Recap: Municipal Virtual Net Metering

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Presentation transcript:

Recap: Municipal Virtual Net Metering Paul Michaud, Esq. Executive Director Murtha Cullina LLP 860.240.6131 pmichaud@murthalaw.com September 22, 2016

Agenda What is Municipal Virtual Net Metering? Why Solar on Closed Landfills? What is the Problem? Next Steps? Town of Stafford - VNM Solar Project

What is Municipal Virtual Net Metering? Class I Renewable Resource (e.g., Solar, Fuel Cells) Five Municipal Accounts (e.g. Town Hall, Schools) $10 MM VNM “Credit” Cap of which $4 MM allocated to Municipalities Virtual Net Metering Bill Credit Generation Service Charge (GSC) 100% allocation based on energy produced by the renewable energy system Distribution & Transmission Charges (D&T) 80% allocation – Operational Year 1 60% allocation – Operational Year 2 40% allocation starting on and after Operational Year 3

What does Municipal Virtual Net Metering Look Like? Town Hall 50 kW Host 1,000 kW solar array Fire Station 100 kW High School 700 kW Customer Host: - Closed Landfill Beneficial Accounts: - Town Hall - Fire Station - Town Library - Policy Station - High School Police Station 100 kW Town Library 50 kW

Why Solar on Closed Municipal Landfills? Otherwise Unusable Land Large & Open Space Remote Location Limited Shading (no trees) Energy Savings for Municipality! 267 Closed Landfills; in 129 Towns City of Hartford – Landfill VNM Solar Project

What is the Problem? Many municipalities applied to participate, but only a few were approved under the $10 million VNM Program cap Twelve “stranded” municipalities were included in VNM Program thanks to Public Act 16-216 Town of Woodstock - Landfill VNM Solar Project

What is the Reason? Solar on Closed Municipal Landfills is very popular with CT Municipalities because: Great use of otherwise unusable land Energy Savings/Price Hedge for Municipalities Municipalities are viewed as good credit risks by solar developers Benefits accrue to the entire Town

Next Steps? New legislation will be needed to reopen the Municipal VNM Program!

Thank You!