RGGI States Announce Additional 30% Reductions in Emissions

RGGI States Announce Additional 30% Reductions in Emissions

The Regional Greenhouse Gas Initiative (RGGI) is the United States’ first market-based cap and trade mechanism to reduce emissions within the nine states that participate. RGGI only applies to power generators greater than 25MW of installed capacity, and membership is optional.

Announcement

The nine states in the Regional Greenhouse Gas Initiative (RGGI) reaffirmed their climate leadership by agreeing to a visionary plan to reduce power plant carbon emissions by an additional 30% by 2030. The plan includes program design changes that will increase the RGGI program’s effectiveness and help keep the RGGI states on track for meeting their 30% target.

These changes come at a critical moment. Many U.S. states are increasing emission reduction efforts to offset the impact of the federal government’s back peddling on climate action, and to challenge the Trump administration’s recent announcement of the intent to withdraw the U.S. from the Paris Agreement.

Program Mechanisms

The RGGI states agreed to a plan that includes an additional 30% reduction in the emissions cap by 2030. The plan also includes several key design changes that are expected to strengthen RGGI and make the 30% reduction attainable.

The first key change is the addition of an Emissions Containment Reserve (ECR), which sets a price-floor for emission allowances, and permanently retires allowances if the price-floor is triggered. The ECR, which will be implemented in 2021, certainly is a step in the right direction for addressing an oversupplied market. However, two of the RGGI states—Maine and New Hampshire—have indicated that they do not intend to implement an ECR.

The second key change is a full excess-banked-allowance adjustment. This adjustment will occur during the years 2021–2025, and will send a clear message that the RGGI states intend to prevent an oversupply of allowances from eroding the effectiveness of the RGGI program.

The third key change is a set of modifications to the Cost Containment Reserve (CCR). The CCR sets a price-ceiling which, if triggered, releases additional allowances into the market. The modifications to the CCR include both an increase in the price-ceiling and a reduction in the number of allowances released if the price-ceiling is triggered.

The true success of the RGGI states’ aggressive plan will likely result from the combined impact of the additional 30% cap decline and these three key design changes:

1.     The addition of an ECR, with a price-floor initially set at $6 in 2021, a price greater than the current auction clearing price, and set to be increased by 7% annually.

2.     The additional cap adjustments in the period 2021–2025 to address excess banked allowances.

3.     The modifications to the CCR, with a price-ceiling of $13 in 2021, which is set to be increased by 7% annually, and with a decrease in the number of allowances released upon a trigger.

The Details

The proposed cap for 2021, from which annual reductions will follow, is 75.15 MTco2. During the years 2021–2030, the cap will decline annually by 2.275 MTco2 allowances, resulting in a 2030 cap of 52.39 MTco2. The RGGI states also plan to address the excess banked allowances that have accumulated in the market. The states will revise the Model Rule to establish a formula for calculating the number of banked allowances in the market. The formula will be applied in 2021, and the emissions cap will be adjusted to account for the banked allowances during the period 2021–2025.

All states, except New Hampshire and Maine, plan to adopt an ECR that will permanently retire allowances from circulation if auction prices fall below the price-floor. The ECR will be implemented in 2021, and is structured to remove a quantity of allowances equivalent to 10% of that year’s base cap if it is triggered. The price floor for the ECR initially will be set at $6, and will be raised by 7% annually.

For the CCR, the price-ceiling will be set at $13 starting in 2021, and will also increase by 7% annually. This is a significant increase over both the current trigger price of $10, and current 2.5% rate of increase in the trigger price. The number of allowances in the CCR also is significantly reduced under the RGGI state’s aggressive plan. Beginning in 2021, the number of allowances in the CCR will be limited to 10% of the RGGI cap for that year. Based on the anticipated cap for 2021, the CCR will contain approximately 7.515 million allowances for potential release in 2021. This is a significant reduction from the current level of 10 million allowances in the CCR for potential release annually.

These program design changes are also important to protect another of RGGI’s successes—the reinvestment of proceeds generated from allowance auctions. To date, RGGI auctions have generated over $2.7B in revenue, almost half of which has been invested in energy efficiency, renewable energy development, and other beneficial programs. Allowance auction prices directly impact the amount of revenue available for these reinvestment programs (see Figure 1). The RGGI program design changes will help to prevent excessive allowances from accumulating in the market and should result in an increase in allowance prices over time, which should in turn increase the allowance proceeds available for reinvestment, even as the number of allowances available for auction decline.

