Making Clean Local Energy Accessible Now 11 November 2015 Transmission Access Charges (TAC) Massive...

Making Clean Local Energy Accessible Now 11 November 2015

Transmission Access Charges (TAC)Massive Market Distortion

That Harms Local Renewables

Making Clean Local Energy Accessible Now

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Clean Coalition Mission and Advisors

Board of AdvisorsBoard of AdvisorsJeff Anderson

Co-founder and Former ED, Clean Economy Network

Josh BeckerGeneral Partner and Co-founder, New Cycle Capital

Jeff BrothersCEO, Sol Orchard

Jeffrey ByronVice Chairman National Board of Directors, Cleantech Open; Former Commissioner, CEC

Rick DeGoliaSenior Business Advisor, InVisM, Inc.

John GeesmanFormer Commissioner, CEC

Eric GimonIndependent Energy Expert

Patricia GlazaPrincipal, Arsenal Venture Partners

Mark Z. JacobsonDirector of the Atmosphere/Energy Program &

Professor of Civil and Environmental Engineering, Stanford University

Dan KammenDirector of the Renewable and Appropriate Energy Laboratory at UC Berkeley; Former Chief Technical

Specialist for RE & EE, World Bank

Fred KeeleyTreasurer, Santa Cruz County, and Former Speaker

pro Tempore of the California State Assembly

Felix KramerFounder, California Cars Initiative

Amory B. LovinsChairman and Chief Scientist, Rocky Mountain

Institute

L. Hunter LovinsPresident, Natural Capitalism Solutions

Ramamoorthy RameshFounding Director, DOE SunShot Initiative

Governor Bill RitterDirector, Colorado State University’s Center for the

New Energy Economy, and Former Colorado Governor

Terry TamminenFormer Secretary of the California EPA and Special

Advisor to CA Governor Arnold Schwarzenegger

Jim WeldonTechnology Executive

R. James WoolseyChairman, Foundation for the Defense of Democracies; Former Director of Central

Intelligence (1993-1995)

Kurt YeagerVice Chairman, Galvin Electricity Initiative; Former

CEO, Electric Power Research Institute

MissionTo accelerate the transition to renewable energy and a modern grid through technical,

policy, and project development expertise.

MissionTo accelerate the transition to renewable energy and a modern grid through technical,

policy, and project development expertise.


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Agenda

• Market Distortion Overview & Fix• Significance of Market Distortion• TAC Campaign Details


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Introduction to TAC

Remote generation is delivered via transmission

Distributed generation connects close to loads


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Introduction to TAC

“low voltage” transmission<200kV

High Voltage Transmission>200kV

Distributed generation connects here


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TAC Should Be Based on Cost Causation

TAC now assessed on customer load(for PTO utilities)

Based on cost causation, assess TAC on transmission load

Distributed generation connects here


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Problem: Local Energy Subsidizes Transmission

Local renewables’avoided cost artificially low

Transmission demandartificially inflated

CAISO tariff assesses TACon “Gross Load”

TAC

Base Power

RPS, Other

Avoided cost ($/kWh)of local renewables


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Goal: Level Playing Field, Minimize Ratepayer Costs

Level playing field for generation grows local energy

Optimal transmission demandminimizes ratepayer costs

CAISO tariff assesses TACon transmission load

Base Power

Avoided cost ($/kWh)of local renewables

TAC

RPS, Other


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Agenda



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TAC Market Distortion is Significant Issue

40%60%

Most CA Electricity Cus-tomers Face Market

Distortion

Non-PTOPTO

24%

76%

Most Transmission Spend Through 2023 for Renew-

ables

OtherIntegrate renewables

$0.07

$0.03

TAC a ThirdOf WDG Price

($/kWh)

GenerationTAC


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TAC Market Distortion Threatens $80 Billion Benefit

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 250

1

2

3

4

Year

Ce

nts

/kW

h Potential Avoided Transmission Costs$80+ Billion over 20 years for CA ratepayers

Business as Usual TAC Growth TAC0 Depreciated Avoided TAC Opportunity from DG

2015 TAC Rate (TAC0) = 1.8¢/kWh

Business As Usual TAC GrowthBusiness as Usual 20 Year Levelized TAC = 3¢/kWh

TAC0 O&M Level

Alternative Paths For Meeting California GHG Goals - PG&E Example

Generation on Distribution Grid Only


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Fixing TAC Helps Unleash a Virtuous Cycle


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WDG: TAC Double-Charges for Grid Usage

Distribution Grid

Project Size

Behind the Meter

Central Generation Serves Remote Loads

Wholesale DGServes Local Loads

Retail DGServes Onsite Loads

Transmission Grid

5 kW

50+ MW

500 kW

Current TAC assessment

Proper TAC assessment


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Agenda



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Precedents for Goal of TAC Campaign

FERC Principles of Transmission Cost Allocation

Order 1000:•Costs must be allocated in a way roughly commensurate with benefits

•Costs may not be allocated involuntarily to those who do not benefit

•Costs may not be allocated involuntarily to a region outside the facility’s location

40%60%

CA Non-PTO Electricity Customers

Non-PTOPTO


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Getting Involved

• Clean Coalition will file comments with CAISO Nov. 13

• Stay updated• Contact [email protected]

to receive copies of Clean Coalition filings, and notifications about upcoming opportunities to participate in the TAC campaign

mailto:[email protected]

Making Clean Local Energy Accessible Now 11 November 2015 Transmission Access Charges (TAC) Massive...

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