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Tag Archive: Solar energy

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.

Solar Focus Is Just Ahead.

Solar Focus 2018, the annual conference of our Maryland-District of Columbia-Virginia chapter of the Solar Energy Industry Association (MDV-SEIA), begins October 30 at the Capital Hilton in Washington, DC. GreeneHurlocker continues to be a sponsor for this important and influential industry event, so look on your folders for our imprint. I will be on site to join in the usual spirited discussions about how to promote and grow the role of solar energy in our lives and our businesses.

Our energy practice will be represented on the “Virginia’s Rapid Solar Growth: How is the Commonwealth’s Energy Market Evolving?” panel, where Will Reisinger is among the guests. That’s at 10:00 a.m. on Wednesday, the 31st, and we hope you will join the audience to talk about Governor Northam’s initiatives and the actions of the 2018 General Assembly.

Look me up when you’re in DC, I’ll be out in the halls and would love to talk with you about the things on your mind and what your firm is looking forward to in the next year. If you want more information about MDV-SEIA or to talk about renewable energy development just give me a call, or talk to any of our solar energy lawyers.

Heading North for the Sierra Club

I am excited to have been invited by the Great Falls Group of the Sierra Club to join in the “Clean Energy Financing Workshop for Local Governments” that will be held this Friday (September 7) from noon to 1:30 p.m. at the Fairfax County Government Center. I’ll be talking about one of our favorite topics: solar power purchase agreements (SPPA), an accessible way for financing renewable energy projects that local governments can use.

This brown bag lunch event is free, but registration is required as space is limited. If you can’t make it on Friday, I understand you can register as a virtual attendee and get access to the video after the session. Maybe I will see you there. If we miss each other, I can answer any questions about this topic or renewable energy development here, or just contact one of our renewable energy lawyers.

Continued Progress for Community Solar in Maryland

Maryland’s Community Solar Pilot Program is moving along with dozens of solar facilities in the project queues for Baltimore Gas and Electric CompanyPepco MDDelmarva Power MD, and Potomac Edison Company. The first year of the program has seen strong interest from the Subscriber Organizations that develop and manage the solar facilities. Under the program, customers subscribe to a portion of the output of the community solar facilities, which are called Community Solar Energy Generating Systems.

Many of the solar projects entered the utilities’ production queues last summer, so they will be reaching the operational deadline under the program rules in the next few weeks, unless they request an additional six months. Several Subscriber Organizations have recently filed requests with the Maryland Public Service Commission for extensions, citing permitting delays, program delays, and other implementation challenges.

The program is a great opportunity for electricity customers – including low- and moderate income residents – to access solar energy, particularly those that rent or do not have the ability to install their own solar panels. Under the pilot program, if a community solar facility is located within your utility’s service territory, even if it is across town, you can enroll with a Subscriber Organization and purchase a portion of the energy produced by your community solar system. While subscribed to a solar facility, customers receive a bill credit each month for energy generated by the solar system. Offers from Subscriber Organizations include discounts off the utility’s standard electric rates from around 5%-10%.

Customers won’t actually get their household energy directly from solar panels, but their payments will help finance solar facilities that place electricity onto the grid. So far, the Commission has approved six projects across Maryland and we anticipate that more will be approved within the next few years. Statewide, the General Assembly authorized bout 200 MWs to be built under the pilot program which could power about 40,000 households.

As with any new program, some implementation challenges are to be expected as the program gets off the ground. However, we are optimistic that Maryland’s Community Solar Pilot Program will be a success, enabling more and more customers are able to access solar energy.

If you would like more information about the program’s background, we have been tracking the Maryland’s Community Solar Pilot Program since its inception and the development of the program regulations back in April of 2016 (check out our previous post here). We also did a video about Community Solar in the mid-Atlantic region last Spring.

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.

Governor McAuliffe Conducts Clean Energy Signing Ceremony

Governor McAuliffe singing clean energy billsGreeneHurlocker attorneys Eric Hurlocker and Will Reisinger were among the invited guests attending the clean energy bill signing ceremony at the Governor’s mansion this morning. Governor McAuliffe signed eleven pieces of legislation passed by the 2017 General Assembly that will help promote further development of renewable energy in Virginia. The Governor noted that “Virginia is moving in the right direction, especially with the recent announcement of record growth in our solar industry, but there is still work to do.” The Governor also added that while there were only 17 MW of installed solar energy in Virginia at the beginning of 2014, the Commonwealth can now boast of over 1500 MW of solar generation that is either installed or under development today.

Among the legislation signed today was Senate Bill 1393 (Wagner), a community solar bill that will allow customers of Appalachian Power and Dominion to purchase 100% solar energy from new solar facilities located in Virginia. Customers will be permitted to voluntarily “subscribe” to a solar energy rate schedule. Currently, neither utility offers customers an option to purchase 100% solar energy.

