AVON CLEAN ENERGY COMMISSION
AVON ROOM BLDG. #1 TOWN HALL
MINUTES
OCTOBER 2, 2013
I. CALL MEETING TO ORDER
The meeting was called to order at 7:02 PM by Chairman Bernard Zahren in the Avon Room, Building 1 Town Hall. Members present: Chairman Bernard Zahren, Mitch Kennedy, Robert Bullis, Martin Kaplan and Richard Kretz. Members absent: Lisa Levin and Brian Glenn. Advisory member present: Jonathan Craig. Also in attendance were Assistant Town Manager Steve Bartha, Town Clerk Ann Dearstyne, Superintendent of Schools Gary Mala, BOE Assistant Superintendent of Finance & Operations John Spang and Public Schools Director of Facilities Peter Gaski. Connecticut Council of Municipalities Energy & Program Development Manager Andrew Merola, BEP, presented a program and answered questions on expanded opportunities for solar PV.
II. APPROVAL OF THE PRECEDING MEETING MINUTES – August 7th
VOTE: Mr. Kaplan motioned, Mr. Bullis seconded and all agreed to accept the August 7th meeting minutes as presented. None opposed. Ms. Levin and Mr. Glenn were absent for the vote.
III. COMMUNICATIONS FROM THE AUDIENCE
None.
IV. OLD BUSINESS
None.
V. NEW BUSINESS: a. Andy Merola – CCM, b. Approve 2014 meeting schedule
Mr. Zahren suggested giving the floor to Mr. Merola for his presentation on opportunities on obtaining a photovoltaic system. He first briefly introduced the members to Mr. Merola, highlighting each member’s technical background.
Mr. Merola began by discussing virtual net metering, which is under development at the Public Utilities Regulatory Authority, with a docket that is open but that little has been filed in it. Many are waiting for the rules to come out about this, very similar to the ZREC program, whereby a plan needs to be submitted, reviewed and ultimately announced. He noted that the scope of net metering (applied well to solar) had remained limited: 1) the State of CT, agricultural sites and most importantly to this group - municipal sites. He continued that virtual net metering was not really solar on the roof, but anywhere in CL & P’s service territory and involves ground mounted solar, with the electricity produced going right to the grid, and is then exchanged for credits from the utility company. He said the benefit there
would be to negotiate a discounted credit: take a 10 cent credit and get it for 8 cents, generating a 2 cent per kWh benefit from it. Mr. Merola further noted that the “sweet spot” would be a 1 megawatt project because the ZREC program is capped at 1 megawatt (1.5 million kWh of power). He continued that if you were able to have a ZREC project at 1 megawatt and also capture some virtual net metering credits for 1 megawatt, you’d be able to get the most economically. He continued that he’d been sizing the projects at 60% of load as to not overproduce, which would risk getting CL & P’s wholesale price. Mr. Bartha reminded that the Town Council authorized Mr. Robertson to move forward to explore solar panels for the school roofs, but that the analysis need not be limited to rooftops. Mr. Bullis asked for clarification between a solar rooftop project and the net metering.
Mr. Merola updated “the behind the meter” or ZREC program as the bids on the most recent round have not been formerly announced yet. The utility companies will release a partial announcement for filing. He continued that the bids are coming in substantially lower than last year, which affects electricity prices, because as ZREC prices go down, PPA prices for the Town go up. In some case, he said, a project with higher electricity costs just doesn’t make sense. He said they went into the 2013 round at about 4.2 cents per kWh, a good price for electricity, but were approved so far for only two projects with the rest waitlisted. He added that they are looking more optimistically on the net metering power purchase projects by the way they are structured, gaining an advantage with the generation of
power and with the cost of getting it to you, whereas with rooftop projects you benefit from the cost of electricity only, noting that utility companies have been successful in focusing on the delivery charges per kW or demand charges. He suggested that rooftop projects are not impossible, but the benefit would come from net metering. Mr. Merola added that the legislature increased the funding from $1 million to $10 million with not more than one group – the State, agricultural or municipal, claiming more than 40% of the pot. He continued that towns could use open space or even negotiate with other towns to use theirs. Mr. Craig suggested the landfill in lieu of farmland as a potential site. Mr. Kaplan mentioned the potential of more liability with a stand alone project vs. rooftop, noting more moving parts or vandalism. Mr. Merola reminded that the solar developer owns all of it, the hardware, the maintenance, with the entire onus and contracts can be negotiated. Mr.
