Sustainable Energy Advantage, LLC

New England

Renewable Energy

‘Eyes & Ears’ Digest #48

December 30, 2014

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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 Releases 2013 RPS & APS Annual Compliance Report

Massachusetts DEP Releases Comments on Clean Energy Standard Regulations Discussion Draft

Massachusetts Governor-Elect Baker Names State Representative Matt Beaton as His Secretary of Energy and Environmental Affairs

Massachusetts DPU Terminates NSTAR Green Program; Finds NSTAR Meets Requirements for Competitive Retail Access

Massachusetts: CLF and Mass Energy File Complaint in Superior Court Over DEP Failure to Promulgate GHG Regulations Required by Global Warming Solutions Act

Massachusetts: BOEM Offshore Wind Auction Postponed to Late January 2015

Massachusetts: Cape Wind Will Not Close Financing in 2014; Delay in Construction May Affect Ability to Meet "Physical Installation" Milestone in National Grid and NSTAR PPAs

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 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

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

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

Maine PUC and OPA Release New Materials in Northern Maine Reliability Proceeding; ReEnergy Withdraws Biomass Proposals

Maine PUC Selects Two Wind Projects under Long-Term Contract RFP

Maine: Verso Paper Plans to Sell Bucksport Paper Mill and Associated Power Generation Facilities to Scrap Metal and Recycling Company; Fate of Biomass Facility Remains Unclear

Vermont PSD Issues Report to Legislature Considering Adoption of Mandatory RPS

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Vermont PSD Issues Total Energy Study Evaluating Effectiveness of Revenue-Neutral Carbon Tax and RPS Policies in Achieving Renewable Energy and GHG Goals

New Hampshire SEC Issues Draft Rules on Energy Facilities Siting Administrative Rulemaking

New Hampshire: Antrim Wind Applies to NH SEC to Again Take Jurisdiction Over New Project Proposal

FERC Grants CT and RI Regulators and Public System Representatives Request Re-Hearing of FCM Performance Incentive Order

ISO-NE Issues Final 2014 Regional System Plan

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

NY RPS Main-Tier RFP Awards Announced: Two Wind and Two Hydroelectric Projects Selected

Feds Adopt “Three-Week Extension” of PTC; Wind Industry Will Continue to Push in 2015 for a Long-Term Extension

National Grid Joins Green Line Infrastructure Alliance

SunEdison and TerraForm Power Acquire First Wind for $2.4 Billion

MIT Review Finds No Direct Correlation between Wind Turbines and Human Health Problems

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

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

DEP Releases Comments on Clean Energy Standard Regulations Discussion Draft

EBC to Hold Discussion on Proposed Clean Energy Standard

DPU Invites Comments on Small Hydro Net Metering Investigation

DPU Adopts Emergency Regulations to Implement Net Metering Cap Increase

DOER Announces SREC-I and SREC-II Load Exemptions

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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

Governor-Elect Baker Names State Representative Matt Beaton as His Secretary of Energy and Environmental Affairs

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 Terminates NSTAR Green Program; Finds NSTAR Meets Requirements for Competitive Retail Access

DPU Opens Investigation into Competitive Supply Market Improvements; Schedules Technical Session

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

CLF and Mass Energy File Complaint in Superior Court Over DEP Failure to Promulgate GHG Regulations Required by Global Warming Solutions Act

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 Invites Applications for Organics-to-Energy Program

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

BOEM Offshore Wind Auction Postponed to Late January 2015

Town of Barnstable and Cape Wind Opponents File Appeal in First Circuit Against Cape Wind, NSTAR, and DPU; Plaintiffs and Defendants File Briefs in August, October, and November Outlining Arguments

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Cape Wind Opponents Plan to Appeal Decision Regarding Permitting Federal Approvals and MA EFSB Decision on NSTAR Switching Station

Mass CEC Reports Construction of Staging Area for Cape Wind is $10 Million Over Budget

Cape Wind Will Not Close Financing in 2014; Delay in Construction May Affect Ability to Meet "Physical Installation" Milestone in National Grid and NSTAR PPAs

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

Kingston Board of Health Tables Proposed Shadow-Flicker Regulations

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

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

Brewster Enters into Agreement with CVEC for Net Metering Credits from Future Generation Wind Project in Plymouth

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

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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 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 Approves Plainfield Biomass Request of an 18-Month No-Fuel-Use-Restriction Trial Period

