March 2014

On Thursday, March 27, 2014, the California Public Utilities Commission established rules for transitioning distributed generation renewable energy systems from the current net energy metering  (NEM) arrangement to the successor tariff which will be adopted by the CPUC in 2015.

The decision, D.14-03-041, was mandated by last year’s passage of AB 327, requiring implementation of changes to California’s NEM program by 2017.  AB 327 specifically directed the CPUC to establish a transition period for “pre-existing” systems based on a “reasonable expected payback period” and other factors consistent with California’s policy to promote the use of renewable energy.  Under the legislation, systems installed prior to the earlier of July 1, 2017, or the date upon which the customer’s utility reaches the 5% cap on its capacity subject to the net metering tariff, would be eligible for the transition period.   

The CPUC decided that 20 years from the date of installation (interconnection) would be the transition period for pre-existing systems.   The adopted period is longer than advocated by the utilities and certain ratepayer organizations and shorter than urged by some members of the solar industry and local governments.  The Commission also rejected arguments that customers installing systems after adoption of the transition rule should have shorter transition periods on the theory that they had notice of the coming change in tariffs and therefore could not have had reasonable expectations of more lengthy “payback” periods.  Continue Reading CPUC Adopts Transitional Net Metering Rules for Pre-Existing Distributed Generation Systems

After the years of inconclusive resource planning, months of contested case proceedings, and days of oral argument, discussion and review that led to today’s deliberations, the Minnesota Public Utilities Commission (“Commission”) unanimously decided not to decide. The ultimate question before the Commission was what capacity needs had been determined in the record and what should

If you are drafting a liquidated damages clause that applies Texas law, a decision today by the Supreme Court of Texas might encourage you to hire an oracle. Because if you negotiate a liquidated damages provision in a “second-look” state without using the power of divination, you may be surprised when a once-reasonable estimate of damages becomes unenforceable because of subsequent changes in the market.
Continue Reading Negotiating a Liquidated Damages Clause in Texas? Get Out Your Crystal Ball.

NV Energy is in the market for solar. On March 10, 2014, the utility issued a Request for Information (“Solar Site RFI”), asking developers to help identify potential sites for solar projects that would be 20 MW AC or greater in size and are sufficiently developed to meet a 2016 commercial operation date. 

The Solar Site

Yesterday afternoon, the Minnesota Public Utilities Commission approved the methodology for calculating value of solar (VOS) tariffs in Minnesota as developed by the Department of Commerce. In doing so, Minnesota became the first in the nation to adopt a VOS tariff methodology.

The Commission was required by statute to take action on the VOS calculation methodology by the end of the month. It had three options: to approve it as proposed, reject it, or approve it with modifications and with the consent of the Department. For background on the Department’s January 31st recommendation, see our blog posts here and here. The Department subsequently included several modifications affecting the fuel price escalation factor, the avoided distribution capacity cost, and the environmental cost categories.

In its ruling, the Commission approved the Department’s methodology, as amended, by a 3-2 vote.Continue Reading Value of Solar Achieves a New Dawn in Minnesota

Intermittent resources create unique challenges for 21st Century Utilities, RTO’s and System Operators. The now infamous "Duck Chart" highlights a key element of the problem — central station thermal plants cannot ramp efficiently, leading to "worst of all" scenarios where the benefits of renewables are not fully utilized and central station plants operate inefficiently for

Xcel Energy, Minnesota Power, Center for Energy and Environment, George Washington University, and other stakeholders participated in the first e21 Initiative meeting on February 28. The e21 Initiative aims to develop a new or adapted regulatory framework that addresses the challenges of the evolving energy economy and shifting technological landscape. There will be three phases