LREC/ZREC YEAR 3 RFP Bidder Meeting May 5, 2014 1 Program Overview - - PowerPoint PPT Presentation

LREC/ZREC YEAR 3 RFP

Bidder Meeting May 5, 2014

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Program Overview

CL&P Christie Bradway Denae Corcoran Laura Stilwell UI Gary Zielanski

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In the event of any inconsistency between the provisions of the LREC/ZREC RFP or any part this presentation, the provisions of the Standard Contract are controlling. Applicants should review the Standard Contract and all associated documents thoroughly and submit their Bids based upon the Standard Contract, which will solely govern the transactions between the selected Bidder and their counterparty Company through the term of the resulting contract.

Standard Contract is the Controlling Document

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Procurement Processes

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1) Competitive Solicitation - (RFP) 2) Small ZREC Tariff

Project Type Size Annual Budget Renewable Energy Credit Price Cap Large ZRECs ≥250 kW to 1,000 kW Approximately $2.7 M

• Max. $302.71/REC

Medium ZRECs >100 kW < 250 kW Approximately $2.7 M

• Max. $302.71/REC

LRECs Up to 2,000 kW $4 M

• Max. $200/REC

Project Type Size Annual Budget Renewable Energy Credit Price Small ZRECs Up to 100 kW Approximately $2.7 M Weighted Average of the Medium ZREC price + 10% up to $302.71/REC

 General Project Eligibility Criteria  Must be eligible to qualify as Class I renewable energy project  Must be located behind contracting utility distribution meter  Must not have received funding/grants from Clean Energy Finance Investment Authority, or its predecessor the CT Clean Energy Fund (other than low cost financing)  Projects must be in service on, or after, July 1, 2011  Must certify site control

LREC & ZREC Eligibility

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 LRECs  No larger than 2,000 kW  Must have low emissions  <0.07 lbs/MWh NOx; <0.10 lbs/MWh CO; 0.02 lb/MWh VOCs, 1 grain per 100 standard cubic feet  May include fuel cells and other low emission Class I resources, as well as all zero emission Class I resources  ZRECs  No larger than 1,000 kW  Must have zero emissions  May include solar, hydro and wind

LREC & ZREC Eligibility

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 The contract price of RECs from Zero Emission units is capped at $302.71/REC

 Example 1: 200 kW Solar System ~ 311 RECs/year  Annual Payment ~ $46,650  $150/REC x 311 RECs/year ~$46,650  Total Payment over 15 years ~ $699,750

 The contract price of RECs from Low Emission units is capped at $200/REC

 Example 2: 400 kW Fuel Cell ~ 3,312 RECs/year  Annual Payment ~ $264,960  $80/REC x 3,312 ~ $264,960  Total Payment over 15 years ~ $4.0M  Examples show sample REC prices. The market will set actual REC prices.

Quantity & Value of RECs

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Budget & Commitment Schedule

Year #1 Year #2 Year #3

CL&P & UI Program Results

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Category Size Total # Projects Selected (To Date) Avg $/REC (CL&P) Year 1 Avg $/REC (CL&P) Year 2 Total # UI Projects Selected (To Date) Weighted Avg $/REC (UI) Year 1 Weighted Avg $/REC (UI) Year 2 LRECs Up to 2 MW 22 $66 $57 (↓14%) 8 $51.08 $49.43(↓3%) Large ZRECs 250 – 1,000 kW 39 $101 $77 (↓24%) 10 $117.27 $90.43(↓23%) Medium ZRECs +100 – 250 kW 106 $149 $94 (↓37%) 37 $135.36 $102.31(↓24%) Small ZRECs 0 – 100 kW 420 $164.22 $103.01 (↓37%) 77 $148.89 $112.54(↓24%) Total 587 132 All programs have been oversubscribed to date

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Request for Proposals (RFP)

 RFP covers LREC Projects and ZREC Projects >100 kW

 Small ZREC Projects are not covered by this RFP  Third year of Small ZREC program will commence after PURA decision approving Year 3 Medium ZREC contracts & Year 3 Small ZREC rates

 Open to customers and developers  Projects will be selected, and utilities will enter into 15 year contracts to purchase the ZRECs and LRECs from selected projects  Key Program Documents:

 RFP, Standard Contract, Solicitation Plan, PURA Decision – Docket 11-12-06, Question and Answer Document (updated periodically)

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Year 3 RFP Schedule

ACTION ITEM DATE RELEASE OF RFP APRIL 24, 2014 BIDDERS CONFERENCE MAY 5, 2014 DEADLINE FOR SUBMISSION OF QUESTIONS MAY 16, 2014 BID FORMS DUE JUNE 5, 2014 BY 1:00 P.M. (EASTERN PREVAILING TIME “EPT”), AT

WHICH TIME THE PRICING SHALL BECOME FIRM, IRREVOCABLE AND BINDING.