Figure 1: Revenues from RGGI auctions have generated upwards of $2.7B in funds for energy efficiency and renewable energy development in participating states. At its peak, RGGI generated over $152M to benefit states in a single auction.

Final Thoughts

The program modifications are certainly ambitious, and are being celebrated as a win by many of the environmental advocates, including the Natural Resources Defense Council (NRDC). Since its inception, RGGI’s goal has always been to reduce power plant emissions within the region, and these proposed changes should add to the program’s ongoing success if adopted. The proposal is already being met with significant praise from the heads of state agencies such as New York’s Department of Environmental Conservation and the Massachusetts Department of Environmental Protection.

Looking ahead, several challenges await the program changes, and not all of the RGGI states (Maine & New Hampshire) have tendered their full support for all of the changes. Theoretically, the changes will help market forces drive up the price of allowances, creating an environment that drives investment towards renewable energy and efficiency. The concern is what the responses will be from compliance entities regarding how they procure their electricity.

The New York Public Service Commission Modifies its Rule on Membership for Community Distributed Generation Projects.

The New York Public Service Commission recently issued an order modifying the Community Distributed Generation (CDG) membership requirements. As previously reported on our January 26, 2017 blog post, the order establishing a Community Distributed Generation (CDG) program stipulated a ten-member minimum for properties located on projects with multiple residential units as one of its requirements. The Petitioners argued that this requirement was in essence a barrier to the adoption of solar, and alienated members of the community that lived in multi-unit residential or mixed-use buildings with fewer than ten metered tenants from benefiting from the CDG program.

The Public Service Commission found in its ruling that, “removing the minimum ten membership requirement for on-site CDG installations on multi-unit housing is in the public interest.”

The Pace Energy and Climate Center supported the Petition to waive the ten-member minimum requirement, and highlighted the impediment issues the membership requirement would cause to the Community Distributed Generation (CDG) program.

Pace applauds the Public Service Commission for its decision, and we believe that this decision opens the gateway for low to moderate income households to have access to clean and affordable energy. Overall, this synthesizes with the vision of New York state in securing a sustainable future for all.

The new rule came into effect on April 1, 2017.

New York Public Service Commission “REVs” Up Utility Reform in Consolidated Edison Rate Case

New York Public Service Commission “REVs” Up Utility Reform in Consolidated Edison Rate Case

  • New York Public Service Commission adopted a three-year rate plan for Consolidated Edison, including several key Reforming the Energy Vision initiatives.
  • The Pace Energy and Climate Center and Earthjustice partnered on our fifth New York rate case and scored a number of REV wins, including on standby rate reforms, energy efficiency, and REV-aligned rate design.
  • This is the first “post-REV” rate case and is a significant milestone in New York’s path to grid modernization.

The New York Public Service Commission adopted a three-year rate plan for Consolidated Edison Company of New York on Tuesday, marking the first rate plan the Commission has approved following its landmark Order Adopting a Ratemaking and Utility Revenue Model Policy Framework (the “Track Two Order”), which laid the groundwork for many of the Reforming the Energy Vision’s key principles.

Earthjustice and the Pace Energy and Climate Center (“Pace”) partnered in the case and pushed for many of the REV-aligned reforms approved by the Commission. Several Pace staff and law student interns worked on the case along with staff attorneys from Earthjustice. Pace and Earthjustice played a key role in securing a number of wins for advancing fair rates, increasing deployment of energy efficiency, advancing climate responsibility, and growing markets for distributed energy resources (“DER”) such as energy efficiency, energy management, distributed generation, electric vehicles, and other technologies and services.

“Our partnership with Earthjustice enabled us to advance strategic objectives of just and reasonable rates for ConEd customers as well as substantial progress toward realizing the vision of the REV process for greater deployment of DER,” said Karl R. Rábago, Pace executive director and expert witness in the case.

The months-long settlement negotiations resulted in a Joint Proposal, filed on September 19, 2016, with more than 20 signatories, including Pace, the City of New York, Natural Resources Defense Council, Environmental Defense Fund, distributed generation and real estate developers, and others.

The rate case is a significant milestone in the ongoing REV process. As Commission Chair Audrey Zibelman noted prior to voting in support of the Joint Proposal, this case represents “a significant step toward modernizing the electric system and changing the utility business model.”

