Ontario s Renewable Energy Standard Offer Program - LDC Information Package

Transcription

1 Ontario s Renewable Energy Standard Offer Program - LDC Information Package Prepared with input and assistance of members of the OPA s Electricity Distributors Working Group Last updated April 03,

2 Disclaimer This information package is intended only as a starting point to identify metering, connection and settlement issues pertaining to t Renewable Energy Standard Offer Program (RESOP) facilities. It provides high level outlines and simplifications of issues, processes and regulatory requirements. This package was prepared based upon information current at the time of preparation and no representation or warranty is provided, nor shall any be implied that such information continues to be accurate or current. Though prepared for an LDC audience, some content may be of interest to project proponents; however, interested proponents must m discuss their plans with their Local Distribution Company (LDC), whose specific requirements and procedures may differ from the general information provided in this package. If there is any conflict between this information package and either the RESOP Rules or the RESOP Contract, the latter will prevail. Similarly, if there is any conflict between this information package and such applicable rules and regulations regarding connection of o electricity generation facilities to a distribution system in Ontario, the latter shall take precedence. 2

3 Acknowledgements The Renewable Energy Standard Offer Program (RESOP) policy was developed over a 2 year period, with program specifics developed in 2006 over several months The OPA chose solutions with the input of stakeholders, via several specific working groups, and other consultation processes The LDC RESOP Information Package is based both on the initial pre-launch work of the Electricity Distributors Working Group, and on subsequent post-launch input by select LDCs and the OEB The Electricity Distributors Working Group (ED WG) had members from Hydro One, the IESO, various LDC volunteer representatives on behalf of the Electricity Distributors Association, the Ontario Ministry of Energy, and the OEB The OPA would like to acknowledge the on-going efforts and input of various LDCs who continued to consult with the OPA and OEB after the launch of the RESOP, with particular thanks to: Graham Henderson, Hydro One Distribution; Gerry Hilhorst, Waterloo North Hydro; Stephen Sottile, KEDL; and Darius Vaiciunas, Collus Hydro The OPA has developed this LDC Information Package for general overview and information exchange. It is an in-progress, living document and so written feedback and suggestions are welcome 3

4 Table of Contents Ontario Renewable Energy Policy and Market Context (slides 5-9) 5 Background and Select RESOP Features (slides 10-23) OEB Code Changes past and future (slides 24-28) 28) Note: OEB is lead agency on issues relating to Select Metering, Settlement and Payment Issues (slides 29-46) Main Meter Configuration Options (slides 47-63) For more Information (slides 64-65) 65) 4

5 Ontario Renewable Energy Policy and Market Context Source: OPA s IPSP Scope and Overview, June 29,

6 Ontario Renewable Energy Policy and Market Context (cont d) Source: OPA s IPSP Scope and Overview, June 29,

7 Ontario Renewable Energy Policy and Market Context (cont d) Procurement Targets Resource Type Near-Term Potential (MW) Committed Near-Term (MW) (%) Un-Committed Near-Term (MW) (%) Conservation and Demand Management 2, % 2, % Renewable Energy Hydroelectric % % Wind 2, % 1,505 61% Biomass % % Subtotal 3,490 1,003 29% 2,487 71% Nuclear 2,020 1,500 74% % Natural Gas 5,520 3,265 59% 2,255 41% Cogeneration/CHP 1, % % IGCC Promising Technologies Solar % Micro CHP/Fuel Cells % Generation Storage 7

8 Ontario Renewable Energy Policy and Market Context (cont d) - Opportunities in a Growing Market Global Annual Investment in Renewable Energy Renewable Global Status Report

9 Ontario Renewable Energy Policy and Market Context (cont d) Drivers: Why Renewable Energy? Climate Change reducing GHG emissions Reduced environmental impacts (cleaner air, water, soil) = less impact on human health and on ecosystems Diversified fuel supply = domestic energy security Electricity rate stability: fixed prices mitigate against future market price increases due to reliance on fossil fuels Distributed generation can promote transmission and distribution system reliability Locating generation close to load can reduce transmission line losses and so reduce need for, or delay, costly Tx and/or Dx infrastructure improvements New project investment = local economic development, diversified tax base & high-skill job creation Positive investment climate can incent new domestic manufacturing plants, reducing costs for future projects 9

10 Background and Select RESOP Features Program History Need to reduce barriers to small renewable generators Government accepts joint OPA/OEB recommendations in March 2006 and directs implementation The OPA role: Eligibility Criteria Pricing Methodology Contact Terms and Conditions The OEB role: Ensuring non-discriminatory access to the electricity system Required changes to Codes and connection requirements 10

