Renewable Market Adjusting Tariff (Re-MAT) for Small Renewable Generation
The Peaking As-Available product type capacity was fully subscribed in Program Period 4. Per Section F.3. of the Schedule Re-MAT Tariff, the Re-MAT program will end twenty-four (24) months after the end of Program Period 4, on June 30, 2016.
Per Section 6.6 of ReMAT Decision 12-05-035, the investor-owned utilities (IOUs) must convene stakeholders within the first year of the program to solicit market experience with the price adjustment mechanism. Accordingly, the IOUs jointly hosted a webinar on September 24, 2014 at 1:00 pm Pacific Daylight Time. Below is the presentation for the stakeholder forum.
While not a requirement, SDG&E will make ReMAT Queue Information available each Program Period as follows:
This Web site is intended to provide a summary level discussion of the information and requirements established in the Re-MAT Tariff and Re-MAT Contract. To the extent that there are any inconsistencies between the information provided here and the requirements in the Re-MAT Tariff and Contract, the Re-MAT Tariff and Contract shall govern.
Through Re-MAT, SDG&E will offer power purchase agreements to distribution level renewable projects sized at 3 MWs or below from three product categories; baseload (typically including geothermal, bioenergy and hydro), peaking (typically including solar) and non-peaking (typically including wind). The starting price for these resources will be $89.23/MWh (before time of delivery adjustment). The starting price will increase or decrease for each product type based on the market’s participation in the program. SDG&E will procure a total of 28.356 MWs through the Re-MAT program, split equally among the three product types. SDG&E will target procurement of 3 MWs per product category every two months until it has reached its total capacity goal. The program rules are described in more detail in the Re-MAT Tariff and standard Re-MAT Contract.
|Re-MAT Quick Facts|
Date SDG&E will start accepting Re-MAT applications
|October 1, 2013|
|Start Date for the first program period||November 1, 2013|
Project Size Limit
|3 MW or below|
|Within SDG&E's service territory|
Starting at $89.23, to be adjusted every two months based on program participation (more details on pricing and the price adjustment mechanism are provided below)
|Bid Fee||A bid fee of $2/kW is required for each project submitted|
The California Public Utility Commission (“Commission” or “CPUC”) first addressed the Renewable Feed In Tariff (FIT) program in July 2007 in D.07-07-027.In D.07-07-027, the Commission implemented Assembly Bill 1969 and established the Renewable FIT program for eligible facilities up to 1.5 MW. In May 2012, the Commission issued D.12-05-035, adopting a revised and larger Renewable FIT program (renamed the ReMAT program) consistent with Senate Bill (“SB”) 380, SB 32, and SB 2 1X. D.12-05-035 adopted new program requirements consistent with SB 380, SB 32, and SB 2 1X but did not fully implement the program. The Commission deferred consideration of two components of the expanded FIT program: the terms and conditions of a joint Investor Owned Utility (IOU) standard contact and the IOUs’ Re-MAT tariffs. D.13-05-034 addressed these previously deferred components of the program and ordered the IOUs to revise their Renewable FIT programs to include a streamlined joint standard contract and revised tariffs consistent with that decision. Pursuant to D.13-05-034, SDG&E closed its existing tariffs, WATER and CRE, to new applicants on July 24, 2013, and will open its Re-MAT program to applicants on October 1, 2013. In addition, consistent with OP 3 in D.12-05-035, SDG&E expects to convene stakeholders at the latest by October 1, 2014, to solicit market experience with the Re-MAT program.
An applicant for Re-MAT (Applicant) must own or control the Project and the Applicant’s proposed Project must meet the following eligibility criteria for Re-MAT (Eligibility Criteria):
- Territory: The Project must be physically located within SDG&E’s electric service territory and must be interconnected to SDG&E’s electric distribution system.
- Eligible Renewable Energy Resource: The Project must be an Eligible Renewable Energy Resource as defined in PUC Section 399.12.
- Qualifying Facility: The Project must be a Qualifying Facility, as defined by the FERC. See 16 U.S.C. § 824a-3(b); 18 C.F.R. § 292.304(a)(2).
- Contract Capacity: The Contract Capacity for the Project cannot exceed 3.0 MW.
- Interconnection Study/Strategically Located: An Applicant must have passed the Fast Track screens, passed Supplemental Review, completed an SDG&E System Impact Study in the Independent Study Process, or completed an SDG&E Phase 1 Study in the Cluster Study Process for its Project (Interconnection Study).
- The Project must be interconnected to SDG&E’s distribution system, and the Project’s most recent Interconnection Study or Interconnection Agreement must affirmatively support the Project’s ability to interconnect (a) within twenty four (24) months of the execution of the Re-MAT power purchase agreement (PPA) Form #142-0610 (b) without requiring transmission system Network Upgrades in excess of $300,000.
