Delaware Renewable Energy Taskforce Thursday, August 14, 2014 9:30 a.m. to 12:00 noon U.S. Department of Agriculture 1221 College Park Drive, Dover, DE 19904

DRAFT Meeting Minutes

Members and alternates: Rob Underwood, Acting Chair, DNREC Division of Energy & Climate Present Tom Noyes, DNREC Division of Energy & Climate (Alternate) Present Glenn Moore, Delmarva Power Present Dale Davis, Delaware Solar Energy Coalition Present Finn McCabe, Delaware Solar Energy Coalition (Alternate) Absent Pam Knotts, Public Service Commission Present Toni Loper, Public Service Commission (Alternate) Present Lyris Cullinan, DuPont, Renewable energy research & development Absent industry Dave Holleran, Motech, Local renewable energy manufacturing industry Absent Mark Nielsen, Delaware Electric Cooperative (Alternate) Absent Scott Lynch, Delaware Municipal Electric Companies (Alternate) Absent David Bonar, Public Advocate Absent Andrea Maucher, Public Advocate (Alternate) Present John Sykes, Environmental advocacy organizations Absent Jim Black, Environmental advocacy organizations (Alternate) Absent Senator Harris McDowell, Sustainable Energy Utility Absent Tony DePrima, Sustainable Energy Utility (Alternate) Absent

Also present: Ed Synoski, DNREC Janis Dillard, PSC Staff Kevin Quilliam, InClime Lisa Gardner, SEU Dave Small, Secretary of DNREC

Rob Underwood called the meeting to order at 9:30.

DNREC Secretary Dave Small joined the meeting to thank Taskforce members for their work promoting renewable energy. The Taskforce approved the minutes from July 28.

Rob Underwood reported on the joint Green Energy Fund/SEU grant program. The website is up and working and is starting to receive applications.

The Taskforce turned to the straw-man proposal for the next SREC auction. Scott Lynch asked about the local manufacturing bonus. Tom Noyes replied that the provision is still in the statute even though there is no local manufacturer of PV panels.

Dale Davis asked about item 2.B. in the straw-man pertaining to controls to protect against speculation by bidders. Kevin Quilliam said that only three bidders failed to build following the first procurement, and that the number from the second auction was about the same. A small number of bidders in the first two procurements asked for extension, based on equipment availability or interconnection problems. Six bidders, mostly small systems, refused to sign the transfer agreement

In discussing the size of the auction, Glenn Moore said that DPL is reviewing its projected SREC demand for the next ten years. The company may propose a minimum number of SRECs to be procured and a range above that minimum that could be purchased at the company’s discretion.

Janis Dillard asked about the possible impact of the RPS cost cap on the procurement. Rob Underwood said that DNREC is working on the regulation for the cost cap provision.

The taskforce discussed proposals to allow DPL to reject bids a certain percentage above the weighted average bid. Dale Davis cautioned that we shouldn’t squeeze too hard and risk suppressing bidding.

Glenn Moore said that he will send out a proposal on price protections in a week. He also said that DPL could consider contracting for utility size projects in the future if SREC demand continues to grow. He said that DPL supports the current tier allocation with price protections. For instance, the auction could use current tier structure, and DPL could have the option to buy the next cheapest 2,000 SRECs.

Dale Davis said that maintaining a spot market is important for the industry.

The Taskforce discussed possible price protection mechanisms. It was proposed that bids over 200 percent of the weighted average of bids in a tier bids could be outbid by bids from other (either higher or lower) tiers. This provision will be added to the straw- man. DPL will propose language in this area for consideration at the next meeting.

It was proposed that N-1 and N-2 bids could outbid N-3 bids. This provision will be added to the straw-man. When DPL proposes language for the straw-man, Tom Noyes will put it in the document marked as a DPL proposal and circulate it to members before the next meeting.

Andrea Maucher asked if the auction should include projects larger than 2 MW to capture more potential bidders. Dale Davis said that it would take roughly $10,000 to design a project to prepare for bidding.

The Taskforce set August 28 at 9:30 a.m. as the next meeting date.

Rob Underwood said that solar leasing companies have expressed interest in making a presentation regarding the solar lease model at a future meeting.

The meeting was adjourned at about 11:45.