1. The Rise of Residential Advanced DER Rates
Lon Huber
November, 2017

2. About Strategen 2 2

3. Advanced DER Rates? What? Why? Where?
Definition: Residential retail tariffs designed to send time varying and demand related price signals to drive a combination of DER adoption.
Also known as “Smart Home” rates
Why?
To send more sophisticated price signals to DER devices in order reduce grid costs for all ratepayers
Where?
From Hawaii to New York

4. Snapshot of Residential Advanced DER Rates
All Volumetric
Hawaii
New Hampshire*
N-Grid/Central Hudson
Demand Based
Daily
Con-Ed/O&R
TEP and NV*
Standard Demand Charge
APS
SRP
HECO*
*Proposed or soon to be proposed

5. TOU & Export Charge Proposal - New Hampshire
Volumetric TOU rate
Customer Charge (no change from current utility tariffs)
Energy Supply Charge
TOU Delivery Charge (charge for imported energy, credit for hourly exported energy)
Export Charge (charge for real-time exported energy)
Partial Non-bypassable Transmission Charge
Other Non-bypassable Charges

6. TOU Proposal - New Hampshire

7. Hawaii
Hawaii
Time of Use rate plus advanced inverter settings and export options:
Grid supply plus – 10 cents/kWh export with curtailment
Smart export – 12-9 a.m. (14.97 cents/kWh) 9-4 a.m. (0 cents/kWh) 4 p.m. – 12 a.m. (14.97 cents/kWh)
Locked for 5 years – prices for Oahu

8. N-Grid/Central Hudson – Smart Home Pilot
New York
N-Grid/Central Hudson – Smart Home Pilot
N-Grid - Standard TOU rate with four hour peak – including a summer super peak price
Central Hudson - Standard TOU rate with five hour peak – LMP+D (V- DER) for exports

9. New York’s V-DER Tariff
Value of environmental attributes of the generation
Value of avoided delivery system costs due to demand reduction
Value of avoided capacity costs
Each utility shall use the methodology adopted by Orange and Rockland to choose the appropriate service class for Alternative 1 and 2.
Reflects the avoided cost of energy purchases (and avoided line losses). Based on actual Day Ahead NYISO LBMP Energy Prices (varies by hour and location).
* Storage paired with solar was not included as an eligible resource in Phase 1 . Inclusion will likely occur in Q1 of 2018 

10. Tucson Electric Power TEP and UNSE Phase 2 GRC - E-01933A-15-0322
Arizona
Tucson Electric Power
TEP and UNSE Phase 2 GRC - E-01933A
EFCA is proposing a daily demand charge constrained to five hours on weekdays
Other parties are proposing a standard monthly demand charge storage rate
Consumer advocate is proposing a TOU “buy-all, sell-all”

11. TEP Advanced DG Rate Proposal - Buy-all – Sell-all
Arizona
TEP Advanced DG Rate Proposal - Buy-all – Sell-all
Monetary bill credits linked to the entire production of the PV system (self consumption and exports).
Illustrative
Illustrative
Step downs can occur at a preset pace
Mid-day pricing can also be dynamic

12. Nevada Nevada Nevada - Assembly Bill 405
Utilities must file with the Commission a time-variant rate schedule that would utilize customer-generators’ energy storage systems and aim to expand energy storage systems
NV Energy is proposing a 4-part rate:
Customer charge
24/7 primary distribution demand charge ($2/kW)
On-peak generation & transmission demand charge ($11 kW)
Volumetric TOU energy charges (6-12 cents/kWh)
Best Bill guarantee
Daily demand charges will likely be proposed
The daily demand charge would apply each and every day to the highest 60-minute demand during the on-peak period (for example, 1 p.m. to 7 p.m. in the summer season)

13. APS settlement Global settlement Arizona
Source: APS Rate Application, ACC Docket No. E-01345A

14. APS GRC – R-Tech Experimental Rate
Arizona
APS GRC – R-Tech Experimental Rate
Rate initially available to 10,000 participants
On-peak hours: 3 – 8pm weekdays
Off-peak demand charges for customers with 5kW of demand and above (non-holiday weekends)
Requires at least two primary technologies:
Rooftop solar (2kW min, 150% of load max)
Chemical storage systems (4kWh min, no max)
Electric Vehicles
Participants may also combine two secondary technologies
Variable speed motors
Grid-interactive water heating
Smart thermostats
Automated load controllers
Exports at resource comparison proxy rate
R-Tech Pilot Rate
Basic Service Charge $/mo
$15.00
Summer kW
$20.25
Summer On-peak kWh
0.0575
Summer Off-peak kWh
0.0475
Winter kW
$14.25
Winter On-peak kWh
Winter Off-peak kWh
Off-peak kWh, above 5kW only
$6.50

15. Resource Comparison Proxy
Arizona
Resource Comparison Proxy
In the matter of the Commission's Investigation of Value and Cost of Distributed Generation (Docket No. E-00000J )
Decision issued January 3, 2017 (Decision 75859)
Resource Comparison Proxy (RCP) Methodology
Compensation rate based on a five year rolling average of utility scale project costs
Resulting figure adjusted for losses and transmission
Real-time netting
Separate treatment

16. SRP’s Current DG Rate Arizona Rates took effect in April 2015
Mandatory demand charge (30 min) for solar customers (E-27 rate)
Optional for other residential customers
Source: SRP Pricing Proceeding,

17. NY REV Smart Home Rate Pilot:
New York
NY REV Smart Home Rate Pilot:
ConEdison
Supply Charge
$ / kWh Hourly NYISO LMP Zones H, I, J
Embedded Delivery Charge (12pm-8pm)
$1.10 / max daily kW
Coincident Event
Incremental to daily demand charge; 24-hr advance notice for events; hours vary by event
Generation
$11.34 / max event kW
Transmission
$1.15 / max event kW
Distribution
$4.61 / max event kW
Monthly Customer Charge
$15.76
Adjustments and Surcharges
$ / kWh; includes System Benefit Charge, MAC, RDM, etc.
Orange & Rockland
Supply Charge
$ / kWh Hourly NYISO LMP Zones G
Embedded Delivery Charge (12pm-8pm)
$0.88 / max daily kW
Coincident Event
Incremental to daily demand charge; 24 hr advance notice for events; hours vary by event
Generation
$7.70 / max event kW
Transmission
$0.95 / max event kW
Distribution
$3.77/ max event kW
Monthly Customer Charge
$15.76
Adjustments and Surcharges
$ / kWh; includes System Benefit Charge, MAC, RDM, etc.
10 generation events, 10 system level transmission events, and 10 distribution events
No V-DER on exports

18. Observations
Advanced DER rates may be coming to a proceeding near you!
Likely in the form of a pilot
Successful advanced DER rates could inform solutions to the net metering debate
Daily demand charges are a mix between volumetric TOU and hourly demand charges
The daily use of the battery can help mitigate RE overgen issues
Daily demand charges do not penalize excess usage like a standard demand charge
Safe guards, especially during the peak months, would need to be put into place to ensure proper alignment to cost of service

19. Thank you! Lon Huber Senior Director Strategen Consulting, LLC
Phone: 71

20. Peaker plants and the Clean Peak Standard