11 Background and Select RESOP Features Guiding Principles Keep it simple Remove barriers to smaller renewable developers Balance new renewable generation contribution and value to ratepayers 11

12 Background and Select RESOP Features Who Will Be Eligible for the Program? Fuel/Technology Types Renewable energy projects : wind, thermal electric solar, photovoltaic (PV), renewable biomass, bio-gas, bio-fuel, landfill gas, or waterpower. Capacity Requirements - Installed generating capacity of no more than 10,000 kw. Projects that began commercial operation after November 7, See RESOP Rules for full details 12

13 Background and Select RESOP Features Transmission Issues for Some Applicants Transmission System Constraints account count for capacity limits on getting generation into the grid (similar approach as taken by Ministry of Energy in RES II RFP) - Some transmission areas and zones will experience such Contract issuance restrictions - Some exemptions to these restrictions (see Rules) OPA will ensure that up-to to-date information is available for generators and distributors; see Transmission Constraints on RESOP microsite: Orange Zone map: functional map shows the high- voltage transformer stations in Transmission System which cannot accept new power from LDC feeders - Gx may ask LDCs if their feeder connects to a HV transformer station in Orange Zone 13

14 Background and Select RESOP Features Transmission Issues (Cont d) 14

15 Transmission Issues (Cont d) - Some Tx Dynamic Flow Constraints Within the Bruce Zone Portion of RESOP Orange Zone 15

16 Background and Select RESOP Features Application Eligibility Requirements Contract awarded after the following conditions met by applicant: Completed and current Connection Impact Assessment (<6 mo.) for approx. size of Project, no larger than 10 MW Gross Nameplate Capacity CIA not required by OPA if an In- Service Project or if 10 kw or under Environmental Assessment underway (if applicable) Demonstrated Site Access Authorize OPA access to Gx meter data Other electronic application deliverables 16

17 Background and Select RESOP Features Generator Opportunity: Secure Contract RESOP Contract Term Up to 20 years = securing financing Third Anniversary Requirements Projects must achieve Commercial Operation within 3 years of Contract Waterpower facilities: projects must obtain location approval/ priority permit within 3 years 17

18 Background and Select RESOP Features Opportunities: Program Flexibility Project can be completed in two or more phases All phases of a Project must be in-service within three years (waterpower exceptions) Separate applications required for longer phase-in periods (waterpower exceptions) Incremental Projects are eligible: Total nameplate capacity of initial facility plus RESOP project plus must not exceed 10,000 kw Only the percentage capacity increase is eligible for RESOP payment 18

19 Background and Select RESOP Features Some Generator Issues, Steps and Responsibilities Generators responsible for project development and costs, including successful completion of RESOP Application - Gx determines resource assessment, payback period and feasibility studies ex. RETScreen ( Must contact Local Distribution Company re: CIA if new project, and resolve all metering and connection issues Must obtain municipal approvals for zoning and permits Must obtain relevant approvals from pertinent ministries Environment (screening and approvals) Natural Resources (waterpower) If successfully meet Third Anniversary Requirements, then RESOP Contract Payment provides financing with 20 year term with guaranteed price 19

20 Background and Select RESOP Features Contract Payments under the Program Until April 30/07, all except for Solar $0.11 / kwh On-Peak performance $ / kwh (Gx must apply for incentive) Note that On-Peak Hours RESOP definition differs from RPP definition Escalation for Inflation 20% of Base Rate indexed at CPI Escalation on May 1 st annually Payments for Solar PV $0.42 / kwh, regardless of date $0.42 / kwh is fixed over time; PV not eligible for inflation increases or peak performance under current Program Rules Generator receives RESOP payment from LDC as per DSC and typical utility practice (for example, see slide #45) Nominally, payment is made up of 2 components LDC pays HOEP OPA pays (contract price HOEP) via the LDC through the IESO Pricing Reviews Pricing will be reviewed for future applicants for contracts only y (not retroactive to holders of executed contracts) 20

21 Background and Select RESOP Features Some Connection and Metering Requirements Generator must connect within an eligible distribution system as defined by RESOP Rules Metering under the control of the LDC, and as per OEB s Distribution System Code Hourly data required (by RESOP Rules) for all Gx larger than 10 kw No hourly data required for micro-scale generation (10kW and under), unless micro-gx locating behind load customer meter Gx has sole responsibility for coordinating metering configuration and metering requirements with their LDC RESOP Contract Facility meters must be under the control of the applicable LDC Generator pays for connection and metering 21

