skip to main content
OSTI.GOV title logo U.S. Department of Energy
Office of Scientific and Technical Information

Title: Virginia Solar Pathways Project: Economic Study of Utility-Administered Solar Programs: Soft Costs, Community Solar, and Tax Normalization Considerations

Abstract

This report presents economic considerations for solar development in support of the Virginia Solar Pathways Project (VSPP), an effort funded by the U.S. Department of Energy (DOE) SunShot Initiative that seeks to develop a collaborative utility-administered solar strategy for the Commonwealth of Virginia. The results presented are intended to be considered alongside the results of other studies conducted under the VSPP that evaluate the impacts of solar energy on the electric distribution, transmission, and generation systems in Virginia.

Authors:
 [1];  [1];  [1];  [1]
  1. National Renewable Energy Lab. (NREL), Golden, CO (United States)
Publication Date:
Research Org.:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org.:
USDOE Office of Energy Efficiency and Renewable Energy (EERE)
OSTI Identifier:
1263539
Report Number(s):
NREL/TP-6A42-65758
DOE Contract Number:
AC36-08GO28308; EE0006914
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY, AND ECONOMY; 32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION; solar soft costs; VSPP; NREL; Virginia Dominion Power; tax normalization; community solar; investment tax credit

Citation Formats

Reiter, Emerson, Lowder, Travis, Mathur, Shivani, and Mercer, Megan. Virginia Solar Pathways Project: Economic Study of Utility-Administered Solar Programs: Soft Costs, Community Solar, and Tax Normalization Considerations. United States: N. p., 2016. Web. doi:10.2172/1263539.
Reiter, Emerson, Lowder, Travis, Mathur, Shivani, & Mercer, Megan. Virginia Solar Pathways Project: Economic Study of Utility-Administered Solar Programs: Soft Costs, Community Solar, and Tax Normalization Considerations. United States. doi:10.2172/1263539.
Reiter, Emerson, Lowder, Travis, Mathur, Shivani, and Mercer, Megan. Thu . "Virginia Solar Pathways Project: Economic Study of Utility-Administered Solar Programs: Soft Costs, Community Solar, and Tax Normalization Considerations". United States. doi:10.2172/1263539. https://www.osti.gov/servlets/purl/1263539.
@article{osti_1263539,
title = {Virginia Solar Pathways Project: Economic Study of Utility-Administered Solar Programs: Soft Costs, Community Solar, and Tax Normalization Considerations},
author = {Reiter, Emerson and Lowder, Travis and Mathur, Shivani and Mercer, Megan},
abstractNote = {This report presents economic considerations for solar development in support of the Virginia Solar Pathways Project (VSPP), an effort funded by the U.S. Department of Energy (DOE) SunShot Initiative that seeks to develop a collaborative utility-administered solar strategy for the Commonwealth of Virginia. The results presented are intended to be considered alongside the results of other studies conducted under the VSPP that evaluate the impacts of solar energy on the electric distribution, transmission, and generation systems in Virginia.},
doi = {10.2172/1263539},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Thu Jun 23 00:00:00 EDT 2016},
month = {Thu Jun 23 00:00:00 EDT 2016}
}

Technical Report:

Save / Share:
  • The authority to regulate public utilities is vested generally in the West Virginia Public Service Commission, comprised of three members appointed by the governor with the advice and consent of the state senate. Commissioners are appointed for six year terms. They must be free from any pecuniary or employment interest in public utilities. The Commission possesses the exclusive authority to regulate public utilities. While local governments retain the power to control the use of their streets and to grant franchises to public utilities, they cannot use this power to infringe on the exercise of regulatory power by the Commission. Publicmore » utility regulatory statutes, energy facility siting programs, and municipal franchising authority are examined to identify how they may impact on the ability of an organization, whether or not it be a regulated utility, to construct and operate an ICES.« less
  • The authority to regulate public utilties is vested generally in the State Corporation Commission. The Commission is comprised of three members elected by a joint vote of the two houses of the general assembly. Commissioners serve six-year terms. They must be free from any employment or pecuniary interests in any company subject to the supervision and regulation of the Commission. The Commission is charged with the primary responsibility of supervising and regulating public utilities. However, local governments retain the power to grant franchises and otherwise regulate the use of streets and other public property. In addition, municipally-owned utilities are notmore » within the jurisdiction of the Commission to the extent that they operate within corporate limits. Public utility regulatory statutes, energy facility siting programs, and municipal franchising authority are examined to identify how they may impact on the ability of an organization, whether or not it be a regulated utility, to construct and operate an ICES.« less
  • This report presents the computations of time-differentiated marginal costs, for use by the ratemaker, to Virginia Electric and Power Company (VEPCO) for its Virginia jurisdictional service. It is predominantly summer-peaking utility due to a relatively high saturation of air conditioning. In the recent past, VEPCO's share of the space heating market (i.e., the percentage of new residences using electricity for heating) has risen to new highs, a situation which raises the possibility of a future shift to a winter-peaking load characteristic. VEPCO's current electric production mix is predominantly fossil fuel-fired with a planned future shift to nuclear generation accompanied bymore » hydraulic pumped storage. The Company's annual load factor is approximately 54 percent. The costs are summarized, for each major class of service, by a series of unit costs for each of three costing seasons and two diurnal periods, on-peak and off-peak. Costs are grouped into those which are marginal to the energy consumed, the kilowatts of demand placed on the system, and the number of customers.« less
  • Time-differentiated rates prepared for Virginia Electric and Power Company as part of the Electric Utility Rate Design Study are analyzed. The report identifies major causes of differences in costs and rates developed by Ebasco Services, Inc., and National Economic Research Associates. The differences are noted. The study further determines the extent to which differences in the Ebasco and NERA results are attributable to differences in data, judgment, and alternative rate design procedures. (MCW)
  • This report analyzes time-differentiated rates prepared for Virginia Electric and Power Company (VEPCO) to identify major causes of differences in costs and rates developed by Ebasco Services, Inc. and National Economic Research Associates (NERA). In general, these differences can be attributed to one of three causes. First, some differences reflect discrepancies between the data used by Ebasco and by NERA. A second cause of differences between the costs and rates derived from the VEPCO study is the application of judgment. Finally, the rate-design procedures used by the two consultants are inherently different in some important ways. The purpose of thismore » report is to specify the differences in results that are due to differences in the rate-design procedures. The reader is warned of four important limits on the scope of this report: (1) this effort is not extensive enough to provide a complete reconciliation of the Ebasco and NERA methodologies; (2) normative statements about which methodology is correct or preferable are avoided because the objective is to provide a common framework for understanding key differences and important issues; (3) while in may instances data are presented for the entire Virginia Electric and Power Company, the residential service class is treated in greater detail than other service classes; and (4) although other methods were applied by Ebasco, only NERA's time-differentiated marginal-cost study is contrasted with Ebasco's Period II time-differentiated accounting-cost study.« less