CO Public Utilities Commission Decision Keeps Rooftop Solar Shining

Today the Colorado Public Utilities Commission (PUC) approved a motion from the Colorado Energy Office that will keep one of the state’s most successful solar programs in place for the near term and provide an opportunity for a diverse stakeholder discussion about the future of rooftop solar in Colorado. This decision follows strong public opposition to a plan from Xcel Energy to roll back the popular solar program, called net metering. Net metering gives solar customers full retail credit on their energy bills for the excess power they contribute to the grid for the utility to resell nearby. Xcel issued a proposal to weaken the popular solar program as part of its 2014 Renewable Energy Standard Compliance Plan docket (Docket No. 13A-0836E). Today’s PUC decision removes all issues related to net metering to a new docket that will allow a more thorough discussion of the value and design of Colorado’s net metering program. Today’s PUC decision was widely supported by businesses, environmental groups and other Colorado stakeholders: "The vast majority of Coloradans want rooftop solar to be more available and more affordable. This is truly about power to the people. This decision today helps ensure a thoughtful discussion about the value of rooftop solar. We appreciate the Colorado Energy Office and the Public Utilities Commission’s action on this issue," said Edward Stern, Executive Director of the Colorado Solar Energy Industries Association (COSEIA) , which represents a wide range of Colorado solar businesses including manufacturers, distributors, and installers. “Our future national security is directly linked to our ability to reduce our dependence on fossil fuels and produce secure, clean and local energy. Private investment in rooftop solar is helping build that cleaner, safer and more resilient energy supply here in Colorado. Operation Free supports clearing the way for more Coloradans to harness homegrown solar energy and removing unnecessary barriers to solar adoption," said Brett Hunt, a veteran of the war in Iraq and the Colorado Spokesman for Operation Free. Operation Free is a nationwide coalition of veterans and national security experts working to secure America with clean energy. “We believe that every consumer who wants solar should have access to it. Colorado residents are becoming more aware of the benefits of solar energy because we care about our environment, our way of life and the future of Colorado. Solar power clearly avoids air emissions and water consumption, and rooftop solar provides the added benefit of transmitting power that is produced locally,” said The Reverend Elias D. Burgos, Executive Director of Colorado Interfaith Power and Light, a non-profit organization focused on a religious response to climate change. “Rooftop solar represents a huge opportunity for Colorado to harness pollution free energy with no fuel costs. We cannot roll back one of the most successful solar programs. Net metering is a fair and appropriate way to compensate people for energy they provide for Colorado's electric system," said Kim Stevens, Campaign Director for Environment Colorado, an organization dedicated to protecting our Colorado’s air, water and open spaces. Statements from additional supporting organizations are available at: http://www.oursolarrights.org/state-campaigns/colorado/puc-decision-statements Rooftop solar helps Colorado families, schools and businesses take charge of their power supply and their electricity bills. This private investment in local clean energy delivers economic, environmental and public health benefits to solar and non-solar customers alike. Groups supporting Colorado’s net metering program include: Advanced Energy Economy, Clean Energy Action, Clean Power Finance, COSEIA, Dynamic Integration, EnergyShouldBe.org, Environment Colorado, Five Star Consultants, Go Green Electric, Interfaith Power & Light, Namaste Solar, Operation Free, Real Goods Solar, Solar Energy Industries Association (SEIA), Sierra Club, Sierra Club Rocky Mountain Chapter, SolarCity, Sunrun, The Alliance for Solar Choice (TASC), Verengo Solar and Vote Solar. About net metering: Like rollover minutes on a cell phone bill, net metering gives solar customers full credit on their utility bills for the excess clean power they contribute to the grid. In place in 43 states, this simple crediting arrangement is one of the most important state policies for enabling Americans to generate their own power from solar and other renewable energy resources. Learn more at: www.OurSolarRights.org

The Alliance for Solar Choice Applauds Colorado Energy Office for Leadership on Critical PUC Decision

Today the Colorado Energy Office (CEO) filed a motion with the Public Utilities Commission to sever issues related to net metering from the 2014 Renewable Energy Standard Compliance Plan docket (Docket No. 13A-0836E) to a new docket. If adopted, this motion will lead to a broad and diverse stakeholder discussion about the critical role net metering plays in the solar marketplace. "We commend the Governor's Energy Office for taking a course of action that aligns with the best interests of Colorado's energy consumers and our state's growing economy," said Meghan Nutting, spokesperson for The Alliance for Solar Choice (TASC). "If approved, the CEO's filing will give stakeholders an opportunity to have a thorough discussion about the value of solar and ultimately allow Colorado continue to demonstrate national leadership in solar." Rooftop solar helps Colorado families, schools and businesses take charge of their power supply and their electricity bills. This private investment in local clean energy delivers economic, environmental and public health benefits to solar and non-solar customers alike. Grid benefits: Local solar energy systems reduce the need for expensive centralized power plants and transmission infrastructure, which benefits Colorado's non-solar customers. These grid benefits total up to $13.6 million annually for Xcel's ratepayers in Colorado. Job & economic benefits: More than 300 solar companies currently employ 3,600 Coloradans throughout the state. In 2012, private investment in installing solar on Colorado homes and businesses totaled $187 million. Energy Choice for Coloradans: Recent poll results show that statewide support for net metering exceeds 70 percent in every region around the state and is greater than 60 percent across all of the key voter groups in Colorado. Specifically, the CEO's motion makes the following recommendations: The CEO requests that the Administrative Law Judge refer to the Commission for their opinion as to whether the issue of net metering costs and benefits should be severed from the current proceeding. The CEO further recommends that a Miscellaneous Docket proceeding be initiated to address net metering. Further, CEO recommends that the Commission establish a scope and process sufficient to address the issue of system costs and benefits associated with distributed solar generation, as applicable to the electric utility systems regulated by the Commission. The CEO offers that, at a minimum, the Miscellaneous Docket should address the following concerns: What methodologies should be used to estimate the cost and benefits of net metered distributed generation? What are the effects of DSG on cost allocation and other components of rate design? Determine the appropriate procedure to conduct a study of costs and benefits. Conduct a study of solar distributed generation costs and benefits. The CEO requests a shortened response time of 5-days for parties to comment on this motion, and requests that the Commission act upon this motion by January 31, 2014.