Zahren noted that really the economics of the rooftop project have changed. Mr. Merola is guessing that the economic advantage of a 1 megawatt project would be about $30,000 per year.
Dr. Kennedy asked bottom line what would be the financial advantage of a virtual net metering power purchase agreement? Mr. Merola responded that virtual net metering covers your generation and the delivery charges. Mr. Zahren addressed the BOE representatives saying that virtual net metering would switch the emphasis from rooftops to an open field somewhere. Mr. Bartha offered that when the process begins, then a suitable site could be vetted, be it at the landfill or on rooftops, noting that many open areas, such as those required to remain as open space or flagged, long-term, as playing field sites, would likely not be good candidates. Mr. Merola added that his intent was to manage the group’s expectations of the potential benefits of a project and reminded that they are gearing up for an RFP for November 1st.
Mr. Bullis asked what had caused the ZREC situation to change so profoundly. Mr. Merola posed that it could have to do with the bids offered contained speculations for virtual net metering, but he did not believe this was the legislature’s intent. Dr. Kennedy questioned if the virtual net metering would still be a purchase power agreement. Mr. Merola said yes and that it would be a power purchase agreement for virtual net metering credits. Dr. Kennedy asked whose contract is used. Mr. Merola said that they go into the auction with their own PPA signed with the town. Mr. Bartha assured the Commission that the town has a very good energy attorney.
Mr. Zahren reminded that the solar project would also serve as a teaching tool and wondered if it could be a mix and match. Mr. Merola said there is actually a website that is given that shows the activity. Mr. Merola added that a three to five acre area would be needed to accommodate a 1 megawatt system. Mr. Zahren noted that there will be charges in the future for power storage – a way to call on generated power when the need arises – these things are coming – solar is reliable if you can store it.
Mr. Bartha summed that he will keep the Commission’s point person, Dr. Kennedy, informed and, in turn, would inform the Chair as well as the BOE. Members thanked Mr. Merola for his presentation. Mr. Bartha discussed the 2014 meeting schedule, suggesting the third Wednesday to meet in order to give more time for action before the Town Council meets.
VI. COMMUNICATIONS FROM THE COMMISSION
Mr. Zahren discussed the micro grid session that he, Mr. Kaplan, Mr. Bartha and Mr. Bullis recently attended. He noted that a gentleman from PACE University who attended has offered free consulting services to help design and do the economic evaluation on a potential micro grid, which he also said the virtual net metering would be a form of as well. Secondly, he spoke to a man from SANDIA who has funding available for energy storage facilities – i.e., batteries. Mr. Zahren noted that they will announce the next round of bids on 10/29/13 which marks the anniversary dates for Hurricane Sandy and the Northeast October storm and added that more monies had become available in response to weather changes and questioning the stability of the northeast grid. Mr. Kaplan agreed that the micro grid made sense in light of the
recent storms. Mr. Bullis agreed too by asking: 1) does it make sense for Avon and 2) can we get monies from the government. The failure of the utility company to timely get back on line emphasizes the need. Dr. Kennedy noted that most PPAs are based on 20 years and most of the roofs in town will need something before panels can be placed there.
Mr. Zahren asked for reports from the members. Mr. Bartha reported that both the BOE and town’s software programs are compatible with the Portfolio Manager program to track energy usage.
Mr. Mala reminded that we are one town, one unit.
VII. DO ANY BUSINESS TO COME BEFORE THIS MEETING
VIIIL ADJOURN
VOTE: Dr. Kennedy motioned, Mr. Kaplan seconded and all agreed to adjourn the meeting at 8:35 PM. None opposed.
Respectfully submitted:
Chairman Bernard Zahren
Attest: Susan Gatcomb, Clerk
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