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  • ☐ Not Public Document – Not For Public Disclosure ☐ Public Document – Not Public (Or Privileged) Data Has Been Excised ☒ Public Document Xcel Energy Docket No.: EL16-037 Response To: SD Public Utilities

    Commission Information Request No. 7-6

    Requestor: Kristen N. Edwards

    Date Received: August 9, 2017 __________________________________________________________________ Question: Refer to the Company’s response to Staff Data Request 5-8.

    a. Explain the Net Metering policy and requirements in Minnesota. b. Provide a list of Net Meter projects by fuel type in Minnesota. c. Provide the cost per MWh for the Net Meter projects in Minnesota. d. Are any costs associated with Minnesota’s Net Meter projects being recovered

    from South Dakota customers through the FCR or base rates? If yes, explain. e. Explain the Made In Minnesota policy and requirements. f. Provide the cost per MWh for the Made In Minnesota projects. g. Are any costs associated with Made In Minnesota projects being recovered

    from South Dakota customers through the FCR or base rates? If yes, explain. Response:

    a. This response provides a high level overview. Please let us know if you have follow-up questions. The small power production, cogeneration and net metering policies for NSP-Minnesota are specified in Section 9, Sheets 1-49 of our Electric Rate Book. Please see Attachment A. In brief, Minnesota Stat. § 216B.164 pertaining to cogeneration and small power production was first enacted in 1981 (Laws of Minnesota for 1981, Chapter 237) pursuant to the Public Utility Regulatory Policy Act of 1978 (Pub. L. 95-617, 92 Stat. 3117, and the Federal Energy Regulatory Commission regulations thereunder, 18 C.F.R. The purpose of the statute was to give the maximum possible encouragement to cogeneration and small power production consistent with the protection of ratepayers and the public. This resulted in a rulemaking in Minnesota that in turn lead to the introduction of Section 9 in our Electric Rate Book.

    1

    Exhibit A Page 1 of 65

  • The statute has been amended several times since first enacted, and in 2013y it was further modified by the Minnesota legislature through an omnibus energy bill. Among the significant changes in the 2013 legislation was a provision that expands net metering eligibility to system less than 1,000 kW. The Minnesota Commission subsequently initiated a rulemaking proceeding to implement the legislative changes (Docket No. E999/R-13-729) and the final rules were adopted by the Minnesota Commission in an Order dated July 17, 2015. This in turn lead to further changes to Section 9 of our Electric Rate Book (Docket No. E002/M-16-222). Some of the key revisions to Section 9 included: • Added net metered facility and qualifying facility (QF) provisions to

    the Uniform Statewide Contract for Cogeneration and Small Power Production Facilities, which now covers systems from 40 kW to less than 1,000 kW,

    • Added new rate codes (A55 and A56) to correspond to a kWh banking option for facilities between 40 kW and less than 1,000 kW, and • Added provisions for meter aggregation consistent with state rules.

    b. Please see table below:

    2

    Exhibit A Page 2 of 65

  • c. The rates paid per kWh for net energy in Minnesota are specified in Section 9 of our Electric Rate Book. Please see Attachment A, Section 9, Sheets 2 – 4.3.

    d. Yes. Based on net-metering data updated as of August, 2017, we estimate that the total amount paid by the Company for about 2,211,600 kWh of excess generation from Minnesota net-metered customers in 2016 was about $218,000. These costs are recovered through each state’s respective fuel clause adjustment. Of the amount paid in 2016, about $11,400 was recovered through the South Dakota fuel cost rider.

    e. Please see Attachment B. f. The rates paid per kWh for Made in Minnesota solar projects are specified in

    Section 9 of our Electric Rate Book. Please see Attachment A, Section 9, Sheets 2 – 4.3.

    g. Please see our response above to part d. __________________________________________________________________ Preparer: Jim Denniston (Part a.)/John Chow (Part d./Jessie Peterson (Parts b., c.,

    e., f., and g.) Title: Assistant General Counsel/Pricing Consultant/ Senior Analyst Department: General Counsel/Regulatory Affairs/DSM Strategy Telephone: 612-215-4656/612-330-7588/612-330-6850 Date: August 16, 2017

    3

    Exhibit A Page 3 of 65

  • Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2

    COGENERATION TABLE OF CONTENTS

    Section No. 5th Revised Sheet No.

