GATS Subscriber Group Meeting

Transcription

1 GATS Subscriber Group Meeting May 14, 2009 PJM Interconnection

2 Agenda Welcome and Introductions GATS Status Update Training Opportunities Solar Certifications by State Enhancements - Recent Enhancements - Pending Enhancements - Potential Future Enhancement Subscriber Feedback State Updates - Certification Process - RPS Regulations Next Steps 2

3 GATS Status Update (As of May 1, 2009) 405 SUBSCRIBERS 1323 REGISTERED RENEWABLE GENERATORS CERTIFICATES CREATED GATS Total 2009 Jan - Mar # Solar (New Jersey) 3,724 2, # Class I (New Jersey) 13,568,685 1,944,022 5,598,830 3,072,146 1,932,699 1,020,988 0 # Class II (New Jersey) 23,989,073 1,402,346 5,459,894 5,845,074 5,892,941 5,388,818 0 # Solar (Maryland) # Tier I (Maryland) 22,876,213 1,880,034 7,144,836 4,616,895 4,602,871 1,903,896 2,727,681 # Tier II (Maryland) 25,527,486 1,656,072 5,925,517 5,450,435 5,716,290 2,806,609 3,972,563 # Solar (District of Columbia) # Tier I (District of Columbia) # Tier II (District of Columbia) ,855,816 1,113,140 4,287,807 3,001,313 2,453, ,559, ,005 2,377,064 2,043,898 2,503,

4 GATS Status Update (As of May 1, 2009) CERTIFICATES CREATED (cont.) GATS Total 2009 Jan - Mar # Solar (Pennsylvania) 4,270 1,155 2, # Tier I (Pennsylvania) 16,402,036 2,174,809 6,235,200 3,618,408 3,014,053 1,359,566 0 # Tier II (Pennsylvania) 130,712,758 7,138,035 31,542,227 31,986,326 32,695,189 27,350,981 0 # Eligible (Delaware) 1,375, , , , , # New Eligible (Delaware) 5,478,140 1,225,941 3,036, , , # Eligible (Illinois) 360, , ,

5 GATS Status Update (As of May 1, 2009) Solar Facilities Registered in GATS 969 solar facilities registered and qualified in PA, DE, MD, DC, and NJ Total nameplate capability of 27,465 kw 8,772 Solar REC s created in GATS since

6 GATS Status Update (As of May 1, 2009) Renewable Generators Registered by State DE 262 IA - 2 IL 45 IN 10 MD 120 MI 12 MO 4 NC 10 NJ 593 NY 10 OH 5 PA 163 TN 1 VA 72 WV 14 Solar Generators Registered by State DE 245 IL 2 MD 105 NC 2 NJ 555 PA 42 VA 15 6

7 GATS Status Update NJ BTM Transition There are approximately 3000 Account Holders in the current NJ BTM System All EY 2010 NJ Solar RECs and NJ BTM RECs will be created in GATS Account Holders have been given the option to transition early - Group A: Accounts were created and approved by April 1, Account Holders; 44 Generating Units; Capacity of 5.13MW; 161 SRECs - Group B: Accounts were created and approved by May 1, Account Holders; 432 Generating Units; Capacity of 6.673MW; 6365 RECs - Group C: Accounts will be created and approved by June 1, 2009 All Account Holders will be transitioned by July 1, 2009 Account Holders will be able to use the existing platform for transfers throughout the True-Up Period and all remaining RECs will be imported into GATS in October 7

8 Training Opportunities Training Session - Monday, May 18, 2009 in Trenton, geared towards NJ Transition - Wednesday, June 17, 2009 at PJM, for new solar subscribers Conference Calls / Online Training - Monthly Solar Calls Thursday, May 14, :30pm to 2:30pm Thursday, June 11, :30pm to 2:30pm - Presentations posted online along with Audio 8

