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Maryland PSC Renewable Portfolio Standard. Kevin Mosier 410-767-8926 [email protected] Michael Lee, Director [email protected] Integrated Resource Planning Division Maryland Public Service Commission http://www.psc.state.md.us. Presentation Outline. RPS Overview - PowerPoint PPT Presentation
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1
Maryland PSCRenewable Portfolio Standard
Kevin Mosier 410-767-8926
Michael Lee, [email protected]
Integrated Resource Planning DivisionMaryland Public Service Commission
http://www.psc.state.md.us
2
Presentation Outline
• RPS Overview
• Supplier Obligations
• Statistics from the MD RPS Program
3
Establishment of RPS Program
• 2004 General Assembly Session• Legislation: Electricity Regulation - Renewable
Energy Portfolio Standard and Credit Trading - Maryland Renewable Energy Fund
• Public Utility Companies Article: Subtitle 7. Renewable Energy Portfolio Standard
• RPS continues to be modified through Legislative changes– (e.g., new solar tier, ACP doubled; geographic scope reduced)
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RPS Overview
• Requires certain standards to be met by the accumulation of renewable energy credits
• Requires electricity suppliers to submit a report each year to the Commission
• Requires electricity suppliers to pay compliance fees if the RPS standards are not met
• Establishes a Maryland Strategic Energy Investment Program to be administered by the Maryland Energy Administration subject to recommendations from the Strategic Energy Investment Advisory Board
• Requires the Commission to establish and maintain a renewable electricity trading system that includes registration of renewable energy facilities: Maryland uses GATS
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Tier 1 Renewable Sources
• Solar (Tier 1 Solar)• Wind• Qualifying biomass• Methane from the
anaerobic decomposition of organic materials in a landfill or wastewater treatment plant
• Geothermal • Ocean
•A fuel cell that produces electricity from a Tier 1 renewable source
•A small hydroelectric power plant of less than 30 megawatts in capacity that is licensed or exempt from licensing by the FERC
•Poultry litter-to-energy
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Tier 2 Renewable Sources
• Hydroelectric power other than pump storage generation
• Waste-to-energy
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REC Prices
• Prices of non-solar RECs vary, but typically range between $0.25 and $2
• Prices for solar RECs are much higher
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Supplier Obligations
• Meet RPS Standards; or
• Make Alternative Compliance Payments;
&
• File RPS Annual Supplier Report
9
RPS Requirement Changes
• Tier 1 is 2% in 2009 and increases to 18% in 2022 and on
• Tier 1 solar is 0.010% in 2009 and increases to 2% in 2022 and on
• Tier 2 is 2.5% and the Tier 2 requirement ends in 2019
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Annual RPS Requirements
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Compliance Fee
• Companies that do not meet the RPS requirement must pay a compliance fee
• The fees vary by year and type– Tier I: $20 per MWh in 2008 to 2010; $40 thereafter
– Tier I Solar: falls from $450 in 2008 to $50 per MWh in 2023
– Tier 2: $15 per MWh throughout
– Tier 1 for Industrial Process Load: falls from $8 per MWh in 2008 to $2 per MWh in 2017 and thereafter
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Annual Compliance Fees
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2008 Compliance Fees
• Of $1,005,495 in compliance fees owed in 2008, 98 percent was from solar requirements
• The majority of the companies met their non-solar Tier 1 and Tier 2 requirements by submitting RECs
• Almost all companies paid some amount of compliance fees
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RPS Annual Supplier Reports
• Required from all licensed utilities, suppliers, and brokers
• Due by April 1 each year
• Both brokers and supplier without sales must still file
• Must provide the total price of all Tier 1, Tier 1 Solar, and Tier 2 RECs
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Step-by-Step Instructions for Accessing Supplier Reports
• Commission’s home page is located at:
www.psc.state.md.us
• The “Resources” column at the home page contains a “Renewable Portfolio Standard Documents” link which contains several documents pertaining to the MD RPS Program
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RPS Website
• Applications:– Certification as a Renewable Energy Facility
(non-solar)– Solar Renewable Energy Facility application– Waiver of Compliance Fee
Accessible:http://webapp.psc.state.md.us/intranet/electricinfo/home_new.cfm
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RPS Website (cont’d)
• Help and Direction:– RPS statute and regulations
– Frequently asked questions
– Filing instructions
• Maryland PSC Reports:– Compliance Fee Remittance Report
– Marketed Renewable Electricity Sales Report
– On-Site and Behind-the-Meter Generation Report
– Yearly RPS Supplier Annual Report
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Purpose of Supplier Reports
• Reporting
• Auditing
• Analysis
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Non-Compliance Letter
• Issued June 10, 2009
• Directs suppliers that have not submitted the annual RPS report to respond and show cause as to why the Commission should not:– Suspend or revoke Maryland license– Assess civil penalty
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RPS Results to Date
• Number of RECs RetiredYear 2006: 1,875,943Year 2007: 1,936,248Year 2008: 2,683,619
• Compliance Fees PaidYear 2006: $38,209Year 2007: $36,374Year 2008: $1,005,495*
*Some companies have yet to submit all outstanding payments.
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REC State of Origin2008 Maryland Compliance RECs by Facility Location
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Tier 1 RECs Retired in Maryland by Fuel Type (2008)
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Tier 2 RECs Retired in Maryland by Fuel Type (2008)
Hydroelectric85%
Municipal Solid Waste
15%
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Supplier Obligation Review
• Meet RPS Standards; or
• Make Alternative Compliance Payments;
&
• File RPS Annual Supplier Report
25
QUESTIONS AND COMMENTS
Kevin Mosier
410-767-8926
Michael Lee, [email protected]
Integrated Resource Planning Division
Maryland Public Service Commission