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clean energy

Delmarva Power Files Proposed DE Purchase of Receivables

transmission towers for electricityAfter years of proceedings at the Delaware Public Service Commission, the end – or the beginning – is in sight. In late March, Delmarva Power filed its proposed Purchase of Receivables (POR) program, including the going-in discount rates, with the Delaware Commission. With a POR program, the utility purchases the receivables of the retail electric supplier operating on the system, which helps to level the playing field between suppliers and the utility which has the right to disconnect service for non-payment.

Delmarva recommends that the program take effect for service rendered on June 1, 2019, as the Commission has previously directed. The discount rates are important because those are the “discounts” that retail suppliers must accept in allowing the utility to purchase the receivable. Delmarva proposes the following discount rates for the first year of the program:

Class Discount Rate
Residential 0.6167%
Small C&I 0.3409%
Large C&I 0.1182%
Hourly Priced Service 0.0%

 

It is expected that the Commission will consider the POR proposal at one of its May administrative meetings, in time for the program to being June 1, 2019. For more information, please contact one of our energy lawyers.

We’re Back at TomTom to Support Renewable Energy

On Wednesday, April 10, the TomTom Festival and Summit will hold its Renewable Energy Day in Charlottesville, Virginia, during the six day-long series of panels, speakers, podcasts, performances, parties and other notable goings about art, community, food, music, creative and entrepreneurial ecosystems, and innovation. We’re proud to be a sponsor again, and we are focused on the 9 AM panel “The Economic Development Opportunity of Renewable Energy.”

Many of our lawyers will be attending, and our partners Eric Hurlocker, Brian Greene and Jared Burden will be in Charlottesville to welcome you personally and to talk to you about the work we’re doing in renewable energy development and regulation. In addition, we would be glad to have the opportunity to introduce you to our OPENgc services for companies that currently operate without inside general counsel. If you don’t see us at the panel or breaks, come on to the exhibit area where we will try to answer your questions and send you home with a few small gifts.

If you are interested in knowing more about our TomTom sponsorship, the renewable energy industry or have a legal issue that you need to discuss, please feel free to contact Eric Hurlocker, Brian Greene, Jared Burden or any of our Virginia energy lawyers and business lawyers.

Maryland Solar Groups Seek Community Solar Utility Consolidated Billing

On March 20th, the Climate Access Fund and Solar United Neighbors of Maryland filed a petition asking the Maryland Public Service Commission to require Maryland utilities to provide consolidated billing for subscriber organizations participating in Maryland’s Community Solar Pilot Program. The petitioners want utilities to include community solar subscription charges on customer bills. Today, subscriber organizations have to separately bill community solar subscribers. The stated objective of the petition is to make consolidated billing available for low and moderate income customers, helping to improve the economics of participating in the program. Two alternatives are proposed in the petition: (1) consolidated billing for all subscriber organizations or (2) consolidated billing for low and moderate income-focused community solar projects only.

We will be on the lookout for a response from the Commission and opportunities to comment on the community solar consolidated billing proposal. If you would like to review the filing, a copy of the petition is available on the Maryland Public Service Commission’s website: Mail Log # 224384.

For more information about Maryland’s Community Solar Pilot Program, check out our previous blog posts:

Maryland Proposes Community Solar Pilot Program Regulations
Community Solar Growing in Mid-Atlantic
Continued Progress for Community Solar in Maryland

If you have questions or would like more information about community solar projects or other regulatory issues, contact Eric Wallace or any of our mid-Atlantic energy lawyers.

Solar Powers Augusta Schools

We were really excited last week when our good client, Secure Futures, was out in Augusta County Public Schools (ACPS) to talk about the installation of a total of 1.8 megawatts of solar power across seven campuses. ACPS, with more than 5,000 solar panels deployed, is the largest solar energy system of any public school division in Virginia. Some excellent coverage of this initiative is here. Augusta County students created some great posters about how much they love solar and those are featured on the Secure Futures homepage.

Secure Futures’ partnership with ACPS meant the school division had no capital investment for this solar project. Additionally, and most importantly, they receive monthly savings on their utility bill by using the electricity generated by the solar panels. ACPS has a special webpage where you can look at their solar energy production in real time. Pretty cool!

