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Renewable Portfolio Standards: Encouraging Compliance and Tracking Renewables

This workshop presentation focuses on methods to encourage specific renewable resources, compliance verification, and tracking under Renewable Portfolio Standards (RPS). Key topics include policies to promote renewables, eligibility criteria, compliance mechanisms, and tracking methods. Discussions also cover stakeholder proposals, multiplier versus tiered goal approaches, financial compliance mechanisms, REC tracking, energy efficiency inclusion, and the role of Public Service Commissions in ensuring compliance.

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Renewable Portfolio Standards: Encouraging Compliance and Tracking Renewables

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  1. Topics for Today’s RPS Workshop Methods to Encourage Specific Renewables Methods to Encourage Compliance Compliance Verification and Tracking Presentation to the: FPSC Staff Workshop on a Renewable Portfolio Standard December 6, 2007 Judy Harlow Division of Economic Regulation Florida Public Service Commission

  2. Focus of Today’s Workshop Methods to encourage specific renewables Compliance - Methods to encourage compliance - Verification and tracking Stakeholder straw man RPS proposals

  3. What, if any, policies are needed to encourage specific types of renewables? Which resources should be eligible? - specific renewables, such as solar and wind - distributed generation - specific vintages, such as new facilities What approach - multipliers or tiered goals? Issues under a multiplier approach: - How should a multiplier be set? - Will using a multiplier conflict with reaching the goal? Issues under a tiered goal (set asides) approach: - How should the tiers be determined? - Can excess compliance in “policy preferred” tier be used to meet goals in other tiers?

  4. What policies are needed to encourage compliance? • What financial compliance mechanisms are needed? • - ratepayer protection mechanisms – alternative compliance payments (ACPs), rate caps, REC price caps • - penalties - utilities and/or renewable generators • How should financial compliance mechanisms be set? • - multiple of REC price, $/MWh, or absolute value? • Cost recovery for IOUs: • - How should compliance costs for RECs or renewables be recovered? • - Should ACPs or penalties be recovered? • - How should funds be used? • Are financial incentives beyond ACP/penalties needed?

  5. How should compliance be tracked and verified? • REC tracking and verification issues: • - How are eligible facilities certified and audited? • - Who administers the REC system? • - How is double counting prevented? • - How should multi-fuel facilities be treated? • - Should line losses be considered? • Self-service generation issues: • - Is metering required? • - How can small systems be included? • - Should total energy generated be counted, or excess to grid?

  6. Compliance Verification and Tracking Energy efficiency issues: - Should energy efficiency count towards goals? - If so, how should savings be estimated? - Should existing programs be included? What is the role of the PSC in ensuring compliance? Possible roles: - implementing policy regulations - certifying eligible generators - managing a REC system - verifying utility compliance - administering financial incentives/penalties - ratemaking – cost recovery

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