    9 TOC

    Date Filed: 03-11-16 By: Christopher B. Clark Effective Date: 07-21-17 President, Northern States Power Company, a Minnesota corporation

    Docket No. E002/M-16-222 Order Date: 05-22-17

    Item Sheet No.

    1. Technical and Special Terms for Cogeneration and Small Power Production ...................... 9-1 2. Excess Generation-Average Retail Utility Energy Service ................................................... 9-2 3. Sale to Company After Customer Self-Use ........................................................................... 9-3 4. Monthly Net Metering ............................................................................................................ 9-4 5. Annual Net Metering (kWh Banking Option) ......................................................................... 9-4.2 5. Rules and Regulations Applicable to Cogeneration and Small Power Production Facilities . 9-5 6. Standard Contract and Agreement Forms ............................................................................ 9-9 7. Uniform Statewide Contract for Cogeneration and Small Power Production Facilities ......... 9-10

    8. Solar*Rewards Customer Contract (Closed to New Applicants) ........................................... 9-13

    9. Solar*Rewards Customer Contract ....................................................................................... 9-33

    10. Solar*Rewards Community Contract for those Receiving Solar*Rewards Incentive ............. 9-50

    11. Assignment of Solar*Rewards Customer Contract ............................................................... 9-60

    12. Assignment of Standard Contract for Solar*Rewards Community ........................................ 9-61.1 13. Assignment of Incentive Payments ....................................................................................... 9-62

    14. Solar*Rewards Community Program .................................................................................... 9-64 15. Standard Contract for Solar*Rewards Community ................................................................ 9-69

    C C C N

    Docket No. EL16-037 Data Request SDPUC-7-006 Attachment A, Page 1 of 59

    Exhibit A Page 4 of 65

  • Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2

    TECHNICAL AND SPECIAL TERMS FOR COGENERATION AND SMALL POWER PRODUCTION

    Section No. 1st Revised Sheet No.

    9 1

    (Continued on Sheet No. 9-1.1)

    Date Filed: 03-11-16 By: Christopher B. Clark Effective Date: 07-21-17 President, Northern States Power Company, a Minnesota corporation

    Docket No. E002/M-16-222 Order Date: 05-22-17

    CAPACITY. The capability to produce, transmit, or deliver electric energy, which is measured by the number of megawatts alternating current at the point of common coupling between a QF or NMF and a utility’s electric system. FIRM POWER. Firm power is energy delivered by a QF or NMF to the utility with at least 65% on peak capacity factor in the billing period. The capacity factor is based upon a QF’s or NMF’s maximum on peak metered capacity delivered to the utility during the billing period. GENERATION SYSTEM. The generation system is the interconnected generator(s), controls, relays, switches, breakers, transformers, inverters and associated wiring and cables, up to the Point of Common Coupling. INDIVIDUAL SYSTEM CAPACITY LIMITS. 1. Customers with a facility of 40-kilowatt AC capacity or more and participating in net metering and net billing may

    be required to limit the total generation capacity of individual distributed generation systems by either: a. for wind generation systems, limiting the total generation system capacity kilowatt alternating current to 120

    percent of the customer's on-site maximum electric demand; or b. for solar photovoltaic and other distributed generation, limiting the total generation system annual energy

    production kilowatt hours alternating current to 120 percent of the customer's on-site annual electric energy consumption.

    2. Limits under paragraph 1.(a) applicable to measuring on-site maximum electric demand must be based on standard 15-minute intervals, measured during the previous 12 calendar months. If a facility subject to the demand limits under paragraph 1.(a) has either less than 12 calendar months of actual electric usage or has no demand metering available, then the means of estimating annual demand or usage for purposes of applying these limits will be based on l