Items 2- RCA: Solar Standard Offer — original pdf

Backup

..De Posting Language ..Title Conduct a public hearing and approve an ordinance amending Ordinance No. 20240814-006 to revise Fiscal Year 2025 Electric Tariff to enable locally sited solar generation, including local distributed community solar (Solar Standard Offer Rider – Solar Integrator); to remove the maximum capacity limits for on-site renewable generation for High Load Factor Primary Voltage (Demand greater than or equal to 3,000 kW and less than 20,000 kW), 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); and to correct terms and conditions for 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: August 14, 2024 – Council approved, as amended, Ordinance No. 20240814-006, which included the Fiscal Year 2024-2025 proposed terms, rates, and fee changes for Austin Energy, on a 10-0 vote. December 8, 2022 – Council approved adoption of Austin Energy’s 2022 base rates with additional direction, including a specific instruction that Austin Energy develop a standard offer program for local distributed community solar. 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: September 30, 2024 – Recommended by Electric Utility Commission on a 10-0 vote, with one vacancy. October 15, 2024 – To be reviewed by the Resource Management Commission. Additional Backup Information: The Solar Standard Offer Rider – Solar Integrator, an addition to the City of Austin Fiscal Year 2025 Electric Tariff, enables locally sited solar generation, including local distributed community solar, which implements the Standard Offer Program. These proposed tariff amendments can be found in the City of Austin Fiscal Year 2025 Electric Tariff at pages 40-41. 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 that 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, transmission, and ancillary services 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 provides high-level consumer protection information to the host customers, ensuring they are fully considering the hosting proposition. Customers who 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. Austin Energy also plans 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 its local solar goals. Through Austin Energy’s administration of the subscription program, 50 percent 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 Austin Energy has been an advisor 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 have not resulted in projects due to pricing, site control and viability issues. The Standard Offer 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 3,000 kW and less than 20,000 kW), 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. These proposed amendments to the tariff can be found in the City of Austin Fiscal Year 2025 Electric Tariff at pages 11, 13, and 16-17, respectively.