9 Solar Requirements by State NJ MD DC PA DE OH NC Geographic Requirements In New Jersey Must be in MD after 2011 Resources outside DC are accepted Located in PJM Customer-sited resources must be in DE PJM or MISO 50% in Ohio Up to 25% from out-of-state resources Production Estimates Allowed? Less than 10kW (V1) Less than 10kW (V2) Less than 10kW (V2) Less than 15kW (V1) No? Solar Percentages 08-09: 0.16% 09-10: 0.221% 10-11: 0.305% 11-12: % 12-13: % 13-14: 0.621% 14-15: 0.765% 15-16: 0.928% 16-17: 1.118% 17-18: 1.333% 18-19: 1.572% 19-20: 1.836% 20-21: 2.12% 2008: 0.005% 2009: 0.01% 2010: 0.025% 2011: 0.04% 2012: 0.06% 2013: 0.1% 2014: 0.15% 2015: 0.25% 2016: 0.35% 2017: 0.55% 2018: 0.9% 2019: 1.2% 2020: 1.5% 2021: 1.85% 2022: 2.0% 2008: 0.011% 2009: 0.019% 2010: 0.028% 2011: 0.04% 2012: 0.07% 2013: 0.10% 2014: 0.13% 2015: 0.17% 2016: 0.21% 2017: 0.25% 2018: 0.30% 2019: 0.35% 2020: 0.4% 08-09: % 09-10: 0.012% 10-11: % 11-12: % 12-13: 0.051% 13-14: 0.084% 14-15: 0.144% 15-16: 0.25% 16-17: % 17-18: 0.34% 18-19: 0.39% 19-20: 0.433% 20-21: 0.5% 08-09: 0.011% 09-10: 0.014% 10-11: 0.018% 11-12: 0.048% 12-13: 0.099% 13-14: 0.201% 14-15: 0.354% 15-16: 0.559% 16-17: 0.803% 17-18: 1.112% 18-19: 1.547% 19-20: 2.005% 2008: n/a 2009: 0.004% 2010: 0.010% 2011: 0.030% 2012: 0.060% 2013: 0.090% 2014: 0.12% 2015: 0.15% 2016: 0.18% 2017: 0.22% 2018: 0.26% 2019: 0.30% 2020: 0.34% 2021: 0.38% 2022: 0.42% 2023: 0.46% 2024: 0.50% 2008: n/a 2009: n/a 2010: 0.02% 2011: 0.02% 2012: 0.07% 2013: 0.07% 2014: 0.07% 2015: 0.14% 2016: 0.14% 2017: 0.14% 2018: 0.20% Alternative Compliance Payment $711 in 2008/2009 declining 3%/yr over eight years to $594 in 2015/16. $400 in 2009, declining to $50 in 2023 $500 in 2009 thru % of the average market value for solar RECs sold in the RTO. $250 for first deficient year, $300 for second year, and $350 for third $450 in 2009, $400 in 2010 and 2011, reduced by $50 every two years thereafter. 9

10 Solar Upgrades - kwh Data Entry 10 Recent Enhancements Subscribers now have the ability to enter in kwh rather than whole MWh; Remainder kwh will be carried over to the next month - Production Estimates Estimates can now be stored in the GATS Database PJM-EIS will be creating estimates for DC and NJ - File Upload (CSV Format) - SREC Weighted Average Price Report Added Administrator RGGI Reports Emission Free Energy Credit Updates System updates to accommodate IL and OH Load By State By Zone Add Requested Price column on the Bulletin Board Add forgot password logic to automate password resets Add billing information (Schedule E-1) to the online registration screen - Schedule E-1 is no longer required to be submitted to the GATS Administrator

11 Recent Enhancements Updating kwh Information - Entering Actual kwh Data Enter in the Actual kwh that were generated on your system for a particular month 11

12 Recent Enhancements Updating kwh Information - Entering Monthly Meter Reads Enter the Current Meter Reading and the date of the Reading NOTE: The Previous Meter Reading will only be available the first time you enter in your meter readings 12

