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Sustainable Energy Advantage, LLC New England Renewable Energy Solar Eyes & EarsDigest #48 December 30, 2014 Terms & Conditions Eyes & Ears Service is provided to the Subscriber for the Subscriber’s internal use only, and may be distributed to employees, officers and directors of Subscriber or Authorized Affiliate who have been made aware of the Limitations on Use under the Subscription Agreement. Subscriber agrees not to distribute materials received under the Eyes & Ears Service, whether by written, oral or electronic means, to any other person, including consultants engaged by Subscriber, except with specific written permission from SEA or as required by applicable law, regulatory proceeding or exchange rule. Subscriber is subject to additional terms and conditions stated in the Subscription Agreement.

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Page 1: Sustainable Energy Advantage, LLC · Projects Altus Power Signs Long-Term Purchasing Agreement with Belchertown for NM Credits Generated from Company's Solar Projects Clean Energy

Sustainable Energy Advantage, LLC

New England

Renewable Energy

Solar ‘Eyes & Ears’ Digest #48

December 30, 2014

Terms & Conditions

Eyes & Ears Service is provided to the Subscriber for the Subscriber’s internal use only, and may be

distributed to employees, officers and directors of Subscriber or Authorized Affiliate who have been made

aware of the Limitations on Use under the Subscription Agreement. Subscriber agrees not to distribute

materials received under the Eyes & Ears Service, whether by written, oral or electronic means, to any

other person, including consultants engaged by Subscriber, except with specific written permission from

SEA or as required by applicable law, regulatory proceeding or exchange rule. Subscriber is subject to

additional terms and conditions stated in the Subscription Agreement.

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New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC Digest #48 – Tuesday, December 30, 2014

Navigation: Top Stories / MA / CT / RI / ME / VT / NH / ISO

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Top Stories in this Update… Other Featured Topics…

Massachusetts Net Metering and Solar Task Force Initiates Study Process Pursuant to Chapter 251; Will Receive Comments from Public on January 6

Massachusetts DOER Will Not Grant Weather Related Extensions for Managed Growth

Massachusetts: National Grid Selects 16 MW of Solar Projects under Solar Program Phase II

Massachusetts: SunEdison Announces Solar PPAs, Totaling 39.5 MW of Capacity, with 16 Public Housing Authorities

Connecticut: District Court Rules Allco has No Standing to Challenge DEEP Decision under PA 13-303 Section 6, and that Section 6 Procurement is not Invalid under FPA

Connecticut DEEP Finally Issues 2014 Draft IRP and Seeks Comments; Proposes not to Phase-Down Biomass and LFG REC Values for the Next Three Years; Procurement Plans Also Discussed

Connecticut Light & Power and United Illuminating Company Provide Update on Year 3 LREC/ZREC RFP

Connecticut Governor Malloy to Expand Residential Solar Investment Program by Ten Times

Rhode Island OER and DG Board Continues Discussion on Ceiling Prices, MW Allocation and Tariff Development for 2015 REG

Maine PUC Issues Second Maine Value of Solar Methodology Draft after Reviewing Stakeholder Comments; PUC Requests Data from T&D Utilities in Value of Solar Proceeding

Vermont PSD Issues Report to Legislature Considering Adoption of Mandatory RPS

New Hampshire Sustainable Energy Association, Policy Advocates and Legislators to Introduce Solar Bill in 2015 Session

ISO-NE Issues Final 2014 Regional System Plan

ISO-NE and NEPOOL MC Continue to Discuss Evolving Proposals on Zonal Sloped Demand Curves

SunEdison and TerraForm Power Acquire First Wind for $2.4 Billion

MASSACHUSETTS

Net Metering and Solar Task Force Initiates Study Process Pursuant to Chapter 251; Will Receive Comments from Public on January 6

o First Net Metering Task Force Meeting Focuses on Realigning Framework with Legislation, Finalizing Consulting Scope

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New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC Digest #48 – Tuesday, December 30, 2014

Navigation: Top Stories / MA / CT / RI / ME / VT / NH / ISO

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o Net Metering and Solar Task Force Holds 2nd Meeting to Review Study Work Plan; DPU Projects When Net Metering Caps will be Filled

o Net Metering and Solar Task Force to Receive Public Comments at January 6, 2015 3rd Meeting