Five of Pace’s subject matter experts—Executive Director Karl Rábago, Deputy Director Tom Bourgeois, Senior Energy Policy Associate Dan Leonhardt, Energy and Climate Law Advisor Jordan Gerow, and Professor Michael Gerrard, Director of Columbia University’s Sabin Center for Climate Change Law—testified on a number of REV concepts, including much-needed standby rate reforms, developing metrics to measure AMI program performance, best practices for microgrid development, and innovative, REV-aligned cost allocation to capture the costs and benefits of Con Edison’s new role as distribution system platform provider.

Among the key REV “wins” approved by the Commission are:

  • Standby Reform: An overhaul of Con Ed’s standby rates, as required under the Track Two Order, including a revamped Reliability Credit with more stringent NOx emissions standards, and a Standby Rate Pilot that includes provisions to incentivize more efficient combined heat and power (CHP) units;
  • Energy Efficiency, System Peak Efficiency, and Electric Vehicles Programs: Con Edison’s proposed energy efficiency budgets and targets go beyond what the Company is currently required to achieve, and are projected to yield more than 300 gigawatt-hours of savings per year, equivalent to the energy needed to serve over 40,000 homes in New York State. The system efficiency program would add an additional 22 GWh of energy savings and provide 49 megawatts of system peak reduction. The energy and system peak efficiency programs also include proposed Earnings Adjustment Mechanisms—novel mechanisms established under the Track Two Order for utilities to generate new revenue streams and accomplish energy policy goals. These savings are especially important in light of the recently announced agreement to close the Indian Point nuclear plant.
  • Electric Vehicles: A collaborative process will be established to consider developing new rate structures, incentives or pilot programs for electric vehicles.
  • Climate Change Vulnerability Studies: The agreement, if adopted, would authorize the Company to spend up to $4 million on completing its Climate Change Vulnerability Study by 2019.
  • Advanced Metering Infrastructure (“AMI”) Metrics: Done right, AMI can help to grow DER and ancillary services markets, and empower customers to manage their home and business energy use. The Commission approved Con Ed’s AMI Business Plan earlier this year, and as the Company moves forward, its AMI program will be subject to ongoing measurement and assessment to ensure that the program is on the right track.
  • Rate design reforms: The proposed agreement inches Con Ed toward a more granular cost functionalization and allocation model, which is critical to helping the Company move from the one-way energy delivery and cost recovery of the past and toward its new role as distributed system platform provider.
  • The Commission also separately approved a related Targeted Demand Management program that will incentivize the Company to pursue “non-wires alternatives” projects, like the Brooklyn-Queens Demand Management project, thanks to a split incentive between customers and shareholders. Lessons learned in this program will be vital in addressing any supply gap created by the closure of Indian Point.

This is Earthjustice and Pace’s fifth partnership on a New York rate case, following the successful completion of settlement agreements in Central Hudson and Orange & Rockland Utilities’ 2014 rate cases, and Con Edison and New York State Electric and Gas / Rochester Gas & Electric’s 2015 rate cases.

Three other New York investor-owned utilities could file rate cases in 2017: National Grid, Orange & Rockland Utilities, and Central Hudson Gas and Electric.

Pace and Earthjustice look forward to tracking those filings and continuing to push for fair rates, clean energy and climate responsibility, and REV-aligned market reforms.

Earthjustice Associate Attorney Chinyere Osuala says: “In a time when President Trump’s clean energy goals are ambiguous at best, states are taking charge. New York is proving itself to be a leader in clean energy by modernizing the electric grid. This rate plan advances that vision for New York City and Westchester residents and their families.”

New York’s Community Distributed Generation Ten-Member Minimum Eligibility is Counteractive in Achieving its Objectives

New York’s Community Distributed Generation Ten-Member Minimum Eligibility is Counteractive in Achieving its Objectives

New York’s Community Distributed Generation (CDG) program is a promising resource in the toolbox for helping low- and moderate-income customers tap into renewable energy, but the program has some limitations. In its present form, residential CDG projects must have a minimum of ten members in order to qualify under the program, which leaves out many New York buildings with fewer than ten units.

The New York Public Service Commission on July 17, 2015, issued an order establishing a Community Distributed Generation (CDG) program. The order allows, by use of net metering, customers who do not have renewable energy generators on their own property to participate directly in off-site projects. For low-income customers, apartment-dwellers, and renters whom may not be able to install solar on their own homes, the initiative allows them to benefit in shared solar projects hence providing a more affordable and clean energy option.

Besides having the requirement of at least 10 members and each member being allocated at least 1,000kWh per year, CDG projects must also:

(1)    be a net metered generation facility located behind a host meter and interconnected to a major electric distribution, and utility;

(2)    have a project sponsor who is responsible for: operating and maintaining the project; development of the project; managing the customers and subscription of new customers, and coordinate with the utility to provide customer information and allocate customer credits.