PURA Requests Comments on Submetering for On-Site Generation

UIL Holdings to Develop Fuel Cell Generation Facility at Glastonbury Station

CT Green Bank to Host Webinar on Solar Customer Segmentation

CPES and CT Bar Association to Host Legislative Update Dinner Meeting

PURA Approves CL&P Methodology of Applying Clearview Inc.'s 2010-2011 RPS Settlement Funds

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

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

National Grid Files Long-Term Contracting for Renewable Recovery Factor

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

PUC Approves Troy Mills Hydro Application for Certification

Portsmouth Town Council Approves Agreement with WED to Replace Wind Turbine

Deepwater Wind Receives Right-of-Way Grant from BOEM; CRMC Approves Underground Transmission Cables for the Wind Farm Project; Selects GIF to Fabricate Foundations for Block Island Wind Farm

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

PUC and OPA Release New Materials in Northern Maine Reliability Proceeding; ReEnergy Withdraws Biomass Proposals

o PUC and OPA Release New Materials, Including NTA Study, in Northern Maine Reliability Proceeding

o ReEnergy Withdraws Ashland and Fort Fairfield Biomass Proposals After Refusing to Provide Highly Confidential Data

PUC Investigates Emera's Sale Back of Membership Interest in Northeast Wind to First Wind

PUC Suspends Comment Request Regarding Joint Venture Conditions Due to Emera's Sale Back of Membership Interest

PUC Selects Two Wind Projects under Long-Term Contract RFP

Verso Paper Plans to Sell Bucksport Paper Mill and Associated Power Generation Facilities to Scrap Metal and Recycling Company; Fate of Biomass Facility Remains Unclear

Eastbrook Residents Vote to Allow Taller Turbines for Weaver Wind Project

BEP Denies Appeal of Canton Mountain Wind Permit

PUC Grants Pisgah Mountain Wind's Request to Extend In-Service Date Termination Milestone for Certification as a Community-Based Renewable Energy Project

EDPR Expects to File Permit Application for Number Nine Wind Farm in Near Future

Orland Citizens Group Requests Wind Turbine Moratorium

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Emera Requests Approval of Interconnection Feasibility Study Agreements for King Pine

Wind; HWC and King Pine Wind LLC intervene in Proceeding

Maine SJC Hears Arguments Related to Fox Island Wind Noise Complaint Appeal

Somerset County to Vote on TIF and Community Benefit Agreement for Bingham Wind

Project

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 Category

Vermont Public Service Board Issues Order on VPPSA Motion for Reconsideration of their Application to the Standard Offer RFP

PSD Issues Total Energy Study Evaluating Effectiveness of Revenue-Neutral Carbon Tax and RPS Policies in Achieving Renewable Energy and GHG Goals

Several Parties Submit Comments to PSB Regarding Wind Power Sound Standards Investigation

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

PSD Clean Energy Development Fund Issues RFP for Wood Pellet Heating Program

TDI Files Permit Application with PSB to Construct and Operate NECP Link

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

PUC Adopts Final Rules for Class I Thermal RPS and Other RPS Changes

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

SEC Issues Draft Rules on Energy Facilities Siting Administrative Rulemaking

New Hampshire Executive Council Confirms Two Nominations to SEC; Governor Hassan Makes Third Nomination

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

City of Berlin Approves PILOT and Decommissioning Agreements with Jericho Power for Jericho Mountain Wind Project

EDP Renewables Submits Application to FAA for Spruce Ridge Wind Farm Met Tower

Antrim Wind Applies to NH SEC to Again Take Jurisdiction Over New Project Proposal

FERC Exempts City of Berlin's Ammonoosuc Water Treatment Plant Hydro Project from Licensing Requirement Under 2013 Hydropower Regulatory Efficiency Act

SEC Order Finds that Granite Reliable Safety Plan is Not Subject to Disclosure

Coos County Officials Critical of Recently-Disclosed Confidential Agreement between Millsfield Property Owners and Granite Reliable Power over Possible Property Tax Increases

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

ISO NEW ENGLAND, REGIONAL AND NATIONAL DEVELOPMENTS:

FERC Grants CT and RI Regulators and Public System Representatives Request Re-Hearing of FCM Performance Incentive Order

ISO-NE Issues Final 2014 Regional System Plan

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

NEPOOL MC and PC Approve ORTP Exemption for Distributed RE Technologies

ISO Updates its Proposed Rules for Real-Time Do-Not-Exceed Dispatch of Intermittent Resources

ISO-NE Discusses on Winter Reliability Solutions for 2015-2016 and Future Winters at MC Meeting