Senate Bill 1395 (Wagner), also signed today, will expand the Virginia Department of Environmental Quality’s (“DEQ”) “permit-by-rule” (“PBR”) process to include larger renewable energy facilities. The PBR can often reduce the time and expense necessary to receive the state approvals required to begin construction and operation of a solar or wind facility. Senate Bill 1395 increases the facility size threshold, from 100 MW to 150 MW, which will allow more facilities to be permitted with fewer regulatory burdens from the state. Facilities receiving a PBR are exempted from State Corporation Commission review, so long as the project costs are not recovered from a utility’s ratepayers.

The Governor also signed House Bill 2390 (Kilgore), which will allow non-profit higher education institutions in Appalachian Power’s service territory to purchase 100% renewable energy from non-utility sellers. This bill is intended to address some of the economic challenges faced by colleges who wish to use renewable energy. House Bill 2390, by allowing non-profit colleges to purchase energy from third-party sellers, will permit these institutions to take advantage of federal tax benefits of renewable energy investments.

Please contact one of our renewable energy lawyers or regulatory attorneys should you have questions about these energy bills.

Notable Energy Bills Clear 2017 General Assembly

wind turbines and solar arraysThe Regular Session of the 2017 Virginia General Assembly wrapped up on Saturday, February 25. While the approval of an amendment to Virginia’s biennial budget received the most attention, the session also resulted in some notable bills affecting the energy industry. In particular, the General Assembly sent several bills to Governor McAuliffe’s desk that could accelerate the development of renewable generation in Virginia. Each of these bills is currently awaiting the Governor’s signature. Below is a our summary of a few of the noteworthy energy bills passed this session:

SB 1395 – Expansion of Virginia’s Permit By Rule (“PBR”) option for renewable developers

Currently, developers proposing to construct renewable energy facilities of 100 MW or less may use the Virginia Department of Environmental Quality’s (“DEQ”) PBR process. The PBR can often reduce the time and expense necessary to receive the state approvals required to begin construction and operation of a solar or wind facility.SB 1395 (Wagner) expands the facility size threshold to allow renewable facilities up to 150 MW to utilize the PBR process. The bill also provides that a small renewable facility owned or operated by a public utility may obtain a PBR, and will be exempted from State Corporation Commission review, so long as the project costs are not recovered from the utility’s ratepayers.

HB 2390 – Limited expansion of Dominion’s renewable energy purchase pilot program in Appalachian Power’s (“APCo”) service territory

Virginia law currently allows customers in Dominion’s service territory to purchase generation from renewable energy facilities that are located on their property, but that are owned and operated by a third party.HB 2390 (Kilgore) would expand this pilot program to allow non-profit institutions of higher education in APCo’s service territory to participate in the same pilot program. The bill, for example, would allow private colleges to purchase 100% renewable energy from facilities owned and operated by third parties. This bill is intended to address an economic challenge faced by colleges who wish to use renewable energy. Colleges, because they have no federal tax liability, are often unable to benefit from federal tax credits for capital investments in renewable energy. Third-party sellers, however, are able to pass the tax savings on to non-profithigher education customers, which reduces customers’ power purchase expenses. The program is capped at 7 MW for non-profit customers in APCo’s service territory.

SB 1393 – Community solar pilot program

SB 1393 (Wagner) requires both APCo and Dominion to conduct a pilot program that would allow all retail customers to purchase 100% solar energy from new solar facilities located in Virginia and owned by the utilities. Customers would be permitted to voluntarily “subscribe” to a solar energy rate schedule. Currently, neither utility offers customers an option to purchase 100% solar energy. APCo and Dominion would be required to conduct a competitive request for proposals (“RFP”) prior to dedicating any particular solar resource to the pilot program.

SB 1394 – Renewable energy program for agricultural customers

SB 1394 (Wagner) authorizes a new program for agricultural customers operating renewable energy facilities on their property. The bill establishes a buy-all, sell-all program whereby agricultural generators may sell 100% of the renewable energy generated to their incumbent electric utility, while continuing to purchase 100% of their electricity requirements from their utility. The utilities are required to purchase the renewable energy generated at a rate not less than the utility’s avoided cost rate. (The utility’s “avoided cost” is a rate approved by the State Corporation Commission which represents the theoretical cost the utility would incur to obtain replacement power.) The buy-all, sell-all program would only be available for agricultural customers with renewable energy facilities 1.5 MW or smaller.

