DG Regulatory Policies How Can We Make It

DG Regulatory Policies: How Can We Make It Work? DG Task Force June 21, 2001

The Big Picture: n The DG wave is upon us: – DG as the answer to CA – DG as the answer to the digital economy – Customers want more options – Increased DOE funding for DG – New FERC authorities: • To establish interconnection requirements • To order interconnection

Regulatory Issues: n n n n Volumetric pricing Standby rates Quantifying system benefits Geographic unbundling Mandatory buy-back Net metering Distributed IRP (? )

UDC Member Needs: n n n No cost shifting Cost recovery Efficient use of grid Access to DG markets Installation of DG as distribution plant

Developer Member Needs: n n n Unimpeded market entry Increased marketing options for DG installers Consideration in T&D planning Easy siting Non-discriminatory environmental policies A robust grid

How Shall We Respond? Premise # 1 - We need to shape DG policies Premise # 2 - Our ability to shape public policies is better if we’re together Premise # 3 - Our ability to shape public policies is much better if we get buy-in from other affected parties Premise # 4 – UDCs and DG developers have common interests

How Can We Get “There? ” n A facilitated member workshop: – Member needs & concerns – Implied principles (discussed & shaped into consensus) – Focus critical regulatory policies (e. g. , unbundled distribution rate design, standby rates, net metering, quantifying benefits): • Lessons learned • Models we can support

Getting There (Concluded): n Collaborate with non-member publics: – Discuss recommended principles, models – Adjust as needed to get buy-in n n Present consensus results in a public conf. Targeted presentations to NARUC