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

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ISO Addresses FCM Market Power Mitigation for Imports

ISO Proposes Project to Create Interconnection Process for Elective Transmission Upgrades

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

TransCanada Disputes Property Tax Valuation of Two Hydro Stations: New Hampshire Towns Have Settled while Vermont Towns Continue to Negotiate

NY PSC Seeks Comments on Clean Energy Fund Proposal; Considers Extending Main Tier RPS through 2016 to Allow Sufficient Time for Development of New Approaches Thereafter

NY RPS Main-Tier RFP Awards Announced: Two Wind and Two Hydroelectric Projects Selected

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

FERC Issues Opinion in ROE Proceeding Adjusting Base ROE Rate; TOs File Request for Rehearing

Feds Adopt “Three-Week Extension” of PTC; Wind Industry Will Continue to Push in 2015 for a Long-Term Extension

TDI New England Files Construction Permit for New England Clean Power Link Project

National Grid Joins Green Line Infrastructure Alliance

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

RGGI Issues 26th Auction Results

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

Department of Energy’s WINDExchange Holds Offshore Wind Webinar

MIT Review Finds No Direct Correlation between Wind Turbines and Human Health Problems

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

NECA to Host Dinner Meeting on Cross-Border Energy Projects

CESA to Host Webinar on Rate Design Approaches to DG Solar

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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

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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:

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.

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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 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.

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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

Contributors: Bob Grace, Jason Gifford, Tom Michelman, Deborah Donovan, Po-Yu Yuen, Jim Kennerly,

Nicole Hamilton, Cara Goodman and Jordan Shoesmith

For More Information Please Contact:

Sustainable Energy Advantage, LLC

161 Worcester Road, Suite 503

Framingham, MA 01701

www.seadvantage.com

Bob Grace - bgrace@seadvantage.com 508.665.5855

Jason Gifford - jgifford@seadvantage.com 508.665.5856

Tom Michelman – tmichelman@seadvantage.com 508.665.5854

Deborah Donovan – ddonovan@seadvantage.com 508.665.5859

SEA Eyes & Ears Sample Flash Email

From: Bob Grace

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

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

**Flash Update**

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

Time sensitive articles are identified with the following icon:

Contents

Massachusetts

DPU Requests Public Comments on IOUs' Petitions to Reduce Capacity of Bingham Wind Farm in Section

83A PPA

Clean Energy Standard Hearing Schedule Change

Key Members of Governor Baker’s Energy Policy Team Announced

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

In Light of Uncertainty Surrounding Cape Wind Project, “Massachusetts Wind Energy Area” May Play

More Central Role in Offshore Wind Development

Despite Uncertainty Surrounding Cape Wind Project, Officials Remain Confident in Future of Marine

Commerce Terminal in New Bedford

Scituate Wind Turbine Unlikely to Reach Minimum Production Requirement for Operational Year

EBC Event to Feature Keynote Presentation by DEP Commissioner Suuberg on Baker Administration's

Environmental and Energy Agenda

Connecticut

PURA Delays Issuance of Draft Double Counting Decision; GMP Contests Admission of Materials Related

to Deceptive Trade Practices in Proceeding

PURA Issues Draft Decision on 2012 RPS Compliance

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

Block Island Wind Opponents File Comments Prior to PUC Open Meeting

OER Solicits Applications for Renewable Energy Projects at RI Schools

Maine

PUC Selects 99-MW Weaver Wind Project and 44-MW Highland Wind Project under Long-Term Contract

RFP

Governor LePage Nominates Carlisle McLean as New PUC Commissioner; Commissioner Vannoy to

Succeed Commissioner Welch as PUC Chair

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

and Solar Data

OPA Files Comments Assessing Proposals in Northern Maine System Reliability Proceeding

Franklin County Commissioners Briefed on Possible Changes to Kibby TIF Agreement under an

Amendment; Stakeholders Meeting to Solicit Input to be Held on January 27, 2015

Town of Orland Holds Public Hearing on Proposed Wind Turbine Moratorium in Advance of January 20

Vote

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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Headlines

Time sensitive articles are identified with the following icon:

Massachusetts

DPU Requests Public Comments on IOUs' Petitions to Reduce Capacity of

Bingham Wind Farm in Section 83A PPA

As last discussed in Digest 48, the states' four investor-owned utilities, on December 19, 2014,

filed notices with the Department of Public Utilities seeking approval of an amendment to their

Power Purchase Agreements with Blue Sky West, LLC (a subsidiary of First Wind, LLC)

executed pursuant to Section 83A of the Green Communities Act. The amendment would reduce

the capacity of the Bingham Wind project from 186 MW to 184.8 MW as a result of First Wind's

decision to switch the turbines proposed for the project. On January 12, 2015, the DPU issued

orders of notice under Dockets 14-155, -156, -157 and -158 informing stakeholders of the filings.