DOER Releases 2013 RPS & APS Annual Compliance Report

DPU Adopts Emergency Regulations to Implement Net Metering Cap Increase

DOER Announces SREC-I and SREC-II Load Exemptions

DOER Will Not Grant Weather Related Extensions for Managed Growth

DOER Conducts Stakeholder Process for Thermal APS Rulemaking

IOUs Seek Approval to Reduce Capacity of Bingham Wind Farm in Section 83A PPA

Energy Undersecretary Sylvia to Join BlueWave Capital

DPU Submits Information Requests to Utilities in DG Interconnection Group Study Proceeding

WMECO Files 2014 Annual Solar Compliance Filing

DPU Approves Unitil's Proposed 2015 Net-Metering Recovery Surcharge Rates

DPU Issues Grid Modernization Business Case Filing Requirement

DPU Adopts Basic Service Time-Varying Rates Policy Framework; Denies Three Parties' Petitions for Reconsideration

DOER Publishes Comments on Final Design of Residential Solar Loan Program

NECEC, SEBANE, SEIA and Vote Solar Form Mass Solar Coalition to Work with Legislature on Solar and Net Metering Issues

Paragon Holdings Petitions to Transfer ACA Reservation Fee from Initial Reservation to Updated Reservation

DPU Grants Syncarpha's Petition for Limited Exception from Single Parcel Requirement for Net Metering Qualification

MassCEC Selects Mass Energy for Solar Connect Non-Profit Group RFP; Issues RFPs for Solar Connect Outreach Consultant and Solar Installers

MassCEC Announces Selected Communities for 2015 Solarize Mass; Seeks Proposals from Solar Installers

National Grid Selects 16 MW of Solar Projects under Solar Program Phase II

SunEdison Announces Solar PPAs, Totaling 39.5 MW of Capacity, with 16 Public Housing Authorities

Appellate Tax Board Publishes Decision Finding Some Virtually Net-Metered Systems Should Receive Property Tax Exemption

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New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC Digest #48 – Tuesday, December 30, 2014

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Dennis-Yarmouth School District Signs Power Purchasing Agreement for 3-MW of Solar Projects

Altus Power Signs Long-Term Purchasing Agreement with Belchertown for NM Credits Generated from Company's Solar Projects

Clean Energy Collective to Build Community Solar Project in Adams

NSTAR Issues RFP Seeking Certificates for Meeting MA RPS and APS Compliance Obligation

WMECO Issues RFB to Purchase and Sell MA SRECs

DOER Hosts Webinar on Solar PV Safety and Permitting Training

Environmental Massachusetts Issues Report on Solar Growth

NSTAR Hosts Interconnection and Net Metering Seminar

CONNECTICUT:

District Court Rules Allco has No Standing to Challenge DEEP Decision under PA 13-303 Section 6, and that Section 6 Procurement is not Invalid under FPA

DEEP Finally Issues 2014 Draft IRP and Seeks Comments; Proposes not to Phase-Down Biomass and LFG REC Values for the Next Three Years; Procurement Plans Also Discussed

PURA Issues Final Virtual Net Metering Decision Removing Virtual Netting Protocol

EDCs Provide Status Updates Regarding Year 3 LREC/ZREC Procurement, Limited Reopening of RFP and Small ZREC Tariff

o CL&P and UI Provide Update on Year 3 LREC/ZREC RFP

o CL&P Files Supplements to Interim Procurement Plan for Year 3 LREC/ZREC Solicitation; Delays Submission of Individual LREC/ZREC Bid Report due to Reopening of Year 3 RFP

o CL&P Motions PURA to Allow Both EDCs' Small ZREC Tariff to Launch on the Same Date; to Hold Year 3 Small ZREC Program Webinar for Applicants with UI

CL&P and UI Issue RFI to Seek Stakeholder Input on Improving LREC/ZREC Program

Governor Malloy to Expand Residential Solar Investment Program by Ten Times

PURA Issues Decision on CL&P Rate Case: Proposed Increase Fixed Monthly Service Fee to Residential Customers is Adjusted Downward

Renewable Industry Stakeholders Discuss Electricity Rate Design in Response to CL&P's Fixed Charge Hike

PURA Considers Definition of Class III Sources Under PA 13-303; Denies Petition to Include All Demand-Side Management Projects in Class III in Final Decision

Connecticut Green Bank and EnergySage Announce Partnership to Support CT's

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New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC Digest #48 – Tuesday, December 30, 2014

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Residential Solar Initiatives

Connecticut Green Bank Holds Webinars on Residential Solar Incentive Program, Approves New Incentive Levels including a Blended Rate for Oversized Systems

Solarize CT Reaches 14 MW PV Installation

CSC Grants UI's Petition for Declaratory Ruling in Bridgeport Solar/Fuel-Cell Project Proceeding