- If both SDG&E’s Rule 21 and SDG&E’s Wholesale Distribution Access Tariff (“WDAT”) are applicable and available to a Project in a given situation, the Project can choose to pursue interconnection under either SDG&E’s Rule 21, or SDG&E’s WDAT, until the CPUC makes a determination otherwise. After such a CPUC decision, Projects must interconnect as stipulated in that CPUC determination, except that those Projects that request interconnection pursuant to SDG&E’s Rule 21 or SDG&E’s WDAT and have submitted a completed PPR under this Schedule prior to any final CPUC determination will not be required to switch interconnection tariffs and will continue to be eligible to receive service under this Schedule, provided the Project is otherwise eligible.
- Site Control: The Applicant must provide to SDG&E an attestation that it has 100% site control for the Project through: (a) direct ownership; (b) lease; or (c) an option to lease or purchase that may be exercised upon execution of the Re-MAT PPA. The Applicant is required to submit a map showing the boundary of the Site for which the Applicant has control as part of the PPR. SDG&E reserves the right to request additional information.
- Developer Experience: The Applicant must provide to SDG&E an attestation that at least one member of its development team has: (a) completed the development of at least one project of similar technology and capacity; or (b) begun construction of at least one other project of similar technology and capacity. A project less than 1 MW will be deemed to be similar capacity to a Project up to 1 MW. A project between 1 MW to 3 MW will be deemed to be a similar capacity to a Project up to 3 MW. For example, for a 3 MW Project, a project of similar capacity cannot be smaller than 1 MW.
- Daisy Chaining: The Applicant must provide to SDG&E an attestation that the Project is the only exporting project being developed or owned or controlled by the Applicant on any single or contiguous pieces of property. SDG&E may, at its sole discretion, determine that the Applicant does not satisfy this Eligibility Criteria if the Project appears to be part of a larger installation in the same general location that has been or is being developed by the Applicant or the Applicant’s Affiliates.
- Other Incentives: A Project that previously received incentives under the California Solar Initiative (CSI) or the Small Generator Incentive Program (SGIP) is ineligible for Re-MAT if the incentives were received within ten (10) years or less of the date that the Applicant submits a PPR for Re-MAT for such Project. An Applicant for a Project that previously received incentive payments under CSI or SGIP must provide an attestation to SDG&E stating that, as of the date the Applicant submits the PPR: (a) the Project has been operating for at least ten (10) years from the date the Applicant first received ratepayer-funded incentive payments under CSI or SGIP, for the Project; and (b) to the extent the CPUC requires reimbursement of any ratepayer-funded incentive, the Applicant can demonstrate that the Project’s owner has provided the applicable administrator with any required refunds of incentives.
- Net Energy Metering: An Applicant that is a net energy metering (NEM) customer can only participate in Re-MAT if the Applicant terminates its participation in the NEM program for the Project prior to the Re-MAT PPA’s Execution Date.
FiT Program Dates, Program Periods and Queue Process:
Dates and Program Periods
- Initial Program Participation Request (PPR) Submission Date: Applicants will be able to submit a PPR for a Project beginning at 9:00 a.m. Pacific Standard Time (PST) on October 1, 2013 (Initial PPR Submission Date).
- Program Periods: The Program shall be divided into bi-monthly program periods (Periods). Period 1 will begin on November 1, 2013. Each subsequent Period shall be numbered sequentially (e.g., Period 2, Period 3, etc.) and shall occur on the first business day of the second month following the beginning of the previous Period.
- Final Period: The final Period (Final Period) is the Period which ends twenty-four (24) months after the end of the Period in which the total remaining capacity for any Product Type reaches zero or a de minimis amount approaching zero for the first time. At the close of the Final Period, this Schedule will close for all new customers and no new Re-MAT PPAs will be offered or executed by SDG&E.
A list, or queue, of eligible projects will be created for each of the three product types
- Step 1: A generator that meets minimum eligibility criteria will submit a Program Participation Request to SDG&E
- Step 2: Once the request is deemed complete, SDG&E will place the generator on the list “queue” of eligible projects for the relevant product type on a first-come-first-served basis
- Step 3: At the beginning of each 2-month period, SDG&E will offer the generators in the queue for each product type a contract at the current FiT price pertaining to that product type, in order of queue position, until SDG&E has reached its targeted capacity for that Period.
- If the generator accepts, it will enter into a contract with SDG&E
- If the generator declines, it will maintain its queue position and will continue to be eligible to accept another price from a subsequent period
The prices for Re-MAT PPAs will be determined as follows:
- The initial Re-MAT Contract Price offered for each Product Type in Period 1 will equal $89.23/Megawatt-hour (MWh), pre- time of delivery adjustments. See the Re-MAT PPA for contractual terms related to Contract Price.