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

RGGI States to Hold Auction 27 to on March 11

LBNL Issues Report on Sales Premiums for PV Homes

Further, the DPU invited stakeholders to provide written comments on the petitions by

January 30, 2015. Filing instructions can be found in the comment request.

Clean Energy Standard Hearing Schedule Change

On January 5, 2015, the Massachusetts Department of Environmental Protection issued the

Proposed Clean Energy Standard (310 CMR 7.75) designed to further the state's progress

towards meeting the Global Warming Solution Act’s emission reduction goals. A summary of

the proposed rules can be found in Flash Update 48.2. On January 15, the DEP informed

stakeholders that it will be delaying the public hearings originally scheduled for February to

provide stakeholders with more time to review the proposal. The comment deadline has also

been extended until March 23rd. The new hearing schedule is as follows:

1 pm on March 10 at the Boston office at One Winter Street, Boston, MA

1 pm on March 11 at the Worcester office at 8 New Bond Street, Worcester, MA

1 pm on March 12 at the Lakeville office at 20 Riverside Drive, Lakeville, MA.

Key Members of Governor Baker’s Energy Policy Team Announced

As reported in Digest 48, On January 12, 2015, Secretary of Energy and Environmental Affairs

Matthew Beaton announced his selection of key members of the Baker Administration’s energy

policy team. Angela O’Connor will be appointed Chair of the Department of Public Utilities,

Robert Hayden will be appointed Commissioner of the Department of Public Utilities, and

Ronald Gerwatowski will be appointed Assistant Secretary for Energy. In addition, Secretary

Beaton announced various Interim Commissioner appointments within the Executive Office of

Energy and Environmental Affairs, including Daniel Burgess as the Commissioner of the

Department of Energy Resources.

Angela O’Connor previously served as President of the New England Power Generators

Association and then as Executive Director for the New England operations of TechNet, a

national trade group for the tech industry. Before her NEPGA role, she served as Vice President

of Energy Policy at Associated Industries of Massachusetts (A.I.M.). Robert “Bob” Hayden

previously was a prosecutor with the Plymouth County District Attorney's Office and joined the

Department of Public Utilities in 2001. Ronald “Ron” Gerwatowski previously was the Senior

Vice President for United States Regulation and Pricing for National Grid, where he had worked

for 28 years.

In making this announcement, Secretary Beaton stated that “both Bob and Angela will call upon

their previous experiences and vast industry knowledge to ensure that utility consumers in the

Commonwealth are provided with the most reliable and dependable service at the lowest

possible cost. Furthermore, Ron’s experience and steadfast commitment to a clean energy future

and cost-effective energy for Massachusetts will be a tremendous asset as we set forth to advance

the mission of Energy and Environmental Affairs. Bob, Angela, and Ron will be pivotal in

making Governor Baker’s vision of a clean, reliable and affordable supply of energy a reality.”

Environmental advocates, including the Environmental League of Massachusetts and the

Conservation Law Foundation, reacted to the appointments of Hayden and O’Connor, in

particular, with concern. They expressed worry that these members of Governor Baker’s energy

policy team will prioritize lowering energy costs and energy industry interests over reducing the

state’s dependence on fossil fuels and supporting renewable energy. The appointment of

Gerwatowski, in contrast, was well received by environmental advocates. Ken Kimmell, the

President of the Union of Concerned Scientists, said “Massachusetts and New England are at an

energy crossroads, and Mr. Gerwatowski knows what it will take to develop large supplies of

renewable energy to avoid overdependence on natural gas.” (Boston Globe) While at National

Grid, Gerwatowski was one of the architects of the utility’s approach to solar/DG and net

metering policy, including H. 4185, the controversial bill put forth during the last legislative

session designed to address long-term net metering policy and transition the SREC Carveout

policy to declining-block incentive structure. The original version of this bill was ultimately

shelved, and replaced with the establishment of the ongoing Net Metering and Solar Policy Task

Force.

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 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.

