1. Distributed Generation Chau Nguyen, Pricing & Sales Support 08-10.15

2. What is Distributed Generation?
Abbreviates as “D.G.”
Includes solar, wind, geothermal and other alternative energy sources
Enables customers to generate their own electricity to offset energy purchased from City.
Provides option for consumers to be “green”er

3. Typical Solar Installation
Source: Washington Post, “Utilities take aim at solar roofs”, 03/07/15

4. What is Net Metering?
A mechanism that enables customers with Distributed Generation to offset the energy they use with generated energy and to receive credit for the energy they put back to the grid.
For example: Customer X uses about 1000 kWh per month. Customer has a D.G. system that generates 200 kWh. Customer may be billed on net consumption of 900 kWh and received credit for 100 kWh they sold back to utility.
Requires special metering that tracks how much energy flow between utility to customer, and vice versa.

5. Legal Considerations for DG and Net Metering
GA law, enacts in July 1, 2015, enables cost of Solar to be financed – making it more affordable for consumers to adopt D.G.
Existing law already requires utility to allow net metering; also requires utility to purchase excess energy from customer that is up to 0.2% of utility’s peak load
In other words, City’s 2014 peak load was 71,566 kW.
City is legally required to purchase 0.2% of peak load from customers who has D.G.; equates to 143 kW
Any DG beyond 0.2% can be put on a waiting list.
Near-term unknown: What would happen if 0.2% is removed and the City is required to purchase a greater capacity from a customer’s DG?

6. Required Buy-back

7. Challenges with D.G.
MEAG fixed costs accounts for 77% of every dollar charged on MEAG monthly bill
In 2014, City pays MEAG an average of $2,690,000 per month, of which about $2,071,000 is fixed costs
City still has to pay full fixed costs even if City purchased 0 kWh.
Because customers who have Distributed Generation (D.G.) will use less energy, their electric bill is reduced; hence they pay less than non-DG customer toward
MEAG fixed costs
The cost of maintaining City electric system
General Fund cost-allocations that funds City operation
Customers who can afford D.G. is subsidized by seniors, low-income households
Customers with D.G. contribute less to costs while non-DG customers contribute more toward costs.

8. Fixed Costs Exposure

9. ECG to Provide Distributed Generation Tariff
ECG is providing document template for City to use and customize.
These documents enable customers who wants D.G. to tie to the City’s electric system and to sell excess energy back to City
Interconnection Agreement
Distributed Generation Tariff
Is necessary to recoup fixed costs from customers who want DG
For example: Residence who installed D.G. will be billed on:
Standard Residential Rate, plus
Distributed Generation Rate

10. Distributed Generation Rate
METERING CHARGE
Bi-directional meter: $2.50 per month
Single Directional
Single phase: $4.50 per month
Poly phase: $11.00 per month
STAND-BY CAPACITY CHARGE (kW based on nameplate)
Tier 1 (up to 143 kW of total installed kW in City) : $0 per kW
Tier 2 (144 kW to 300 kW of total installed kW in City)
Residential: $5.00 per kW
General Service: $7.50 per kW
Tier 3 (301 kW and above)
Residential: $10 per kW
General Service: $13.00 per kW
Demand rates: does not apply
CREDIT FOR ENERGY
Avoided Cost
This rate will only be applied to customers who installed D.G.

11. Council should take the following actions
Recommendations
Council should take the following actions
Adopt D.G. tariff
Enact ordinance that require customers to notify City if they want to install Distributed Generation on their premise
Work with building/zoning/code enforcement to ensure D.G. installation on customer premise is up-to-code for safety Could also add a fee to pay for inspection.