22 Background and Select RESOP Features Some Connection and Metering Requirements (Cont d) In terms of metering and settlement of micro-generators of 10 kw and under, Sections 6.1 and 6.3 of the Renewable Energy Standard Offer Program Program Rules Version 2.0 (November 22, 2006) provide some guidance (note, these sections are not limited to micro-gx). Section 6.1 states (in part) that:. Subject to Section 6.3 hereof, Contract Facilities that are less than or equal to 10 kw in Gross Nameplate Capacity will not require meters that provide hourly data until such time as the relevant LDC serving the Contract Facility requires the use of metering that provides hourly data. Section 6.3 states: Where the Contract Facility is connected directly to a Load Customer as permitted in Section 6.2, both the Contract Facility s meter and the Load Customer s meter must provide hourly data, including Contract Facilities of 10 kw or less. 22

23 Background and Select RESOP Features Eligible Distribution System In Which RESOP Gx Can Locate Eligible distribution system eligibility factors: - Generator must connect to an eligible distribution system via a single connection at a voltage of 50 kilovolts (kv) or less - Eligible distribution systems are those that are both: - OEB-licensed and - connected to the IESO-Controlled Grid Note: an embedded LDC may be an eligible Dx system if its host LDC is connected to the IESO-Controlled Grid RESOP contracts are not available in Remote Communities or Cornwall Electric distribution service area LDCs which are exempt Section 26(1) of the Electricity Act which governs the provision of non-discriminatory access would not be required to connect RESOP generators 23

24 OEB Code Changes DSC Amendments in support of RESOP Note: OEB is lead agency on these issues Metering to be as appropriate for RESOP settlement Standardized connection agreement for small and mid-sized generation facilities Distributors to provide contact and technical information to prospective generators 24

25 OEB Code Changes DSC Amendments (cont d) Note: OEB is lead agency on these issues First-come come-first-served served queuing for available Dx capacity Queue position assigned at CIA Position may be held for 12 months Material change in the project will trigger need for a second CIA and reassignment of queue position Does not apply to micro-embedded generation or load displacement only generation DSC Amendment includes a dispute resolution process (binding arbitration) 25

26 OEB Code Changes (Cont d) RSC Amendments Note: OEB is lead agency on these issues Obliges electricity distributors to settle contracts between generators and OPA in accordance with the pricing provisions of the contract Electricity distributors will recover the Market Price Variance associated with these payments through the use of existing IESO settlement processes 26

27 OEB Code Changes Next Steps Note: OEB is lead agency on these issues The OEB Compliance Office intends to issue clarifications on the following issues: A Compliance Bulletin to give clarity in terms of metering which is appropriate for settlement for these two main RESOP Gx connection types, and their variants: Directly connected (i.e. in parallel) Indirectly connected Generators (i.e. in series or behind the load customer s s meter ) 27

28 OEB Code Changes Next Steps (Cont d) Note: OEB is lead agency on these issues Generators to choose Connection Location based on information from LDC LDCs will have discretion in terms of whether RESOP Generators can be treated as new accounts (criteria tba by OEB) LDCs to assign RESOP Gx to existing rate class according to load characteristics and other relevant factors (factors tba by OEB) 28

29 Select Metering, Settlement and Payment Issues - Contract Payment and GST treatment by LDCs A generator with a RESOP Contract may be required to register, collect and remit GST applicable to Contract Payments It is the sole responsibility of the RESOP Generator to determine their GST status and to complete any relevant submissions - If the Excise Tax Act applies to the Generator, it must provide the OPA with written notice of its GST registration number, and the OPA will inform the LDC. The CRA may require it to register with the CRA - If the Excise Tax Act does not apply to the Generator, it must inform the OPA of its GST status before it declares Commercial Operation, and the OPA will inform the LDC It is recommended that all RESOP Generators obtain independent GST, tax and legal advice pertaining to the RESOP Contract 29

30 Select Metering, Settlement and Payment Issues - Contract Payment and GST treatment by LDCs (Cont d) As per Section 5.1(c) of the RESOP Contract, the OPA has no obligation to make any Contract Payments if the generator does not first (1) provide notice in writing to the OPA of its GST status,and (2) if a registrant, provide its GST registration number to the OPA The LDC s s regulatory obligation is settle with the generator in accordance with the RESOP Contract In order to receive RESOP Contract Payments from the LDC, the Generator must first properly declare Commercial Operation with the OPA Then the OPA must provide the LDC with the Generator s s self-declared GST status (and if applicable, its GST registration number) so that the LDC can properly issue Contract Payment (and if applicable, remit GST) 30

