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LPI SFPUC CCA Best Practices and Lessons August 14, 2009 Appendix Massachusetts Department of Public Utilities Restructuring Overview Massachusetts Retail Electricity Market http://www.mass.gov/?pageID=eoeeaterminal&L=3&L0=Home&L1=Energy %2c+Utilities+%26+Clean+Technologies&L2=Electric+Power&sid=Eoeea& b=terminalcontent&f=doer_pub_info_summary_competitive_market_2007 &csid=Eoeea Cape Light Compact Regulatory Proceedings http://www.mass.gov/?pageID=eoeeaterminal&L=6&L0=Home&L1=Energy%2C+Utilit ies+%26+Clean+Technologies&L2=Electric+Power&L3=Electric+Market+Information &L4=Electric+Industry+Restructuring&L5=Restructuring+Issues+and+Proceedings&sid =Eoeea&b=terminalcontent&f=dpu_restruct_competition_muni_aggregation&csid=Eoee a Massachusetts Electricity Suppliers (Standard Offer Suppliers) o Fitchburg Gas & Electric Light Company o National Grid o NSTAR Electric o Western Massachusetts Electric Company New England ISO Information Overview ISO New England is a regional transmission organization (RTO), serving Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont. ISO New England meets the electricity demands of the region's economy and people by fulfilling three primary responsibilities: • Minute-to-minute reliable operation of New England's bulk electric power system, providing centrally dispatched direction for the generation and flow of electricity across the region's interstate high-voltage transmission lines and thereby ensuring the constant availability of electricity for New England's residents and businesses. • Development, oversight and fair administration of New England's wholesale electricity marketplace, through which bulk electric power has been bought, sold and traded since CCA LESSONS LEARNED AND BEST PRATICES 1 August 14, 2009 1999. These competitive markets provide positive economic and environmental outcomes for consumers and improve the ability of the power system to meet ever- increasing demand efficiently. • Management of comprehensive bulk electric power system and wholesale markets' planning processes that address New England's electricity needs well into the future. ISO New England is an independent, not-for-profit corporation. To effectively carry out its charge, the company, its Board of Directors and its 400 employees have no financial interest or ties to any company doing business in the region's wholesale electricity marketplace. Timeline February 2008: ISO New England holds first auction under the new Forward Capacity Market, designed to ensure the region continuously develops an adequate supply of electricity to meet growing demand February 2005: ISO New England begins operation as a Regional Transmission Organization March 2004: FERC conditionally approves ISO New England as an RTO March 2003: ISO New England implements Standard Market Design, an improved wholesale market design for the region January 2003: ISO New England Board of Directors votes unanimously to pursue the creation of an RTO for New England. June 2001: ISO New England proposes Standard Market Design, rules to govern new wholesale markets May 1, 1999: ISO New England begins managing restructured regional wholesale power markets July 1, 1997: ISO New England created to manage the regional bulk power system and new wholesale markets and ensure access to transmission systems 1996: FERC Order 888 deregulates portions of the electric power market 1971: New England Power Pool (NEPOOL) created to establish a central dispatch system and enhance system reliability January 1966: Northeast Power Coordinating Council (NPCC) formed to improve system reliability November 9, 1965: Great Northeast Blackout shuts down power for 30 million customers New England Renewable Portfolio Standards Five of the six New England states (all but Vermont) have Renewable Portfolio Standards (RPSs) to encourage the development of renewable resources in the region. New Hampshire is the most recent state to establish a standard and is in the process of promulgating RPS regulations, which will go into effect sometime in 2008. Several states have other related requirements for the growth of renewable resources and energy efficiency. Vermont and Maine CCA LESSONS LEARNED AND BEST PRATICES 2 August 14, 2009 have newly established renewable requirements outside the RPS structure. Connecticut has new growth requirements for energy-efficiency programs, and Massachusetts recently announced energy-efficiency goals. The Renewable Portfolio Standards in the New England states require a certain percentage of the electric energy produced or purchased by utilities to be from designated types of renewable resources over the next five years or more. This percentage typically increases annually up to a specified level. General types of resources the states qualify as renewable