Title
Resolution - Approval of Cooperative Solar Rate Option Tariff Amendment - I Sterzing
Other Info
Submitted By: Ingmar Sterzing
Department: Rates and Pricing, Power Supply
Financial Impact and Cost/Benefit Considerations:
The virtual net metering for the Cooperative Solar Rate option using the solar energy allocation only offsets energy usage associated with TCOS, Base Power Cost, and Power Cost Adjustment charges and therefore does not have any impact on PEC’s recovery of costs or margins associated with PEC’s distribution system and operations. The energy and attributes associated with unassigned Cooperative Solar Energy Units of the designated solar energy supply shall be retained and used by Cooperative as a portion of PEC’s power supply portfolio and any additional solar energy costs or benefits will be incorporated within the Cooperatives Cost of Power.
Discussion
On December 7, 2015 the PEC board passed a resolution (“Member and Community Solar Power Purchase Agreements”) authorizing the development and acquisition of up to 15 MW electric capacity, energy and other related products from renewable solar photovoltaic distributed generation located within the Cooperative's service territory to reduce exposure to higher cost peak power pricing, mitigate the Cooperative’s transmission cost exposure, and provide solar capacity and energy to use for a member rate option. The Cooperative has successfully executed a sufficient number of distributed solar project Power Purchase Agreements (PPAs) and verified the technical requirements of the Cooperative’s metering and billing systems to propose and establish a Cooperative Solar Rate option.
The Cooperative Solar Rate option will allow eligible PEC members to enroll and subscribe to an allocation of the available solar energy. The member’s solar energy allocation will determine, on a percentage basis, the energy output of the total solar energy output that will be allocated to the member based on actual production. The solar energy allocation will be virtually net metered against the member’s actual total energy usage. The solar energy allocation will only offset TCOS, Base Power Cost, and Power Cost Adjustment charges and will not offset Service Availability Charge, Delivery Charge, or Capacity Demand Charge. The member will be charged a solar power rate for their solar energy allocation.
Since the overall capacity of PEC’s distributed solar projects is limited up to 15 MW, the Cooperative Solar Rate option will be limited to a certain number of allocation units where each unit is approximately equivalent to 100 kWh per month on average monthly basis over a 12 month period. Enrollment in the rate option will be determined by submission to the Cooperative of an application and subject to availability on a first-come, first-serve basis.
This rate requires a twenty four (24) month commitment to purchase a portion of the energy from the solar energy generated by PEC’s distributed solar projects. Subject to availability, an eligible Member will be able to subscribe up to a number of units equivalent to approximately 100% of their average annual monthly usage. The total kWh attributed to the Member is not a fixed amount, but a percentage of total production, and will vary monthly depending on PEC’s total distributed solar project generation.
Body
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF PEDERNALES ELECTRIC COOPERATIVE, INC. that the Cooperative approve these amendments to the Tariff for Electric Service as attached hereto to become effective as of February 1, 2018.
BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, that the Chief Executive Officer, or his designee, is hereby authorized and directed to do any and all such other things, and take such other actions, as the Chief Executive Officer, or his designee, deems necessary or desirable to effectuate the purposes of this resolution.