Renewable Energy Committee Meeting

Discussion of 2008 Renewable Energy Program Plans

October 9, 2007

Today’s Overview

• Program Changes

• Budget (compared to 2007)

• MWh (compared to 2007)

• Other Goals (compared to 2007)

Purpose of Plan• Combines high level plan with program details

– One regulatory filing instead of two

• Components same as 2007 Compliance filing– Program designs– Budgets– Marketing plan– Goals

2008 Staff Proposed Budget(all $000)

Renewable Energy Proposed Allocation: Budget CORE $127,494 Other RE (CPC, RECs, DEP baseline, other) $5,000 EDA Programs $40,000Total $172,494

Renewable Budget Comparison

$151,611

$132,944

$935 $981 $842 $1,346 0$5,113

$19,400

$34,887

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

Annual Budget(000)

CORE CPC REC RMDI EDA ProgramsInitiative

NJCEP Renewable Budget Comparison

2007

2008

Renewable Generation Comparison

34,000

38,021

83,243

38,000

56,999

51,600

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

MWh

CORE REC CPC RMDIInitaitive

NJCEP Renewable Programs Projected Annual New Generation

2007

2008

CORE Program Changes• Stop accepting new applications once each budget

category is subscribed (terminate queues)• $5 million dedicated for new wind and biomass

applications (pending funding approval) • Expected Performance Based Buy-down for wind• Develop new rebate program for 2009• Provide transition support

CORE ComparisonPY 2007 PY 2008

Budget $151 m(new + outstanding)

$127-$133 m(new + outstanding)

MWh ~34,000(24,000 solar &

10,000 non)

~38,000(29,400 solar &

8,500 non)

Number of Systems

714 1,373

CORE 08 Budget by Activity

Note: Includes projected $76 m carry-forward from 07 (including ~200 new approvals w O8 funds) and $22m carry-forward of commitments to be paid in 09

CORE Proposed 2008 Budget (all $000)

Administra-tion and Program Developmt $1,274

Sales, Call Centers, Marketing and Website $65Training $145

Rebates, Grants, and Other Direct Incentives $129,903

Rebate Processing, Inspections and Other Quality Control $1,557

Performnce Incentives tbd

Evaluation and Related Research $0Total $132,944

Proposed Allocation of New CORE Rebate Funds

(All numbers = 000's)

Preliminary 2008 CORE

Budget% of 2008

CORE BudgetBudget Category< 10 kw- non public $38,054 52.0%> 10 kw non public $0 0%Public - Non - schools $20,104 27%Public - Schools k-12 $8,616 12%Sunlit (HMFA affordable housing) $1,436 2%New Wind & Biomass $5,000 7%Total $73,210 100%

2008 CORE Budget AllocationAlternate for 10/9

REC Program Changes• Consolidate SREC-Only Pilot and REC

Facilitation into one program• Provide market analysis and information• Possibly have Market Manager administer/assist

w REC/SREC compliance and reporting• Significant volume increase

REC ComparisonPY 2007 PY 2008

Budget $842k $1,346k

MWh - ~83,000

Number of Registrations

20-50 expected

256 ytd

300-400

REC 08 Budget by ActivityREC Proposed 2008 Budget (all $000)

Administration and Program Development $727

Sales, Call Centers, Marketing and Website $30Training $0

Rebates, Grants, and Other Direct Incentives $0

Rebate Processing, Inspections and Other Quality Control $460

Performance Incentives tbdEvaluation and Related Research $129

Total $1,346

CPC Program Changes• Complete rule-making process to formally adopt

the program• Conduct competitive solicitation for Clean Power

Marketers (CPMs) and their offerings of renewable power products;

• Continued growth of the Community Partnership program, which enlists local communities in promoting the CPC program to its residents and businesses.

CPC Comparison

Budgets do not include ~$2m OCE marketingSavings/participant based on cumulative EDC data

9,000 new participants

6,000 (projected new

for 2007) –year end total

13,000

Number of Participants

~57,000~38,000MWh

$981k$935kBudget

PY 2008PY 2007

9,000 new participants

6,000 (projected new

for 2007) –year end total

13,000

Number of Participants

~57,000~38,000MWh

$981k$935kBudget

PY 2008PY 2007

CPC 08 Budget by ActivityCPC Proposed 2008 Budget (all $000)

Administration and Program Development $500

Sales, Call Centers, Marketing and Website $481Training $0

Rebates, Grants, and Other Direct Incentives $0

Rebate Processing, Inspections and Other Quality Control $0

Performance Incentives $0Evaluation and Related Research $0

Total $981

RMDI Program Changes• Market Manager role to include:

– Performance based solicitation ($4.6 m)– Market development activities in non-CORE segments

(e.g. grid supply & >700 kW)• Main element focused on MWh/1st yr production – delivered

capacity and milestones • Component to assist w pre-project

development

RMDI-EDA Support Comparison

PY 2007 PY 2008

Budget $19.4 m

“EDA”

$5.1m(RMDI only)

MWh - ~50,000 MWh

New

Capacity

- 7 to 12 MW

(primarily non-solar)

RMDI 08 Budget by Activity

Note: MM RMDI Activity Pending approval

RMDI Proposed 2008 Budget (all $000)

Administration and Program Development $384

Sales, Call Centers, Marketing and Website $129Training $0

Rebates, Grants, and Other Direct Incentives $4,600

Rebate Processing, Inspections and Other Quality Control $0

Performance Incentives $0Evaluation and Related Research $0

Total $5,113

Questions and Discussion