8 Future Contract Prices in New England Average Contract Price for Energy January and February are approximately $150/MWh REC prices in Massachusetts for ’06 are about $40/MWh
9 National Legislation Energy Policy Act of 2005 (Signed August 8, 2005) Conditionally rescinds PURPA (conditioned on access to markets and/or appropriate interconnection) National assessment of renewables inventory potential Minimum requirements for Federal Government Purchases Tax Incentives for New Renewables State regulators shall conduct certain investigations (smart metering, interconnection, utility fuel diversification) Encourages development of additional generation at existing dams
10 Regional Activity ISO-NE market for installed capacity Interconnection Standards (ISO-NE, Draft 12/05) Regional Greenhouse Gas Initiative (Stakeholder meeting 9/21/05 – Target 2009 Initially a 9 state initiative) Neighboring State Renewable Portfolio Standards (ME, MA, RI, CT) Regional Clean Energy Funds (esp. MA and CT)
11 Vermont Renewables Law Act 61 (key provisions) SPEED (Section 8005 encourages Vermont utilities to engage in long term contracts with instate renewable developers) Renewable Portfolio Standard (establishes a renewable portfolio standard if targets for SPEED contracts are not met) Interconnection Standards for Renewable Generation Tradable Credits for Renewables Disclosure Standards for Renewable Technologies
12 Other Vermont Renewable and Related Activities Vt. Clean Energy Development Fund (funding approx. 2007 through 2012) Transmission Planning Investigation (Docket 7081) Green Pricing (GMP and CVPS’s “Cow Power”) Small Wind and Solar Incentive Fund ($800,000) Net Metering (approx. 830 kW) Mediated Modeling (Stakeholder discussion focused on electricity policy in Vermont)
13 Small Wind and Solar Incentive Fund $800,000 in funding for small wind and solar projects. Incentives are expected to support the installation of approximately 250 renewable energy systems in the state, which will generate an estimated 540 MWh of electricity Originally established pursuant to Vermont Renewable Energy Legislation in 2003 with funding for $840,000 (approximately 200 projects)
14 VT Net Metering as of Sept ‘05 TOTAL WindSolar PVMethaneFuel Cell TOTAL kW APPROVED 834 kW AC422346.5650 NUMBER SYSTEMS 184Syste ms4913410 AVERAGE SIZE kW AC8.62.665
15 Act 61 Implementation Early Priorities SPEED Program (proposed rule 9/1/06) Interconnection Standards (proposed rule 9/1/06) Disclosure (no timeframe but needs to be addressed in context of SPEED issues) Other Activities RPS (if SPEED threshold is not met 2013) Tradable Credits (RECs)
16 Vermont Clean Energy Development Fund Established pursuant to Act 74 (2005) Annual Funding levels likely to exceed $4 million per year through 2012
17 Vermont Clean Energy Development Fund Process DPS Draft and Public Comment Fall 2005 DPS Report to Legislature Due Jan. 2006 Major Funds likely to Begin March 2007? Funding Levels Estimated at >$4 million per year through March 2012
18 Vermont Clean Energy Development Fund Preliminary Goals and Objectives Sustainability of fund Efficient use of funds/market discipline Leverage other programs and incentives (federal, other state, and Vermont) Equitable distribution of funds throughout VT Benefits flowing to Vermont ratepayers Focus on technologies closer to market and/or feasibility potential high in Vermont Programs and studies directed at reducing barriers/developing the sector
19 Vermont Clean Energy Development Fund Likely Approaches Revolving loans/equity investment; Grants/production credits for subsidy buy-down; Infrastructure development Administration Independent third party? DPS Partnerships with other state agencies?
20 Vermont Clean Energy Development Fund Technologies and Use of funds? Fuel Cell Photovoltaics Solar/Hot Water Landfill Methane Farm Methane Energy Efficiency Technologies? (cont’d) Biomass enhancements Wind Hydro enhancements CHP Biodiesel
21 Infrastructure Development Application of Funds Potentials and barriers analyses; Site pre-permitting and mitigation (aesthetic, environmental, historic, sound); Strategies for enabling infrastructure and support markets; Information, public awareness, and public participation; Technical assistance; Demonstration.
22 Vermont Clean Energy Development Fund Other State Funds in New England/NY Massachusetts ($20 M) Connecticut ($30 M) New York Rhode Island
23 Opportunities for Public Participation and Information Act 61 Implementation (PSB sponsored workshops) www.state.vt.us/psb www.state.vt.us/psb Mediated Modeling (DPS sponsored initiative) www.publicservice.vermont.gov Vermont Clean Energy Fund (DPS study) www.publicservice.vermont.gov Transmission Planning Investigation (PSB) www.state.vt.us/psb Regional Greenhouse Gas Initiative www.rggi.org