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Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

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Page 1: Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

Net Metering and Embedded Generation

NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008

Saint John, NB

Linda Berthelot

Page 2: Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

Net Metering and Embedded Generation Programs

· Background

· Net Metering Policy

· How Net Metering Works

· Summary of Invoicing

· Embedded Generation Policy

· Purchase Price

· Technical Requirements for Net Metering and Embedded Generation

Page 3: Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

Background

· Electricity from Renewable Resources Regulation – Electricity Act also known as Renewable Portfolio Standard (RPS) requires an additional 10% of New Brunswick’s electrical energy must come from renewable sources by 2016 (400 MW) – this has been accelerated to 2010

· NB Power currently has contracts with private sector developers for 96 MW of wind energy by 2008, and another 213 MW by 2009

Page 4: Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

Background

Changes to the Electricity Act also opened doors for independent power producers:

· In 2005 NB Power introduced Net Metering and Embedded Generation policies which allows independent power producers to connect their generation units to the NB Power distribution system (grid)

· Net Metering for renewable generation

· Embedded Generation for renewable and non-renewable generation

· Total aggregate capacity for both programs is 21 MW

Page 5: Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

Net Metering Policy

· Net metering projects must use a renewable energy source (wind, solar, biomass, biogas, small hydro and tidal)

· The maximum size of generator is 100 kilowatts (kW)

· The output of the generation unit offsets the customer’s electrical consumption from NB Power

· Excess generation is delivered back to NB Power’s distribution system and this is measured with a bi-directional or net meter

Page 6: Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

Net Metering Policy

· The excess kWh are used to further reduce the customer’s monthly consumption from NB Power – credited at the retail rate

· Customers are billed for the net amount of electricity used – that is the electricity delivered to the customer by NB Power, minus the excess that customer sends back to the NB Power distribution system

· Excess credits not required within a billing period may be carried forward to reduce future consumption until March 31 of each year

Page 7: Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

Cost to Connect

NB Power charges a service call fee of $40.47 to change the meter

Since net metering is designed to help customers offset their own electrical requirements, there is no need for upgrades to NB Power’s facilities

Page 8: Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

What is Net Metering?

Page 9: Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

Invoicing

NB Power’s meter does not measure electricity generated by customer’s unit – it only measures kWh delivered to and received from customer

If readings indicate:

NB Power delivers 800 kWh NB Power receives 200 kWhDifference or Net 600 kWh

-Charged at prevailing NB Power residential retail rate

-HST applied to total supply from NB Power (800 kWh) and not net total

Page 10: Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

Invoicing

What if we receive more electricity from the customer than what we deliver to them?

Ex:

NB Power delivers - 100 kWh

NB Power receives - 200 kWh

Difference - -100 kWh

· Customer is billed for minimum monthly service fee of $19.73/$21.63 and any rental and applicable fees (LPC), etc

· The excess 100 kWh can be carried forward to future months to offset electricity from NB Power

· Any credits remaining at the end of March each year will be granted to the utility or reduced to “zero”

Page 11: Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

Embedded Generation

NB Power’s Embedded Generation policy will pay Non Utility Generators for the useful output of their generation unit.

· Renewable and non-renewable generation units

· Current policy allows generation unit up to 2 MW

· Output of the generation unit is metered separately from the customer’s on-site electricity requirements

· No on-site electricity requirements may be served from the generation unit

Page 12: Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

Embedded Generation

· The non-utility generator is responsible for any and all upgrades resulting from the addition of their generation unit to the distribution system

· The upgrades include transformation, metering, line extensions, line upgrades, line relocations, etc

· NB Power will complete a system impact study prior to approval

Page 13: Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

Generation Output Purchase Price

Purchase price is reviewed and determined on a case-by-case basis. Factors include:

· Contract term

· Type of generation

· Disco’s avoided energy cost

· Potential capacity deferral value

· Value for environmental attributes

Page 14: Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

Technical Requirements for Net Metering and Embedded Generation

· Installation requirements are as per NB Power Technical Specification for Independent Power Producers

· Most net metering projects will be installed via a certified grid-dependent inverters which contain all of the technical and safety requirements

· All installations and electrical equipment must be approved by a certification organization recognized in the Province of NB

· Installations must meet the requirements of NB Department Public Safety – Technical Inspection Services

Page 15: Net Metering and Embedded Generation NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008 Saint John, NB Linda Berthelot

Net Metering and Embedded Generation

NB Climate Action Change Hub Advisory Committee Meeting – October 1, 2008

Saint John, NB

Linda Berthelot