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Board Briefing: Successor to Net Energy Metering

June 24, 2020

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L O N G I S L A N D D I S T R I B U T E D S O L A R TO E X C E E D G O A L

Successor to Net Metering Briefing – June 2020

0

250

500

750

1000

1250

2000 2005 2010 2015 2020 2025

Tota

l Meg

awat

ts In

stal

led

Capa

city

(DC)

Long Island’s share of New York’s 2025

goal is 750 MWAt the current

pace, we will exceed our

goal in 2021

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THE CHALLENGE

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N E T M E T E R I N G S H I F T S C O S T S T O O T H E R C U S T O M E R S

Successor to Net Metering Briefing – June 2020

$40$46

$52$59

$65$72

$80$87

$95$103

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Mill

ions

Cost Impacts of Behind-the-Meter Solar

Avoided Cost of PowerSupply (Market)

Avoided Distribution Costs(Theoretical)

Cost Shift toNon-Participants

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PROGRESS TOWARD A SOLUTION

Successor to Net Metering Briefing – June 2020

April 2014 New York Reforming the Energy Vision (REV) launched

December 2015 Successor to net metering proceeding commenced

March 2017 PSC issues VDER Phase 1

December 2017 LIPA adopts VDER Phase 1

2018 – 2019 VDER Refinements

December 2019 DPS issues successor to net metering white paper

Feb - March 2020 Stakeholders comment on DPS white paper

June 2020 LIPA Board briefing on DPS white paperLate 2020 Final PSC order expected

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RATES FUND IMPORTANT PUBLIC BENEFITS

1. Utility rates fund important public benefit programs2. Net metering customers on volumetric rates shift the

cost of these programs to other customers3. All customers should contribute to these programs

LIPA/PSEG Long Island Program Expected 2021 contributions by mass market customers

Low-income customer discounts $7.2 million

Energy efficiency and beneficial electrification programs

$41.4 million

Grid clean energy and batteries $35.9 million

Successor to Net Metering Briefing – June 2020

DPS Findings

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1. Utility rates fund important public benefit programs2. Net metering customers on volumetric rates shift the

cost of these programs to other customers3. All customers should contribute to these programs

Central Hudson

Con Edison

National Grid NYSEG O&R RG&E

LIPA/PSEG-LI

Residential $ 5.53 $ 6.54 $ 5.72 $ 4.15 $ 5.56 $ 5.05 $ 6.01

Small Commercial $ 5.03 $ 6.60 $ 6.07 $ 4.34 $ 5.54 $ 5.00 $ 6.05

Monthly public benefit cost shift per customer(6 kW solar system)

Successor to Net Metering Briefing – June 2020

DPS Findings

RATES FUND IMPORTANT PUBLIC BENEFITS

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THE SOLUTION

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CUSTOMER BENEFIT CONTRIBUTION

“Customer Benefit Contribution” charge• Fixed monthly charge• Based on the size of the solar PV system• Recovers cost of public benefit programs

DPS Findings1. Utility rates fund important public benefit programs2. Net metering customers on volumetric rates shift

the cost of these programs to other customers3. All customers should contribute to these programs

DPS Proposed Solution

Successor to Net Metering Briefing – June 2020

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CUSTOMER BENEFIT CONTRIBUTION

$1.09

$1.00

$0.95

$0.93

$0.92

$0.84

$0.69

$0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20

CON EDISON

LIPA/PSEG LI

NATIONAL GRID

O&R

CENTRAL HUDSON

RG&E

NYSEG

Monthly Residential Customer Benefit Contribution (per kW)

(illustrative - not yet proposed)

Successor to Net Metering Briefing – June 2020

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PUBLIC PARTICIPATION AND NEXT STEPS

Highlights of open items before PSC

1. Application of Customer Benefit Contribution to different customer classes

2. Grandfathering of existing net metering customers3. Timeline for future additions of other fixed costs

Next steps 1. PSC Order expected later in 20202. LIPA Board proposal and comments

Successor to Net Metering Briefing – June 2020

DPS Public process

1. Working groups open to all stakeholders2. White paper issued December 20193. Comments received February – March 2020, from

20+ groups representing solar industry, utilities, consumers, and environmental interests

Questions?

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THANK YOU