SELECTION AND NOTIFICATION OF WINNING BIDDERS ON OR ABOUT JULY 17, 2014 STANDARD CONTRACTS EXECUTION & PROVISION OF PERFORMANCE ASSURANCE AFTER SELECTION AND NOTIFICATION OF WINNING BIDDERS. BIDDERS

WILL HAVE TO RETURN PARTIALLY EXECUTED CONTRACTS AND

PERFORMANCE ASSURANCE BY THE DATE ESTABLISHED BY THE COMPANIES WHICH IS EXPECTED TO BE APPROXIMATELY 10 BUSINESS

DAYS AFTER TRANSMITTAL OF EXECUTION VERSION OF STANDARD

CONTRACT. STANDARD CONTRACT(S) FILED WITH PURA FOLLOWING SELECTION OF WINNING BIDDER(S) AND EXECUTION OF STANDARD CONTRACTS DURING EACH ROUND. COMMENCEMENT OF SERVICE IN ACCORDANCE WITH STANDARD CONTRACTS

Key changes for Year 3 RFP

 Performance Assurance due at the same time as the Partially Executed Contract  NEW Bid Certification Form (4 pages including affidavit)  ZREC price cap = $302.71  20% PA return

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Instructions for Bid Submission and Contract Execution/Management

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How to submit a bid for the LREC/ ZREC program

Step 1

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Bid Process

 Complete & Submit Bid Form Online

 For CL&P: www.cl-p.com/rec  For UI: www.uinet.com/powerprocurement, click on RFP for LRECs and ZRECs (April 24, 2014)

 Certifications, Affidavits, and Disclosures

 Bid Certification Form (4 pages including affidavit - mandatory)  LREC/ZREC CT Licensed Professional Engineer (PE) Certification  Pending CEFIA Grant and/or Rebate Disclosure Statement  CT Manufactured, Researched or Developed Affidavits

 The Companies online Bidding systems will acknowledge receipt of Bid and provide you with an individual Bid ID.

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CL&P Bid Form

 CL&P Bid Form:  Form is filled out online  Contains information needed for  Bid qualification and evaluation  Completion of Standard Contract  Additional form(s) (i.e., Certifications, Affidavits, and/or Disclosures, as applicable) will be required to be submitted as part of the bid process. *There will be a demonstration of CL&P’s online Bid Form today.

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UI Bid Form

 UI Bid Form:  Online Bid Form that you will fill out and submit electronically  Additional form(s) will be required to be submitted via email in addition to the bid  Submitted to lrec.zrec@uinet.com  User assigned Bid ID number in forms  Double check and triple check to avoid errors which may invalidate the Bid Form *There will be a demonstration UI’s online Bid Form today.

Bid Certification Form

 4 Page Certification Form

 Page 1: Instructions  Page 2: Bidder Signature - Bidder is defined as the individual or business submitting a proposal (“Bid”)  Page 3: Contract Counterparty Signature - Contract Counterparty is defined as the legal entity desiring to enter into a Standard Contract  Page 4: Owner of the Project Site Signature - Owner of the Project Site is defined as the legal owner of the Project site (Notarized Affidavit)

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Affidavits for CT M/R/D Generation Technologies

 Two affidavits required (if seeking M/R/D designation):  Bidder affidavit that project uses CT Manufactured, Researched or Developed Generation Technologies

 Must constitute no less than 50% of the total value of Generation Technology to be used by its’ project.

