundation
  in its commitment to clients and employees, its
  dedication to value, and its professional
  approach.
• GDSs Engineers, Statisticians, Analysts, and
  Management are Fully Capable of Matching the
  Right Distributed Generation Technology With Your
  Business Needs.

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For More Information

• Visit http//www.gdsassociates.com
• OR
• Contact us at
• 1850 Parkway Place, Suite 800
• Marietta, Georgia 30067
• Voice 770-425-8100
• Fax [phone]