PURA Requests Comments on Submetering for On-Site Generation

CT Green Bank to Host Webinar on Solar Customer Segmentation

RHODE ISLAND:

OER and DG Board Continues Discussion on Ceiling Prices, MW Allocation and Tariff Development for 2015 REG

o DG Board Approves Final Recommendations Regarding Ceiling Prices for 2015 REG

o DG Board Approves OER's Recommended MW Allocation Plan

o National Grid Submits Tariff Proposal for 2015 REG to PUC

o Wind Energy Development Files Motion to Intervene in National Grid REG Tariff Proposal

PUC Makes Partial Ruling on Interconnection Dispute between WED and National Grid

Patriot Renewables Seeks RI RES Qualification for Saddleback Ridge Wind Project

Commerce Corp. Issues REF Grants to Six Solar Projects

MAINE:

PUC Issues Second Maine Value of Solar Methodology Draft after Reviewing Stakeholder Comments; PUC Requests Data from T&D Utilities in Value of Solar Proceeding

VERMONT:

PSD Issues Report to Legislature Considering Adoption of Mandatory RPS

PSB Continues Investigation on Avoided Cost Caps for SPEED 2014 Standard Offer Program

o Stakeholders Submit Comments on SPEED Standard Offer Program Avoided Cost Caps Developed by Working Group

o Farm Methane Working Group Develops Cost Models for 2015 SPEED Avoided Costs Price Caps

o REV and PSD File Avoided-Cost Price Cap Proposals for Non-Farm Anaerobic Digestion; PSB Requests Comment on New Non-Farm Anaerobic Digestion

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New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC Digest #48 – Tuesday, December 30, 2014

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Category

GMP Sponsors Program to help Non-Profits Develop Solar Facilities

Winhall Citizens Voice Concern Regarding Proposed Solar Project

New Haven Selectboard Votes Against Two Solar Projects

Bennington Residents Concerned Solar Project May Affect Well Water, Tourism

NEW HAMPSHIRE:

NHSEA, Policy Advocates and Legislators to Introduce Solar Bill in 2015 Session

PUC Staff Recommends Incentive and Requirement Changes to C&I Solar Rebate Program; Invites Stakeholder Comments

OLS Comments on PUC's Final Proposed Group Net Metering Rules

PUC Gives Updates on Energy Programs and FERC Decision Related to Demand Response and RTO at October 16 EESE Board Meeting; December 19 Meeting Cancelled

OEP Holds Second Stakeholder Session on Reducing Costs Related to Residential Permitting and Zoning for Solar Under Rooftop Solar Challenge

PSNH Issues RFP for RECs to Satisfy RPS Obligation

Town of Milton Moves Forward with Solar Garden

Derry Seeks Proposals for Land-Lease to Install Solar Systems at Town's Landfill

ISO NEW ENGLAND, REGIONAL AND NATIONAL DEVELOPMENTS:

ISO-NE Issues Final 2014 Regional System Plan

NEPOOL MC and PC Approve ORTP Exemption for Distributed RE Technologies

NESCOE Proposes ICR Calculation Reflecting Solar DG Forecast and Pay-for-Performance Rules

Distributed Generation Forecast Working Group December Meeting Addresses State DG Policies, Economic Drivers of PV, and Utility PV Penetration Data

VRWG Cancels December 4 Meeting Due to Schedule Conflicts

NY PSC Increases Utility Net Metering Caps from 3% to 6%; To Study Value of Distributed Generation

LIPA Selects 122 MW of Solar Projects under Long-Term Contract RFP; Deepwater ONE Proposal Not Selected

U.S. International Trade Commission Increases Anti-Dumping Duties on Solar Modules from China and Taiwan

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New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC Digest #48 – Tuesday, December 30, 2014

Navigation: Top Stories / MA / CT / RI / ME / VT / NH / ISO

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SunEdison and TerraForm Power Acquire First Wind for $2.4 Billion

2014 IREC/Vote Solar “Freeing the Grid” Report on Net Metering and Interconnection Best Practices Released

LBNL Issues Report on Solar Price Variability; Held Webinar on December 15

CESA to Host Webinar on Rate Design Approaches to DG Solar

MASSACHUSETTS Net Metering and Solar Task Force Initiates Study Process Pursuant to Chapter 251; Will Receive Comments from Public on January 6 (KEYWORDS: Net Metering, DG, Solar, RPS, Planning, Rates) New E&E Content As described in Digest 46, Chapter 251 (enacted in August 2014 pursuant to HB 4185), among a series of net-metering- and renewable-thermal- related provisions, orders the establishment of a Net Metering Task Force to review the "long-term viability of net metering in the commonwealth and develop recommendations on incentives and programs that will support the deployment of 1600 MW of solar generation facilities" in Massachusetts. It requires that the Task Force file any recommendations for legislative or regulatory reforms with the legislature, by no later than March 31, 2015. A detailed summary of Chapter 251 is available in Digest 46. Task Force members include:

The Task Force selected a consulting team consisting of Peregrine Energy Group (prime contractor), in conjunction with Sustainable Energy Advantage (serving as project manager), Meister Consultants Group, and La Capra Associates, as the Task Force's consultant to aid the review process. The consulting team has contracted with the Department of Energy Resources and reports to DOER, but is guided by the Task Force. The proposed study timeline (based on the consultants' December 15 presentation summarized below) is as follows:

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New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC Digest #48 – Tuesday, December 30, 2014

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Here we provide a status update of the study process to date.

CONNECTICUT District Court Rules Allco has No Standing to Challenge DEEP Decision under PA 13-303 Section 6, and that Section 6 Procurement is not Invalid under FPA

(KEYWORDS: Institutional, Litigation, RPS, Utility Procurement, LT Contracts)

No Modifications/Last Updated: Flash 47.6

As reported in Digest 41, the Department of Energy and Environmental Protection (DEEP) selected EDP

Renewables North America LLC's 250 MW Number Nine Wind Farm and Helio Sage Energy LLC's 20

MW Fusion Solar Center for the Class I Renewable Energy Request for Proposals under Section 6 of

Public Act 13-303. In October 2013, Allco Renewable Energy filed a Petition for Reconsideration with

PURA, asking PURA to deny the Number Nine PPA. The petition was denied.

On December 18, 2013, Allco, following the precedent of court decisions in Maryland and New Jersey

pertaining to state violations under the Constitution’s Supremacy Clause (see Digest 42, 45, 46), filed a

lawsuit in U.S. District Court (Connecticut District) against DEEP Commissioner Daniel Esty (now Robert

Klee) for violations of the Federal Power Act (FPA), the Public Utility Regulatory Policies Act of 1978 and

the Federal Energy Regulatory Commissions' regulations. In its complaint, Allco argues that only FERC

may establish wholesale rates and regulate the wholesale market. Under FERC's regulations, utilities can

enter into contracts to purchase power from QFs at the utility's full avoided costs. The size of a QF is

capped at 80 MW. Hence, the 250 MW Number Nine project is not a QF. Filings and transcripts related to

the case are available online, through the Federal PACER website under docket number 3:13-cv-01874.

(See Digests 43 & 46 for a discussion of the proceedings).

On December 10, 2014 the District Court dismissed Allco's Lawsuit on two grounds, directly comparing

facts of the lawsuit to those present in the Maryland and New Jersey cases, mentioned above:

1. Allco Lacks Standing to Challenge DEEP's actions

The Court first determined that Allco lacked standing to challenge DEEP's actions. Specifically, the Court

found that the FPA does include disappointed bidders within the "zone of interest" of the statute and that

denial of a contract in a bidding process does not create sufficient injury under the FPA (foreclosing

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New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC Digest #48 – Tuesday, December 30, 2014

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standing). The Court also found that Allco's injury, even if it were sufficient, is not redress-able by judicial

action, as there is no guarantee under the terms of Section 6 that Allco's project would have been

selected if Number Nine was not.

The Court also explicitly distinguished the current case from the matter at issue in the Maryland case PPL

Energyplus v. Solomon (discussed in Digests 42 and 46), stating that there the claimants, as existing

generators and utilities, had a concrete injury resulting from the depression of wholesale prices by state

action, which would "cost [them] millions of dollars," giving them standing under the FPA.

2. Connecticut's Section 6 Bidding Process is Not Preempted by the FPA

Even though the Court found that Allco did not have standing to pursue the claim (thus effectively

dismissing the lawsuit), the Court also discussed the substance of Allco's claim, finding that Section 6,

although it has an effect on wholesale rates, is not preempted by the FPA.

Specifically, the court determined that, because the price/rate was offered by the bidder (as opposed to

being set by DEEP), because DEEP had no ability to alter the price, and because any bidder could

decide to not go through with the proposal after being selected, that the Section 6 program was not

interfering with FERC jurisdiction over wholesale markets. Therefore, Section 6 is not an attempt to 'set'

or 'fix' wholesale prices, and is not preempted.