31 Select Metering, Settlement and Payment Issues LDC Settlement Systems Setting up the LDC Billing System to Invoice, Track, and Record settlements for the RESOP will involve some planning to manage 20 year contracts. An LDC may choose to use combinations of Rate Codes, Customer Classifications or Customer Categories to track RESOP Settlements The next set of slides provides an overview of scenarios related to RESOP Billing and Tracking to provide insight to an LDC when designing their systems for RESOP Settlements 31

32 Select Metering, Settlement and Payment Issues - Discussion of RESOP Settlements The RESOP Requires the LDC to pay the Generator for the energy delivered to the Distribution System at the OPA Contract Price (CP). Given that the contracts will have different start times and the OPA will be reviewing Contract Pricing on a regular basis, the CP tracking in a Settlements System will need to be specific to groups of Generation Facilities. For Example: In Year 1 (up to April 30, 2007): Generator 1 will have the fixed price of 11 cents per kwh for all output. Generator 2 will have the fixed price of 42 cents per kwh for all output. Generator 3 will have the Performance Incentive and thereby is paid 11 cents for all output during off peak times, and cents during peak times. 32

33 Select Metering, Settlement and Payment Issues Discussion of RESOP Settlements (Cont d) The Base Rate of cents per kwh is escalated at 20% of the annual CPI. Now the pricing for RESOP Generators would be as follows: In Year 2 (from May 01, 2007 to April 30, 2008): Generator 1 receives the fixed price of cents per kwh for all output. Generator 2 receives the fixed price of 42 cents per kwh for all output. Generator 3 receives the Performance Incentive and thereby is paid cents for all output during off peak times, and cents during On-Peak Hours (as defined under RESOP). 33

34 Select Metering, Settlement and Payment Issues - Discussion of RESOP Settlements (Cont d) From a Billing and Payment Perspective, it is likely for a single non-pv generator to have a different rate each year of the 20 year contract due to the CPI increase calculations. Given that an LDC must be able to track payments and credits on an ongoing basis, one option for keeping track of the various payments would be to establish a new rate tied to a rate change for each new contract rate. Using the examples outlined, the LDC could set up 4 rates for year 1 (ending April 30/07): Rate A1 = (11 Cents for all output) Rate B1 = (42 Cents for all output) Rate C1 = (11 Cents for Off-Peak Output) Rate D1 = (14.52 Cents for On-Peak Output) OR the LDC can set up 3 rates for year 1: Rate A1 = (11 Cents for all output) Rate B1 = (42 Cents for all output) Rate C1 = (3.52 Cent Rider for On-Peak Output tied to Rate A) 34

35 Select Metering, Settlement and Payment Issues - Discussion of RESOP Settlements (Cont d) Assuming the 4 Rate Option, the LDC would set up additional rates for year 2 (beginning May 1/07 ending April 30/08): Rate A2 = (11.04 Cents for all output) Rate C2 = (11.04 Cents for Off-Peak Output) Rate D2 = (14.56 Cents for On-Peak Output) In this way - a Generator's Payments could be re-calculated by tying a specific rate to delivered output at any given time in a calendar year. This would provide an easy method of re-calculating costs during audit processes etc. Since the RESOP rules state that the Solar PV rate will not be indexed, there would likely be no need to establish a rate B2. 35

36 Select Metering, Settlement and Payment Issues - Discussion of RESOP Settlements (Cont d) Under the basic concepts of settlements, the LDC settles with all Generators at the HOEP, and collects from all Consumers at HOEP. This practice keeps the LDC indifferent to the supply and sale of electricity. At the most basic of concepts, an LDC would purchase all power from the IESO at HOEP and sell all the power to the Consumers at HOEP. 36

37 Select Metering, Settlement and Payment Issues - Discussion of RESOP Settlements (Cont d) Embedded Generators: When some of the power is purchased from the IESO and some from an Embedded Generator, the balance remains intact if all Consumers pay at HOEP and all Generators are paid at HOEP. The change here would simply be where the HOEP dollars flow to, some to the IESO, and some to the Embedded Generator. Assuming that all power is sold to consumers at HOEP, this means that there are adjustments performed to settlements when other parties or rates are involved. For example... 37

38 Select Metering, Settlement and Payment Issues - Discussion of RESOP Settlements (Cont d) Retailer Contracts: An LDC collects from the Customer the Retailer Rate for energy consumed, and settles with the Retailer for the difference between HOEP and the Retailer Rate for that same unit of energy. (Retailer Settlements) This leaves the LDC with the HOEP equivalent value for every kwh sold. RPP Split Rate: An LDC collects from the Customer the RPP Split Rate for Energy Consumed, and settles with the IESO for the difference between the HOEP and the RPP Split Rate for that same unit of energy (using Form 1598). This leaves the LDC with the HOEP equivalent value for every kwh sold. 38