 Technology supplier’s affidavit that it supplies CT Manufactured, Researched or Developed Generation Technologies  Amended R & D definition in RFP

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PE Certification

 LREC/ZREC CT Licensed Professional Engineer (PE) Certification

 PE Certification only required if:

 seeking alternate capacity factor  not using 1 of the technologies with a capacity factor defined in the IRP  one bid combines multiple technologies

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Selection Process

 ONLY Completed Bids received will be reviewed to ensure eligibility  Eligible bids will be ranked by evaluated bid price in each of the three categories  Contracts will be awarded until funding is exhausted in each category  Eligible bids not selected will be placed on standby

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How to proceed if your Bid is selected

Step 2

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 NEW: Partially Executed Contract AND Performance Assurance due back within 10 Business days  Performance Assurance due back at the same time as the Partially Executed Contract

RFP Year 3 Change

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If Your Bid is Selected

 Partially Executed Standard Contract & Provide Performance Assurance  Company will email you an executable version of the Standard Contract  Partially executed contract must be received by Company by the Effective Date of Standard Contract, or project is disqualified  Performance Assurance must be received by Company by the Effective Date

• f Standard Contract, or it automatically terminates

 Amount of Performance Assurance will be listed on the Cover Sheet of the Standard Contract (Section 9.1)  Company will return a fully executed contract

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Sample Performance Assurance Calculations

 MAQ x Contract Price x [10% for Med/20% for Lg/LREC]  Example 1: 175 kW solar PV (Med ZREC) project

 272 RECs x $120.00/REC x 10% = $3,264.00

 Example 2: 600 kW solar PV (Lg ZREC) project

 932 RECs x $90.00/REC x 20% = $16,776.00

 Example 3: 1 MW fuel cell (LREC) project

 8,279 RECs x $50.00 x 20% = $82,790.00

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 Both companies have detailed instructions for how to successfully provide Performance Assurance  Acceptable forms of Performance Assurance

 Cash (electronic) Please note that ACH payments take longer to process than Wire Transfers. Please plan accordingly for receipt by Company on or before the due date.  Bank Check or Cashier’s Check (personal or business check not accepted)  Letter of Credit  Surety Bond

Performance Assurance

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Post-execution obligations: How to get from a contract to commercial operation

Step 3

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Prerequisites for REC Purchase

(Also refer to Section 4 of Standard Contract)

 Must meet all Project Eligibility Requirements, Plus:  In service and producing CT Class I RECs  CT PURA rules require you submit a separate application to PURA for CT Class I Qualification after your project is in service  In service no later than 1 year after selected Delivery Term Start Date (1/1/15, 4/1/15, 7/1/15, 10/1/15)  Must have a functioning, dedicated REC meter  Metering requirements (to be discussed later)  Interconnection Agreement required (to be discussed later)  NEPOOL GIS registration

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NEPOOL Generation Information System (GIS)

 Must set up GIS account or outsource GIS set up and maintenance  GIS requires Class I Approval  Prerequisite for purchase: Seller initiates Forward Certificate Transfer of RECs in GIS  GIS rules are available from NEPOOL GIS (APX)  Please go to GIS website - www.nepoolgis.com

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Contract administration: The 15 year Delivery Term

Step 4

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Contract Administration

 15 Year Contract

 Same rate, quarterly payments vary based on number of REC’s delivered

 Companies will upload REC Meter Data  NEPOOL GIS REC transfers constitute delivery

 Forward Certificate Transfer

 Payments from Company to Counterparty on or before the last day of the month following receipt of RECs by Company via NEPOOL GIS

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NEPOOL GIS

Utility Meter Reading RECs Created

NEPOOL GIS

Seller’s Account Utility’s Account Seller Utility

Verification& Settlement & Verification

$

RECs

NEPOOL GIS Transfer Schedule

 Transfer of RECs in GIS

 From Seller’s account to the Utility’s account

 Schedule of REC production, transfer and payment

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Payment ~ On or before Creation Date/ last day of month Transfer Date following delivery month Q1 (Jan, Feb, Mar) 7/15/2014 8/31/2014 Q2 (Apr, May, Jun) 10/15/2014 11/30/2014 Q3 (Jul, Aug, Sep) 1/15/2015 2/28/2015 Q4 (Oct, Nov, Dec) 4/15/2015 5/31/2015

Other Contract Provisions

 Assignment of the contract in accordance with contract provisions is permitted

 Please refer to Article 11

 Requires Notice to Company  Company has 30 days to review and approve/reject

 Excess REC Options:

 Sell to 3rd party  “Bank” RECs to meet next year’s MAQ  Excess RECs may be sold to utility with both parties’ consent

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 NEW Section 9.2.1

 If, in accordance with Article 14, Buyer receives notice and request for voluntary termination of this Agreement from Seller prior to the selected Delivery Term Start Date as specified on the Cover Sheet, then, provided that an event of default by Seller is not then existing, Buyer will return to Seller twenty percent (20%)

• f the amount of Performance Assurance originally provided to
• Buyer. The agreement shall be deemed terminated as of the date

Buyer receives such notice.