The court found the mechanism by which final prices are set dispositive, again distinguishing the current

case from PPL Energyplus v. Nazarian and PPL Energyplus v. Solomon. In those cases, the district court

stated that, because the mechanism used (bidders received a standard rate equal to difference between

revenue requirements and actual sales receipts) effectively set rates and was ordered by state law, that

these laws were preempted by the FPA and were invalid.

It is unknown if Allco will appeal the decision to the First Circuit.

RHODE ISLAND OER and DG Board Continues Discussion on Ceiling Prices, MW Allocation and Tariff Development for 2015 REG

(KEYWORDS: DG, Solar, Wind, Net Metering, Hydro, Anaerobic Digestion, Interconnection, LT

Contracts, Utility Procurement)

New E&E Content

The Rhode Island Office of Energy Resources and Distributed Generation Contracts Board held meetings

on September 22, October 20, November 10, 17, 20 and December 9 and 15, 2014 to discuss and

provide updates on the development of the 2015 Renewable Energy Growth program. The meetings

focused on three primary issues surrounding the 2015 REG Program:

Ceiling Prices

Capacity Allocation

Tariff Development

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New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC Digest #48 – Tuesday, December 30, 2014

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10

Contributors: Bob Grace, Jason Gifford, Deborah Donovan, Tom Michelman, Po-Yu Yuen, Daniel von

Allmen, Andrew Kostrzewa, Nicole Hamilton, Will Bittinger and Kathryn Craddock

For More Information Please Contact:

Sustainable Energy Advantage, LLC

161 Worcester Road, Suite 503

Framingham, MA 01701

www.seadvantage.com

Bob Grace - [email protected] 508.665.5855

Jason Gifford - [email protected] 508.665.5856

Deborah Donovan – [email protected] 508.665.5859

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SEA Solar Eyes & Ears Sample Flash Email

Page 12: Sustainable Energy Advantage, LLC · Projects Altus Power Signs Long-Term Purchasing Agreement with Belchertown for NM Credits Generated from Company's Solar Projects Clean Energy

From: Bob Grace

Sent: Monday, January 19, 2015 11:38 AM

Subject: SEA Solar Eyes & Ears/Flash No. 48.3 Week Ending January 16, 2015

**Flash Update**

Dear Solar Eyes and Ears Subscribers: Flash 48.3-S Week Ending January 16, 2015

Time sensitive articles are identified with the following icon:

Contents

Massachusetts

MA Land Court Sides with Residents, Says 2.4-MW Hatfield Solar Violates Zoning Bylaw

Connecticut

PURA Approves UI and CL&P's Year 3 LREC/ZREC Final Procurement Plans

PURA Grants Amgraph One-Time Extension to LREC Contract Delivery Term Start Date; CL&P Motions

for Reconsideration of Ruling

PURA Solicits Comments on On-Site Submetering

Rhode Island

DG Board to Hold Meeting on January 20 to Provide Updates on Various Topics

OER Solicits Applications for Renewable Energy Projects at RI Schools

Maine

PUC Accepts Comments on Value of Solar Methodology Second Draft; CMP and Emera Maine File Load

and Solar Data

Vermont

Governor Shumlin Discusses Vermont RPS, Net Metering and Other Clean Energy and Environment Issues

in Inaugural Address

Utilities File Revised Net Metering Tariffs to Reflect Rate Changes Pursuant to Act 99; PSB to Initiate

Stakeholder Process in Preparation for 2016 Net Metering Rulemaking

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Eyes & Ears Terms and Conditions Eyes & Ears Service is provided to the Subscriber for the Subscriber’s internal use only, and may be distributed to employees, officers and directors of Subscriber or Authorized Affiliate who have been made aware of the Limitations on Use under the Subscription Agreement. Subscriber agrees not to distribute materials received under the Eyes & Ears Service, whether by written, oral or electronic means, to any other person, including consultants engaged by Subscriber, except with specific written permission from SEA or as required by applicable law, regulatory proceeding or exchange rule. Subscriber is subject to additional terms and conditions stated in the Subscription Agreement.

