Yarmouth Energy Committee Cape Light Compact Update February
Yarmouth Energy Committee Cape Light Compact Update February 7, 2017
Cape Light Compact • Award-winning municipal energy services organization operated by the 21 towns and 2 counties on Cape Cod and Martha's Vineyard • Mission: serve customers through delivery of – competitive electricity supply and green power options – effective consumer advocacy – proven energy efficiency programs – more than $800 million in savings to region through 2015 CONTACT US AT 800 -797 -6699 OR WWW. CAPELIGHTCOMPACT. ORG
Power Supply • Background on Restructuring – In 1997, Massachusetts de-regulated the electric industry, allowing for competitive electric suppliers to enter the market – Customers on Cape Cod and Martha’s Vineyard still receive a bill from Eversource, but are able to select which supplier they wish to purchase electricity from – 2 Parts to Electric Bill • Delivery Charges – Eversource charges for maintenance of poles, wires, energy efficiency charges. No other option for consumers. • Supply Charges – Customer may select who they purchase electric supply from. – Cape Light Compact is automatically the power supplier on 2 nd part of electric bill for new electric accounts. CONTACT US AT 800 -797 -6699 OR WWW. CAPELIGHTCOMPACT. ORG
Power Supply – Green Aggregation Starting in 2017: • Power supply program is 100% Renewable, and affordable • 100% of customers’ electricity usage is matched with Renewable Energy Certificates (RECs) • Earth. Era™ Trust- unique added value – All Next. Era Energy Services contracted supplier fees are being deposited into the Trust (administered through a 3 rd party) that is guaranteed to be dedicated to the development of new renewable energy projects. – Revenue from sale of RECs (which make the Compact’s customer load 100% renewable) deposited in this trust. – Will amount to approx. $3 million added to Trust per year CONTACT US AT 800 -797 -6699 OR WWW. CAPELIGHTCOMPACT. ORG Photo Credit: Next. Era Energy Resources
Power Supply Pricing Term Cape Light Compact* cents per k. Wh Eversource Residential Jan 2017 – June 2017 9. 930 10. 318 (Jan –June) Commercial Dec 2016 – June 2017 9. 700 10. 033 (Jan – June) Industrial Dec 2016 – March 2017 9. 800 10. 144 (Jan – March) * Includes an adder of $0. 001 for the Compact’s Operating Fund • No contracts • No termination fees • May opt-out at any time CONTACT US AT 800 -797 -6699 OR WWW. CAPELIGHTCOMPACT. ORG
Consumer Advocacy • $25 M returned to Cape & Vineyard customers from the sale of Canal Generating Plant • Compact challenged aspects of NSTAR’s cost recovery proposal which would have increased distribution charges to all residential customers. • Participating in the recently-filed Eversource rate case in front of the Department of Public Utilities (DPU) • Participating in Eversource Grid Modernization Plan in front of the DPU CONTACT US AT 800 -797 -6699 OR WWW. CAPELIGHTCOMPACT. ORG
Smart Grid: What Are We Talking About? • The consumer is at the center of a new optimized power system • Transformation of the electric system will have a big impact on our future – foundational investments • The “Smart. Grid” or Grid Modernization will add digital intelligence to electricity delivery and supply • New sensors, switches, computer programs and meters • Opportunity for power flow to and from customers (“prosumers”) rather than just from a generating plant to consumers • Laying the groundwork for future deployment of energy efficiency programs and DERs • Increasing reliability and resiliency CONTACT US AT 800 -797 -6699 OR WWW. CAPELIGHTCOMPACT. ORG
Grid Modernization – Why this is Important: • Power Outages: What level of system reliability do consumers need or expect, and how much are they willing to pay? • Savings: What opportunity will Cape and Vineyard consumers have to utilize “smart meters” and optional time varying rates? • Who Pays For What: Will we pay for improvements that happen in the Boston area? How will costs be allocated across ratepayers? • Local Energy Generation: Should the region continue to advocate for robust expansion of self-generation and renewable energy? CONTACT US AT 800 -797 -6699 OR WWW. CAPELIGHTCOMPACT. ORG