Other Contract Provisions continued

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Contact Email and Websites

 Please submit questions to:

 CL&P = LREC.ZREC@NU.COM  UI = lrec.zrec@uinet.com

 Please visit LREC/ZREC Websites at:

 CL&P = www.cl-p.com/rec  UI = www.uinet.com/powerprocurement, click on “RFP for LRECs and ZRECs (April 24, 2014)”

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Bid Form Demonstrations

UI Bid Form Demonstration CL&P Bid Form Demonstration

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Generator Interconnection Process

CL&P – Joseph Debs UI – Nic Baldenko

 Collaborated efforts over the past 10 years on lessons learned  CL&P & UI follow the same process and technical guidelines  Guidelines approved by Public Utility Regulatory Authority (PURA)  Guidelines are based on the Federal Energy Regulatory Commission (FERC) Small Generator Interconnection Process (SGIP) model

Combined Efforts

Joint Successes

Distributed Generation 2005-2013

Type CL&P UI TOTAL

CHP

112 MW 41 MW 153 MW

Photovoltaic

62 MW 13 MW 75 MW

Fuel Cells

13 MW 17 MW 30 MW

Others

115 MW 36 MW 151 MW

Total MW(connected)

302 MW 107 MW 409 MW

Total Projects

4037 780 4817

 To safely and reliably interconnect generation  To identify the impact a generator may have on the Distribution System  To identify upgrades and costs related to interconnections

Purpose of Guidelines

 Certified inverter based: < 10kW  Fast Track Process: < 2MW  Study Process: over 2MW

Three Tracks

Generator Interconnection Process Key Attributes 10 kW or Less

Process Rating Time (Business

Days)

Application Fees Witness Test Fee Liability Insurance

Inverter Based 0-10 kw 15 $100 1st Test $300,000

Process Timeline 10 kW

COMPLETENESS OF APPLICATION RECEIVED CONTINGENT APPROVAL NOTIFICATION SCHEDULE WITNESS AND TEST AND INSTALL NET METER APPROVAL TO ENERGIZE 10 BUSINESS DAYS 15 BUSINESS DAYS FROM COMPLETE APPLICATION 10 BUSINESS DAYS FROM TOWN INSPECTION APPROVAL

APPROXIMATE 30 BUSINESS DAY APPROVAL PROCESS

APPLICATION RECEIPT NOTIFICATION 3 BUSINESS DAYS Submit Application

• The Application One line diagram
• Layout Diagram Proof of Insurance
• Inverter Data sheet Application Fee $100

Additional Paper Work

• Test Plan for battery operated inverters
• Inspector Approval
• witness Test
• Install Net Meter

Fast Track & Study Process Map

Application Submittal Application Request Complete Customer submits all information Application Withdrawn

No No

Inverter based & Certified ≤2 MW Passes Screen Conduct Application Review (30 Business Days)

No

Customer installs generator and returns certificate of completion to EDC Generator => 5 MW Customer Signs IA & authorizes EDC modification EDC issues final approval to energize. Witness Commissioning Test

Yes Yes Yes No

Studies Required

No No Yes Yes

Studies Completed

Yes No

Conduct Application Review (15 Business Days)

Yes Yes

Conduct Studies as appropriate: 1-Feasibility Study 2-Impact Study 3- Facility Study 4- Transmission Studies ISO-NE Generator Interconnection Process (I.3.9 )

Fast Track Key Attributes

Process Rating Time (Business Days) Application Fees Witness Test Fee Liability Insurance Fast Track 0-2 MW 15 $500 Cost Based $300,000 to $2,000,000

 Meet all the screen requirements  Generators which do not meet the Fast Track requirements may require additional studies  ISO-NE notification form for projects >1MW  Interconnection agreement required

Fast Track Approval Process

COMPLETENESS OF APPLICATION RECEIVED CONTINGENT APPROVAL INSTALLATION & WITNESS TEST APPROVAL TO ENERGIZE 10 BUSINESS DAYS 15 BUSINESS DAYS FROM COMPLETE APPLICATION 10 BUSINESS DAYS FROM TOWN INSPECTION APPROVAL APPLICATION RECEIPT NOTIFICATION 3 BUSINESS DAYS Interconnection Agreement (IA)

