Solar Power Programs (WEEC) November 1, 2012-Nelson

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    Who is EnerVision?Overview

    Management, engineering and technical consulting firm

    Since 1998, an independent employee-owned company

    Primarily serving electric utilities in more than 30 states

    Primary Services

    Alternative Energy Technical Advisor

    Renewable Energy (RE)

    Energy Efficiency (EE)

    Demand Side Management (DSM)

    Demand Response (DR)

    Power Supply

    T & D Technology Services Compliance Services

    Wholesale & Retail Rates

    Management Consulting Services

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    Todays Agenda

    1. Current Renewable Energy Drivers

    2. Georgia Utility Efforts

    3. TVA Utility Initiatives

    4. Florida Utility Activities

    5. Key Utility Issues

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    1. Current Renewable Energy Drivers

    Electric Utility Basic Mission:

    Provide safe,reliable, affordableelectric services to meet customers

    needs and community

    requirements

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    1. Current Renewable Energy Drivers

    Rising Energy Prices/Future Construction Costs Environmental Drivers

    Energy Security/Independence

    Technology Advancements Government Emphasis

    Commercial Customers / Community

    Focus

    Economic Development

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    1. Current Renewable Energy Drivers

    Government Emphasis Federal/state tax incentives

    Renewable production tax credit (PTC) status

    Feed-in tariff options

    Government programs/plans Clean Energy Standard 80% by 2035

    Larger R&D funding

    State energy strategies

    Government facility programs/mandates Renewable Portfolio Standards (RPS)

    Property Assessed Clean Energy (PACE)

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    1. Current Renewable Energy DriversGovernment Emphasis

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    1. Current Renewable Energy Drivers

    Government Emphasis

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    1. Current Renewable Energy Drivers

    Commercial Customer/Community Focus Major green business initiatives

    Cities/communities adopting climate

    change initiatives Coordinated university/college networks

    Wal-Mart Kohls

    Home Depot Google

    Lowes Johnson & Johnson

    General Electric Others

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    1. Current Renewable Energy Drivers

    Economic Development Governments focusing on creation/

    addition of alternative energy jobs

    Consideration of carbon reduction

    strategies with industry recruitment

    More environmental

    considerations

    Focus on clean/greenbusinesses

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    2. Georgia Utility Efforts

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    Current Alternative Energy Strategies Implement State Energy Strategy (SES) 2007 results

    Focus on energy efficiency (EE)

    Focus on biomass/biofuels

    Governor initiates Conserve Georgia 2008

    State government emphasis economic

    development

    Expand renewable energy efforts

    voluntarily

    Focus on EE, DSM, DR, and RE

    No RPS

    2. Overall Georgia State Efforts

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    Green Power EMC Update (Green-e accredited) Since 2001

    Operating renewable resources almost 30 MWs

    Roberts Road Landfill 1 MW

    Taylor County Landfill 4 MWs

    Tallassee Shoals LIHI Hydro 2.3 MWs

    Rabun Gap Wood Waste 16 MWs

    First Century Solar 115 kW

    Taylor County Landfill Expansion 3 MWs

    Wolf Creek Landfill 3 MWs

    Second First Century Solar Project 150 kW Other initiatives

    Sun Power for Schools 33 Solar Projects in operation

    Wind Power for Schools 2 Wind Projects - in operation

    2. Georgia Utility Co-op Efforts

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    2. Georgia Utility - Georgia Power Company (GPC)

    Efforts

    Current Solar Initiatives:

    Green Energy Program- Since 2003

    Current Solar Resources Solar Power (SP) Tariff / Green RFP 5.4 MWs

    Qualifying Facilities (QFs) Avoided Costs 6.2 MWs

    Large Scaled Solar (LSS) 49.9 MWs

    Total Procured / Under Development 61.5 MWs

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    2. Georgia - Utility Georgia Power Company (GPC)

    Efforts

    Georgia Power Advanced Solar Initiative (GPASI)

    Filed 9/26/2012 with GPSC

    Overall 70 MWs Solar For 3 Years (210 MWs Total)

    Part 1: Utility Scale Projects (1 20 MWs)

    60 MWs Per year: 180 MWs Total

    RFP Process To Be Used

    Independent Monitoring

    20 Year PPAs

    Approximately: 12 cents per kWh

    On-Line: 2015-2017

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    2. Georgia Utility - Georgia Power Company (GPC)