In Light of Uncertainty Surrounding Cape Wind Project, “Massachusetts Wind

Energy Area” May Play More Central Role in Offshore Wind Development

As previously discussed in Digest 48, the U.S. Bureau of Ocean Energy Management (BOEM)

plans to offer 742,000 acres offshore of Massachusetts -- referred to as the “Massachusetts Wind

Energy Area” -- for commercial wind energy leases. On November 24, 2014, BOEM issued a

public release officially announcing that the auction will take place on January 29, 2015.

As previously discussed in Flash Update 48.2, the future of the Cape Wind Project is in limbo

after National Grid and NSTAR terminated their power purchase agreements on January 6, 2015.

In light of the uncertainty now surrounding the Cape Wind Project, this January 29, 2015 auction

may play a more central role in the future of offshore wind development in Massachusetts. The

area being auctioned, the Massachusetts Wind Energy Area, is farther offshore than the Cape

Wind Project’s location in Nantucket Sound. Notably, some opponents of the Cape Wind Project

have viewed the Massachusetts Wind Energy Area more favorably. In comparing the two

offshore wind areas, Audra Parker, the President of the Alliance to Protect Nantucket Sound,

stated that the Massachusetts Wind Energy Area is better “in terms of site and the process it’s

taken.” Referring to the use of tools like Coastal Marine Spatial Planning, Ms. Parker said “[the

Massachusetts Wind Energy Area] process has involved science and stakeholder input.” (Boston

Herald)

Despite Uncertainty Surrounding Cape Wind Project, Officials Remain

Confident in Future of Marine Commerce Terminal in New Bedford

As previously discussed in Flash 48.2, the future of the Cape Wind Project is in limbo after

National Grid and NSTAR terminated their power purchase agreements on January 6, 2015.

Cape Wind has been slated to be a significant potential user of the “Marine Commerce

Terminal” in New Bedford, MA. Despite the uncertainty now surrounding the Cape Wind

Project, officials involved in the development of the Marine Commerce Terminal said the

Terminal’s future prospects remain secure.

A representative of the terminal manager, the Massachusetts Clean Energy Center (MassCEC),

stated that, “The terminal has never been just about Cape Wind. While built to support the

offshore wind industry for the long-term, we have always known that the creation of a new

industry would face an uncertain timeline. That’s why we have consistently planned the facility

to be a multi-use operation.” New Bedford Mayor Jon Mitchell said that “[the Terminal is] a

multidimensional facility capable of supporting a broad array of maritime uses” and thus “[w]e

stay the course in the long run.” In addition, Ed Anthes-Washburn, deputy port director for New

Bedford’s Harbor Development Commission, said “Independent of Cape Wind, there’s still

offshore wind that we believe is going to happen in the next three to five years.”

MassCEC sent out a Request for Proposals (RFP) for marine terminal operators in December

2014. Responses to this RFP are due by February 23, 2015. (South Coast Today & The Boston

Globe)

Scituate Wind Turbine Unlikely to Reach Minimum Production Requirement for

Operational Year

For the operational year running from April 2014 to March 2015, the Scituate wind turbine is not

likely to reach its minimum production requirement of 3 million kilowatt-hours per year under

the town’s contract with Scituate Wind LLC. The turbine stopped producing electricity on

December 10, 2014 due to a power converter problem. The turbine was also out of operation for

multiple weeks in May 2014 and for 50 days during the summer of 2014. These three periods of

inactivity for the turbine have brought the total number of days lost this operating year to about

100.

Nevertheless, the Town of Scituate’s special project coordinator, Al Bangert, has stated that the

town will still receive more revenue from the turbine this operating year than in past operating

years. In the turbine’s first operating year, the town received $183,000 in revenue. During its

second operating year, the town collected $236,000 in revenue. Bangert estimates that the turbine

could produce a million more kilowatt-hours by the end of this operating year if it returns to

service by mid-January. Under this scenario, the turbine would fail to reach its minimum

production requirement by 600,000 kilowatt-hours. Under the town’s contract with Scituate

Wind LLC, the company must pay the town 6 cents for each kilowatt-hour it falls short of its

obligation. Bangert has estimated that this income from the company would total $40,000, which

would result in a total revenue of $285,000 for this operational year. (The Patriot Ledger)

EBC Event to Feature Keynote Presentation by DEP Commissioner Suuberg on

Baker Administration's Environmental and Energy Agenda

The Environmental Business Council will host an evening program on January 20, 2015

featuring a keynote presentation by newly appointed Department of Environmental

Commissioner Martin Suuberg. Commissioner Suuberg will identify key DEP programs,

priorities and implementation strategies that reflect the Baker Administration's environmental

and energy goals. The event will also include a panel discussion with the Commissioner on

issues of concern. The panel will be moderated by Michael Scipione, Chair of the EBC and

President at Weston & Sampson. Peggy Briggs from Epsilon Associates, Inc and Thomas A.