If you want to know more about solar energy issues in Virginia or have legal matters that involve solar or other renewable energy resources, contact any of our Virginia energy lawyers.

MD PSC Approves Modified Electric Vehicle Portfolio

electric car iconThe Maryland Public Service Commission issued an order on January 14, 2019, approving Electric Vehicle (“EV”) Portfolio Programs for Maryland’s electric distribution utilities. The EV Portfolio Programs aim to increase EV usage in Maryland by expanding EV tariff options, furthering utility investment in EV charging infrastructure, and offering customer programs for EV owners.

The Proposed EV Portfolio Programs:

Case No. 9478 kicked off with a petition filed on January 22, 2018, by the Public Conference 44 Electric Vehicle Work Group Leader, with the support of the utilities and several other stakeholders, to implement a statewide electric vehicle proposal. The proposals for each participating utility are summarized below:

Baltimore Gas and Electric: BGE’s proposed program included installation of 18,455 EV chargers, costing $48.1 million. For residential customers, BGE proposed $9.7 million in rebate programs that could be pared with BGE’s existing “Whole-House Time-of-Use Rate” for customers with EV chargers. BGE also proposed $14.1 million in rebates and incentives, as well as a “Demand Charge Credit” program, for non-residential customers who install EV chargers for fleet use. In addition to these customer programs, BGE proposed a public network of 1,000 EV chargers, costing $17 million, and a grant program for 490 EV chargers, costing another $7.2 million.

Pepco and Delmarva: Pepco and Delmarva proposed similar programs, including a combined 3,038 EV chargers costing $41.9 million. The Pepco and Delmarva proposals also included residential rebate programs, off-peak charging credits, and expansion of Pepco’s “Whole-House Time-of-Use Rate” to Delmarva. The price tag for the Pepco and Delmarva residential programs was $5 million. For non-residential customers, Pepco and Delmarva proposed rebate and incentive programs for EV chargers, a demand charge credit program, for a combined cost of $10 million. Pepco and Delmarva also proposed installing 608 public EV chargers, costing $16.9 million. Pepco and Delmarva proposed $6.9 million in additional rebate and grant programs for installation of EV chargers. The proposed “DC Fast Charging with Energy Storage” demonstration project is aimed at minimizing adverse grid impacts from installation of fast charging stations, for another $2.8 million.

Potomac Edison: Potomac Edison also proposed rebates, incentives, public chargers, and EV tariffs, with a total of 2,259 EV chargers costing over $12.3 million.

The utilities proposed ratepayer financing for the $104.7 million investment in new infrastructure charging portfolios, meaning customers will pay for these programs through electric distribution rates or customer surcharges over a five year period. However, there are other state and local incentive programs available that may offset some of the costs for the new chargers. Some of the costs would also be recovered from charging customers that use public or non-residential chargers. As discussed below, the Commission did not approve these programs as proposed, reducing the program size and the cost to Maryland ratepayers.

The Commission’s Decision (Order No. 88997):

In its order, the Commission reduced the BGE and Potomac Edison residential rebate programs to a total of 1,000 each. The Commission also limited the rebate to $300 (compared to the proposed $500 rebate). The Commission approved the proposed Pepco and Delmarva residential rebate offerings. The Commission also approved continuation and expansion of utility “Whole-House Time-of-Use Rate” offerings for residential customers. Regarding the non-residential customer proposals, the Commission limited its approval to rebates and incentives for EV chargers installed at multi-unit or multi-tenant dwellings. The Commission also approved a limited number of rate-payer funded public charging stations: 500 for BGE, 100 for Delmarva, 250 for Pepco, and the full 59 proposed by Potomac Edison. The Commission rejected the proposed $14 million in innovation rebate and grant programs, as well as the proposed Pepco and Delmarva demonstration projects. The Commission also directed all the utilities to recover costs through traditional ratemaking in a future rate case (as proposed by BGE, Delmarva, and Pepco), rather than Potomac Edison’s upfront customer surcharge.

The next step is for the utilities to develop and submit tariff proposals to implement the EV programs approved by the Commission.

