On Thursday November 29, the Public Service Board (“PSB”) held a standard-offer workshop to whittle down the issues it must consider in developing prices based on an avoided cost methodology and market-based pricing methodology. The workshop was an informal meeting of various stakeholders in the SPEED community. Representatives of renewable energy developers, the Department of Public Service, the Department of Agriculture, and Green Mountain Power, among others, all weighed in on the issues the PSB should consider going forward.
The workshop was part of PSB Docket No. 7874, established as a result of the mandate of Act 170 which requires the PSB to, among other things, develop prices based on an avoided cost methodology and consider developing a market-based pricing methodology. The PSB’s independent consultant in the docket—John Dalton—delivered a presentation suggesting that inputs for the existing models used to determine avoided cost should be updated relative to large wind and solar projects. In a nutshell, avoided cost is what a utility would pay to generate the same electricity from the utility-owned renewable energy source, but which it is “avoiding” paying because the utility is buying the electricity from an outside renewable energy source.
The Board set some important dates for those interested in weighing in. December 14, 2012 is the deadline for interested parties to contact the PSB and suggest changing the avoided cost model itself, not just its inputs. That date is also the date on which interested parties must submit a request that the PSB consider new inputs for other technologies (besides solar and large wind). The deadline to file direct testimony on avoided cost model inputs is January 7, 2013; replies are due on January 18, 2013; the PSB will hold a hearing on January 25, 2013.
A webinar will be held on December 11, 2012 at 9 a.m. to address price-methodology issues for additional clarification to the group. For more information on attending the webinar, contact the PSB or the author of this blog post.
Image by John Dalton