Overview of Compact Energy Efficiency Programs Residential Low-Income Commercial & Industrial Non Low-Income (61% + state median income) Up to 60% state median income Businesses – including nonprofits, churches, etc. Multi-Family – 5+ units on property Fuel Assistance recipients Industrial Customers who receive other low-income benefits Municipal CONTACT US AT 800 -797 -6699 OR WWW. CAPELIGHTCOMPACT. ORG
CONTACT US AT 800 -797 -6699 OR WWW. CAPELIGHTCOMPACT. ORG
Costs and Benefits 2007 -2018 $180, 000 $160, 000 $140, 000 $120, 000 $100, 000 $80, 000 $60, 000 $40, 000 $20, 000 Costs Total Benefits ec tio ns 18 pr oj ec tio ns oj 20 20 17 pr oj 16 pr 15 20 20 In 2015, for every $1 invested yielded an average of $4. 32 in benefits to consumer ec tio ns al s ac tu 20 14 ac ac 13 tu al s 20 12 ac tu al s 20 11 20 20 10 ac ac tu tu al s tu ac 20 09 ac 08 20 20 07 ac tu tu a al s ls $0
Joint Powers Statute – Next Step for the Compact • An Act Modernizing Municipal Finance and Government enacted by the MA Legislature as Chapter 218 of the Acts of 2016 – Allows governmental units to enter into joint powers agreements (JPA) for joint exercise of powers and duties within a region – At least two governmental units needed to form a JPA – BOS authorize the JPA – Joint Powers Entity (JPE) is a separate public entity and can: • • receive grants receive and expend funds hire employees execute contracts and other instruments necessary for he exercise its mission – JPE offers express liability protection for its members – Financial Controls: financial audit, and reporting requirements to member towns and the MA Department of Revenue CONTACT US AT 800 -797 -6699 OR WWW. CAPELIGHTCOMPACT. ORG
Why form a Joint Powers Entity (JPE)? • Compact’s current Intergovernmental Agreement expires in 2022 • In 2016, Barnstable County notified the Compact that it no longer wished to provide administrative and fiscal services to the Compact under the Compact’s current organizational structure • Compact and the County executed a Termination and Transition Agreement in December 2016 • Goal is for the Compact’s member towns to transition from the existing Intergovernmental Agreement to a Joint Powers Entity through a Joint Powers Agreement • JPE will provide the Compact with the organizational structure to continue to deliver its core mission through DPU approved plans and oversight – Energy Efficiency Services – Power Supply Option – Consumer Advocacy CONTACT US AT 800 -797 -6699 OR WWW. CAPELIGHTCOMPACT. ORG
Next Steps for a JPE • Compact legal counsel prepared a draft Joint Powers Agreement (JPA) • JPA was reviewed by majority of Compact member towns’ counsels are their suggested changes were incorporated • Final draft of JPA is ready for discussion and execution by Cape and Vineyard Boards of Selectmen • Once the JPA is executed by two towns, the JPE will need to: – Identify Treasurer and Business Officer – likely the fiscal agent – Execute a contract for services with fiscal agent – Seek guidance from the Department of Public Utility regarding what, if any, notification/filing is needed for the Compact to be fully operational as the JPE – Seek guidance from the Department of Revenue regarding their reporting requirements • Transition will be over a period of time such that Compact members will be informed of the ultimate end date to consider joining the JPE – Compact and the JPA could both exist until expiration of existing Intergovernmental Agreement in 2022 – Compact Governing Board has indicated a goal of January 31, 2018 CONTACT US AT 800 -797 -6699 OR WWW. CAPELIGHTCOMPACT. ORG
JPE Alternatives • If a Compact member town does not wish to join the JPE, a town may: – In order to continue operating as a municipal aggregator, the town would need to petition the DPU in accordance with state law for approval of its own aggregation plan and for approval of its own energy efficiency plan – If the town does not petition the DPU for approval to be a municipal aggregator, the town would not be able to administer energy efficiency programs or provide a power supply offer – these services would be provided by the distribution company, Eversource CONTACT US AT 800 -797 -6699 OR WWW. CAPELIGHTCOMPACT. ORG
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