Headlines Time sensitive articles are identified with the following icon:

Massachusetts

MA Land Court Sides with Residents, Says 2.4-MW Hatfield Solar Violates Zoning Bylaw

On January 2, 2015, the Massachusetts Land Court ruled that the Hatfield Zoning Board of Appeal erred in

denying a building permit appeal filed by residents against Hatfield Solar, LLC's 2.4-MW, 8,276-panel solar

project. Hatfield Solar LLC is a subsidiary of Citizens Enterprises Corp. In 2012, Hatfield Solar was granted a

building permit to install the project in a rural residential district in Hatfield. A group of 21 Hatfield residents

appealed the building permit to the ZBA. The residents argued that the town's local zoning bylaws limit

renewable or alternative energy development to industrial and light industrial use districts. However, the ZBA

denied the appeal and sided with Hatfield Solar, who asserted that the project was exempted from the local

zoning regulations pursuant to a state solar provision that prevents any local zoning or bylaws from

unreasonably regulating the installation of solar systems other than for public health, safety or welfare reasons.

As a result, the residents challenged the ZBA's ruling to the Land Court.

In her January 2 decision, Land Court Judge Judith Culter noted that the ZBA's interpretation of the state laws

was incorrect, noting that the referenced solar provision only prohibits unreasonable regulation of solar

development. She further noted that the responsibility of proving a local solar bylaw is unreasonable is borne by

the developer. Subsequently, she ruled that Hatfield's zoning bylaw clearly prohibits the siting of solar facilities

in a rural residential district and overturned the ZBA's decision. (Daily Hampshire Gazette)

It should be noted the solar project has been qualified as a SREC-II Managed Growth project for the 2014

capacity block allocation. The project currently has a commercial operation milestone of February 27, 2015

pursuant to its Assurance of Qualifications. Given delays caused by the legal challenges, it is almost impossible

for the project to meet its milestone at this juncture. It is unclear whether the company will appeal the Land

Court's decision and apply for an extension of the reservation period. If the project fails to come online before

ISO New England & Regional Developments

FERC Issues Order Accepting ISO-NE's Proposed ICR Values for FCA9; Directs ISO-NE to Consider DG

and Solar PV Forecasts in ICR Calculations for Future Auctions

LBNL Issues Report on Sales Premiums for PV Homes

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its commercial operation deadline, it would free up 2.4 MW of space for other SREC-II Managed Growth

projects currently on the waiting list.

Connecticut

PURA Approves UI and CL&P's Year 3 LREC/ZREC Final Procurement Plans

United Illuminating Company and Connecticut Light & Power filed their Year 3 LREC/ZREC Final

Procurement Plans under Docket 11-12-06 on December 29 and 30, 2014 respectively:

CL&P:

Final Procurement Plan

Exhibit A - Procurement Plan for the Purchase of LRECs and ZRECs

Exhibit B - Individual Bids (Bids for Reopening RFP Only)

Exhibit D - Standard Contract

UI:

Final Procurement Plan

Exhibit A - Procurement Plan for the Purchase of LRECs and ZRECs

Exhibit B - Individual Bids (Bids for Reopening RFP Only)

Exhibit D - Standard Contract

The following tables summarize the prices for the Year 3 procurement:

*The Small ZREC Tariff rate = 110% * Weighted Average Bid Price of Accepted Bids for Medium ZREC

On January 15, the Public Utilities Regulatory Authority approved CL&P and UI's plans.

PURA Grants Amgraph One-Time Extension to LREC Contract Delivery Term Start Date;

CL&P Motions for Reconsideration of Ruling

On October 8, 2014, Amgraph Packaging, Inc. filed a motion with the Public Utilities Regulatory Authority to

amend the Delivery Term Start Date on its LREC contract with Connecticut Light & Power from October 1,

2014 to October 1, 2015. Amgraph asserted that the implementation of its fuel cell project was delayed due to

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delays in CL&P's interconnection study review process. PURA granted a one-time extension per Amgraph's

motion on January 6, 2015. On January 8, CL&P filed a motion for reconsideration of the ruling and asking

PURA to determine that the Delivery Term Start Date cannot be extended. It asked that PURA uphold its

precedential determination, which ruled that the Delivery Term Start Date cannot be modified after an

agreement is executed, but the contracting distribution company can grant a 6-month extension of the

termination date. CL&P further explained that the interconnection application delays mentioned in Amgraph's

motion is not a fundamentally unique issue and does not warrant a departure from PURA's regulatory

precedence.

PURA Solicits Comments on On-Site Submetering

As last discussed in Digest 48, the Public Utilities Regulatory Authority requested comments from electric

distribution companies and docket participants regarding on-site submetering under Docket 13-01-26.

Specifically, PURA requested comments on the following topics:

1. Provide recommendations to modify the Electricity Submetering Application Form (Without Self-

Generation) (SE Form) to accommodate the submetering of electricity at facilities with self-generation

as required by the Act. The SE Form is located in the Interim Decision as Appendix C.

