De entre sus iniciativas, el proyecto YO SOY (JE SUIS…), iniciado en el 2010, ha permitido al Ayuntamiento de Vaudreuil-Dorion ofrecer a la
56 MONOGRÁFICO
11
Q. WHAT WOULD BE THE IMPACT OF A FULLY SUBSCRIBED LONG-
12
TERM CONTRACT ON THE SIZE OF THE WINDSOURCE PROGRAM?
13
A. In 2011, the Company expects Windsource sales of 219,296 MWh.
14
Assuming some attrition from the Standard program to the Long-Term 15
program, in 2013 the combined programs would be in the range of 16
850,000 MWh, a nearly four-fold increase in the size of the program. 17
Q. WHAT WOULD BE THE IMPACT OF ADDING LIMON II RECS TO THE
18
WINDSOURCE PROGRAMS ON PUBLIC SERVICE REC
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RETIREMENTS?
20
A. RECs are retired annually on behalf of our Windsource customers in
21
addition to the RECs retired from our portfolio for the Renewable Energy 22
Standard. With the addition of Limon II to the Windsource portfolio, the 23
quantity of RECs retired by Public Service would increase significantly. In 1
the 2012 Colorado RES Plan, the Company forecast that we would retire 2
57.68 million RECs to meet RES goals between 2013 and 2021. If the 3
new Windsource program were fully subscribed, it would add 4
approximately six million RECs to this total, an increase of almost 11%. 5
Q. HOW DO THESE CHANGES ADDRESS THE PROGRAM GOAL OF
6
“MEETING THE DEMANDS OF CUSTOMERS FOR RENEWABLE
7
ENERGY IN EXCESS OF RENEWABLE ENERGY STANDARDS?”
8
A. The Long-Term Contract option is expected to bring new, larger
9
customers to the Windsource program in an innovative way that provides 10
a strong competitive alternative to non-regulated REC sales that currently 11
send dollars outside of Colorado. 12
Q. HOW DO THESE CHANGES ADDRESS THE PROGRAM GOAL OF
13
“OFFERING RENEWABLE ENERGY AT COMPETITIVE RATES?”
14
A. The new premium for the Windsource Standard plan will lead to increased
15
participation and growth in the program by improving our competitive 16
position. The new pricing mechanism for the Standard program enhances 17
rate transparency and simplicity. The Long-Term Contract option provides 18
a potential enhanced financial benefit to our customers which significantly 19
improves our competitive position. The Long-Term Contract enables our 20
customers to more directly participate in the comparative economics of 21
wind energy vs. other fuels — an option that REC marketers cannot 22
match. 23
Q. HOW DO THESE CHANGES ADDRESS THE PROGRAM GOAL OF
1
“CONTINUING TO ENSURE THAT NON-PARTICIPANTS IN
2
WINDSOURCE ARE NOT ADVERSELY IMPACTED BY THE
3
WINDSOURCE PROGRAM AND THAT THEY SHARE IN THE
4
BENEFITS OF LIMON II?”
5
A. The Windsource Standard option continues to ensure that non-participants
6
are not harmed by monetizing excess RECs from the Company portfolio 7
and providing additional dollars to the RESA Deferred Account. The Long- 8
Term Contract includes two primary safeguards for non-participant 9
protection. First, the Windsource customer pays all costs of the Limon II 10
PPA over system avoided costs and then makes an additional contribution
11
to the RESA. Through this program structure, the non-participants are 12
better off than they would have been if the Company had not acquired the 13
Limon II resource. Second, the Reward Fund mechanism provides 14
security against contract default by Windsource customers. 15
Q. HOW DO THESE CHANGES ADDRESS THE PROGRAM GOAL OF
16
“MINIMIZING YEAR-TO-YEAR WINDSOURCE PRICE VOLATILITY?”
17
A. At the low-end of current market rates, the $1 per block rate for the
18
Standard plan is expected to remain stable for the foreseeable future. The 19
Long-Term Contract creates a stable, fixed price option for customers 20
willing to commit to longer terms. 21
Q. HOW DO THESE CHANGES ADDRESS THE PROGRAM GOAL OF
1
“ENSURING RENEWABLE ENERGY SUPPLIES ARE READILY
2
AVAILABLE TO MEET RAPID CHANGES IN PROGRAM DEMAND?”
3
A. The Windsource Standard plan creates an effective option to respond to
4
fluctuations in demand. Participation in the Long-Term Contract has been 5
limited to help ensure that the program will not be over-subscribed. 6
Q. HOW DO THESE CHANGES ADDRESS THE PROGRAM GOAL OF
7
“PROVIDE THE FLEXIBILITY FOR FURTHER INCREASES IN SYSTEM
8
RENEWABLE GENERATION SHOULD THE COMMISSION FIND THE
9
RESOURCES TO BE IN THE PUBLIC INTEREST?”
10
A. With the new changes, additional dollars will be directed into the RESA
11
Deferred Account, either creating additional headroom for additional 12
renewable energy acquisitions or for the potential future reduction of the 13
two percent RESA charge on customer bills. In addition, the structure of 14
the Long-Term Plan could be replicated with new renewable energy 15
projects in the future to bring more renewable energy to Colorado. 16
Q. HOW DO WE EXPECT THESE CHANGES TO BE RECEIVED BY
17
CUSTOMERS?
18
A. The Limon II project will represent one of the single largest additions of
19
generation for a voluntary renewable energy program in the country and 20
one of the most innovative structures for a long-term renewable program. 21
Our customers have indicated a strong desire to participate in this 22
program and help us to bring this resource to Colorado. The Company 23
held two Windsource Advisory Group meetings in preparation for this filing 1
and has had numerous discussions with several customers around this 2
offering. Reaction to the concept has been extremely positive and 3
participation is expected to be high. 4
Q. HAS THE COMPANY MET THE COMMISSION’S REQUEST TO FIND
5
WAYS TO GROW THE WINDSOURCE PROGRAM?
6
A. Yes. We request that the Commission approve of our efforts, and the
7
desire of our customers, to bring more renewable energy to Colorado. 8
Q. WILL THE COMPANY PRESENT OTHER WITNESSES TO SUPPORT
9
THIS APPLICATION?
10
A. Yes. Mr. Kurtis Haeger, Managing Director of Resource Planning, will
11
testify regarding the determination of the costs that will be borne by 12
Windsource customers. Mr. Nicholas Detmer will testify as to the software 13
program that the Company will use to determine actual avoided system 14
costs. 15
Q. DOES THIS CONCLUDE YOUR TESTIMONY?
16
A. Yes it does.
Attachment A
Statement of Qualifications Steve Mudd
I currently manage the Windsource program for Xcel Energy in Colorado, Minnesota, Wisconsin, New Mexico and Michigan. I have managed this program since October, 2007. In this time, I’ve been instrumental in the design and redesign of Windsource in each state. I’ve written or contributed to testimony in Colorado, Minnesota, Wisconsin and New Mexico and I previously testified before the Colorado PUC in the 2009 Windsource docket (Docket No. 08A-260E). I’ve presented at numerous industry conferences on the topic of voluntary green power programs including the E Source Forum and the Center for Resource Solution’s Renewable Energy Markets conference.
Prior to Windsource, from 2004 through 2007 I worked as Manager of Marketing Strategy and Planning for Xcel Energy and as Product Portfolio Manager from 2001 through 2004. In these positions, I managed a broad range of product offerings and worked on strategic issues for the marketing organization.
Prior to Xcel Energy, I was employed at Level 3 Communications from 1999 through 2001 in a variety of financial positions. I earned my Bachelor of Arts degree in English from the University of Wyoming in 1995.