Mackie from Mackie Shea P.C., along with additional panelists to be announced, will participate

in the discussion. The event will take place from 5 to 7:30 pm at Nutter McClennen & Fish

LLP, Louis D. Brandeis Conference Center, 155 Seaport Boulevard, Boston. Registration is

required.

Connecticut

PURA Delays Issuance of Draft Double Counting Decision; GMP Contests

Admission of Materials Related to Deceptive Trade Practices in Proceeding

As last discussed in Flash 48.2, the Public Utilities Regulatory Authority initiated a declaratory

ruling proceeding under Docket 15-01-03 to address the double-counting provision set forth in

Public Act 13-303. PURA originally scheduled to issue a draft decision on January 15, 2015.

This deadline has now slipped. We will provide a summary of the decision once it becomes

available. Additionally, on January 12, 2015, Green Mountain Power filed a motion contesting

the admission of the following document:

Vermont Law School’s Environmental and Natural Resources Law Clinic’s “Petition to

Investigate Deceptive Trade Practices of Green Mountain Power Company in the

Marketing of Renewable Energy of Vermont Consumer,” filed with The Federal Trade

Commission

As last discussed in Digest 46, a group of Vermont stakeholders, in September 2014 filed a

petition with the Federal Trade Commission to investigate whether GMP is engaging in

deceptive trade practices associated with the manner in which it is marketing and representing its

renewable energy and resource mix. GMP argued that the filing is irrelevant to the double-

counting proceeding as the FTC petition does not address energy claimed or counted toward any

state renewable energy policy goals. Further, PURA is not the appropriate jurisdiction to address

a proceeding pertaining to claims made in Vermont by a Vermont company about Vermont

resources. Finally, GMP asserted that consideration of the FTC Act in determining REC

eligibility would be impractical and create a overly-complicated process. As a result, it asked that

PURA remove the petition from the proceeding.

PURA Issues Draft Decision on 2012 RPS Compliance

The Connecticut Public Utilities Regulatory Authority issued its draft decision under Docket 13-

06-11, "Annual Review of Connecticut Electric Suppliers’ and Electric Distribution Companies’

Compliance With Connecticut’s Renewable Energy Portfolio Standards In the Year 2012" on

January 16, 2015. Here we provide a highlight of findings in the report.

Connecticut's aggregate electric load subject to the RPS continued its decline since 2010.

The total load served in 2012 was 28,821,459 MWh.

Of the 42 companies subject to the RPS – 40 competitive suppliers and two electric

distribution companies (EDCs), 8 fully complied with the renewable portfolio standard

requirements (For purposes of this decision, PURA refers to companies paying the ACP

in lieu of providing an adequate number of RECs as not fully complying; other states

typically treat ACP payments as an alternative form of compliance, not referring to those

relying on ACPs as out of compliance) .

The 2012 RPS requirements are as follows:

o Class I: 9% of load;

o Class II: 3% of load;

o Class III: 4% of load (with EDC Last Resort Service exempt from Class III).

There was a shortfall (deficiency) of RECs across all Classes (Class I - 708,629 RECs;

Class II - 6,650 RECs; Class III - 9,901 RECs). PURA noted that actual compliance with

Class II and III requirements has increased from previous years, but the Class I market

continued to be substantially short in 2012. The total renewable source deficiency

resulted in a total of $38.9 million in ACP payments, compared to $3 million in 2010 and

18.5 million in 2011. The ACP proceeds will be allocated to the Clean Energy Fund.

Despite the overall shortfall, obligated entities continued to dislay an unequal distribution

of REC procurement and use. A total of 271,287 RECs were banked by load-serving

entities in 2012 toward future compliance, as follows:

o Class I: 16,077 RECs;

o Class II: 135,709 RECs; and

o Class III: 119,501 RECs.

Many suppliers offer generation services containing renewable energy sources or

attributes beyond the mandatory RPS requirements. None of these companies reported

using Connecticut Class I RECs toward voluntary green products. Due to the large

number of different types of such voluntary green products offered by electric suppliers,

PURA indicated that it will review the voluntary renewable compliance in a separate

proceeding.