Submit Application - The Application, One Line diagram, Layout Diagram, Proof of Insurance, Inverter Data sheet, $500 Application Fee Additional Deliverables - Interconnection Agreement, Test Plan, Inspector’s Approval, Witness Test, Net Meter Installation

Study Track Key Attributes

Process Rating Application Fees Witness Test Fee Liability Insurance Study 1) >2 MW and <20 MW 2) 2 MW and not certified. 3) 2 MW, certified, failed Fast Track $1000 Cost Based Generator Size Dependent

 ISO-NE transmission impact studies required for projects >=5MW  Interconnection agreement required

Study Approval Process

APPLICATION REVIEW FEASIBILITY STUDY IMPACT STUDY FACILITY STUDY CONSTRUCTION & WITNESS TEST JURISDICTION DETERMINATION

Submit Application - The Application, One Line diagram, Layout Diagram, Proof of Insurance, Generator Data Sheet, $1,000 Application Fee

30 BUSINESS DAYS 15 BUSINESS DAYS 30 BUSINESS DAYS 30 BUSINESS DAYS APPROVAL TO ENERGIZE

Additional Deliverables - Interconnection Agreement, Test Plan, Inspector’s Approval, Witness Test, Net Meter Installation

IA

Application  Guidelines  Complete Application  Application Signature  Insurance  Technical data sheets  Number of inverters / Generation  Utility account and/or meter number  Ownership  Property  Third party ownership of generator

Keys to a successful interconnection

Technical  Exhibit B of the Guidelines  Electrical One-Line diagram with standard symbols and labels  Timely communication and data transfer  Receive contingent approval prior to construction  Disconnect switch  Compliance with meter and service requirements  Detailed sequence of operation and test plan  Provide detailed relaying information when required

Keys to a successful interconnection

CL&P /UI

Guidelines for Generator Interconnection

For Interconnection Questions please contact:

CL&P: distributed_resources@nu.com UI: generator.connection@uinet.com

Thank you

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CL&P Data Collection, and Metering Requirements for LRECs & ZRECs Steven Osuch – CL&P Meter Engineering

 CL&P Metering Requirements  CL&P Review Process  Goal of CL&P Review Process

Contents

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 High level requirements:  Facilities will purchase and install their own meter as specified within the CL&P REC Meter Specifications as well as the List of Acceptable Meters. Both can be found at http://www.cl-p.com/rec  Design with communications in mind

 Communications method will be specified with the meter type for your project  If we cannot communicate with the meter this may require a design change  Procurement will be following the review by the CL&P Meter Engineering group

 CL&P will assist procurement by providing vendor contact information as well as product keys

CL&P Metering Requirements

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CL&P Metering Requirements

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Facility Size Meter Group Level 1 0.0-19.9kW A,B,C Level 2 20.0-49.9 kW A,B,C Level 3 50.0-100.00 kW A,B,C Level 4 101kW to 999.9 kW* B,C Level 4 (LREC only) 1MW to 2 MW* C

Form Manufacturer/Model NU Product Key Class Communications

Group A *2S,12S,16S

Centron 3 ERT

CxSLZREC 200/320 High powered ERT *5S,9S

Centron 3 ERT

CxSLZREC 20 High powered ERT

2S,3S,4S,12S

L+G with Metrum Focus AXxSMD 200/320 Cell

3S,4S

L+G with Metrum Focus AXxSMD 20 Cell Group B 9S ,16S Itron/L+G with Metrum Varies 20/200/320 Cell Panel mount Ion/7330

P7330A0B0B0M1A0A-AA150

20 Ethernet, Analog Phone Group C *9S, Panel Ion/8600 Provide during review 20 Ethernet, Analog Phone * Other forms may be available upon request

Meter types, manufacturers and communications are subject to change

 Similar to the interconnection review  You contact your interconnection project manager from CL&P to coordinate the review.

 Please do not contact specific individuals to complete a review unless they have been assigned to your project.  Reviews cannot be completed if multiple projects are aggregated into one submission/email

 We will assign a meter type when you initiate the process.  We will then require cut sheets, one-lines, three-lines, etc.