The CDG program is empowering local communities to use clean energy which overall is a more economical and an environmental friendly option. While the program is a very positive step in the right direction, there is still room for improvement. The City of New York, Solar One, GRID Alternatives, Natural Resources Defense Council, The Association for Energy Affordability, and Environmental Defense Fund on September 1st, 2016 filed a petition to waive the current ten-member minimum for Community Distributed Generation projects located on projects with multiple residential units.  The Petitioners take issue that, with “recent changes in the solar market and technological advances in project design,” the ten-member minimum is a barrier to the adoption of solar. On-site deployment installations are “more viable because of concurrent design innovations that allow city buildings to minimize limits to allowable rooftop solar capacity brought about by compliance with local fire and building codes.” Ultimately, waiving the ten minimum membership would increase low and moderate income customers’ access to solar energy.

Further, the Petitioners argue that the membership requirement is tailored for larger buildings and denies CDG benefits to many multi-unit residential or mixed-use buildings with fewer than ten metered tenants, smaller households, and the Housing Development Fund Corporations (HDFCs). Article XI of the Private Housing Finance Law (PHFL) makes provision for affordable homeownership and housing options to households fewer than ten through HDFCs.

The Pace Energy and Climate Center supports the Petition to waive the ten-member minimum requirement. The benefits of Community Distributed Generation are manifold. It makes clean distributed generation accessible to electric customers who, due to financial and property related reasons, are not capable of supporting traditional onsite generation. Additionally, for low and moderate income households that rent their homes and physically cannot support onsite generation, it offers a pathway for these households to control their energy future and participate in the clean energy economy being fostered by New York State. Pace strongly believes that waiving the 10-member minimum requirement for properties with multiple residential units will serve to help New York State to meet its ambitious clean energy goals set forth in innovative programs and initiatives including the Clean Energy Standard (CES), Reforming the Energy Vision (REV), and NY-Sun Program.

The CDG program is by design progressive and should be lauded for its ingenuity in the renewable energy sector. However, to achieve its objective of expanding the opportunities to purchase and share solar, the membership minimum requirement should be modified to apply to at least three members. This will encompass more communities living in New York state whether in larger buildings or smaller multi-family buildings and would additionally tap into high-density urban areas where transmission and distribution constraints are greatest.

Cuomo Commits to Develop Up To 2,400 Megawatts of Offshore Wind Capacity by 2030 in New York

Cuomo Commits to Develop Up To 2,400 Megawatts of Offshore Wind Capacity by 2030 in New York

One day after announcing that the Indian Point nuclear power plant will close by 2021, Governor Andrew Cuomo announced New York’s commitment to develop up to 2.4 gigawatts of offshore wind power by 2030–enough to power 1.25 million homes, which will help New York meet its Clean Energy Standard goal of obtaining 50 percent of its electricity from renewable energy sources by 2030. The commitment is also important when considering that Indian Point supplies 25 percent of New York City’s electricity load, and 10 percent of the state’s load.
The state’s offshore wind development is already underway, through a proposed 90-megawatt project off the coast of Long Island developed by Deepwater Wind (“Deepwater”). Located 30 miles southeast of Montauk, this will be the nation’s largest offshore wind farm. Deepwater is responsible for the country’s first wind farm (Block Island, in Rhode Island) and already owns the lease area in New York, but the project is yet to be approved by the Long Island Power Authority (“LIPA”).
In addition, in December, Statoil Wind US LLC won a federal auction to lease an area off of the Rockaway Peninsula for a development that would accommodate 800 megawatts of offshore wind.
Finally, the New York State Energy Research and Development Authority (“NYSERDA”) is preparing the Offshore Wind Master Plan (“the Plan”), a comprehensive guide for offshore wind activities in the state, expected to be completed by the end of 2017. The Plan will include: site identification, assessment, and characterization; cost–benefit analysis; grid and interconnection studies; mechanisms for the purchase and sale of the energy to be produced; stakeholders and community engagement; and mitigation efforts.
With numerous and evident benefits, offshore wind can be crucial within a diverse portfolio of renewable sources. As Cuomo noted, “New York’s unparalleled commitment to offshore wind power will create new, high-paying jobs, reduce our carbon footprint, establish a new, reliable source of energy for millions of New Yorkers, and solidify New York’s status as a national clean energy leader.”
The State of Grid Interconnection in the Northeast

The State of Grid Interconnection in the Northeast

This article is crossposted on the Northeast Solar Energy Market Coalition website.