2. Describe any issues that applicants have experienced in filling out the application.

3. Discuss when submetering should start in facilities where tenants’ leases expire at different times.

4. Characterize what type of Class I and combined heat and power units will self-generators utilize.

5. Provide a formula to develop the tenants billing rate that have a self-generator.

6. Explain if a submetering customer in a self-generation environment faces monopoly pricing.

7. Describe any new customer protections that are needed for tenants in facilities that have a self-generator.

8. Describe the remedy for a submetering facility having a self-generator that does not meet, or in the

future fails to meet, the required performance standards.

9. Discuss any new metering requirements needed for tenants in a facility that has a self-generator.

Five parties submitted comments to PURA:

777 Main Street, LLC, a 285 unit sustainable residential development which recently installed a 400 kW

fuel cell.

CL&P and UI

MEPT Chapel Street LLC, a landlord that has installed on-site renewable generation.

Chandler LLC, a specialized boutique consultancy that offers Owner Representation and Project

Management for the planning, design and construction of building projects that are healthy and efficient

to operate.

Connecticut Fund for the Environment

Rhode Island

DG Board to Hold Meeting on January 20 to Provide Updates on Various Topics

The Rhode Island Distributed Generation Contract Board will hold a meeting on January 20, 2015 from

4 to 5:30 pm at the Department of Administration, Conference Room A. The meeting agenda includes:

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Notification on the interconnection dispute between Wind Energy Development, LLC and National Grid

under Docket 4483;

Update on the 2015 Renewable Energy Growth Program;

National Grid presentation on the results of the 3rd enrollment of the 2014 DG Contract Program;

Cadmus presentation on solar quality assurance; and

2016 ceiling price services – reconciliation funding.

Summaries for the first three agenda items can be found in Flash Update 48.2. There will also be a public

comment opportunity at the end of the meeting.

OER Solicits Applications for Renewable Energy Projects at RI Schools

The Office of Energy Resources OER is accepting applications for Regional Greenhouse Gas Initiative (RGGI)

funding to develop renewable energy at K-12 schools throughout Rhode Island. This funding comes from the

2014 Plan for the Allocation and Distribution of RGGI Auction proceeds, which allocated $13 million for

renewable projects at schools through a competitive grant process. Eligible applications must contain an

education element as part of the project. The solicitation is a continuous recruitment through April 17, 2015.

More information on the solicitation can be found on OER's website.

Maine

PUC Accepts Comments on Value of Solar Methodology Second Draft; CMP and Emera

Maine File Load and Solar Data

As last discussed in Digest 48, the Maine Public Utilities Commission is conducting an investigation on the

value of distributed solar under Docket 2014-00171. On December 5, 2014, the PUC's consultants (a team led

by Clean Power Research that also includes Sustainable Energy Advantage, Pace Energy and Climate Center,

and Richard Perez) issued a second draft of the solar valuation methodology. The PUC accepted comments on

the draft, focusing on the following issues:

Calculation of Effective Load Carrying Capacity;

Proposed Calculation of Transmission and Distribution Benefits;

New Value Components for SO2 /sub> and NOx and the Calculation Methodology for SO2; and

Avoided Fuel Price Uncertainty.

Six parties filed comments with the PUC:

The Alliance for Solar Choice

Office of Public Advocates

Emera Maine

Natural Resources Council of Maine

Central Maine Power

Acadia Center

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Additionally, CMP and Emera Maine filed data related to distribution losses, hourly load, and solar installation

pursuant to PUC's data request:

Emera Maine:

Bangor Daily Hydro - Net Metering Projects

Bangor Daily Hydro - Distribution Losses

Maine Public District - Net Metering P+rojects

Maine Public District - Distribution Losses

CMP:

2011 Hourly Load Data

2012 Hourly Load Data

2013 Hourly Load Data

Average Cost of Capital and Distribution Losses

Net Metering Projects

Vermont

Governor Shumlin Discusses Vermont RPS, Net Metering and Other Clean Energy and

Environment Issues in Inaugural Address

Governor Shumlin gave his inaugural address on January 8, 2015. The address focused on clean energy and

environment, highlighting policy initiatives and goals the administration will target in the next four years. In his

speech, Governor Shumlin highlighted that Vermont's net metering program has been the main engine driving

the state's solar growth. He also discussed his administration's plan to implement a renewable portfolio standard

program. The RPS program will replace the state's existing SPEED program, which, he stated, "laid the

groundwork for where [the state is] today." The state now needs a strategy that can achieve its renewable energy

and greenhouse gas reduction goals. While the proposed program will share similar structure with RPS policies

in other states, he asserted that the Vermont program will be much broader, offering credits to thermal

efficiency services, electric vehicle technologies and potentially other clean energy initiatives. The Public

