SelfGeneration Incentive Program LACC Sustainable Conference December 2, 2003

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Self-Generation Incentive ProgramLACC
Sustainable ConferenceDecember 2, 2003

• Howard Green
• Southern California Edison

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CPUC Self-Generation Incentive ProgramPresentatio
n OutlineThe Road Map

• Self Gen Incentive Program Background
• Program Description
• Specifications
• Application Process
• Who do you call
• Results To Date
• New Guidelines

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CPUC Self-Generation Incentive ProgramBackground

• Created by state legislation (AB 970) in
  September 2000 in response to the emerging energy
  crisis
• Required California Public Utilities Commission
  (CPUC) to initiate a program offering financial
  incentives for distributed generation to be paid
  for enhancing reliability and differential
  incentives for renewable or super clean
  distributed generation resources.
• CPUC specifies program design criteria, orders
  SCE, PGE, SoCalGas, and SDGE to fund program
  from rates
• Designed to coordinate with existing California
  Energy Commission Emerging Renewables Buydown
  Program

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Eligible Technologies

• Photovoltaic
• Wind
• Fuel Cell
• GAS Turbine
• Microturbine
• Internal Combustion Engine
• Natural gas or renewable

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CPUC Self-Generation Incentive ProgramBackground
(continued)

• CPUC Authorized Funding (From Utility
  Distribution Rates)
• 125 million per year for 4 years (2001 2004)
• Statewide program with four separate regional
  administrators
• Pacific Gas Electric
• Southern California Edison
• Southern California Gas Company
• San Diego Regional Energy Office (for San Diego
  Gas Electric service territory)
• Pilot for non-utility administration of public
  benefit programs

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CPUC Self-Generation Incentive ProgramProgram
Specifications
Note (1) CPUC decision on February 7, 2002
increased max capacity to 1.5 MW, however
incentives only paid up to 1 MW (2)
Systems can be sized up to 200 greater than the
customer sites annual peak demand (3)
Level 2 and level 3- N systems must utilize waste
heat recovery (4) Level 3- N systems
must meet CPUC mandated reliability criteria
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CPUC Self-Generation Incentive ProgramProgram
Specifications (continued)
CPUC Authorized Incentive Budgets By
Administrator
One-third of the incentive budget for each
administrator is initially allocated to each of
the self-generation categories (Levels 1, 2 and
3)
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CPUC Self-Generation Incentive ProgramProgram
Specifications (continued)

• Must be grid connected
• No diesel or backup generators
• Must serve on-site (host customer) load
• Heat recovery, efficiency (PU Code 218.5) and
  specific reliability requirements required for
  non-renewable systems
• Warranty required
• Level 1 2 5 years
• Level 3 3 years

Program Specifications
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CPUC Self-Generation Incentive ProgramProgram
Specifications (continued)

• Host Customer Incentive Limits
• 1.5 MW per site
• 6 MW per multi-site customer, program duration
• No double dipping with CEC Emerging Renewable
  Buydown Program
• Other State/Federal Incentives Subtracted From
  Project Cost To Determine Incentive

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California Energy CommissionEmerging Renewable
Buydown Program

•  Incentive Rate
• 3.80/W for photovoltaic (PV) systems
• 2.50/W for small wind systems
• Incentives will decline by 0.20 per watt every
  six months.
• Maximum eligible system size of 30kW
• Future performance based incentives will be
  available for systems above 30kW
• Authorized 2003 budget 100.2M

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CPUC Self-Generation Incentive ProgramApplication
Process

• Reservation Request (applicant)
• Host Customer
• System description and size
• Efficiency/heat recovery calculation
• Conditional Reservation (administrator)
• 90 day reservation of incentive

SELF GENERATION INCENTIVE PROGRAM
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Application Process (continued)

• Proof of Project Advancement (applicant)
• Utility Interconnection Application
• System Purchase Order/Contract
• Air Permit Application (if applicable)
• Project Cost Breakdown
• Self Gen Program Contract
• Reservation Confirmation (administrator)
• Reservation good for 12 months (for project
  construction/start up)

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Application Process (continued)

• Incentive Claim (applicant)
• Proof of Interconnection
• Final Building Inspection Approval
• Final Air Permit (if applicable)
• Final Project Cost Breakdown and Substantiation
• Proof of Warranty Coverage
• Maintenance Coordination Letter to Host Utility
  (Level 3N only)
• Incentive Payment (administrator)

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Program Activity By Administrator Region
Last updated December 2002
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Program Activity By System Type

• Based on active and completed projects since
  program inception
• PGE, SDREO, and SCE last updated March 31, 2003.
  So Cal Gas last updated December 2002

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Funds Currently Available as of 11/03 (Statewide)
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Grid Interconnections

• SDGE 858-654-1104 or 858-654-8239
• Barbara McClain
• Bill Osborne
• PGE 415-972-5678
• SCE 626-302-9669
• Gerome Torribio

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Websites

• SCE 626-302-8436
• www.sce.com
• PGE 415-973-6436
• www.pge.com/selfgen
• SDREO 858-244-1183
• www.sdenergy.org/selfgen
• So Cal Gas 1-866-347-3228
• www.socalgas.com/business/selfgen
• Unused funds in any given program year rollover
  to the following program year
• Level 2 3 funds can be shifted to Level 1
  without Commission approval if required

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SelfGeneration Incentive Program Modification
Guideline

• Guidelines background and purpose
• Program modification request screening criteria
• Application process
• Application submittal format and data requirements

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Program Continuation to 2008

• AB 1685 the Leno Bill
• Program continues until January 1, 2008, This
  bill would require the commission (to continue) a
  self-generation incentive program for distributed
  generation resources in the same for that exits
  on January 1, 2004.
• New requirements for Level 3

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For More Information at SCE Contact

• Howard Green
• Program Manager
• Southern California Edison
• 2131 Walnut Grove Avenue
• Rosemead, CA 91770
• Phone [phone]
• Fax [phone]e-mail greenh_at_SCE.com