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Cost Causation and Benefits Allocation in DG

Cost Causation and Benefits Allocation in DG. May 7, 2014 Prepared for Arizona Corporation Commission. Prepared by Clean Power Research. Clean Power Research DG cost/benefit and fleet modeling studies. DGValuator evolution. TM. DG costs and benefits (1 of 2).

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Cost Causation and Benefits Allocation in DG

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  1. Cost Causation and Benefits Allocation in DG • May 7, 2014 • Prepared for • Arizona Corporation Commission • Prepared by • Clean Power Research

  2. Clean Power Research DG cost/benefit and fleet modeling studies

  3. DGValuator evolution TM

  4. DG costs and benefits (1 of 2)

  5. DG costs and benefits (2 of 2)

  6. Load match and loss savingsMinnesota Dept. of Commerce, 2014

  7. Quiz! • Solar power reduces the fuel expense of: • Natural gas • Coal • Nuclear • All of the above • Customers pay the fuel expenses for: • Natural gas • Coal • Nuclear • All of the above  Right!  Right!

  8. DG costs and benefits are evaluated on a marginal basis (not average basis)

  9. Deciding DG study periodExample: Generation capacity Planned CCGT Planned CT How about this cost? 2014 2018 2034 Does DG avoid generation capacity costs if installed here?

  10. Cost study “Framework” recommendations

  11. Ben Norris • Sr. Consultant • Clean Power Research • ben@cleanpower.com

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