|2016 Integrated Resource Plan Summary|
GA SOLAR’S SUMMARY OF PROVISIONS OF THE
The Georgia Public Service Commission (the “PSC”) entered on August 2, 2016, it’s “Order Adopting Stipulations” (the “Stipulation Order”). In summary, the Stipulation Order adopted the Integrated Resource Plan of 2016 (the “IRP”) filed by Georgia Power Company (“the Company”) as modified pursuant to the stipulation of the same date (the “Stipulation”) [attached are copies of both the Stipulation Order and the Stipulation]. The Stipulation has been contested with regard to the manner in which it addresses solar energy, and at the time of preparing this summary, solar advocates have filed motions (docket #s 164951 and 164953) with the PSC to reconsider portions of the Stipulation.
B. Stipulation Provisions Affecting Georgia’s Solar Industry.
The following is a summary of provisions in the stipulation that directly affect solar energy; in September, GA Solar plans to issue a more formal Position Paper with regard to the Stipulation:
STIPULATION #3.The Renewable Energy Development Initiative ('”REDI”) is approved and shall be increased such that it will procure 1,200 MW:
a. Distributed Generation (DG”): 150 MW, and
b. Utility Scale: 1,050 MW of utility scale resources
Utility scale procurement shall take place through two separate Requests For Proposals (“RFP'”). The first RFP will be issued to the marketplace in 2017 and will seek 525 MW of renewables with in service dates of 2018 and 2019. The second RFP will be issued to the marketplace in 2019 and will seek 525 MW of renewables with in service dates of 2020 and 2021. No more than a total of 300 MW of wind resources shall be procured through REDI. Bid fees for the utility scale solicitation shall be set at five thousand dollars ($5,000) or three hundred dollars per MW ($300/MW), whichever is greater. The cost to implement and administer the REDI program shall be recovered through the fuel clause. Provided, however, that any costs recovery related to the ASI Prime Program in excess of ongoing ASI Prime costs shall be allocated to REDI and shall not be recovered through the fuel clause. All bid fees collected will be credited to the fuel clause.
STIPULATION # 4.
In 2017, the Company shall issue an RFP for 100 MW of DG greater than 1 kW but not more than 3 MW with a commercial operation date of 2018 or 2019. Contract terms will be up to 35 years and solar DG projects must interconnect at Georgia Power's owned distribution system. Bid fees for the DG solicitations shall be set at $4/kW.
STIPULATION # 5.
By the end of 2018, the Company shall procure an additional 50 MWs of customer sited DG projects. Such projects shall be greater than 1 kW but not more th.an 3 MW and must have an installed DC capacity that is less than or equal to 125% of the actual annual peak demand of the customer's Premises in 2015 and be a current GPC customer at the time of award. Procurement shall be done through an application process and if oversubscribed, a lottery will be conducted. Participant fees for the DG solicitations shall be set at $3/kW. Any MWs that are unsubscribed from the customer sited program shall be allocated to the DG RFP reserve list. Customer sited projects will be paid avoided costs using the process as described below in item 8(a).
STIPULATION # 6.
The specific process that will be utilized for the evaluation (such as whether to use a project and/or portfolio analysis) for projects submitted into REDI will be finalized during the review and approval of the REDI RFP documents.
STIPULATION # 7.
The Renewable Cost Benefit framework (“RCB”) as provided in paragraph 8(a) shall be utilized in the evaluation of bids received through the REDI RFPs for utility scale and DG projects. The Company and Staff will work collaboratively to develop a process and recommendations for the continued implementation of RCB. Within (4) months from the issuance of the Final Order in this case, the Company and Staff will file their proposal with the Commission for implementation of RCB. If an agreement is reached between the Company and Staff on implementation of RCB, the Company and Staff can recommend to the Commission utilization of the full RCB in REDI.
STIPULATION # 8.
The RCB shall be modified for use in the REDI program as follows:
(a) The Company shall evaluate the bids received in response to REDI RFPs using the RCB. The evaluation of REDI proposals will be limited to the consideration of Avoided Energy and Deferred Generation Capacity cost components consistent with the Framework methodology. Further, the Company will evaluate the appropriate transmission and distribution costs and benefits on a case by case basis as proposed in the Framework document.
(b) Once the evaluation in 8(a) is concluded the Company will conduct, for information purposes only, an evaluation using the entire RCB as filed by the Company to allow Staff and the Independent Evaluator (''IE") to gain familiarity with the RCB. The evaluation will include all aspects of the Framework including specifically, Generation Remix, Support Capacity, and Bottom Out Adjustments. The Company will file its results with the Commission.
STIPULATION # 9.
The Additional Sum for utility scale resources procured through REDI shall be set at 8.5% of shared savings. This amount shall be levelized and recovered annually for the term of the PPA.
STIPULATION # 11.
The Commission approves an additional 200 MW of self-build capacity for use by the Company to develop additional renewable projects in collaboration with customers, including potential projects at Robins Air Force Base and Fort Benning. The projects must be at or below the Company's avoided costs. No more than 75 MW of the 200 MWs provided for in this provision may be used for non-military customer projects. For the non-military customer projects, the Company must demonstrate that the project meets a special public interest need and could not reasonably be achieved using the competitive bid process. The RECs for the non-military customer projects shall accrue to the benefit of all customers.
STIPULATION # 12.
The Company shall consider the development of a renewable Commercial and Industrial Program. No more than 200 MW shall be allocated for such a program and such program must be approved by the Commission before implementation. The Company shall only consider program options that will result in delivering value to all of its customers and will benchmark such programs to the last accepted proposal from the Company's utility scale REDI program.