13 Recent Enhancements Updating kwh Information Upload CSV File 13

14 Recent Enhancements Updating kwh Information Upload as Text 14

15 Recent Enhancements Viewing Production Estimates Production estimates are entered by the GATS Administrator. This screen will allow you to view the estimates that have been added 15

16 Recent Enhancements Production Estimates Production Estimates will be inputted into the GATS System by the GATS Administrator Data from the State Agency s will be used - Schedules received by State Agency s - PVWatts Production Estimates will also be used during the certificate creation to evaluate the data that was self-reported - The Subscriber will be notified at the time of data entry if they entered a value that is 20% above or 80% below what a production estimate is. This will only be a warning and will not prevent you from continuing. - The GATS Administrator will be notified if what the subscriber entered was 20% above or 80% below what a production estimate is. 16

17 Recent Enhancements Solar Weighted Average Price Report 17

18 Recent Enhancements RGGI Reports Load, Generation, Imports/Exports 18

19 Recent Enhancements RGGI Reports CO2 Emissions 19

20 Recent Enhancements RGGI Reports Total CO2 Emissions in Tons Information from this report can be used to estimate CO2 leakage from non-rggi regions of PJM into the RGGI states (see next slide) 20

21 RGGI Reports Estimating CO2 Leakage The total CO2 emissions (in tons) associated with imports into the RGGI region of PJM (NJ, MD, and DE) went down 22% since 2005 for two reasons: 1. Imports into the RGGI region declined by approximately 17% between 2005 and The CO2 emission rate associated with those imports from the non-rggi region of PJM declined approximately 6%. 21

22 Recent Enhancements Emission Free Energy Credits Emission Free Energy Credits (EFECs) - Electric power output from a generating unit that does not directly emit any air pollution (sulfur dioxide, nitrogen oxide, or carbon dioxide) as reported in the GATS system - Eligible fuel types include new and existing Solar Photovoltaic, Solar Thermal, Wind, Hydro, Nuclear, Tidal Energy and Wave Energy. - Number of Generation Units: 38 - Number of Certificates Created since January 2009: 26,585,545 22

23 Recent Enhancements Illinois and Ohio Illinois - The system has been updated to store certification numbers for IL - IL State Certification process has not be finalized yet - PJM-EIS has been working with the utilities to determine eligibility if a generating unit can not obtain certification in any other PJM State Ohio - The system has been updated to store certification numbers for OH - OH State Certification process has not be finalized yet 23

24 Recent Enhancements Load by State by Zone Previously GATS stored the load only at the State Level Due to subscriber requests the load is now broken down by State by Zone so that the subscriber can more easily review it eschedule data (from PJM Settlements) is also being used to get the state load numbers more accurate Subscribers are encouraged to review their load data monthly to rectify discrepancies as soon as possible 24

25 Recent Enhancements Bulletin Board Requested Price Column 25

26 Recent Enhancements Forgot Password Reset 26

27 Recent Enhancements Schedule E1 Online Implementation Schedule E1 is now available for online submittal Can be defaulted to use the Company Account Manager Information Can be edited with the appropriate contact information OR 27

28 Pending Enhancements May 2009 (release 4.2) - Add Schedule C-1 information to the online registration screen, and allow online acceptance of the Terms of Use - New state agency report that lists generators certified in that state, and their production data - New Admin report to compare self-reported solar generation to production estimates 28

29 Future Enhancement? Some subscribers object to having their contact information posted in the GATS Public Reports: a. GATS Account Holders b. Bulletin Board Potential Solutions: 1. Change these Public Reports to be accessible only to Account Holders 2. Give Account Holders the option to exclude their contact information from these reports 3. Allow Account Holders to specify an alternate set of contact information for the purposes of these reports. 4. Other suggestions? 29

30 Potential Future Enhancement: Solar REC Auction 30

31 Solar REC Markets Solar REC Markets in the PJM Footprint Solar requirements have been established in NJ, MD, DC, DE, PA, OH, and NC (in 2010) Residential solar owners need an easy way to monetize SRECs Administrative costs of contracting with small solar owners makes it more cost-effective for LSEs to pay Solar ACPs Brokers and aggregators may charge significant fees Price transparency is an issue A market clearing service is needed DSIRE: March 2009 Solar Requirement Solar hot water eligible 31