The Pace Energy and Climate Center is a non-profit energy and environmental research and advocacy organization based at the Elisabeth Haub School of Law in White Plains, New York.

The Northeast Solar Energy Market Coalition (NESEMC) brings together solar energy business associations and other solar stakeholders in the Northeast to harmonize regional solar energy policies and advance the solar energy market.

Connecting distributed generation (DG) like solar photovoltaic (PV) systems to the grid is not the most straightforward thing in the world. The electric grid is a complex system, and electric distribution companies (EDC) must ensure that it is operated safely and reliably at all times. For this reason, EDCs are very cautious when it comes to interconnecting DG systems to the grid. Safe interconnection requires adherence to certain rules and procedures and the screening of projects for potential negative impacts to the overall grid. For project developers, these rules can be confusing and prohibitively expensive both in terms of dollars and time, especially when the rules differ from state to state, or even from EDC to EDC within a state.

To address concerns for both maintaining grid safety and reliability without unduly hindering DG deployment, many states have developed standard interconnection guidelines and procedures. These procedures often delineate technical requirements, fees and cost responsibility, and the application process steps for EDCs and developers.

In the Northeast, every state has some form of standard interconnection requirements. These procedures are graded in a report by Vote Solar and the Interstate Renewable Energy Council (IREC) called Freeing the Grid. In the most recent edition of Freeing the Grid, the Northeast scored well with Massachusetts leading the pack with an “A” for interconnection policy, and the rest of the region scoring above average with a “B.”

States are cognizant of the need to revisit standard interconnection procedures on a regular basis. With rapidly advancing technology and best practices, there is almost always room for improving interconnection standards, and IREC maintains highly regarded model interconnection procedures that are updated periodically. Ideally, procedures would be standard in design and application across the Northeast.

In the Northeast, New York and Massachusetts have completed significant revisions to their interconnection standards within the last two years. Three more states—Connecticut, Maine, and Vermont—are in the process of considering revisions to their standards as well. In addition to making formal improvements to interconnection standards, states are also beginning to form working groups consisting of developers, utilities, and other stakeholders to explore interconnection issues on a regular basis. Both Massachusetts and New York have initiated such groups, and other states like Connecticut are considering the same. We see these standing work groups as a best practice for staying on top of interconnection problems and issues.

The Northeast Solar Energy Market Coalition (NESEMC) maintains an inventory of state interconnection guidelines. The remainder of this post provides a roundup of current affairs regarding interconnection in the Northeast in each of the Coalition’s nine member states.

Connecticut

Connecticut’s Public Utilities Regulatory Authority (PURA) has established interconnection standards for distributed generation less than 20 MW. The last major revisions to the standards occurred in 2010. Separate streamlined guidelines exist for certified inverter based systems less than 10 kW, while systems larger than 10 kW and less than 2 MW may qualify for a fast track process if they pass certain screening criteria.

In September 2016, the state’s two major EDCs jointly petitioned to increase the threshold for the streamlined guidelines to systems less than 20 kW. The move to 20kW was one of a number of proposed changes offered by the state’s solar industry group, SolarConnecticut (a NESEMC member). The utilities agreed that expanding the threshold will help alleviate administrative burdens caused by increasing numbers of residential solar PV projects between 10 and 20 kW. In addition to increasing the threshold to 20 kW, the proposal lightens insurance requirements and loosens capacity screens—two other suggestions made by SolarConnecticut. SolarConnecticut is urging PURA to also establish a method to more fairly distribute the cost of equipment upgrades, modernize the application payment method, and lift the external disconnect switch requirement. A docket is currently still open, and a final decision is expected in March.

Maine

The Maine Public Utilities Commission (PUC) has established standard interconnection procedures for small generators not subject to federal rules (i.e. anything connected to the distribution grid as opposed to the transmission system). The last major revision to the interconnection standards occurred in 2009 and were based on the 2009 IREC model standards.

In April 2016, the PUC opened a docket to consider revisions to their standard interconnection procedures, specifically addressing whether, and to what extent, the rules should be updated to reflect the most recent IREC model standards. Stakeholders provided comment in May 2016. No additional actions have occurred since.