Service Department is currently working on a proposal. As discussed in Digest 48, the PSD will likely be

submitting a proposal to be considered for the 2015 legislative session. The state currently plans to have the

program in place in 2017. It is estimated that the RPS program will add 1,000 local jobs and bring "hundreds of

millions of dollars" in energy bill savings to Vermont ratepayers. One of the key motivator for this policy

decision is the ongoing Connecticut PURA proceeding exploring whether the Vermont Speed goals result in

double counting in violation of PA 13-303 Section 1, which would trigger rejection of RECs associated with

SPEED resources from use for CT Class I RPS compliance. (VT Digger)

Utilities File Revised Net Metering Tariffs to Reflect Rate Changes Pursuant to Act 99; PSB

to Initiate Stakeholder Process in Preparation for 2016 Net Metering Rulemaking

Act 99, enacted in 2014, made several changes to Vermont's net metering program, among which include

increasing the cumulative output capacity of net metering systems from 4% to 15% of the distribution

company’s peak demand during 1996 or the peak demand during the most recent full calendar year, whichever

is greater. It also adjusts the net metering rates such that solar net metering systems of 15 kW or less will

receive a net metering rate of 20¢/kWh, while other metering systems will receive a net metering rate of

19¢/kWh. A more detailed summary of Act 99 can be found in Digest 44. According to VT Digger, the states'

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utilities have recently filed revised net metering tariffs to reflect the changes in Act 99. The tariff filings are not

yet available for public consumption. Since the changes are established by the legislature, it is expected that the

revised tariffs will be approved. Additionally, the PSB will begin working on redesigning the state's net

metering rules. On November 5, 2014, the PSB held a hearing to present findings from its recent net metering

study. A summary of the study can be found in Digest 48. As we understand, the Board is planning to issue a

procedural schedule for future hearings and workshops in late January. A formal rulemaking place is scheduled

to take place in 2016. It is anticipated that the final rules will be adopted in 2017. We will continue to follow

this topic and provide updates as information becomes available. Information on the rulemaking procedures will

be available on PSB's website.

ISO New England & Regional Developments

FERC Issues Order Accepting ISO-NE's Proposed ICR Values for FCA9; Directs ISO-NE to

Consider DG and Solar PV Forecasts in ICR Calculations for Future Auctions

In Digest 48, we reported that the Federal Energy Regulatory Commission was conducting an investigation on

ISO-NE's proposed Installed Capacity Requirement Value for the ninth Forward Capacity Auction (FCA 9)

under Docket ER 15-325-000. As discussed in Digests 47 and 48, several parties, including the New England

States Committee on Electricity and Conservation Law Foundation, have criticized ISO-NE for not

incorporating its distributed generation and solar PV forecasts in the calculation of the ICR values. The critics

asserted that, by omitting a material capacity of solar PV projects, including small net-metered installations and

MW-sized resources, coming online in the next three years, ISO-NE's method could potentially overestimate

the capacity needed for the future. On January 2, 2015, FERC issued an order accepting ISO-NE's proposed

ICR values for FCA 9, but also directed ISO-NE to consider incorporation of distributed generation and solar

PV in its ICR value calculation for FCA 10 and future auctions.

LBNL Issues Report on Sales Premiums for PV Homes

On January 13, 2015, the Lawrence Berkeley National Laboratory issued a report quantifying the sales

premiums for homes equipped with host-owned solar PV systems. The report examined home sales data in eight

states, including Massachusetts and New York, and concluded that homebuyers are willing to pay more for

properties with host-owned PV systems. The report observed a "green cachet" pattern, where buyers are willing

to pay a certain amount for having any size of PV systems on their homes and an incremental amount

depending on the size of the systems. Further, the report noted that PV premiums stay relatively constant

despite significant decline in PV gross costs over the study period. This study did not look at non-host-owned

PV homes, such as properties with leased PV systems. Regards, Bob Grace

Sustainable Energy Advantage, LLC 161 Worcester Road, Suite 503 Framingham, MA 01701

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Robert C. Grace – President and Managing Director Sustainable Energy Advantage, LLC Tel 508.665.5855 Fax 508.665.5858 Mobile 617.803.8900 [email protected] www.seadvantage.com **********************************************************