Due to differences in eligibility between states, the CT Class I RPS was mostly satisfied by

RECs from biomass sources. Most Class I Generators whose RECs were used for compliance are

located in Maine and New Hampshire, followed by Vermont. Many of these resources are

ineligible for Class I RPS requirements in other states, and with Connecticut’s Alternative

Compliance Payment level of $55 per MWh being lower than all other states, when there is

unmet demand, supply eligible elsewhere will typically chase higher revenues, leaving

Connecticut with RECs not able to seek more valuable markets.

PURA is accepting written exceptions on the draft decision until January 23, 2015. It plans

to issue the final decision on February 4, 2015. We will provide a summary once the final

decision is issued.

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 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:

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.

Block Island Wind Opponents File Comments Prior to PUC Open Meeting

As reported in Flash Update 48.1, the Rhode Island Public Utilities Commissions held an open

meeting on January 14, 2015 to receive updates on Deepwater's Block Island Wind Farm. Prior

to the meeting, three residents submitted comments in response to the PUC's informal request.

One of the residents' comments focused on the project's impacts on the local scenic characters

and wildlife. One resident questioned the level of decommissioning fund required and amount of

debt being used for the project. Another resident asserted that the power purchase agreement

between National Grid and Deepwater Wind is a violation of federal Supremacy Clause and

Dormant Commerce Clause. He also noted that the project violated the National Environmental

Policies Act as it was approved without an Environmental Impact Statement. Further, he argued

that the project will indirectly result in a net increase of carbon emissions.

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 Selects 99-MW Weaver Wind Project and 44-MW Highland Wind Project

under Long-Term Contract RFP

On February 5, 2014, the Maine Public Utilities Commission issued a Request for Proposals for

long-term contracts for capacity and associated energy from qualifying new renewable capacity

resource projects as defined in 35-A M.R.S.§3210 2(B-3). As last discussed in Digest 48, the

PUC selected two wind projects under the RFP. At the time, the PUC did not disclose any

specific details on the projects. On January 8, 2015, the PUC issued an order under Docket 2014-

00024 revealing that the 99-MW Weaver Wind project developed by Weaver Wind, LLC, a

subsidiary of First Wind, and NextEra's 44-MW Highland Wind project have been selected. In

its order, the PUC approved the term sheets for both projects. It also directed one or more of the

state's investor-owned transmission and distribution utilities to enter into long-term contracts

with Weaver Wind and NextEra for the projects' capacity and associated energy. As a next step,

it will issue a written order providing more detailed background on the projects and its

deliberation. We will provide a summary of the order once it is released.

Governor LePage Nominates Carlisle McLean as New PUC Commissioner;

Commissioner Vannoy to Succeed Commissioner Welch as PUC Chair

As last reported in Digest 47, Maine Public Utilities Commission Chairman Tom Welch

announced that he would be retiring early for personal reasons on December 31, 2014, two years

before his term expires. Governor LePage, on December 30, nominated current Commissioner

Mark Vannoy as the new PUC Chair. Further, the Governor appointed Patrick Woodcock, the

Director of the Governor’s Energy Office, to replace Commissioner Welch and serve as Maine’s

representative to the New England States Committee on Electricity. On January 8, 2015,

Governor LePage issued a press release nominating Carlisle McLean to fill Commissioner

Welch's position as the third commissioner of the PUC. Ms. McLean previously served as the

General Counsel and Senior Natural Resources Policy Advisor in the Governor's Office. Ms.

McLean is anticipated to be appearing before the Joint Legislative Committee on Energy,

Utilities and Technology in upcoming weeks. The PUC commissioners have an important role in

influencing the Maine renewable energy market, as they have discretion on various important

policy decisions, including the state's long-term renewable energy procurement. It should also be

noted that Commissioner David Littell's term will expire in March 2015. Since Commissioner

Littell was appointed by a prior governor, it is expected the Governor will select a new member

to fill the vacancy once Commissioner Littell's term expires.

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

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 Projects

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

OPA Files Comments Assessing Proposals in Northern Maine System Reliability

Proceeding

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

investigation under Docket 2014-00048 on reliability solutions for the portion of Northern Maine

operated under the Northern Maine Independent System Administrator. On January 12, 2015, the

Office of Public Advocate filed preliminary comments in the proceeding. It its comments, the

OPA addressed all proposals filed in this Docket except the EDPR proposal, which would

involve a wind generator lead line to interconnect in Haynesville. The OPA believes a "Tinker

Solution," which "would involve 'reconductoring' line 6901 to a higher-capacity wire size for its

entire length, including on the Canadian side, and an upgrade of the Tinker transformer from

50MVA to 100 MVA" would be the lowest cost solution. It asserted that Emera Maine's proposal

to build a new 138 kV transmission line connecting the New Brunswick Power Woodstock

Terminal Station with a new 138/69 kV substation owned by Emera Maine in Monticello would

be the next best alternative. It noted that the remaining options either are either costly or have too

many uncertainties.