39 Select Metering, Settlement and Payment Issues - Discussion of RESOP Settlements (Cont d) Generators Receiving Rates other than the HOEP: Under the RESOP, Generators will be receiving contract rates which differ from the HOEP. Since the settlements processes noted above are in place to ensure the LDC always receives HOEP for energy sold to consumers, a similar process needs to be in place to ensure the LDC can pay the Generators the difference between HOEP and the Contract Rate. The IESO settlements system (through Form 1598) will be used to manage the difference between HOEP and the RESOP Rate that the LDC must pay the Generator. 39

40 Select Metering, Settlement and Payment Issues - Discussion of RESOP Settlements (Cont d) In an effort to centralize the reporting and tracking of the RESOP program, the IESO (as a tracking condition requested by the OPA) requires a variety of information, in addition to the variance between HOEP and RESOP dollars reported on the Form Dollar Variance (Positive or Negative) between HOEP and RESOP energy Purchased from Generators. Total kwh's related to the Dollars Further to the basic requirements, the Dollars and kwh's need to be split out to On- Peak and Off-Peak periods in order to allow the OPA to track the costs and benefits related to the On-Peak Performance Incentive Payment. This information is required to be further split out based on the four main renewable energy categories under the RESOP: Wind; Biomass; Small Hydro; Solar Photovoltaic 40

41 Select Metering, Settlement and Payment Issues Discussion of RESOP Settlements (Cont d) Draft Form 1598 (current form at 41

42 Select Metering, Settlement and Payment Issues Discussion of RESOP Settlements (Cont d) Given the additional tracking required, an LDC will need to identify the various forms of Generators in their CIS either as part of their Customer Category, or through the use of additional Rate Codes. Setting up different categories of Generators would enable an LDC to attach the different rate codes to each Generator as required. Using the examples described in the General Notes, one could envision the following... Wind Generator = Rate A1 Biomass = Rate A1 Biomass = Rate C1 & D1 Small Hydro = Rate A1 Small Hydro = Rate C1 & D1 Year 1 (if they qualify for On-Peak Incentive) (if they qualify for On-Peak Incentive) Solar Photovoltaic = Rate B1 42

43 Select Metering, Settlement and Payment Issues Discussion of RESOP Settlements (Cont d) On-Peak vs Off-Peak - (Form 1598 Reporting) When calculating Off-Peak dollars and kwh's - include the base rate dollar variance for Off-Peak kwh's only. - for a generator receiving the fixed rate without the On-Peak Performance Incentive, all their kwh s would be treated as Off-Peak When calculating On-Peak dollars and kwh's - include On-Peak kwh's and total Dollars ( X kwh's) - for a Generator receiving the On-Peak Performance Incentive, the full cost of the On-Peak kwh s should be reported separate from Off-Peak Note: The On-Peak Periods are defined in the RESOP as Business Days from 11:00 am to 7:00 pm, and Business Days have their own definition. The Off-Peak Periods are defined as All Other Hours 43

44 Select Metering, Settlement and Payment Issues Discussion of RESOP Settlements (Cont d) A generator is essentially a manufacturer whose product is electricity. At times when the generators' production facility is not on-line, the facility requires energy to support what are referred to as Parasitic or House Loads or Station Service. This energy is purchased from other generators, and must be paid for. Therefore a generator can be both a consumer and a supplier at any given time. As a result, it is necessary (in most cases) to measure the energy flow through the meter in both directions. The settlement statement sent to the Generator would include both a charge for the energy purchased from other generators (when total Station Service is not self-supplied), and a payment for energy generated when they are on-line and producing electricity. 44

45 Select Metering, Settlement and Payment Issues Discussion of RESOP Settlements (Cont d) Metering and Settlements of generation facilities will vary depending on the location and type of facility involved. The simplest form of generation customer is a stand-alone generation facility. A stand-alone generation facility may be primary metered or secondary metered (metered on the High Side, or Low Side of the Dx Transformer) For Settlements, a Consumer is considered to have received power at the low side of the transformer, and a Generator is considered to have delivered power to the grid at the high side of the transformer. Since a generator can be both a supplier and consumer of electricity at different times, and since it is most cost efficient to install only one meter, this means that the consumed value or the delivered value is adjusted accordingly, depending on which side of the transformer the meter is located. 45

