Renewable Energy

1
Renewable Energys Future in New England Does
the Customer Matter Anymore???New England
Restructuring RoundtableBoston,
MassachusettsSeptember 17, 2010
2
Quick Facts about TransCanada in Northeast

• New England
• 13 hydro stations on CT and Deerfield Rivers
• 600 MW Ocean State Power
• 132 MW Kibby Wind Power Project
• New York City
• 2480 MW Ravenswood
• Provide retail and wholesale power for load
  service
• Retail service to nearly 200
  municipalities, 80 hospitals, 40 colleges /
  universities, hundreds of
• other large commercial and industrial customers
  

3
Kibby Wind Power Project

• 132 MW wind project in NW Maine
• First phase (1/2) on line
• 44 3 MW Vestas turbines
• Category 5 wind regime
• 320 Million investment
• Jobs 250 at peak 10 12 permanent

4
Massachusetts Green Communities Act

• Established new, on-site renewable requirement
• States DoER mandated 400 MW solar PV
• Cost from 30/kWh floor to 60/kWh cap
• Cumulative program cost from 1.4 to 2.7 Billion
• Solar installations must be in Massachusetts
• Starts in 2010, impacted existing retail
  contracts
• Ordered utilities to contract long term for 3 of
  energy demand from new renewables built in
  Massachusetts

5
TransCanada Federal Lawsuit

• Alleged violation of U.S. Constitution Commerce
  Clause
• Commerce Clause prevents states from creating
  protectionist barriers
• Discrimination under the Commerce Clause means
  differential treatment of in-state and
  out-of-state economic interests that benefits the
  former and burdens the latter
• First Circuit Court of Appeals

6
Economics of State Renewable Initiatives
7
Erosion of Choice, Unbundling, Restructuring?

• If we had to charge everybody on the standard
  offer, everybody would leave the standard offer
  and wed have nobody to recover the costs, and
  thats why its done that way with the
  distribution charges.
• National Grid explaining the rate
• treatment of the Deepwater Wind
• costs in Rhode Island, Deepwater
• Wind contract hearings, August 4, 2010

8
Solar Photovoltaic Siting
9
Should state energy mandates have solid economic
basis?

• Needed for stability, transparency, efficiency
• Every business has an investment criteria
• Internal rate of return, payback period, net
  present value, profitability index
• DPU has long-standing approval standard for
  contracts likely to result in net savings for
  customers
• Carbon and renewable values have been monetized
  by RGGI and RPS
• Why should the customer pay far more than value
  received????

10

• Thank you !