include small hydro, solar, wind, biomass, landfill gas, ocean thermal, and, in some states, fuel cells. Some specific types unique to each state’s RPS exist as well. The RPSs are intended to stimulate the development of new renewable resources and achieve a more diverse and ―clean‖ generation portfolio. To meet their renewable energy requirements, suppliers may buy Renewable Energy Certificates (RECs) created at renewable facilities within the New England region. Alternatively, they may own and operate such resources to create RECs. Suppliers that do not meet their state’s RPS requirements with generation are required to make Alternative Compliance Payments (ACPs) to cover the gap. These funds are to be used to invest in renewable projects within the state. These standards do not apply to municipal utilities. Maine, Connecticut, and Massachusetts implemented RPSs before other states in the region. Rhode Island implemented its RPS in 2007, and Vermont, which passed a state law in 2005, is implementing its regulations for renewables. A number of other northeastern states, including New York, New Jersey, and Pennsylvania, also have implemented RPSs. The specific percentages of electric energy that suppliers must obtain from renewable sources vary by state and year, as do the types of resources that qualify as renewable. The RPS requirements in 2007 were 5% for Connecticut suppliers, 2.5% for Massachusetts suppliers, 30% for suppliers in Maine. Rhode Island’s RPS requirements started in 2007 at 3%. Vermont’s requirement covers just incremental growth from 2005 to 2015. By 2015, the RPS requirements will increase to 14% in Connecticut, 10% in Massachusetts, and 10% in Rhode Island. The requirement in Maine will remain at 30%. In 2007, renewable resources in New England generated about 10% of the region’s total electricity. These resources included wind, refuse, landfill gas, biomass, and hydroelectric generators, excluding hydro generators that use pumping facilities to store the water source. The ISO’s 2007 Regional System Plan (RSP07) indicates that the New England renewable projects in the ISO Generator Interconnection Queue will not provide sufficient energy to meet the aggregate RPS energy requirements set for New England for 2016.45 Unless many smaller projects are installed and operating by 2016, or renewable projects outside New England are certified for meeting the New England states’ RPSs, the suppliers could fail to meet their RPS requirements. RSP07 contains additional information on Renewable Portfolio Standards. Massachusetts CCA Websites Cape Light Compact http://www.capelightcompact.com/ Marlborough http://www.colonialpowergroup.com/ CCA LESSONS LEARNED AND BEST PRATICES 3 August 14, 2009 Ohio In 1999, SB 3 (Chaptered as 4928 of the Ohio Revised Code) established a competitive electricity market in the State of Ohio. This same law includes Community Choice, which is called "governmental aggregation" in the code. The electricity industry restructuring accomplished by this law separates the generation and distribution of electricity, and allows consumers to select the source of their electric supply from competitive suppliers. Timeline of Electricity Restructuring in Ohio http://www.eia.doe.gov/cneaf/electricity/page/restructuring/ohio.html Ohio ISO There are two ISOs that cover Ohio, Midwest and PJM. NOPEC is in the Midwest ISO territory Governmental Aggregators in Ohio http://www.puco.ohio.gov/apps/RegulatedCompanyList/index.cfm?IID=8 RPS The Public Utilities Commission of Ohio (PUCO) has adopted rules that implement the alternative energy portfolio standard created by Senate Bill 221, Ohio’s electricity law. The rules also incorporate new requirements for energy efficiency, long-term forecast and greenhouse gas reporting and carbon dioxide control planning. http://www.puco.ohio.gov/PUCO/MediaRoom/MediaRelease.cfm?id=9330 CCA Websites Northeast Ohio Public Energy Council http://www.nopecinfo.org/ Northwest Ohio Aggregation Coalition No Website at this time CCA LESSONS LEARNED AND BEST PRATICES 4 August 14, 2009 California San Joaquin Valley Joint Powers Authority http://www.communitychoice.info/sjvpa/ Marin Energy Authority http://www.marinenergyauthority.org/ CCA LESSONS LEARNED AND BEST PRATICES 5 August 14, 2009 ATTACHMENTS 1. Cape Light Compact - Amendments to Approved Energy Efficiency Plan 2007- 2012 2. San Joaquin Valley Joint Powers Authority – Television Message Text 3. Northeast Ohio Public Energy Council – Bylaws Amendment 2008 4. Northeast Ohio Public Energy Council – 2009 Energy Supply Agreement 2009 5. Northwest Ohio Aggregation Coalition – 2009 Request for Proposals for Professional Services for Certified Retail Electric Supply 6. San Joaquin Valley Joint Powers Authority – Three Year Budget for
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