1. Renewable Energy’s Future in New England: Does the Customer Matter Anymore??? New England Restructuring Roundtable Boston, Massachusetts September 17, 2010

2. Quick Facts about TransCanada in Northeast
New England
13 hydro stations on CT and Deerfield Rivers
600 MW Ocean State Power
132 MW Kibby Wind Power Project
New York City
2480 MW Ravenswood
Provide retail and wholesale power for load service
Retail service to nearly 200 municipalities, 80 hospitals, 40 colleges / universities, hundreds of
other large commercial and industrial customers
TransCanada
November 24, 2018

3. Kibby Wind Power Project
132 MW wind project in NW Maine
First phase (1/2) on line
44 – 3 MW Vestas turbines
Category 5 wind regime
$320 Million investment
Jobs: 250 at peak; 10 – 12 permanent
TransCanada
November 24, 2018

4. Massachusetts Green Communities Act
Established new, “on-site” renewable requirement
State’s DoER mandated 400 MW solar PV
Cost from 30¢/kWh floor to 60¢/kWh cap
Cumulative program cost from $1.4 to $2.7 Billion
Solar installations must be in Massachusetts
Starts in 2010, impacted existing retail contracts
Ordered utilities to contract long term for 3% of energy demand from new renewables built in Massachusetts
TransCanada
November 24, 2018

5. TransCanada Federal Lawsuit
Alleged violation of U.S. Constitution Commerce Clause
Commerce Clause prevents states from creating protectionist barriers
“Discrimination under the Commerce Clause means differential treatment of in-state and out-of-state economic interests that benefits the former and burdens the latter”
First Circuit Court of Appeals
TransCanada
November 24, 2018

6. Economics of State Renewable Initiatives
TransCanada
November 24, 2018

7. Erosion of Choice, Unbundling, Restructuring?
“If we had to charge everybody on the standard offer, everybody would leave the standard offer and we’d have nobody to recover the costs, and that’s why it’s done that way with the distribution charges.”
National Grid explaining the rate
treatment of the Deepwater Wind
costs in Rhode Island, Deepwater
Wind contract hearings, August 4, 2010
TransCanada
November 24, 2018

8. Solar Photovoltaic Siting
TransCanada
November 24, 2018

9. Should state energy mandates have solid economic basis?
Needed for stability, transparency, efficiency
Every business has an investment criteria
Internal rate of return, payback period, net present value, profitability index
DPU has long-standing approval standard for contracts: “likely to result in net savings for customers”
Carbon and renewable values have been monetized by RGGI and RPS
Why should the customer pay far more than value received????
TransCanada
November 24, 2018

10. Thank you !
TransCanada
November 24, 2018