32 Who Wants This Feature? - Small Resource Owners and Aggregators Now how do I sell my RECs? Cost-effective way to maximize value of RECs - Load Servers Monthly Auction for RECs Reduces administrative cost of RPS compliance - State Agencies Reduces cost of RPS compliance Provides price transparency Reduces the use of Alternative Compliance Payments as a means of RPS compliance Supports the development of distributed resources 32

33 Potential REC Auction Process A REC auction will be held monthly (e.g., on the X th business day of each month) The auction will be limited to solar RECs initially Participation in the auction is voluntary Subscribers wanting to participate complete a new schedule to be added to the GATS Terms of Use No charge for subscribers offering RECs Buyers pay a fee calculated based on the total quantity and price of RECs purchased in the auction 33

34 Submitting Offers and Bids Potential REC Auction Process - Sellers offer RECs in the auction by placing certificates in their Auction subaccount (similar to the Bulletin Board) and entering an asking price. GATS will screen the certificates for eligibility (state certifications, month and year of generation, quantity available, etc). - For RECs that have multiple state certifications, sellers must designate in which market/state they want their RECs to be offered. Default will be the state in which the facility is located. Sellers enter a single asking price per batch of certificates. - Buyers submit bids by entering, for each state program, the number and price of RECs they would like to buy. 34

35 Potential REC Auction Process The GATS auction to be performed in a two-stage process. In Stage 1, the auction would clear all states/markets simultaneously (but independently) and post results. One clearing price is calculated for each state - Price would be set by ranking bids from the highest price to the lowest price and offers from the lowest price to the highest price - Bids and Offers are matched by pairing the lowest offers with the highest bids until a bid equals an offer - The point where the bid equals the offer would be the clearing price by state In Stage 2, subscribers would have the opportunity to re-bid their RECs in an effort to clear in stage 2. If subscribers do not change their bid-in parameters, the offer and bid parameters from Stage 1 will be used. 35

36 Posting Auction Results Auction results will be posted, including number of bids and offers, high and low prices, and volume cleared. Subscribers can view their Auction subaccount to see which offers and bids cleared and at what price. Cleared RECs will automatically be transferred from the Seller s account to the GATS Administrator s account. Payments to Sellers made within five business days RECs transferred to Buyers upon receipt of payment 36

37 Billing and Payments Payments made by PJM to sellers via their choice of Automated Clearing House (ACH) transfer or Check REC auction invoices issued to buyers separate from other GATS charges 2% commission charged to buyers of RECs Payments made by buyers to PJM via their choice of Electronic Funds Transfer (EFT), ACH, or Check RECs transferred to buyers upon receipt of payment 37

38 Options for Addressing Buyer Default Risk 1. Bids fully collateralized via secured credit (cash or letter of credit). Bids are limited to the amount of security posted. 2. Pay in advance, where buyer get unused funds back each month after auction clears 3. Implement a threshold for buyers (e.g., $10,000) with no credit required nor advance payment below that threshold. 38

39 Mitigating Buyer Default Risk Other Protection Against Buyer Defaults - Invoices issued immediately after auction - RECs will not be transferred to buyer until payment is received - Buyers cannot participate in future auctions until payment is received - Credit requirement increased/imposed after first occurrence of late payment - PJM-EIS can submit defaulted RECs in a future auction on the buyer s behalf, and the buyer is obligated to pay any differential 39

40 Potential Solar REC Auction Comments or Questions? 40

41 Subscriber Feedback Subscriber Feedback 41

42 State Updates State Certification Process - Each state will provide a brief overview of their certification process for the benefit of new subscribers Status of RPS Regulations - Each state will provide a brief update on the RPS rules within their state for the subscribers 42

43 Next Steps Review any Action Items Timeline for next Meeting 43