Franklin County Commissioners Briefed on Possible Changes to Kibby TIF

Agreement under an Amendment; Stakeholders Meeting to Solicit Input to be

Held on January 27, 2015

As discussed in Digest 47, Franklin County is seeking to amend its Tax Increment Financing

("TIF") Agreement with TransCanada for the Kibby Mountain Wind Project, as the Kibby Wind

Project has produced more revenue, and consequently tax revenue, than initially planned. The

TIF Agreement, originally executed between, Maine, Franklin County and TransCanada in 2008,

provided for Franklin County to retain 75% of new taxes from the Kibby Wind Project. The

county would reimburse 60% of this amount to TransCanada annually over 20 years to finance

the project's development. The remaining 40% was dedicated to the county to fund economic

development in the Unincorporated Territory. The TIF was previously amended in 2011 to

expand the categories of development activities TIF funds could be used for after the Maine

Legislature expanded the types of TIF permissible activities.

On January 6, 2015, Franklin County commissioners were briefed on possible changes to the TIF

by John Cleveland, president of Community Dynamics Corp. of Auburn, ME. The company is

acting as a consultant for the county on developing a TIF amendment. Cleveland told the

commissioners that the TIF could be amended to include more categories, such as district

infrastructure projects focused on public roads and the water system. In addition, the TIF could

be amended to cover a wider geographical area. Moreover, the commissioners may be able to

lengthen the TIF from 20 to 30 years.

On January 27, 2015, a stakeholders meeting will be held at the Sugarloaf Inn in Carrabassett

Valley for people to contribute ideas on possible new projects or the expansion of current

projects under an amended TIF. If the meeting is cancelled due to snow, it will be held on

January 29, 2015. Additional meetings are expected to be held in the future. (Sun Journal)

Town of Orland Holds Public Hearing on Proposed Wind Turbine Moratorium

in Advance of January 20 Vote

As previously discussed in Digest 48, on November 19, 2014 the citizen group Friends of Dodge

Hill requested a moratorium on wind applications at a forum involving the Orland Planning

Board and town Selectmen. The proposed moratorium specifically relates to the Peaked Wind

Power Project, a 9-MW facility proposed by Eolian Renewable Energy. The facility is proposed

to be located in North Orland, atop White Mountain and Dodge Hill.

As previously discussed in Flash Update 48.2, in a letter dated December 3, 2014 to all Orland

residents, the town Selectmen announced that the proposed 180-day moratorium on any wind

power projects will be voted on by the town via secret ballot on January 20, 2015.

In advance of the vote, a public hearing on the proposed moratorium was held on January 7,

2015 at the Orland Community Center. Among the over 100 people who attended the hearing

were Jeremy Payne, the Executive Director of the Maine Renewable Energy Association;

representatives from Eolian Renewable Energy, including the CEO Jack Kenworthy; and

Christopher O’Neil, a spokesman for the Friends of Maine Mountains. In general, of those

people who spoke at the hearing, there were more than twice as many people expressing support

for the proposed moratorium as there were people voicing opposition to it.

In addition to supporting the proposed moratorium, Friends of Dodge Hill is advocating a

revision of Orland’s current wind power ordinance. This modification would increase the

distance allowed between wind turbines and homes from a half-mile to one mile. After the public

hearing, Eolian project manager Travis Bullard said that “if the [wind power ordinance] setback

were changed to 1 mile, no wind power could be constructed in Orland -- it would be a de facto

ban on wind.” (The Ellsworth American)

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' 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.

RGGI States to Hold Auction 27 to on March 11

RGGI states will be holding the 27th auction on March 11, 2015. A total of 15,272,670 CO2

allowances will be offered in this auction round. The reserve price will be $2.05 per CO2

allowance. The states will be accepting Qualification Application and Intent to Bid until January

28. All auction materials can be found on RGGI's website.

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

********************************************************** Robert C. Grace – President and Managing Director Sustainable Energy Advantage, LLC Tel 508.665.5855 Fax 508.665.5858 mobile 617.803.8900 bgrace@seadvantage.com www.seadvantage.com **********************************************************