    Efforts

    GPASI- Continued

    Part 2: Small Scale Projects (Less Than 1 MWs)

    10 MWs Per Year: 30 MWs Total: 2012-2015

    20 Year PPAs

    Approximately 12 Cents Per kWh

    A. Small- Scale (Less Than 100 kW)

    2.5 MWs per year: 7.5 MWs Total

    B. Medium Scale (100 kW to 1 MW)

    7.5 MWs Per Year: 22.5 MWs Total

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    Georgia Utility

    Other Solar Projects Georgia Solar Utility (GaSU)

    Filed 9/20/2012 with GPSC

    Overall- Seeking Approval For Wholesale / RetailSolar Power Utility Company

    Total Potential: 2,000 MWs- Large Solar Projects

    Initial Project: 80 MWs Solar Project in Putnam County

    Provided High-Level Financial/Business Model Scenarios

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    2. Georgia Solar State Efforts

    Recent Solar/Wind State Incentives

    2011 Georgia Clean Energy Tax Incentive Law(Senate Bill 346 passed)

    Effective July 1, 2011

    Total Tax Incentive Cap:$5 Million Annually

    Tax Incentive Sunset:December 31, 2014

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    2. Georgia Solar State Efforts

    Clean Energy

    Technology

    Residential Property

    Credit Limit (max. 35%

    of cost)

    Commercial Property

    Credit Limit (max. 35%

    of cost)

    Solar Energy Equipmentfor Domestic Water

    Heating

    $2,500 per Dwelling Unit $100,000 per Installation

    Solar Energy Equipment

    for Solar Electric (PV),

    Other Solar Thermal

    Electric Applications or

    Active Space Heating

    $10,500 per Installation $500,000 per Installation

    Wind $10,500 per Installation $500,000 per Installation

    2011 Georgia Clean Energy Tax Incentive Law(Senate Bill 346 passed)

    Administered by GEFA, Georgia Department of Revenue and Georgia Forestry Commission

    Recent Solar/Wind State Incentives

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    2. Georgia Solar State Efforts

    2012 Georgia Solar Legislative

    Activities Senate Bill- SB 401- Introduced/Did Not Pass

    Would Allow Third-Party Power Purchase Agreements (PPAs)

    Assigned to Senate Natural Resources and Environmental Committee

    House Bill- HB 520 Introduced/Did Not Pass Would Modify Provision of Existing 2001 Cogeneration and Distributed

    Generation Act

    Would Change Utility Cap from 0.2% to 2.5% of Utilitys Prior Years

    Peak Demand

    In Committee Reviews

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    3. TVA Utility Initiatives

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    3. TVA Utility Initiatives

    New Integrated Strategic Resource Plan 2011 Internal Clean Energy Goal 50% by 2020 (includes hydro,

    nuclear, renewables, and energy efficiency)

    Nuclear emphasis Watts Bar and Bellefonte units

    Retiring older coal units

    Own/operate generation resources within + or 5% of peakload

    Renewable energy wind / solar expansion

    Expanding energy efficiency / DSM focus

    6,000 MWs by 2020

    Electric vehicle testing ground

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    3. TVA Utility Initiatives

    Current Alternative Energy Strategies Major commitment reduce system peak demand

    1400 MWs by 2012 - $1 billion five-year budget

    Focus on energy efficiency (EE), demand side

    management (DSM), and demand response (DR) New wholesale / retail pricing strategies underway

    Exploring DR technology options

    smart grid

    Develop, implement and measureeffective programs

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    3. TVA Utility Initiatives

    Current Alternative Energy Strategies Continue large scale renewable

    energy (RE) efforts

    Evaluating / implementing

    potential 1300 MWs of wind

    / solar / biomass resources

    Improve customer renewable programs

    Green Power Switch Program

    Generation Partners/ Green Power Providers Program- Less

    Than 50 kW Solar Solutions Initiative- 50 kW to 1 MW

    Renewable Standard Offer Program- Up To 20 MWs

    No RPS desired by TVA

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    3. TVA Utility Initiatives

    Summary of NewNew Green Power Providers

    Program

    Maximum Project Size- Now 50 kW

    Eligible Resources- Solar, Wind, Biomass and Hydro

    Initial $1,000 Incentive Paid Contract Terms- Moved from 10 to 20 Years

    For First 10 Years, Retail Rate Plus Premium

    Old Generation Partners Program Status 722 Projects Existing with 33 MWs in Operation

