Community Solar Update Jeff Karloff Division Manager Production - - PowerPoint PPT Presentation

Community Solar Update

12/14/2017

Jeff Karloff

Division Manager Production Engineering, Fuels and Renewables

1

Community Solar

• Objective
• Design Principles
• Customer Market Research
• Request for Proposals
• Customer Solicitation
• Next Steps

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Objective

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Develop a Community Solar Program (CSP) that will provide a solar option for all customer classes. Design program fully funded by participating customers to ensure five-year no general rate increase. Meet OPPD’s mission to provide affordable, reliable, and environmentally sensitive energy services.

Design Principles

• Avoid cost shifting to non-participants
• Make available to all customer classes
• Simple to explain
• Transparent and based on actual results
• Use learnings to inform future Distributed Energy

Resources (DER’s) pricing options

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Qualitative Market Research

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Stakeholder workshop findings:

• Simple, transparent, and availability to all customers is important
• Customer demand is high
• Project size is not critical
• Visibility may be physical or virtual
• Affordability and educational value is needed

Customer Power Panel findings: (Phase I)

• Indication of higher interest from environmental advocates and higher

income customers

Quantitative Market Research

Customer Power Panel findings: (Phase 2)

• Pay-As-You-Go model preferred over Pay Upfront model
• Interest level showed little change across price levels tested
• With a bill increase of 15% or 20%, about 15% of those surveyed indicated

a likelihood to participate

• Participation terms not critical
• Physical location not critical
• Of those surveyed, 53% felt that program should be funded by program

participants, while 38% felt it should be funded by all customers.

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Proposal Details

• Locations considered

– I-80 rest area near Gretna – City of Fort Calhoun – Bellevue landfill

• Ten developers over 100 proposals
• Electrical interconnection costs will be

added to RFP prices

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Pricing methodologies considered

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• Avoided Cost
• Embedded Cost Methodology
• Solar Valuation Methodology

Peak distributed solar PV generation does not offset OPPD’s peak demand

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500 1,000 1,500 2,000 2,500 H1 H2 H3 H4 H5 H6 H7 H8 H9 H10 H11 H12 H13 H14 H15 H16 H17 H18 H19 H20 H21 H22 H23 H24

OPPD System Load Shape Vs. Omaha Center Solar Tracker

OPPD System (MW) 8/11/16 Solar Tracker (W) 8/11/16

Proposed Program Components

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• Refundable deposit
• Contract term – three, five or ten year

contract

• Develop contract minimum & maximum
• Transferrable within the service territory
• Terms may differ by customer class

Customer Acquisition Strategy

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• Develop Acquisition strategies for:

– Residential – Commercial & Industrial (C&I)

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Next Steps

• Q1 2018

– Present business case and formula rate to Board of Directors