HomeMy WebLinkAbout5 Solar Programing Funding #m Agenda Item b g
TRUCKEE DONNER
Public Utility District
Memorandum
To: Board of Directors
From: Alan Harry, General Services Manager
Date: November 13, 2007
Subject: Solar Program Funding
Why this matter is before the board
With the enactment of SB-1, the California Solar Initiative, all local publicly-owned electric utilities within the
State of California, must prepare, adopt and implement a solar rebate program to encourage its customers to
install solar energy systems. In addition all POU's must adopt a customer charge to raise the funding required
under the law.
Objectives:5. Manage the District in an environmentally sound manner.
Goals:
5.3 District will support a program of distributed generation within its Service Area
5.4 District will conduct its business in an environmentally lawful manner.
5.5 District will maintain a program of energy and water use efficiency.
5.6 District will seek to minimize any negative impact of its operations on the environment
History
What is the California Solar Initiative?
As part of Governor Schwarzenegger's Million Solar Roof program, the California Legislature set a goal to
create 3,000 megawatts of new, solar produced electricity by 2017. As of January 1, 2007, the $3.3 billion
program consists of three components:
1. The California Public Utilities Commission (CPUC), through its California Solar Initiative, provides
incentives over the next decade for existing residential homes and existing and new commercial,
industrial, and agricultural properties.
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2. The Califomia Energy Commission (CEC) manages a 10-year, $400 million program to encourage
solar in new home construction through its New Solar Homes Partnership.
3. Local publicly-owned electric utilities, like the District, must adopt, implement and finance a solar
initiative program by January 2008. SB-1 imposes a state-mandated local program and requires
that each local publicly-owned electric utility make certain program information available to its
customers. In the case of the District this ten year program must raise, through customer charges,
and expend $1,773,408, the District's portion of a statewide allocation set by the CPUC.
SB-1 establishes specific requirements for the local solar programs, including specific system incentives and
minimum rebates.
New Information
With the assistance of Efficiency Services Group District staff has provided, for Board action, a draft solar
rebate program. This rebate program requires$177,400 annually to be used as rebates for the installation of
solar electricity systems. Under the law POU's must raise these funds through a newly created customer
charge. District Administrative and Conservation staffs have prepared three different methods of raising the
required revenue. These options are attached for Board review and action and include XWh Consumed",
"Flat Rate per Customer"and "Flat Rate per Class".
As can be seen, Option 1 "KWh Consumed", has an average primary residential surcharge of$.94/mo,with
commercial customers paying an average of$1.72 to$244.93/mo depending on their rate class. Option 2,
"Flat Rate per Customer", spreads the cost evenly over all customers at$1.12/mo. And finally, Option 3, "Flat
Rate per Class", attempts to spread the cost equitably over all electric rate classes.
Recommendation
It is recommended that the Board adopt Option 3b as the method to raise the funds necessary to implement
the California Solar Initiative.
Ex:
Alan ry, G eral Services ohn Ulr ch, Interim GM
SOURCE OF FUNDING (if applicable) f roject or equipment
Funding for the District Solar rebate program will come from a monthly customer charge.
6. BOARD AUTHORIZATION TO TRANSFER FUNDS
There is no request at this time.
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OPTION 1: Charge based on KWh Consumed
2006 kWh total Total $ Surcharge/kWh
144269130 $177,400.00 0.00123
kWh use/month Monthly Surcharge
300 $0.37
_.. 400
_ $0.49
500 $0.61
600 $0.74
700 $0.86
Average Residential 761 $0.94
800 $0.98__
900'. $1.11
1000 $1.23
1100 $1.35
1200 $1.48
1300 $1.60
1400 _ $1.72
Average Small Commercial 1421 $1.75
Average Medium Commercial 23780 $29.24
Average Large Commercial 199186 $244.93
Agenda Item 5b- California Solar Initiative
Funding Options- November 13, 2007
OPTION 2: Flat Rate per Customer (no difference per class)
Customers Total $ Flat Surcharge
13243 $177,400.00 $1.12
Agenda Item 5b - California Solar Initiative
Funding Options- November 13, 2007
OPTION 3: Flat Rate per Class
Total Flat Monthly
Rate Type Customers Surcharge Total$
3A Residential 11529 $0.74 $102,136.00
Small Commercial 1400 $4.00 $67,200.00
Medium Commercia 57 $8.00 $5,472.00
Large Commercial 18 $12.00 $2,592.00
$75,264.00
Total Customers 13004 Total $Raised $177,400.00
36 ltesrcltral ' 29 $t?:6t) B,
5x all C 0'the ,oft
Mum me� ? 84
2t?
to $94mCral $ S.Ot1' r. D.tli'
z
., _. .. . /y�
..tgg0"
$tal f orners
', Total$Ralied $177, 4;Ot)'
3C Residential 11529 $0.35 $47,920.00
Small Commercial 1400 $7.00 $117,600.00
Medium Commercia 57 $12.00 $8,208.00
Large Commercial _18_ _ $17.00 _ $3,672.00
$129,480.00
Total Customers 13004 Total $Raised $177,400.00
Agenda Item Sb -California Solar Initiative
Funding Options- November 13, 2007