If you have any questions about the Maryland Public Service Commission’s decision on the Statewide Electric Vehicle Program or other regulatory issues, contact Eric Wallace or any of our mid-Atlantic energy lawyers.

SCC Approves First Renewable Energy Projects

offshore wind projectOn Friday, November 2, the Virginia State Corporation Commission (“SCC” or “Commission”) approved the first major renewable energy investments by Dominion Energy Virginia (“Dominion”) following the passage of Senate Bill 966 (“SB 966”), the sweeping utility overhaul legislation enacted in March. SB 966 provides that it is “in the public interest” for Dominion and Appalachian Power Company to purchase or construct up to 5,000 MW of new wind and solar energy resources. The legislation specifically states that a wind demonstration project located off Virginia’s coast would be “in the public interest.”

The SCC approved a 12 MW, $300 million offshore wind demonstration project proposed by Dominion, which will be constructed 27 miles off the coast of Virginia Beach. While finding the project to be prudent, the SCC’s Final Order strongly suggests that the application would have been rejected absent legislation deeming such projects to be “in the public interest” as a matter of law.

The Commission’s Final Order stated that the wind proposal “would not be deemed prudent [under this Commission’s] long history of utility regulation or under any common application of the term.” The SCC noted that the offshore wind project, which will be constructed by a Danish energy developer, was not subject to competitive bidding and that the energy costs will be “26 times greater than purchasing energy from the market” and “13.8 times greater than the cost of new solar facilities.” Finally, the Commission found that the project is not needed for Dominion to ensure reliability or meet any forecasted demand. Nonetheless, the Commission concluded that, “as a matter of law,” the Commission’s “factual analysis” of the reasonableness of the project is “subordinate [to] the legislative intent and public policy clearly set forth [by the 2018 amendments.”

The Commission also approved Dominion’s request to purchase 80 MW of solar energy via a power purchase agreement (“PPA”) with a non-utility company, Cypress Creek Renewables. The Commission noted that, unlike the offshore wind project, Dominion customers would be protected from financial and performance risks of the project since the utility is purchasing the energy from private developers.

The Final Order in the offshore wind matter (Case No. PUR-2018-00121) is available here and the Final Order in the solar PPA matter (Case No. PUR-2018-00135) is available here. Please contact one of our energy regulatory attorneys if you have questions about either of these cases.

Client Alert: Dominion In the Market for Solar, Wind

On October 24, 2018, Dominion Energy Virginia (Dominion) announced and issued an RFP seeking 500 MW of solar and on-shore wind generation. Projects must be at least 5 MW. Interested bidders can propose to either sell Dominion the project development assets or sell energy to Dominion under a Power Purchase Agreement. Projects must be located in the Commonwealth of Virginia to be eligible.

The RFP schedule is as follows:

Intent to Bid forms due: This Friday, November 2, 2018
Proposals to sell development assets due: December 13, 2018
Proposals to sell energy (PPA) due: March 14, 2019
RFP concludes: Second Quarter 2019

Dominion has pledged to have 3,000 megawatts of new solar and/or wind energy under development or in operation by early 2022. Dominion also announced that it will issue formal RFPs on an annual basis until the 3,000 MW target is met.

If your company has questions or would like any additional information regarding the Dominion RFP, please contact one of our renewable energy attorneys or utility attorneys.

We Shed Some Light on Solar PPAs in Fairfax

We were pleased to be involved in the Sierra Club’s presentation organized for local governments in the Northern Virginia area last month, as we detailed here. Afterward, the Sierra Club said:

“This briefing was sponsored by the Great Falls Group and held at the Fairfax County Government Center to educate the participants on the budget-neutral tools of solar Power Purchase Agreements (PPA) and Energy Savings Performance Contracts (ESPC). Presentation and handout information is available on the GFG website and the video recording is here.

Debra Jacobson had a lot of positive feedback from this event. There will be an article on this event for the next GFG Cascade.”

Here are a few pictures of the audience at the Government Center and Eric Hurlocker opening the panel.

If you want to know more about this meeting, Power Purchase Agreements, Energy Savings Performance contracts, or other issues in the renewable energy field, contact any of our energy lawyers.