Massachusetts

In Massachusetts, the Department of Public Utilities (DPU) maintains a model interconnection tariff that applies to all distributed generation. The last major revisions to the tariff occurred in May 2015 as the result of a multi-year effort by a DG working group convened by the DPU to explore interconnection issues. In addition to updated standards, the process also ended with the creation of the Massachusetts Technical Standards Review Group (TSRG).

The TSRG held its inaugural meeting in March 2013 and has since been credited with successfully addressing several interconnection issues that were driving costs up for installers and prohibiting many projects from being completed. The group brings together utility and developer engineers in a non-adversarial environment to openly discuss common and utility-specific interconnection technical standards. It provides non-utility stakeholders a formal process to provide input on interconnection practices within the state. The success of the TSRG has driven the creation of similar groups in states like New York.

Again, NESEMC considers the TSRG process a best practice that should be emulated and replicated throughout the region. Ideally, state TSRG groups would meet once or twice a year to address regional issues as well.

New Hampshire

New Hampshire’s interconnection standards are regulated by the Public Utilities Commission as part of the state’s net metering provisions. The standards only apply to net metered systems less than 1 MW—all other systems must abide by separate tariffs filed by each utility. The last major revisions to these provisions occurred in 2011.

New Jersey

New Jersey’s Board of Public Utilities has designed standard interconnection guidelines (note: the official rule is only accessible on www.lexisnexis.com/njoal at N.J.A.C. 14:8-7). The rule applies to all forms of net metered distributed generation, which has no specified maximum capacity but must not exceed the customer’s annual on-site energy consumption. The last major revisions made to the standard rules occurred in 2012.

New York

New York’s Public Service Commission (PSC) has developed Standardized Interconnection Requirements (SIR) that govern procedures for all distributed generation less than 5 MW. The last major revisions to New York’s SIR occurred in March 2016, which increased eligible projects from 2 MW to 5 MW and included a pre-application report process, improved screening procedures, and other changes.

In addition to these changes, the revision process spawned two new groups to address other outstanding technical and non-technical interconnection issues on a continuing basis—the Interconnection Policy Work Group (IPWG) and Interconnection Technical Working Group (ITWG), respectively. One of the first tasks undertaken by the IPWG was to address the large backlog of projects waiting for interconnection approval. The group issued a joint proposal in September 2016, which includes provisions such as requiring demonstration of property owner consent and site control and binding timelines for developer decisions. Stakeholders provided formal comments on the proposal in December 2016.

Pennsylvania

The Pennsylvania Public Utilities Commission (PUC) has established standard interconnection guidelines for distributed generation less than 2 MW. The last major revisions to the standards occurred in February 2009.

Rhode Island

Rhode Island’s Legislature has defined a set of standard interconnection rules for all net metered DG. The rules do not cover a lot of issues defined by standardized procedures in other states. However, the state’s predominant utility—National Grid—maintains fairly comprehensive interconnection procedures that include many of the important standards seen in other states including a pre-application report, tiered and streamlined project review pathways, and specific timelines.

Vermont

In Vermont, the Public Service Board (PSB) has adopted interconnection standards for any distributed generation not subject to federal rules (i.e. anything connected to the distribution grid as opposed to the transmission system). For net metered systems less than 150 kW, these standards can be found in Board Rule 5.100. For all other systems, standards are found in Board Rule 5.500.

Over the past year, Vermont’s PSB has considered several changes to their interconnection standards.

First, in a proceeding to consider changes to Rule 5.100, which primarily deals with net metering policy, the most recently proposed changes remove any rules governing interconnection for net metered systems less than 150 kW. Instead, all net-metered systems would be governed by Rule 5.500. The revised net-metering rule has been filed with the Vermont Secretary of State. Stakeholders provided formal comments in early December 2016. The changes have not yet been formally adopted.

Second, the Vermont PSB is also in the process of revising Rule 5.500. The rule has been through several rounds of revisions, with the most recent one issued in September 2016 in a collaboration with the Vermont Department of Public Service, Green Mountain Power, and Renewable Energy Vermont. The changes include provisions for net-metered systems to reflect the proposed changes to Rule 5.100. Additionally, the proposal recommends the following provisions:

·         Specific information to be included in a formal pre-application report,

·         Requirement to provide interconnection queue information upon request, and encourages the utility to increase information accessibility in general

·         A supplemental review process for applications failing fast track screening criteria

·         Shorter and more defined timelines among other changes.

The rules are also written under the assumption that the PSB will maintain a new electronic interconnection application submission system funded by the U.S. Department of Energy. With a proposal on the table, the next step in this process requires the PSB to issue a revised rule for public comment.