Colorado Governor Appoints New PUC Rep

Colorado Governor John Hickenlooper confirmed the appointment of Glenn Vaad (R) to the state public utilities commission over protests from solar energy advocates. Thousands of petitioners opposed Vaad’s appointment because of his affiliation with the American Legislative Exchange Council, a conservative lobbying group known for introducing legislation in more than a dozen states to eliminate renewable energy portfolio standards. Vaad served as of the group’s Commerce, Insurance and Economic development task force in 2011 and 2012. ALEC counts the Koch brothers, Exxon Mobile and the Edison Electric Institute among its members. The Edison Electric Institute published a report in 2013 declaring distributed rooftop solar a “significant threat” to the central utility business model. The Colorado Public Utilities Commission is scheduled to hear arguments on Feb. 3 over an Xcel Energy request to cut net metering payments – credits on solar customers’ utility bills for the excess power they feed back into the grid – from 10.5 cents per kilowatt hour to 4.6 cents, something solar advocates say would cripple the state’s growing rooftop solar industry. Several states have recently battled utility company challenges to net metering. California’s solar industry counts new legislation securing the future of net metering there as a victory. Arizona solar advocates triumphed when the Corporations Commission there voted to allow Arizona Public Service to raise rates for solar customers by up to $5 a month instead of the $50 to $100 the utility requested. The Alliance for Solar Choice, a newly minted lobbying group for the solar industry, said it and other solar advocates spent about $350,000 campaigning to save net metering in Arizona while the utility and lobbyists spent $9 million. Despite a major investment in unraveling net metering benefits and public support for distributed solar energy generation in Arizona, the utility lost. TASC is watching Colorado carefully, considering it the next major battleground for net metering benefits. With the PUC hearing on the horizon, solar advocates have been on high alert and were quick to oppose Vaad’s appoint once it learned of his involvement with ALEC. Watchdog group Common Cause even reported that Vaad received scholarships in 2006, 2007 and 2008 that included funds from Xcel Energy. "There is a clear conflict of interest," said Gabe Elsner, executive director of the Energy and Policy Institute said in a statement. "Vaad was a high-ranking representative of a corporate lobbying group that is coordinating a national attack on clean energy.” When Hickenlooper announced on Jan. 7 that he was confirming Vaad, his assistant told the Denver Post that Vaad’s affiliation with ALEC couldn’t be considered in a vacuum. As a former member of the state House of Representatives, Vaad voted in favor of increasing renewable energy requirements for rural electric cooperatives and moves to replace aging coal-fired power plants with natural gas generation, according to the Denver Post article. Vaad’s term has already started and one of the first issues he hears as a new member will be Xcel’s proposal to reduce net metering benefits.

Report: Net Metering Rollbacks Will Not Impact U.S. Solar Markets This Year

Despite efforts from some U.S. states to reevaluate their net-energy metering (NEM) policies, the impact of any potential changes on the U.S. photovoltaics industry is expected to be negligible this year, according to a new report from IHS Inc. IHS reports that 85% of distributed solar PV capacity installed to date in the U.S. is located in states with full retail-rate NEM. An estimated 70% is located in states that are reviewing their NEM policies. The debates in Arizona, Colorado and California has focused on determining the value of NEM PV power to non-NEM ratepayers, and how to recover the difference - if any - between the retail rate and this value. "The proceedings in Arizona, Colorado, and California all indicate that avoided utility costs are emerging as the way to determine NEM PV’s value," says Wade Shafer, senior analyst for North American PV at IHS. "However, with no single methodology for determining avoided costs, the debate over NEM benefits to the greater power system are likely to continue. Given that Arizona is currently positioned for NEM reform in 2015, and that California must create a new NEM tariff by 2016, the arguments are likely to continue through 2014 and 2015." Avoided fuel costs, capacity and distribution losses seem to be common areas of value, but what percentage of these utility-cost categories are avoided will be debated, IHS says. Other categories that are likely to be the subject of debate are avoided transmission and distribution investments, renewable power purchases and emissions. In addition to these debates being shaped by local power market dynamics, IHS says the local political environment will also influence the final determinations and lead to fragmented outcomes across the U.S. Shafer acknowledges that these debates have spurred some concern about the development of distributed solar in the U.S., since NEM incentives are critical to supporting the customer-sited PV market. However, with utility costs generally seen as increasing over time and PV costs expected to continue to decline, he says the future of distributed PV generation could be promising in select areas. "After examining proposed changes and recent utility commission rulings, IHS has determined that net metered PV project economics will not be significantly impacted in 2014," Shafer says. IHS advises distributed solar developers to focus on driving project costs lower through improved installation, streamlined customer acquisition and innovative financing/business models in order to prepare for a future of avoided-cost valuations.