Paul A. Colbert

1

PLUGGING IN THE TURBINES INTERCONNECTIONS WITH
THE UTILITY PROVIDERS, POWER PURCHASE AGREEMENTS
AND NET METERING
Paul A. Colbert Associate General Counsel
239906
2
DEVELOPMENT OF RENEWABLE CAPACITY

• Power siting requirements are not substantially
  different for renewable capacity than for any
  other type of capacity.
• There are significant natural barriers to
  development of renewable capacity.
• There are significant financial barriers to
  development of renewable capacity.

3
SITING REQUIREMENTS

• Must get a certificate for development of a
  major facility.
• A major facility is one in excess of 50MW, a
  125 KV transmission line, or gas line capable of
  pressure in excess of 125 pounds per square inch.

4
SITING REQUIREMENTS

• To receive a certificate the Power Siting Board
  must consider
• The need for the facility
• The environmental impact
• The facility represents a minimal environmental
  impact compared to alternatives
• The facility is consistent with expansion of the
  electric grid

5
SITING REQUIREMENTS

• Compliance with various rules including water
  rights and height restrictions
• The facility will serve the public interest,
  convenience and necessity
• The impact on agriculture compared to
  alternatives
• The facility represents maximum water
  conservation compared to alternatives given
  current technology and economics.

6
NATURAL BARRIERS

• Ohio has limited natural resources to utilize
  wind
• A wind corridor exists near northern Ohio and
  goes through Indiana
• Not reliably available at peak
• Requires new storage technology or conventional
  capacity backup
• Requires significant vacant land for a major
  facility.

7
NATURAL BARRIERS

• Ohio has limited natural resources to utilize
  solar power
• Ohio lacks sun compared to other states and solar
  is relatively inefficient at energy conversion
  although gains have been made
• Requires significant vacant land, although less
  than wind

8
FINANCIAL BARRIERS

• Renewable capacity is more expensive than
  standard capacity.
• The Investment Tax Credit is not available to
  utilities, only non-utilities, making utility
  investment more costly.
• Section 45 tax credit is available but must have
  the right combination of ownership and service
  date.

9
FINANCIAL BARRIERS

• Property tax rates.
• Price avoidability and competitive risk.

10
INTERCONNECTION

• Interconnection for small facilities is easy.
• In many cases it can be accomplished in a 15
  minute phone call.
• There is no fee for small facility
  interconnection.
• Larger facilities require a negotiated agreement.
• The customer is responsible for facilities costs.

11
PURCHASED POWER AGREEMENTS

• Purchased power agreements are managed on an
  economic basis.
• The utility receives only cost recovery.
• Although there are different types of agreements
  they are fairly standard and there are no
  impediments for renewable energy other than price.

12
NET METERING

• Net Metering is as easy as interconnection.
• Net metering rates are set forth in DE-Ohios
  tariff.
• Interconnection costs, if any, must be paid over
  36 months.

13
DE-OHIO AND RENEWABLES

• DE-Ohio has a renewable request for proposal to
  satisfy its short term advanced energy mandates.
• DE-Ohio would like to develop renewable capacity
  in Ohio.
• DE-Ohios affiliates have over 6000 MW of wind in
  development all over the country, including 1000
  MW in Indian that is able to provide energy to
  Ohio.

14
DE-OHIO AND RENEWABLES

• DE-Carolina is rolling out a solar program to
  place solar panels on rooftops.
• DE-Ohio has a similar solar pilot and would like
  to develop an Ohio program and perhaps add
  geothermal and wind facilities where applicable.
• If the ITC is extended and made applicable to
  utilities that will help.

15
QUESTIONS?