1. Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

2. Net Metering and Embedded Generation Programs ·Background ·Net Metering Policy ·How Net Metering Works ·Summary of Invoicing ·Embedded Generation Policy ·Purchase Price ·Technical Requirements for Net Metering and Embedded Generation

3. Background ·Electricity from Renewable Resources Regulation – Electricity Act also known as Renewable Portfolio Standard (RPS) requires an additional 10% of New Brunswick’s electrical energy must come from renewable sources by 2016 (400 MW) – this has been accelerated to 2010 ·NB Power currently has contracts with private sector developers for 96 MW of wind energy by 2008, and another 213 MW by 2009

4. Background Changes to the Electricity Act also opened doors for independent power producers: ·In 2005 NB Power introduced Net Metering and Embedded Generation policies which allows independent power producers to connect their generation units to the NB Power distribution system (grid) ·Net Metering for renewable generation ·Embedded Generation for renewable and non-renewable generation ·Total aggregate capacity for both programs is 21 MW

5. Net Metering Policy ·Net metering projects must use a renewable energy source (wind, solar, biomass, biogas, small hydro and tidal) ·The maximum size of generator is 100 kilowatts (kW) ·The output of the generation unit offsets the customer’s electrical consumption from NB Power ·Excess generation is delivered back to NB Power’s distribution system and this is measured with a bi-directional or net meter

6. Net Metering Policy ·The excess kWh are used to further reduce the customer’s monthly consumption from NB Power – credited at the retail rate ·Customers are billed for the net amount of electricity used – that is the electricity delivered to the customer by NB Power, minus the excess that customer sends back to the NB Power distribution system ·Excess credits not required within a billing period may be carried forward to reduce future consumption until March 31 of each year

7. Cost to Connect NB Power charges a service call fee of $40.47 to change the meter Since net metering is designed to help customers offset their own electrical requirements, there is no need for upgrades to NB Power’s facilities

8. What is Net Metering?

9. Invoicing NB Power’s meter does not measure electricity generated by customer’s unit – it only measures kWh delivered to and received from customer If readings indicate: NB Power delivers800 kWh NB Power receives 200 kWh Difference or Net600 kWh -Charged at prevailing NB Power residential retail rate -HST applied to total supply from NB Power (800 kWh) and not net total

10. Invoicing What if we receive more electricity from the customer than what we deliver to them? Ex: NB Power delivers-100 kWh NB Power receives-200 kWh Difference- -100 kWh ·Customer is billed for minimum monthly service fee of $19.73/$21.63 and any rental and applicable fees (LPC), etc ·The excess 100 kWh can be carried forward to future months to offset electricity from NB Power ·Any credits remaining at the end of March each year will be granted to the utility or reduced to “zero”

11. Embedded Generation NB Power’s Embedded Generation policy will pay Non Utility Generators for the useful output of their generation unit. ·Renewable and non-renewable generation units ·Current policy allows generation unit up to 2 MW ·Output of the generation unit is metered separately from the customer’s on-site electricity requirements ·No on-site electricity requirements may be served from the generation unit

12. Embedded Generation ·The non-utility generator is responsible for any and all upgrades resulting from the addition of their generation unit to the distribution system ·The upgrades include transformation, metering, line extensions, line upgrades, line relocations, etc ·NB Power will complete a system impact study prior to approval

13. Generation Output Purchase Price Purchase price is reviewed and determined on a case-by- case basis. Factors include: ·Contract term ·Type of generation ·Disco’s avoided energy cost ·Potential capacity deferral value ·Value for environmental attributes

14. Technical Requirements for Net Metering and Embedded Generation ·Installation requirements are as per NB Power Technical Specification for Independent Power Producers ·Most net metering projects will be installed via a certified grid- dependent inverters which contain all of the technical and safety requirements ·All installations and electrical equipment must be approved by a certification organization recognized in the Province of NB ·Installations must meet the requirements of NB Department Public Safety – Technical Inspection Services

15. Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot