Background
California Assembly Bill 1969, signed by Governor Arnold Schwarzenegger on September 29, 2006, requires electrical corporations to purchase electricity produced by a renewable generator owned and operated by Eligible Public Water Agencies or Wastewater Agencies with a total effective generation capacity of not more than 1.5 megawatts. On July 26, 2007, the California Public Utilities Commission (CPUC) in Decision 07-07-027 adopted tariffs and standard contracts implementing AB 1969.
Program Summary
The program creates an opportunity for public water and wastewater customers only to sell electricity to SDG&E at a pre-determined price on a first come first served basis until SDG&E’s 20.055 MW of capacity allotment is filled.
Electric Rate Schedules
If you meet the following criteria
- A generating facility (i.e., all eligible generators combined) can have a nameplate no larger than 1.5 megawatts
- Located on property owned or under the control of an agency
- Interconnected and operating in parallel with SDG&E
- Is an eligible renewable resource as defined by the CPUC Code 399.12 the tariff and standard contract may apply
Standard Contract
- Download the standard contract
Current Amount of unsubscribed capacity
- 20.055 MW
Background
On September 22, 2008, the California Public Utilities Commission (CPUC), in Decision 08-09-033, authorized an extension of the existing AB 1969 tariff and standard contract from public water and wastewater agency customers to all customers in SDG&E’s service territory on the same basic terms and conditions.
Program Summary
The Customer Renewable Energy (CRE) Program creates an opportunity for small, renewable SDG&E customers, other than public water and wastewater agency customers, to sell electricity to SDG&E at a pre-determined price, on a first-come first-served basis, until SDG&E’s 20.055 MW of capacity allotment is filled.
Electric Rate Schedules
An eligible renewable generation facility must meet all of the following criteria for the tariff and standard contract to apply:
- Has an effective capacity of not more than 1.5 MW
- Is located on property owned or under the control of the eligible customer
- Is interconnected and operates in parallel with SDG&E’s electric transmission and distribution grid
- Is sized to offset part or all of the electricity demand of the customer’s load
- Is strategically located and interconnected to the electric transmission system in a manner that optimizes the deliverability of electricity at the facility to load centers
- Is an eligible renewable energy resource, as defined in PU Code § 399.12
- Meets the requirements for a Small Power Producer Qualifying Facility (“QF”) pursuant to the regulations of the Federal Energy Regulatory Commission (“FERC”)
Standard Contract
- Download the standard contract
Current Amount of unsubscribed capacity
- 15.555 MW
Executed Feed-in Tariff Contracts for WATER/CRE
- Download a listing of executed feed-in tariff
The Water Program was established by the California State Legislature to create an opportunity for public water and wastewater customers to sell electricity to SDG&E at a pre-determined price, on a first-come first-served basis, until SDG&E’s 20.055 MW of capacity allotment is filled.
On September 22, 2008, the California Public Utilities Commission (“CPUC”) adopted a decision extending this opportunity under the same terms and conditions to all other non-water/non-wastewater SDG&E customers, who have an eligible renewable generator. Under this Customer Renewable Energy (CRE) Program, these non-water/non-wastewater SDG&E customers will be treated exactly the same as the public water and wastewater customers, in that they will be paid a pre-determined price, on a first-come first-served basis. SDG&E will continue to contract with these non-water/non-wastewater customers until an additional and separate 20.055 MW cap is reached.
The California legislature passed Assembly Bill (“AB”) 1969 in 2006. AB 1969 required the development of a renewable generation tariff and standard contract applicable to water and wastewater agencies that install a renewable generator. This opportunity was expanded to include all other SDG&E customers, who install a renewable generator with a capacity not to exceed 1.5 MWs.
Any SDG&E customer that currently has or is planning on installing an eligible renewable generator may participate in these programs. However, any customer that is participating in any other SDG&E interruptible, Self Generation Incentive Program (“SGIP”) California Solar Initiative (“CSI”) or receiving service under SDG&E’s NEM tariff may not participate in these programs.
Customers must have or plan to install an eligible renewable generating facility that meets the following criteria:
Guidance on obtaining QF status can be located at the following FERC address.
Public Utilities Code § 399.12 defines an “eligible renewable resource” as a facility that meets the definition of Section 25741 of the Public Resources Code. Section 25741 (b)(1) states that: “the facility uses biomass, solar thermal, photovoltaic, wind, geothermal, fuel cells using renewable fuels, small hydroelectric generation of 30 megawatts or less, digester gas, municipal solid waste conversion, landfill gas, ocean wave, ocean thermal, or tidal current, and any additions or enhancements to the facility using that technology.”
There are two tariffs that are applicable, each with its own power purchase agreement (“PPA”). Schedule WATER and its corresponding PPA are applicable to public water and wastewater customers. Schedule CRE and its corresponding PPA are applicable to all other SDG&E customers.
The rate paid to customers is established by the CPUC. The price is referred to as the Market Price Referent (“MPR”) and is updated annually by the CPUC. Download a copy of the CPUC’s resolution adopting the current MPR values. The actual rate is determined at the time the Generating Facility achieves commercial operation and remains in effect (i.e., does not escalate over time) for the life of the agreement. A copy of the current MPR pricing listed in both PPAs.
- CPUC Resolution E-4298 (pdf)
For the purpose of calculating monthly payments, the amount measured will be time-differentiated according to the time period and season (“Time of Delivery Periods”) and the pricing shall be weighted by the factors set forth below.
|
Summer July 1 – October 31 |
Winter November 1 – June 30 |
On-Peak |
Weekdays 11am – 7pm 1.6411 |
Weekdays 1pm - 9pm 1.1916 |
Semi-Peak |
Weekdays 6am – 11am; Weekdays 7pm - 10pm 1.0400 |
Weekdays 6am – 1pm; Weekdays 9pm – 10pm 1.0790 |
Off-Peak* |
All other hours 0.8833 |
All other hours 0.7928 |
*All hours during National Electric Reliability Council (NERC) holidays are off-peak. |
||
The monthly payment shall equal the sum of the monthly TOD Period payments for all TOD Periods in the month. Each monthly TOD Period payment shall be calculated pursuant to the following formula, where “n” is the TOD Period being calculated:
TOD PERIODn PAYMENT = A x B x C
Where:
A = Levelized MPR Price in $/kWh.
B = TOD Factor, set forth above, for the TOD Period being calculated.
C = The sum of energy measured in accordance with Option A (full buy/sell) or Option B (sale of excess) in all hours for the TOD Period being calculated in kWh.
Customers can select a term of 10, 15 or 20 years.
SDG&E will count any of the RECs purchased under either Option A or Option B toward fulfilling its goal under California’s Renewables Portfolio Standard.
The customer is responsible for requesting interconnection to SDG&E and providing the required fees and equipment additions needed to insure a safe and reliable interconnection.
You can start by visiting SDG&E’s Interconnection website.
Or if you prefer, call SDG&E’s Self-Generation help desk.