On
LIMITATIONS ON
The Act limits participation in both the Kilowatt Hour Credit NEB Program (35-A
Second, with respect to the Tariff Rate NEB Program, after
DISTRIBUTED SOLAR AND ENERGY STORAGE PROGRAM
The Act also directs the Governor's Energy Office to establish the Distributed Solar and Energy Storage Program (DSES Program), which will obtain and disburse federal funding for the continued growth of distributed solar facilities and energy storage systems in
PUBLIC UTILITIES COMMISSION MAY CONDUCT A NEW DISTRIBUTED GENERATION PROCUREMENT AND ESTABLISH AN OPT-IN PROGRAM
To offset some of the new NEB Program limitations and further incentivize the development of distributed generation, the Act allows the PUC to conduct competitive solicitations to select distributed generation resources to enter into long-term contracts of up to 20 years with investor-owned Transmission and Distribution (T&D) utilities for the procurement of energy or renewable energy credits (RECs). However, the PUC must determine whether to issue a competitive solicitation by
The Act also permits the PUC to consider, develop, and implement an "Opt-in Program" that is designed to reduce NEB Program costs long-term through financial mechanisms and buy-down arrangements, among other means. Of note, the PUC is not required to implement an Opt-in Program and may do so if, after a proceeding to investigate options for opt-in program designs, the PUC determines that such an Opt-in Program is in the public interest and issues a rule governing the program. The PUC must consult with the
QUANTIFYING THE COSTS AND BENEFITS OF THE NEB PROGRAM
To ensure the benefits of distributed generation under the NEB Program are properly identified, the Act requires the PUC to determine, on an annual basis, the Program's costs and benefits. Such benefits may include, among others:
-
Avoided energy, capacity, transmission, and distribution costs
- Demand reduction induced price decreases
- Avoided transmission and distribution line losses
The PUC is then required to allocate the net costs to each T&D utility in
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Mr Jared Des Rosiers
ME 04101
Tel: 2077911100
Fax: 2077911350
E-mail: info@pierceatwood.com
URL: www.pierceatwood.com
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