- The Contract Price for each Product Type will be published on SDG&E’s website on the first business day of every Period. After Period 1, the Contract Price for each Product Type will adjust independently for each Period as follows:
- A Contract Price adjustment will be triggered in a subsequent Period only if at the beginning of the prior Period there are at least five (5) eligible Projects from five (5) different Applicants (including Applicant’s Affiliates) with Re-MAT Queue Numbers for the applicable Product Type. If an Applicant or its Affiliates have any ownership interest (based on the information provided by and attested to by the Applicant as described in Program Participation Request Section E.1.c.3) in a Project, the Project will be attributed to the Applicant(s) for purposes of this provision. If there are fewer than (5) eligible Projects from five (5) different Applicants in the queue for any Product Type at the beginning of any Period, then the Contract Price for that Product Type will remain the same in the next Period. If at least five (5) eligible Projects from five (5) different Applicants are in the queue for a Product Type, the Contract Price for that Product Type may increase or decrease in the next Period based on the criteria described below in Price Sections H.2.b and H.2.d.
- Price Increase: If the Subscription for a Period is less than 20% of the Available Allocation for that Product Type, the Contract Price for that Product Type for the next Period will be increased by the following amounts for each Period in which the Subscription for the preceding Period is less than 20% of the Available Allocation for that Product Type, and the criteria in Price Section H.2.a above are satisfied, in an uninterrupted series of increases:
- First increase in a series: +$4/MWh
- Second increase in a series: +$8/MWh
- Third increase in a series: +$12/MWh
- All subsequent increases in a series: +$12/MWh.
- Increases that occur after a Period in which the Contract Price was unchanged or decreased will reset and begin at +$4/MWh and proceed as described above.
- Price Unchanged: If the Subscription for a Period is at least 20% of the Available Allocation for that Product Type but the price decrease in Price Section H.2.d below was not triggered, the Contract Price is unchanged in the next Period. The Contract Price will remain unchanged in any circumstance if the criteria in Price Section H.2.a above are not satisfied.
- Price Decreases: If the Subscription for a Period is at least 100% of the Available Allocation for that Product Type or it is Deemed Fully Subscribed (as that term is defined in Subscription Section I.3 below), the Contract Price for that Product Type for the next Period will be decreased by the following amounts for each Period in which the Subscription for the preceding Period is at least 100% of the Available Allocation for that Product Type and the criteria in Price Section H.2.a above are satisfied in an uninterrupted series of decreases:
- First decrease in a series: -$4/MWh
- Second decrease in a series: -$8/MWh
- Third decrease in a series: -$12/MWh
- All subsequent decreases in series: -$12/MWh.
- Decreases that occur after a Period in which the Contract Price was unchanged or increased will reset and begin at -$4/MWh and proceed as described above.
- Summary & Illustration of FiT Pricing Mechanism:
- As a precondition for any price change to occur, there must be at least 5 eligible projects with different developers in the queue for a product type
- Increases and Decreases
- Begin at $4/MWh, and adjust by an incremental $4/MWh for each subsequent increase or decrease
- Will reset to $4/MWh following a period in which the price was unchanged
- Are capped at $12/MWh
How much capacity is available under Re-MAT?
Current Amount of Unsubscribed Capacity: CPUC Decision D.12-05-035 requires SDG&E to procure 48.8 MWs, minus what it has already procured under its existing renewable FIT program (the CRE and WATER tariffs). As of July 23, 2013, SDG&E has procured 20.4 MWs under CRE and WATER, leaving a total of 28.4 MW to be procured under Re-MAT.
Executed CRE and WATER Feed-in Tariff Contracts : The Re-MAT replaces the CRE and WATER Tariffs. The list of executed CRE and WATER contracts is included here for historical reference.
What are the requirements to become a QF?
Guidance on obtaining QF status can be located at the following FERC address.
What is the definition of an “eligible renewable energy resource”?
Public Utilities Code § 399.12 defines an “eligible renewable resource” as a facility that meets the definition of a Renewable Electrical Generation Facility in Section 25741 of the Public Resources Code, subject to certain restrictions. Section 25741 (a) is provided below:
25741. As used in this chapter, the following terms have the following meaning:
(a) "Renewable electrical generation facility" means a facility that meets all of the following criteria:
(1) 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.
(2) The facility satisfies one of the following requirements:
(A) The facility is located in the state or near the border of the state with the first point of connection to the transmission network of a balancing authority area primarily located within the state. For purposes of this subparagraph, "balancing authority area" has the same meaning as defined in Section 399.12 of the Public Utilities Code.
