Item 5- RCA: Conduct Public Hearing Solar Standard Offer — original pdf

Backup

..De Posting Language ..Title Conduct a public hearing and consider proposed terms, rate and fee changes for Austin Energy – Solar Standard Offer Rider – Solar Integrator; High Load Factor Primary Voltage (Demand greater than or equal to 20,000 kW); and High Load Factor Transmission Voltage (Demand greater than or equal to 20 MW). Lead Department Austin Energy Fiscal Note The Solar Standard Offer Rider is funded through the Power Supply Adjustment. Prior Council Action: For More Information: Amy Everhart, Director, Local Government Relations (512) 322-6087; Russell Maenius, Sr. VP and Chief Financial Officer, (512)-322-6133. Council Committee, Boards and Commission Action: Sept 9, 2024 - To be reviewed by the Electric Utility Commission Sept 17, 2024 - To be reviewed by the Resource Management Commission. Additional Backup Information: The Standard Offer Program allows Austin Energy to procure locally sited solar generation at market-based rates and increase the Community Solar generation portfolio through a standardized and streamlined approach with pre-established project criteria and published energy value. This method allows system developers to have price transparency which enables them to procure financing, engage potential host customers, identify viable projects, and meet project criteria set by Austin Energy. Through the Standard Offer Program, Austin Energy will purchase the production at a value equal to the avoided costs of energy and transmission expenses and follow the Value of Solar’s update schedule for consistency and predictability. The Standard Offer program creates host customer benefits. The Standard Offer Program will inform and provide high-level consumer protection information to the host customers, ensuring they are fully considering the hosting proposition. Customers that would have normally not moved forward with solar projects due to split incentives will now have a new opportunity through the enablement of direct compensation for ahead of the meter interconnections. We also plan to provide acknowledgement and appreciation to our hosting partners through program communication and advertising. The Community Solar program increases solar access while helping Austin Energy achieve our local solar goals. Through Austin Energy’s administration of the subscription program, 50% of the energy capacity is reserved for our low-income Customer Assistance Program (CAP) customers, who are offered a discounted rate. The program is fully subscribed with a waiting list. Austin Energy’s Community Solar program serves as a model for other Community Solar programs, and we have been advisors for national community solar training cohorts. The current program portfolio consists of three local solar projects for a total of 4.27MW. Recent efforts to increase the portfolio through multiple RFPs has not resulted in projects due to pricing, site control and viability issues. The Standard Offer FIT is designed to facilitate the expansion of the Community Solar Portfolio. In support of customer-sited, third party owned renewable energy, Austin Energy is proposing the removal of the maximum capacity limits for on-site renewable generation associated with High Load Factor Primary Voltage (Demand greater than or equal to 20,000 kW) and High Load Factor Transmission Voltage (Demand greater than or equal to 20 MW) rate schedules.