1	Presentation to the Colorado Renewable Energy Forum October 21, 2005 Update on Implementation of Amendment 37, and What’s Next?
2
3	The renewable energy community experienced “close calls” for three years running at the legislature. Had we succeeded at the legislature, the RPS would have resulted in:
4
5
6
7
8	Projected Requirements
9
10	The Statute A37: - established a process for the Public Utilities Commission to open a rulemaking docket to implement A37 by April 1, 2005. - requires the PUC to complete the rulemaking proceeding by March 1, 2006. - was modified slightly by the legislature May 2005.
11	Activity from Election Day to October 7 November 2, 2004- Colorado citizens pass A37. December 10- 50 representatives of the solar community meet. February 22, 2005- 90 representatives of the solar community meet with utilities. February: RE community (Core37) presents draft rules to Xcel. March 4, 10- COPUC Staff conducts informal workshops. March 29- Draft rules issued by COPUC for comment. May 18- Written Comments Filed at PUC June 25- Xcel says, “Let’s Talk”- Petitions PUC to delay hearings. July 11- PUC public witness hearing- 25 attend. Mid-July to mid-August- In-depth negotiations. August 15- Partial consensus rules filed. August 30, 31- Technical and public hearing- 50 citizens testify. September 15- Final written comments filed. October 7- Commissioners deliberated.
12	PUC Deliberation The PUC developed a written record stemming from the public and technical hearings held on August 30-31. PUC held a deliberative meeting on Friday, October 7th. The meeting lasted 3.5 hours. The Commissioners and Staff worked from a 60+ page document that contained suggested wording from Staff, and comments/wording from other parties (Core37, Xcel, Aquila, Tri-State, etc). PUC Staff presented their recommendations on the A37 rules. The Commissioners responded, questioned, discussed, and voted on the recommendations and modifications. Very little dissent among the Commissioners.
13	Highlights of the Deliberation The PUC approved all of the issues where the parties had reached agreement (definitions, environmental requirements, net metering, interconnection, timing, RECs, reporting, etc.) The rules will include the legislative intent of voters embodied in the language on the ballot itself (saving customers and businesses money, improving the environment, increasing generation diversity, saving water, improving rural economies, and attracting new businesses and jobs) Rebates will be fully retroactive to 1/1/2004 (not 12/1/2004 as proposed in compromise rules). Where Xcel has a contract with a generator that does not mention RECs -e.g., many of the hydro facilities in Boulder- RECs for compliance are created and belong to Xcel.
14	Highlights of the Deliberation The PUC: - accepted a compromise allowing flexibility on timing over the 9 year compliance period. - accepted a standard rebate offer for solar systems. It is a hybrid rebate of $2/W + the utility purchase of the anticipated REC value over a 20 year period (~$2.50/W). Equals ~$4.50/W. - adopted true net metering (a single bi-directional meter) for systems under 10kW. - adopted interconnection standards. Solar systems that are “UL” or similarly rated can be interconnected to the electric grid without expensive studies.
15	Highlights of the Deliberation The concept of the RE and solar rebate pool of money being larger than the money raised by a 1% rate hike was accepted. Expect the savings from wind to be used as a credit to apply against the 1% rate cap. Consider wind farms in three categories: A. The Lamar wind farm (and any other existing wind farm). B. The remaining 60 MW wind farm in the 500 MW wind RFP, and any renewables in the All-Source RFP. That is, wind farms not yet built, but in progress with Xcel, and approved through the PUC as part of the LCP process. C. Future wind farms after the All-Source. Core37 asked that the savings from A B & C be added to the pool for solar rebates (and likely reduce the rate impact below the 1% cap). Xcel would count only C. The PUC chose B & C for counting savings to be placed in the solar rebate dollar pool. A, B & C would count for meeting the renewable energy standard.
16	Highlights of the Deliberation The charge, if any, for paying for the RPS, will be appear as a separate line item on the customers’ bills. There may be a substantial net credit from wind, as a result of the now extremely high cost of gas-fired generation. A 10% cap of Xcel's administration costs was imposed. The cap may be waived by the Commissioners. The idea of a third party administrator was rejected as too expensive. Specific rules will be drafted to help encourage greater transparency. The PUC acknowledged A37 as the voice of the public, and citizens have a right to know that the RPS is being met. If direct transparency is not allowed for confidentiality reasons, then a degree of transparency may likely be available through an A37 advocate (e.g., Western Resource Advocates).
17	Rules Regulating Implementation of A37 Special Definitions settled Overview PUC favors RE position Applicability settled Municipal and Cooperative Utilities settled Renewable Energy Standard settled Competitive Bidding settled Environmental Impacts settled QRU Plan or Administrator PUC favors utility position Solar Electric Generating Technologies Interconnection + Net Metering + Standard Rebate Offer settled Renewable Energy Credits settled Cost Recovery Retail Rate Impact PUC primarily favors RE position Annual Reports settled Commission Actions settled
18	Next steps: Initial rules will be issued in mid-November. Up to 20 days after the rules are mailed, parties (the public, in rulemaking) may apply for triple-R (re-hearing, re-argument, or reconsideration). Triple-R permits requests to the PUC to clarify or include language-- but not to rehash old arguments. For example, it may be reasonable to bring up the issue of the separate line item on a bill going negative if that procedure is not covered in the initial rules. It would not be OK to ask the PUC to revisit their decision on the third party administrator.
19	Next Steps
20	What’s next after A37 rulemaking? The PUC will consider revisions to the current Least Cost Planning (LCP) rules for competitive electric resource acquisition. This is an opportunity to address incentives, transparency, evaluation of demand and supply side resources, and A37 values. The commitment to reopen the LCP rules was a concession resulting from the Dec. ‘04 Settlement Agreement regarding the 750MW Comanche plant to be built in Pueblo. As required by the settlement, Xcel filed an application to open the LCP docket. A workshop to scope out a proposed procedure is scheduled for October 28, 9 a.m.
21	What’s next after A37 rulemaking? Craft policies in Colorado to help build transmission lines that will bring new wind projects to markets? Both the Texas and Minnesota legislatures have required their utilities (including Xcel) to: identify wind resource development areas, plan for providing the transmission necessary to meet their state renewable standards and goals, report back to the legislature on those plans within short time frames.
22	What’s next after A37 rulemaking? Are electric and gas utility efficiency policies resulting in the requisite contribution to Colorado’s economic development? Xcel has a commitment of 40MW/year of electric DSM for 8 years. Capped at $190M. There are currently no gas utility DSM programs in place in Colorado. The PUC has scheduled a Gas Roundtable on Monday, November 7 at 9:30 a.m. House Speaker Romanoff has scheduled an energy roundtable for Tues, Nov. 8, Details TBD. Mayor Hickenlooper is co-sponsoring the Denver World Oil Conference (peak oil) on Nov. 10-11. An Interconnection and Net Metering Workshop for Colorado co-ops and munis is planned for mid-December, Details TBD.
23	November 10-11, 2005 Denver World Oil Conference
24