1. City Council April 30, 2018 Item 13
Amend Regulation 23 to Require New Self-Generation Interconnections to Utilize Only Renewable Fuel Sources
City Council
April 30, 2018
Item 13

2. Recommendation
Adopt Resolution to Amend Interconnection Requirements - Regulation 23
Require New or Modified Customer-Owned Self-Generation to be Renewable Resource
CEC “Renewable electrical generation facility” definition
Initial and annual certifications required for biofuels
Would apply to capacity increase or replacement of existing self-generation
Would not apply to “as-is” existing self-generation - renewable or emergency back-up resources
Other technical and language changes
CAP - Prohibit fossil fueled generation at customer’s premises
Effective May 1, 2018 (Day after City Council adoption)
Recommendation endorsed by EAC on April 10th
Interconnection Agreements cover technical requirements, liability provisions, and other terms and conditions related to the physical connection and operation of distributed resources that connect to PWP’s electrical grid.
There is no purchase or sale of goods or services under such interconnection agreements, and they do not provide for delivery of electricity to or from the interconnected resource or customer.
The terms and charges associated with delivery of electricity to or from the interconnected resource (“pricing provisions”) are defined in the applicable section of the Light and Power Rate Ordinance described above.
As the role of distributed resources expands in the future, additional rate schedules or separate power purchase agreements may be authorized by the City Council to establish new pricing provisions.

3. Outreach Met With Large Customers
Large Customer Group meeting February 21
Chamber of Commerce
Individual customer meetings February through April
MSC Information Item – January 9, 2018
EAC Action Item - April 10, 2018

4. What is Distributed Generation?
Power Generated at the Point of Consumption
Customer Side of Meter (Self-Generation)
Primarily serves on site customer load
Net metered rate (qualifying renewables)
Self-generation rate (other resources)
Utility Side of Meter (none currently):
PWP-owned small generators
Feed-in-tariff, community solar
Proposed Amendment

5. Regulation 23 Applies to All Customer-Owned Generation Facilities
Technical Requirements and Conditions to Interconnect with PWP Distribution Grid
Standards Ensure that Safe and Reliable Electric Operation Can Be Accomplished
Requires Customer-Generator to Sign Interconnection Agreement with PWP
Both Reg 23 and Ordinance require customers to sign an interconnection and metering agreement.

6. Typical Types of Self-Generation
Renewables as Defined by State
No Change
Examples
Photovoltaic Solar Systems
Wind
Biogas fueled fuel Cell, micro turbine
Emergency Backup Generation
Diesel or gasoline fueled engines
Fossil-Fueled
Propose to Discontinue
Examples:
Diesel, gasoline or natural gas
 Self-Generation
Engine Types
Internal combustion
Microturbines
Steam turbines
Combustion turbines
Cogeneration CT/SG
Fuel Cells

7. Fossil Fueled Self-Generation Issues
Environmental Impacts
Operates and emits continuously
GHG emissions
Local air pollution NOx, VOCs, CO
Cost Shift to Other Customers
PWP obligated to maintain infrastructure and back-up capacity to provide power “On-Demand”
Insufficient cost recovery under current rates
Grid infrastructure and distribution services
Backup generation, RA capacity, Load balancing
Rate restructuring is next step so as to have fair and equitable rates for services and products provided or received by PWP.

8. Typical GHG Emission Rates
DG can have lower emissions per MWh produced
DG runs continuously
Local plant runs about 5% of the time
Far less total GHG
Generator Type
Tonnes*
per MWH
DG - Fuel Cells
DG - Microturbines
Large Combined Cycle Plant
PWP Local Generation Avg
0.60
 Tonnes =
Metric Tons
1,000 kg
~2,205 pounds

9. 2017 Local Generation (MW) 173 MW PWP Generation 76,375 MWh
20 MW DG Produces ~167,000 MWh

10. GHG Emissions (tons)

11. Policy Change / Benefits
Prohibit Interconnection of Customer-Owned Fossil-Fueled Self-Generation Resources
Require Self-Generation to Maintain Good Power Factor for Customer Load
Benefits - Will Reduce Future Increases In:
Natural gas demand
GHG emissions (supports CAP goals)
Local air pollution
Rates for customers without self-generation
As the City currently processes Interconnection Agreements a year, the recommended actions are intended to streamline the contracting process to reduce administrative burden and cost, improve the customer experience.

12. Change in Application Process
Regulation 23 to Include Application Expiration
Application will remain active for 12 months after it is accepted by PWP as “completed”
Application will expire if project has not received authorization to operate in 12 months
General Manager may authorize a twelve month extension if construction is substantially advanced

13. Backup slides follow

14. Daily Generation – 2017 (MWh)

15. 20 MW Customer-DG Produces ~167,000 MWh
DG Runs When Not Needed
76,375 MWh
173 MW PWP Generation (2017)
20 MW Customer-DG Produces ~167,000 MWh
Offsets ~40,000 MWh PWP Generation
Produces ~127,000 MWh Excess Generation

16. Rate Treatment Net Energy Metering (NEM)-
Renewable generating facilities such as PV and wind
Self-Generation Service (Schedule SG)
Non-renewable generating facilities
Both Reg 23 and Ordinance require customers to sign an interconnection and metering agreement.