    472 Projects Approved with Potential 78 MWs of Generation

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    4. Florida Utility Activities

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    Florida Overall Strategy

    Nuclear initiatives FPL / Progress Energy

    Strong natural gas fleet of units

    Revised / expanded DSM goals / programs

    New stronger solar emphasis water

    heating and PV installations

    4. Florida Utility Activities

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    Current Alternative Energy Strategies

    HB 7135 passed/signed June 2008

    Authorized FPL to build 110 MWs of utility solar projects

    Martin Solar Energy Center 2010 CSP 75 MWs

    Desoto Solar Energy Center 2009 PV 25 MWs

    Space Coast Solar Energy Center 2010 PV 10 MWs

    FPSC approves new interconnection/net metering

    standards for IOUs 2008

    Focus on EE, DSM, DR and RE

    Overall goal attempt to impact

    climate change results

    4. Florida Utility Activities

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    New Energy Efficiency Goals 2009(FEECA)

    No specific technology identified

    Utilities, IOU, Co-ops all > 2,000 GWh sales

    2010-2019 FPSC Reduction Goals Overall

    1,937 MW winter peak demand

    3,024 MW summer peak demand

    7,842 GWh annual sales

    4. Florida Utility Activities

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    New Energy Efficiency Goals 2009 (FEECA)(Contd)

    Affects TECO / Gulf Power / FPL / PEF / FPU / JEA/ OUC

    All but FPL / PEF now implementing newEE/DSM programs

    FPL example October 2012

    $9 million of Solar rebatessubscribed within hours of ofannouncement

    4. Florida Utility Activities

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    Interconnection Standards Solar, landfill gas, wind, biomass,

    hydro, geothermal, cogen, hydrogen,anaerobic digestion, small hydro,

    ocean / tidal / wave IOUs only

    Co-ops and munis must file report with PSC

    2 MW capacity limit (3 tiers: 10kW, 100kW,2MW)

    4. Florida Utility Activities

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    Net Metering Solar, landfill gas, wind, biomass, hydro, geothermal,cogen, hydrogen, anaerobic digestion, small hydro,ocean/tidal/wave

    All utilities (including coops)

    2 MW capacity limit

    Net excess generation carried forward forup to 12 months. After 12 months, anyremaining paid at avoided cost.

    RECs owned by customer

    4. Florida Utility Activities

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    4. Florida Utility Activities

    Gainesville Regional Utilities (GRU) Feed-in Tariff

    (FIT)

    GRU wants more solar diversity

    32/kWh for 20 years customer solar PV

    4 MW/year cap Grid connected requirement

    Now installed more than 5MWs

    3 year waiting list backlog

    Less than $1/month average customer impact

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    5. Key Utility Issues

    Electric Utility Basic Mission:

    Provide safe,reliable, affordable

    electric services to meet customersneeds and community requirements

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    Utility level renewable resources co-ops / munis

    G&T / power supply providers options

    Own and operate

    Power purchase options

    Other joint projects, etc.

    Local co-op utility efforts

    Implement renewable resources locally

    Perform demonstrations

    Support members

    Note: Co-ops / munis do not qualify for most

    tax incentives.

    5. Key Utility Issues

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    Member / Customer Level Options

    Utility Programs

    Key Customer Criteria

    Pricing / incentives

    Convenience

    Comparison to other options

    5. Key Utility Issues

    Own / install / maintain Rebates / incentives

    Approved contractors Testing services

    Demonstrations

    Others

    M & V

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    How does your state / local community address renewable

    resources?

    Mandates

    Probable / potential mandates

    Voluntary options

    Little or no interest Potential Promotional Alternatives

    Tax credits / incentives

    RPS / Feed-In Tariffs (FIT) / Others

    Net metering

    Interconnection standards / practices Property Assessed Clean Energy (PACE)

    Third-party PPAs

    5. Key Utility Issues

    Government Policies

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    5. Key Utility Issues

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    5. Key Utility Issues

    Solar Industry

    Costs Technology / markets driving lower prices Subsidies / incentives

    Potential cut backs

    Technology Improvements

    Business Models Changing /Applications Expanding

    Utility programs

    Non-utility activities

    Utility Operations

    Grid Connections / Smart Grid

    Intermittency solar / wind

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