HB 2291 – Cost recovery for Dominion’s nuclear expenditures

HB 2291 (Kilgore) would allow Dominion to seek cost recovery for future upgrades to its nuclear facilities. The bill would allow Dominion to recover such costs through a rider, called a rate adjustment clause (“RAC”), as opposed to through base rates. Before receiving approval of a nuclear upgrade RAC, Dominion would have to prove that it “considered and weighed” the option of obtaining new generation through third-party market purchases. Without the bill, such costs would recovered through a utility’s base rates, which are currently frozen due to due 2015 legislation supported by APCo and Dominion. Recovering costs through RACs provides several benefits to utilities, including guaranteed recovery of all expenses, plus a guaranteed rate of return. (Recovering costs through base rates, meanwhile, does not guarantee full cost recovery. If a utility sells fewer kilowatt hours than forecasted, for example, the utility might not fully recover its costs plus a rate of return.)

SB 990 – Tracking Virginia’s achievement of energy efficiency goals

Finally, SB 990 (Dance) would direct the Virginia Department of Mines, Minerals and Energy (“DMME”) to provide an annual report regarding the Commonwealth’s progress towards its energy efficiency goals. In 2007, the General Assembly adopted a goal for the Commonwealth to reduce its energy consumption by 10% by 2022. In 2015, Governor McAuliffe created an Executive Committee on Energy Efficiency to help accelerate the achievement of the 10% energy reduction goal.

Please contact one of our renewable energy lawyers or regulatory attorneys should you have questions about these energy bills.

CLIENT ALERT: APCo Seeks Solar Power Bids

Appalachian Power (“APCo”), a subsidiary of American Electric Power, issued a Request for Proposals (“RFP”) on January 19, 2017, seeking up to 25 megawatts alternating current (“MW AC”) of ground-mounted utility scale solar.  Pursuant to the terms of the RFP, the project must (i) be located in APCO’s service territory in Virginia or West Virginia, (ii) be interconnected to the PJM Regional Transmission Operator or to APCo’s distribution system and (iii) have a nameplate rating of at least 5 MW AC. In addition, the solar project must have started construction after January 1, 2016 and be operational by December 31, 2019.

You can access the RFP here:  https://www.appalachianpower.com/info/news/viewRelease.aspx?releaseID=2143.

If you have questions about renewable power development or retail electric utility regulations, contact one of our Virginia energy lawyers.

Dominion Acquires Virginia Solar Projects

We are excited to announce that our client, Virginia Solar, a Virginia-based solar developer, sold four solar projects, each located in the Commonwealth, on November 21, 2016 to an affiliate of Dominion Resources, Inc. The four solar projects, located in New Kent, Buckingham, Sussex and Powhatan counties, will bring approximately 80 megawatts of solar energy to Virginia. These solar projects represent four of the solar farms referenced in Amazon’s press release of November 17, 2016 which can be found here.

If you have any questions about solar project development in Virginia, please contact one of our renewable energy attorneys.

Grab a Mug. Solar Focus Three Weeks Away.

Eric Hurlocker at his deskSolar Focus 2016, the annual conference of our Maryland-District of Columbia-Virginia chapter of the Solar Energy Industry Association (MDV-SEIA), begins November 16 at the Renaissance Washington DC Downtown. Once again, GreeneHurlocker will be pleased to sponsor the coffee/refreshment breaks and join in the usual spirited discussions about how to promote and grow the role of solar energy in our lives and our businesses.

Among the meetings will also be a job fair for folks who are looking for help in their firms or looking for opportunities in solar, and the job fair includes a career panel discussion, Exploring Career Pathways in Renewable Energy. The best news is that the general public is invited FREE to the jobs fair.

I hope you will look me up when you’re in DC, I’ll be out in the halls with my MDV-SEIA Board Member hat on and would love to talk with you about the things on your mind and what your firm is looking forward to in the next year. You’ll be able to find me standing by the coffee pot.

If you want more information about MDV-SEIA or to talk about renewable energy development just give me a call, or talk to any of our solar energy lawyers.

Progress Continues on Virginia’s Growing Solar Capacity

solar panels with sunrise backgroundDominion Power reports that three solar-energy projects will become operational by the end of 2016. These are expected to deliver 56 megawatts at peak power to the regional grid. Details are on Virginia Business’s website.

Dominion’s projects are Woodland Solar in Isle of Wight County, Whitehouse Solar in Louisa County and Scott Solar in Powhatan County. At peak power, the combined output of the installations could furnish power equivalent to that required by 14,000 homes.

We applaud these efforts of Dominion, as well as others both private and public, that are increasing the contributions of solar and other renewable energy sources to the state and mid-Atlantic region. If you have any questions about these projects or issues in renewable energy capacity and regulation, call one of our Virginia energy lawyers.