(B) The facility has its first point of interconnection to the transmission network outside the state, within the Western Electricity Coordinating Council (WECC) service area, and satisfies all of the following requirements:
(i) It commences initial commercial operation after January 1, 2005.
(ii) It will not cause or contribute to any violation of a California environmental quality standard or requirement.
(iii) It participates in the accounting system to verify compliance with the renewables portfolio standard once established by the commission pursuant to subdivision (b) of Section 399.25 of the Public Utilities Code.
(C) The facility meets the requirements of clauses (ii) and (iii) in subparagraph (B), but does not meet the requirements of clause (i) of subparagraph (B) because it commenced initial operation prior to January 1, 2005, if the facility satisfies either of the following requirements:
(i) The electricity is from incremental generation resulting from expansion or repowering of the facility.
(ii) Electricity generated by the facility was procured by a retail seller or local publicly owned electric utility as of January 1, 2010.
(3) If the facility is outside the United States, it is developed and operated in a manner that is as protective of the environment as a similar facility located in the state.
(4) If eligibility of the facility is based on the use of landfill gas, digester gas, or another renewable fuel delivered to the facility through a common carrier pipeline, the transaction for the procurement of that fuel, including the source of the fuel and delivery method, satisfies the requirements of Section 399.12.6 of the Public Utilities Code and is verified pursuant to the accounting system established by the commission pursuant to 399.25 of the Public Utilities Code, or a comparable system, as determined by the commission.
What are some of the key terms of the Re-MAT Contract?
Delivery Periods and Price
For the purpose of calculating monthly payments, the generation 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.
|TOD Period||Period Days and Hours *||TOD Factor for Projects Providing Resource Adequacy||TOD Factor for Energy- Only Projects|
Nov 1 - Jun 30Weekdays 1 pm to 9 pm PST (HE 14 to HE 21)
Nov 1 - Jun 30Weekdays 6 am to 1 pm PST (HE 7 to HE 13) Weekdays 9 pm to 10 pm PST (HE 22)
Nov 1 - Jun 30All Weekend Hours NERC Holiday Hours and Weekday Hours not already considered On-Peak or Semi-Peak
Jul 1 - Oct 31Weekdays 11 am to 7 pm PST (HE 12 to HE 19)
Jul 1 - Oct 31Weekdays 6 am to 11 am PST (HE 7 to HE 11) Weekdays 7 pm to 10 pm PST (HE 20 to HE 22)
Jul 1 - Oct 31All Weekend Hours, NERC Holiday Hours and Weekday Hours not already considered On-Peak or Semi-Peak
*All hours during National Electric Reliability Council (NERC) holidays are off-peak. HE refers to Hour Ending.
NOTE: SDG&E may update its TOD factors to reflect current market conditions. Please refer to this website frequently for updates.
Price and Payment (see section 3.7 of the Re-MAT Contract for further details)
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:
TOD PERIOD PAYMENT = A x B x (C-D)
A = Contract Price (the price for the initial program period will be $89.23).
B = The Payment Allocation Factor for the TOD Period being calculated.
C = The sum of Energy recorded by the meter in all hours for the TOD Period being calculated.
D = Any Energy produced by the Facility for which Buyer is not obligated to pay Seller
What are the contract term options?
Customers can select a term of 10, 15 or 20 years.
What are the selling options?
Full Buy/Sell – SDG&E will purchase every kilowatt-hour produced by the Generating Facility.
Excess Sale – Only the excess electricity produced and exported to SDG&E’s electric system will be purchased.
Who owns the Renewable Energy Credits (“RECs”)?
SDG&E owns any RECs associated with all power generated and exported to the grid and purchased by SDG&E.
SDG&E will count the RECs purchased toward fulfilling its goal under California’s Renewables Portfolio Standard.
Who pays for the costs related to interconnecting the Generating Facility to SDG&E?
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.
How does my generator get interconnected to SDG&E’s grid?
IMPORTANT: The completed interconnection studies required prior to participating in Re-MAT may take several months to complete. Please contact SDG&E’s Customer Generation Department early.
You can start by visiting SDG&E’s Customer Generation and Interconnection website.
For more information about applying for SDG&E’s Re-MAT, please contact: 858) 654-8723 or (858)-650-6112
For more information about interconnection, please contact: (858) 636-5581
For more information regarding the Re-MAT program, please Visit the CPUC Web site Or contact the CPUC Public Advisor’s Office:
Telephone: (866) 849-8390 or (415) 703-2074
TTY: (866) 836-7825
E-mail: [email protected]
U.S. Mail: 505 Van Ness Avenue, Room 2103, San Francisco, CA 94102
For more information regarding this notice, please email SDG&[email protected]