 We must be able to electrically see the entire system from the panels to the street

 This includes the inverter, the REC meter, the customers main breaker, the customer loads, and the CL&P revenue meter  You must clearly show the location of any other REC facilities behind one CL&P Revenue meter

CL&P Review Process

Goal of the CL&P Review Process

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Goal of the CL&P Review Process

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Rates and Riders for Customers with Distributed Generation

Marc Colca (UI) Ed Davis (CL&P)

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 Electric distribution company customers hosting a distributed generation (DG) project receive electric service under an applicable general service rate and may be eligible for a number of rate options:

 Net Energy Billing  Distributed Generation Rider  Virtual Net Metering  Power Purchase

Electric Service Rates and Riders

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 Two Net Energy Billing Riders

 Class I Renewable Energy and Hydropower Resources  Qualifying Facilities and NON-Class I Renewable Resources

Net Energy Billing

(“Net Metering”)

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 Class I Renewable Energy and Hydropower Resources  Up to 2,000 kW nameplate capacity  Billing based upon customer’s electric service tariff  Net energy billing and “banking” of excess net energy production (killowatt-hours or kWh) performed monthly  Annual end-of-period credit for any unused banked kWh  Riders

 CL&P: “Rider N – Class I Renewable or Hydroelectric”  UI: “Class I Renewable Energy Rider NEC1” (Rider NEC1)

 Customers with Class I Renewable Energy and Hydropower Resources (continued)

 Additional Details

 Annual Banking and Credits

 At the end of each annual period (April through March):

 Any unused, banked kWh will be “purchased” at the average ISO-NE CT Zone real-time locational marginal price (“LMP”) of that period  Purchase Price

 PV: Average annual LMP (all hours between 10 am and 4 pm)  Other resources: Average annual LMP (all hours)

 Bank reset to zero kWh

Net Energy Billing

(continued)

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 Qualifying Facilities and NON-Class I Renewable Resources  Nameplate capacity of up to

 50 kW Qualifying Facilities  500 kW Non-Class I Renewable Resources

 Billing based upon customer’s electric tariff  Net Energy billing performed and credit applied for excess energy delivered to EDC on a monthly basis  Pricing based on power purchase schedule  Riders:

 CL&P: “Rider N - Non-Class I Renewable and QF”  UI: “Distributed Generation Facility Net Energy Rider NE” (Rider NE)

Net Energy Billing

(continued)

 Electric DG Rider

 Applicable to customers who receive electric service under a firm service rate that includes a distribution demand ratchet  Subject to enrollment and qualification requirements  Provides for waiver of the distirbution demand ratchet  Applicable rate schedules

 CL&P: Distributed Generation Rider  UI: Rider DG

 Gas Distributed Generation (DG) Delivery Rebate Rider

 Available to customers under specified gas service rebates  Subject to enrollment and qualification requirements  Provides rebate of delivery service charges for the DG system  Comparable rate schedules for CNG, SCG and Yankee Gas

Distributed Generation Riders

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The Virtual Net Metering (VNM) Rider program has been expanded to include Agricultural, Municipal and State customers (Public Act 13-298) Under Docket No. 13-08-14 a technical meeting was held and working group was formed to address program specifics and administrative processes. The EDC’s submitted proposed VNM riders on February 3, 2014. Program features include:  Facilities up to 3 MW Class I (all) or Class III (Municipal & State)  VNM Credit Determined Monthly VNM Credit = (Excess kWh of Host) x (SS or LRS rate + % T & D)  Allocations of VNM Credits to Beneficial Accounts

 Municipal & State: 5 Municipal or State + 5 Non-State or Municipal Critical Facilities Connected to Microgrid Agricultural: Up to 10 Beneficial Accounts (Agricultural, Municipal or non-commercial critical facility)

Virtual Net Metering - Implementing Changes from PA 13-298

 Unassigned VNM Credits

 VNM credits for unused excess kWh, if any, are calculated monthly at rates for the applicable generation service plus a declining percentage of T & D components of service of the Host Account  Customer Host account compensated at end of calendar year

 Annual VNM Credits

 The maximum, aggregated annual compensation to all customers under the VNM program is $2 million for UI and $8 million for CL&P  Maximum of 40% (e.g., CL&P: $3.2 M) per classification  Individual Customer Host annual caps assigned at the time of enrollment  If during a calendar year an individual Customer Host’s annual cap is reached, net energy billing continues and all excess kWh produced is compensated under the applicable power purchase rate for the remainder of the year

Virtual Net Metering

(continued)

 Available to any self-generation facility not under long-term electric purchase agreement  Purchase of electricity delivered to EDC  Energy (kWh) only  Pricing based on ISO-NE CT Zone Real-Time LMP  Applicable rate schedules:  CL&P: Rate 980  UI: Power purchased at SG2 rate (energy component of LMP only) Questions?

Power Purchase Rates

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