Distributed Energy Resources

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Distributed Energy Resources
The Energy Challenge of the 21st Century
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Vision Of The Future
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Changing Policy Environment

• Energy Efficiency our First priority
• Renewable / Sustainable Resource incentives
• Climate Change initiatives
• The Smart Grid challenge
• The bottom line - new priorities for public
  utilities
• Distribution utilities as enablers
• Need to align utility ratemaking policy with
  energy policy priorities

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Distribution Utility as DER Enabler

• Provide painless hook-up to grid
• Provide distribution system energy storage and
  standby/back-up services
• Provide smart meter data and pricing information
• Provide investment capital for renewable energy
  and other DER in New Hampshire based on
  monetizing of utility system and other benefits
• Provide technical, program/project management and
  financial resources in the early stages of the
  energy transformation

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Policy Alignment

• When distribution utility revenues are directly
  linked to sales energy conservation and DER
  imposes financial penalties
• Solution revenue decoupling OR more rate cases
• Distribution utility resources are allocated
  based on opportunities
• Return on investments
• Incentives for performance

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The SB451 Model

• DER regulatory framework set in SB451
• Cost Recovery Return on utility ownership
  investment and contributions to customer owned
  DER
• DER is an alternative investment that can
  displace traditional utility distribution
  investments
• Requires PUC approval based on a finding of
  public interest
• Economic cost/benefit
• Environmental impact
• Economic development
• System reliability security

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What Are Distributed Energy Resources?

• Located on or near customer premises.
• Connected to the local distribution grid.
• Displaces bulk, central station energy supply.

• 1.) Distributed Generation
• Solar
• Small scale wind
• Biomass
• Clean cogeneration

• 2.) Non-Generation
• Energy efficiency
• Demand response
• Energy storage

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What Are The benefits Of DER?

• DER increases overall energy efficiency and
  energy diversity by eliminating or displacing
  energy deliveries from the bulk power system.
• Lower regional dependence on fossil fuels.
• Stabilize and reduce future energy costs.
• Keep energy and investment dollars in-state.
• Reduce greenhouse gases and other emissions.

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Benefit Screening Model
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Where are we?

• Unitil has hired a consultant and is working
  towards an initial DER filing
• The initial filing will provide a detailed
  roadmap for the SB451 process including the
  ratemaking mechanism and an evaluative screening
  tool
• Several specific projects will be included in the
  initial filing the list is still being
  finalized
• In 2009 we will continue prospecting for customer
  projects and programs that can meet the screening
  requirements and provide cost effective solutions
  to NHs future energy needs