Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Net Metering and Opportunities for Public-Private Projects (EBC 2-7-11)

1,393 views

Published on

Presentation on the Massachusetts net metering framework and opportunities for private renewable energy developers and public entities to work together to leverage the benefits of that framework to support the development of new renewable energy generation.

Published in: Business
  • Be the first to comment

  • Be the first to like this

Net Metering and Opportunities for Public-Private Projects (EBC 2-7-11)

  1. 1. Net Metering and Opportunities for Public-Private Projects<br />Jonathan Klavens<br />Klavens Law Group, P.C.<br />February 7, 2011<br />Klavens Law Group, p.c.© 2011 Klavens Law Group, P.C.<br />
  2. 2. Klavens Law Group, P.C.<br />Small law firm focused on clean energy ventures and projects<br />Help companies, investors, public entities and nonprofits<br />Provide start-up, outside general counsel, transactional, project development and regulatory services<br />Bring the interdisciplinary approach this field needs by drawing on experience in corporate, energy, land use, environmental, municipal and nonprofit law<br />Klavens Law Group, p.c.© 2011 Klavens Law Group, P.C.<br />
  3. 3. Net Metering: Basic Concepts<br />Class I/II/III net metering facilities<br />Net metering credit<br />Host customer<br />Virtual net metering<br />Utility right to pay cash to Class III host customer<br />Klavens Law Group, p.c.© 2011 Klavens Law Group, P.C.<br />
  4. 4. Net Metering: Advanced Concepts<br />Compatible with private third party ownership structures<br />If taxable entity owner, compatible with federal tax incentives (esp. ITC/cash grant and depreciation)<br />If better off-take arrangement comes along, can opt out of net metering<br />Klavens Law Group, p.c.© 2011 Klavens Law Group, P.C.<br />
  5. 5. Net Metering: Key Drawbacks<br />3% system cap on net metering facility capacity<br />No certainty and inadequate transparency (may change)<br />May need to sell credits you can’t use<br />Net metering credit value can fluctuate with rates and rate classification<br />Regulatory risk<br />Utility interpretations<br />DPU implementation of 2010 amendments<br />Special issues for host customers on competitive supply<br />Klavens Law Group, p.c.© 2011 Klavens Law Group, P.C.<br />
  6. 6. Public Nexus: Special Benefits<br />Klavens Law Group, p.c.© 2011 Klavens Law Group, P.C.<br />
  7. 7. Structure: Offsite Third Party PPA<br />Lender<br />Equity Investors<br />Sponsor<br />REC buyer<br />RECs<br />$<br />$<br />% cash, ITC, dep.<br />loan<br />$<br />% cash<br />Wind Project, LLC<br />Town<br />power & property tax $ <br />power payments<br />utility customer of record<br />cash in lieu of net metering credits<br />owner<br />100% output<br />lease rights<br />$<br />net excess power<br />3 2.0 MW wind turbines<br />Utility<br />Private landowner<br />Klavens Law Group, p.c.© 2011 Klavens Law Group, P.C.<br />
  8. 8. Additional Structures<br />Off-site third party net metering credit purchase agreement (NMCPA)<br />On-site third party PPA, behind other public entity load<br />On-site third party PPA, stand-alone meter<br />On-site third party NMCPA <br />Klavens Law Group, p.c.© 2011 Klavens Law Group, P.C.<br />
  9. 9. Resources<br />Massachusetts DG and Interconnection website<br />MA DPU net metering FAQs<br />MassCEC Interconnection Guide for Distributed Generation<br />Chapter 359 of Acts of 2010<br />Klavens Law Group, p.c.© 2011 Klavens Law Group, P.C.<br />
  10. 10. Contact<br />Jonathan Klavens<br />Klavens Law Group, P.C.<br />420 Boylston Street, 5th Floor<br />Boston, MA 02116<br />(617) 266-2879<br />jklavens@klavenslawgroup.com<br />http://www.klavenslawgroup.com<br />Klavens Law Group, p.c.© 2011 Klavens Law Group, P.C.<br />
  11. 11. Disclaimer<br /> This document, which may be considered advertising under the ethical rules of certain jurisdictions, is provided with the understanding that it does not constitute the rendering of legal advice or other professional advice by Klavens Law Group, P.C. or its attorneys. Please seek the services of a competent professional if you need legal or other professional assistance.<br />Klavens Law Group, p.c.© 2011 Klavens Law Group, P.C.<br />

×