remarks of ron binz, public policy consulting senior policy advisor, center for the new energy...
TRANSCRIPT
![Page 1: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/1.jpg)
Remarks of Ron Binz, Public Policy Consulting
Senior Policy Advisor, Center for the New Energy Economy
July 26, 2012
PV, CSP, DG and FIT; CO2, IOU, TOU and SG; RPS, EE, ROE, and PUC
I-CAMP•12 Summer School on Renewable & Sustainable Energy
![Page 2: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/2.jpg)
Public Policy Consulting• Expertise in energy and telecom
– advocacy
– staff training
– counsel, advising
– expert testimony
• Focus areas:
– climate
– clean tech/green tech
– improving regulation
– enabling competition
www.rbinz.com
![Page 3: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/3.jpg)
Center for the New Energy Economy• Center at Colorado State University
– Within School of Global Environmental Sustainability
• Founded in early 2011
• Directed by Former Colorado Governor Bill Ritter, Jr.
• Foundation funded• Mission: The Center for the New Energy Economy will provide
policy makers, governors, planners and other decision makers with a road map that will accelerate the nationwide development of a New Energy Economy.
![Page 4: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/4.jpg)
TheTakeAway
This isn’t just about technology, it’s about policy, vision and governmental commitment.
![Page 5: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/5.jpg)
TheTakeAway
Germany has the isolation resource of Alaska.– In May 2012, 10% of Germany’s energy was produced
by photovoltaics. – Annually, the German number is about 5%– The comparable number in the US is 0.04%– In relative terms, Germany has 125 times as much
solar at the US
![Page 6: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/6.jpg)
TheTakeAway
The United States is the only country in the world that is debating whether climate change is “real”
![Page 7: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/7.jpg)
The New Energy Economy
• Potent message– Renewable Energy– Economic Development– Energy Efficiency– Equity
• Often bipartisan
• Coordinated stategovernment effort
![Page 8: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/8.jpg)
The Actors
![Page 9: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/9.jpg)
Focus on Governor’s Energy Office (GEO)
• Raised to a cabinet-level position
• Active in – Program delivery– Customer access– Regulatory proceedings– Policy development– Developing post-ARRA capacity
![Page 10: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/10.jpg)
% ENERGY STAR New Homes Sold
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
2004 2005 2006 2007 2008
Year
ENERGY STAR – High Efficiency Homes
Beginning of State ENERGY STAR
Programs
![Page 11: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/11.jpg)
Focus on Health Department (CDPHE)
• Active in policy development
• As air quality agency, active with utilities on EPA SIP
• Active in regulatory proceedings at PUC
• Active in legislative efforts
• Central role in Clean Air Clean Jobs Act implementation
![Page 12: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/12.jpg)
Focus on the DNR
• Adopted new gas drilling rules in 2007– Fracking in Colorado
• Streamlined gas drilling regulation– New well permits
• Active in policy development
![Page 13: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/13.jpg)
History of Colorado’s RPS• Amendment 37 (2004)
– Voter initiated; 10% by 2020; solar carve-out; net metering
• HB 1281 (2007)– 20% by 2020; 10% for Munis, Coops; solar carve-out
• HB 1001 (2010)– 30% by 2020; carve out for DG of 3% by 2020
(~650 MW PV)
![Page 14: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/14.jpg)
Focus on the Legislature
• RPS 10% >> 20% >> 30% (2007, 2010)
• Clean Air Clean Jobs Act (2010)
• In all, 79 New Energy Economy bills
![Page 15: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/15.jpg)
79 New Laws
![Page 16: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/16.jpg)
Focus on the PUC• Implemented 20% RPS, 30% RPS
– Worked within 2% rate cap
• Implemented EERS– Standards exceeded statutory minimum– Utility incentives
• Re-designed IRP process with new rules– Used “Section 123” in resource selection
• Rewrote transmission rules• Implemented residential tiered rate structure• Implemented CACJA in 2010
– Plant closures and conversions– Long term natural gas contract
![Page 17: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/17.jpg)
Colorado’s Clean Air Clean Jobs Act
![Page 18: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/18.jpg)
Structure of HB10-1365• Utility must consult with CDPHE on plan to meet current and projected EPA clean air
rules.
• Utility files plan with PUC to improve air quality, addressing at least half of coal generation up to 900 MW.
• Utility required to conduct various studies:
– Plan impacts on NOx emissions
– Cost of controlling emissions at existing coal plants– Cost of replacing 900 MW coal generation with natural gas– Impacts on system reliability
• CDPHE will participate in PUC process.
• Any PUC-approved plan must meet projected EPA rules.
• Air Quality Control Commission will incorporate approved plan into State Implementation Plan (SIP) for addressing regional haze.
• New law specifies some details of regulatory cost recovery
![Page 19: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/19.jpg)
Highlights of the Proceeding• Utility filed analyses of ~20 plans (7 basic plans with variations)
• Interventions by large gas and coal interests
• Two very large public hearings
• Prefiled testimony of 91 expert witnesses
• Utility has rejected “controls-only” plan
• Utility’s preferred plan was ruled not in compliance with new statute; utility filed new plans and identified new preferred plan
• CDPHE rejected some plans as insufficient to meet EPA rules
• Long-term natural gas contract filed for approval
• Motion to disqualify two commissioners
• Hearings in evenings and on Saturdays
![Page 20: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/20.jpg)
Decisions on PSCo Plants
Unit Size Action Date
Cherokee 1 107 MW Retirement 2011
Cherokee 2 106 MW Retirement 2011
Cherokee 3 152 MW Retirement 2015
Cherokee 4 352 MW Conversion 2017
Arapahoe 3 45 MW Retirement 2013
Arapahoe 4 111 MW Conversion 2014
Valmont 5 186 MW Retirement 2017
Hayden 1 139 MW Controls 2015
Hayden 2 98 MW Controls 2016
Pawnee 505 MW Controls 2014
Source: Xcel Energy – Summary Report for Investors 2009
![Page 21: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/21.jpg)
![Page 22: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/22.jpg)
22
San Luis Valley
![Page 23: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/23.jpg)
![Page 24: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/24.jpg)
![Page 25: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/25.jpg)
![Page 26: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/26.jpg)
![Page 27: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/27.jpg)
The Evolving Utility Business Model
• Multiple threats to business as usual
• Utilities must adapt in order to grow (survive)
• We need to change the regulatory incentives to
reward utilities for pursuing societal goals
• Regulation needs to produce greater (firm) efficiency
• Expect a new regulatory compact to emerge
![Page 28: Remarks of Ron Binz, Public Policy Consulting Senior Policy Advisor, Center for the New Energy Economy July 26, 2012 PV, CSP, DG and FIT; CO2, IOU, TOU](https://reader034.vdocument.in/reader034/viewer/2022052701/56649de65503460f94adfa33/html5/thumbnails/28.jpg)
I look forward to your questions.
Thanks for the invitation