46 Select Metering, Settlement and Payment Issues Discussion of RESOP Settlements (Cont d) Electricity Sales to a Consumer are measured by the meter and adjusted by the OEB approved Loss Factor and (if required) will receive the Primary Metering Discount of 1%. Electricity Purchases from a Generator that is Primary Metered will not require adjustments. Electricity Purchases from a Generator that is Secondary Metered would be subject to the 1% Primary Metering Discount (or Site Specific Loss Factor) as a default. RSC Section 3.2 A distributor shall calculate its weighted average supply facility loss factor by summing energy delivered at each of the supply facility points plus associated supply facility losses, including all supplies from the transmission system, supplies from all embedded generators and supplies from host distributors which sum shall be divided by the total energy delivered at all of the supply facility delivery points. Each of these supplies shall be adjusted for the appropriate loss factor representing the energy losses between the meter point and the defined point of sale. 46

47 Arrows denote Measurement Direction Deemed point of sale for RESOP Transformer Location Main Meter Configuration Options & Settlement No Existing Load Customer Stand-alone Generator Customer Secondary Metered: ~ m1 Distribution System Settlements: Energy delivered reduced by Site Specific Losses. RESOP Rate (kwh / (1+SSL)) x RESOP Rate Energy consumed increased by LDC approved loss factor. Billed at HOEP. (kwh x (1+LDCL)) x HOEP Primary Metered: ~ m1 Distribution System Settlements: Energy delivered- No adjustment required. RESOP Rate. kwh x RESOP Rate Energy consumed increased by LDC approved loss factor less 1% for primary metering discount. HOEP. (kwh x (1+LDCL)) x.99 x HOEP Note: Load Customer (Station Service) is also required to pay for additional energy related charges: WMSC, DRC, Network Service, Line & Transformation, and Distribution Variable Charges. 47

48 Meter Configuration Options & Settlement - Direct Connect Generator Sharing a Secondary Transformer with a Separate Load In some cases, a generator may choose to establish themselves on the site of an existing customer, and share a transformer. This may significantly reduce the costs of this type of connection (though other connection types may be more economic). Secondary Metered: ~ m1 Settlements - Generator: Energy delivered reduced by Site Specific Losses (kwh / (1+SSL)) x RESOP Rate Energy consumed increased by LDC approved loss factor (kwh x (1+LDCL)) x HOEP Secondary Metered: LOAD m2 Distribution System Settlements - Load: Energy consumed increased by LDC approved loss factor. (kwh x (1+LDCL)) x HOEP or (kwh x (1+LDCL)) x RPP In this example, the consumer and the generator are sharing a transformer. They are connected in parallel on the secondary side of the transformer. The LDC may choose to treat them as fully separated accounts. The Load Customer s metered value is calculated as a normal consumer with LDC approved losses applied to the metered consumption. The Generator s metered values are also adjusted: - Consumed Energy is adjusted using the LDC approved Total Loss Factor - Delivered Energy is adjusted to account for the Transformer Losses and SSL if necessary 48

49 Meter Configuration Options & Settlement Direct Connect Generator and Load Customer Each have a Separate Transformer These two examples depict how either Primary Metering or Secondary Metering configurations can account for a generator who locates on a load customer s premises, where the generator connects to the grid in Parallel to the existing load customer without sharing the load customer s transformer (i.e. the generator has a separate transformer) Primary Metered: ~ m1 Secondary Metered: LOAD Primary Metered: m2 ~ m1 Primary Metered: LOAD m2 Distribution System Distribution System Settlements - Generator: Energy delivered no adjustment required kwh x RESOP Rate Energy consumed increased by LDC approved loss factor less 1% Primary Metering discount. (kwh x (1+LDCL)) x.99 x HOEP Settlements - Load: Energy consumed increased by LDC approved loss factor. (kwh x (1+LDCL)) x HOEP or Settlements - Generator: Settlements - Load: (kwh x (1+LDCL)) x RPP Energy delivered no adjustment required kwh x RESOP Rate Energy consumed increased by LDC approved loss factor less 1% Primary Metering discount. (kwh x (1+LDCL)) x.99 x HOEP Energy consumed increased by LDC approved loss factor less 1% Primary Metering Discount. (kwh x (1+LDCL)) x.99 x HOEP or RPP (kwh x (1+LDCL)) x.99 x 49

50 Meter Configuration Options & Settlement Generator Located Behind an Existing Load Customer (aka the Load Displacement Option ) In some cases, a generator may establish themselves on the site of an existing customer, and wish to provide power directly to the customer, with only the excess generation reaching the grid. This is generally referred to as a Load Displacement Generator. For proper RESOP settlements, the Generator s meter must be downstream of the customer s meter in order to ensure the generator receives appropriate RESOP payment on their full output (not just the excess reaching the grid). Additionally, to properly calculate the RESOP payment, both the customer and generator meter may need to be able to measure energy flow in both directions. Secondary Metered: ~ m1 m2 LOAD Distribution System 50

51 Renewable Energy Standard Offer Program Settlements Avoiding Any Double-counting of the Power Output Section 5.6 of the Renewable Energy Standard Offer Program - Program Rules, Version 2.0 (November 22, 2006) states: In accordance with the provisions of Section 6.4, where a Contract Facility is connected directly to a Load Customer and has its meter configured in a manner which reduces the amount payable by the Load Customer to the LDC for its metered consumption of Electricity because part or all of the Load Customer s Electricity consumed is supplied from the Contract Facility, Contract Payments will be reduced by an amount equal to the Hourly Ontario Energy Price in respect of the Hourly Delivered Electricity consumed by the Load Customer. In the event that such reduction results in a negative Contract Payment, a corresponding amount shall be paid by the Generator to the OPA (underlined emphasis added). Secondary Metered: ~ m1 m2 LOAD Distribution System 51

52 Renewable Energy Standard Offer Program Settlements Use of two Bi-Directional Meters May Be An Appropriate Option Why Might an LDC Insist on Two Bi-Directional Meters? Using the diagram below, output of the Generation Facility is fully measured by the meter M1; however, the meter M2 only captures the amount of energy supplied from the grid when the Generator is producing less than the Load is consuming. Depending on the amount of energy consumed and the amount of energy generated at any given time, all four metered values may be required to establish proper settlement calculations. Secondary Metered: ~ m1 m2 LOAD Distribution System 52

53 Arrows denote Measurement Direction Deemed point of sale for RESOP Transformer Location Main Meter Configuration Options and Settlement - Load Displacement Option Secondary Metered: ~ m1 m2 Load Displacement Generator and Load Customer Settlements - Generator: Energy delivered reduced by Site Specific Losses and contract payment reduced by HOEP LOAD Distribution System [(m1 Delivered x Site Specific Losses) x (Standard Offer Price)] minus [(m1 Delivered - M2 Delivered ) x HOEP] Energy consumed increased by LDC approved loss factor m1 consumed (kwh x (1+LDCL)) x HOEP Note: Load Customer is also required to pay for additional energy related charges: WMSC, DRC, Network Service, Line & Transformation, and Distribution Variable Charges. Settlements Load: Energy consumed increased by LDC approved loss factor (m2 consumed kwh - m1 consumed kwh) x (1+LDCL))] x (HOEP) 53

54 Main Meter Configuration Options and Settlement - Load Displacement Option (cont d) Example 1: Generator Output of 1,500 kwh s Load Consumption of 1,000 kwh s M1 Output = 1500 M1 Input = 0 M2 Output = 500 M2 Input = 0 Load Consumption = = 1000 Generator RESOP Settlement : (1500 X RESOP Rate) (1000 X HOEP) For simplicity loss calculations have been omitted Customer Charge : M2 Input = 0 Secondary Metered: ~ m1 m2 LOAD Distribution System 54

55 Main Meter Configuration Options and Settlement - Load Displacement Option (cont d) Example 2: Generator Output of 1,000 kwh s Load Consumption of 1,000 kwh s M1 Output = 1000 M1 Input = 0 M2 Output = 0 M2 Input = 0 Load Consumption = = 1000 Generator RESOP Settlement : (1000 X RESOP Rate) (1000 X HOEP) For simplicity loss calculations have been omitted Customer Charge : M2 Input = 0 Secondary Metered: ~ m1 LOAD m Distribution System 55

56 Main Meter Configuration Options and Settlement Load Displacement Option (cont d) Example 3: Generator Output of 500 kwh s Load Consumption of 1,000 kwh s M1 Output = 500 M1 Input = 0 M2 Output = 0 M2 Input = 500 Generator SOP Settlement : (500 X RESOP Rate) (500 X HOEP) Customer Charge : M2 Input = 500 Load Consumption = = 1000 Secondary Metered: ~ m1 m2 LOAD Distribution System 56

57 Main Meter Configuration Options and Settlement - Load Displacement Option (cont d) Example 4: Generator RESOP Settlement: Generator Output of 0 kwh s Generator Consumption of 100 kwh s Load Consumption of 1,000 kwh s M1 Output = 0 M1 Input = 100 M2 Output = 0 M2 Input = 1100 Load Consumption = = 1000 (0 x RESOP Rate) - (0 x HOEP) Generator Charge : M1 Input = 100 Customer Charge : M2 Input M1 Input = 1000 Secondary Metered: 0 0 ~ m1 m2 LOAD Distribution System 57

58 Example 5: Main Meter Configuration Options and Settlement - Load Displacement Option (cont d) Generator RESOP Settlement : Generator Output of 1,000 kwh s Generator Consumption of 100 kwh s Load Consumption of 1,400 kwh s M1 Output = 1000 M1 Input = 100 M2 Output = 0 M2 Input = 500 Load Consumption = ( ) + ( ) = 1100 (1000 x RESOP Rate) (700 x HOEP) Generator Charge: M1 Input = 100 Customer Charge : M2 Input M1 Input = 400 Secondary Metered: ~ m1 LOAD 700 m Distribution System 58

59 Arrows denote Measurement Direction Deemed point of sale for RESOP Transformer Location Secondary Metered: Main Meter Configuration Options and Settlement Net Metering Is Not an Option for RESOP Generator and Load Customer Sharing One Meter (Simple Net Metering, not RESOP) ~ LOAD Primary Metered: ~ LOAD m1 m1 Distribution System Distribution System Note: Net Metering Regulations also require calculating credit to customer on Additional Charges: WMSC, DRC, Network Service, Line & Transformation, and Distribution Variable Charges. Settlements: Energy delivered with no adjustment for Losses. (O. Reg. 541/05, s. 8 (2) ) kwh x (RPP or HOEP) Rate Energy consumed increased by LDC approved loss factor. (kwh x (1+LDCL)) x (RPP or HOEP) Rate Settlements: Energy delivered with no adjustment for losses. (O. Reg. 541/05, s. 8 (2) ) kwh x (RPP or HOEP) Rate Energy consumed increased by LDC approved loss factor less 1% for primary metering discount. HOEP. (kwh x (1+LDCL)) x.99 x (RPP or HOEP) Rate 59

60 RESOP Settlement Examples of Physical Metering In this Diagram the green arrows depict the normal flow of electricity from the service entrance through the meter and into the load panel Service Entrance To House Panel 60

61 RESOP Settlement Examples of Physical Metering (Cont d) In this Diagram we have added a second meter configured to measure the energy output of a micro-generator of 10 kw or under To House Panel From Generator Service Entrance Tracing the red arrows one can see that the generator s output is delivered (in parallel) to either the grid or to the consumer. This is not Load Displacement since all the energy consumed is separately metered and as such according to the rules of the RESOP, would not be required to be an hourly meter. 61

62 RESOP Settlement Examples of Physical Metering (Cont d) Settlements would be based on the Fixed RESOP Price multiplied by the total energy registered through the generator meter. To House Panel From Generator Service Entrance If the micro-scale generator does not provide hourly data, it will not be possible to calculate the HOEP for the variance amount to be claimed through the IESO Form 1598 LDC to use Second Tier of RPP for Variance Calculation. (RESOP Rate X Kwh) * Minus * (Tier2 X Kwh) 62

63 RESOP Settlement Examples of Physical Metering (Cont d) In a parallel metering configuration, it could be possible for a customer to purposely or inadvertently connect a load to the generator side of the second meter. If a load connects on the secondary side of a generator with a unidirectional meter, this would in essence provide free power from the LDC to the new load. Similarly, if a unidirectional meter was To House Panel To Second Load Service Entrance installed to measure the output of a parallel connection generator, then at times of low or no generation, it may be that station service would then be supplied by the LDC (i.e. a solar PV system at night). Again, the customer would in essence be able to get free power from the LDC. Thus, LDC s may insist on a bi-directional meter to monitor the Generation. 63

64 For Further Information OPA Renewable Energy Standard Offer Program Website: OEB Renewable Energy Standard Offer Program Websites: /ongoingprojects_standardofferprogram.htm and entre/fsheets-elec/fs_sop_questionstoask.htm elec/fs_sop_questionstoask.htm and entre/fsheets-elec/fs_sop_gettingconnected.htm elec/fs_sop_gettingconnected.htm IESO Form 1598 (note the SOP tab): _FORM_1598.xls 64

65 For Further Information (cont d) Generation Connection ; ; Hydro One: s/generation_connections/ and Connecting New Generation to Hydro One s s Electricity System ; ; Hydro One: s/generation_connections/distribution/default.asp [Note: the 2 nd link provides sample CIA forms of potential interest to LDCs] Guidelines for Applicants Connecting Distributed Generation ; ; Cornerstone Hydro Electric Concepts (CHEC Group): eneration_guide_aug10_2006.pdf Guide for Distributed Generators ; ; Kingston Electricity Distribution Ltd. (KEDL): ml 65