Visit the Solar Institute for details of the 2011 Solar Symposium: solar.gwu.edu/Symposium.html

1. Regulatory and Economic
Issues of Grid Integration
GW Solar Symposium
April 2011
Christopher Cook, Of Counsel, Keyes & Fox

2. Solar (electric) is a utility
technology in broad based
application
 Utility business is highly regulated
 Utility business model like few others – monopoly
 Distributed solar (on-site) represents a loss of
revenue and competitive technology to the utility
business model
 Like other competitive/disruptive technologies –
incumbent players unlikely to embrace

3. How do regulators interact
with solar?
 Implement policies state/federal legislators develop
 Oversight of incentive programs
 Interconnection standards
 Becoming more difficult
 Net metering (economic) tariff policy
 Policy in place for nearly 20 years
 scrutiny intensifying
 Wholesale markets/Federal Issues
 FERC NOPR on regulation services (Feb 2011)
 California FIT FERC decision
 Commerce Clause restrictions

4. Solar becomes a larger player
in the energy business
 Greater regulatory scrutiny
 Inquiries on market impact
 Reliability – stability
 Need for advanced technologies and
proactive solutions
 Beware of the economic threat to utility
financial stability

5. Changing the Policy makers &
regulators view on solar
1500MW Nuclear plant example
 Approved in advance – ratepayers will pay
 AFUDC – cost of construction financed
 Committed to full build out -- cannot cancel without
large financial penalty
 Built out over 10-15 years
 Guaranteed cost recovery = lower financing costs
 Distributed vs. central station – look at cost of
delivered power

6. The NJ solar program –
Success in an unlikely locale
 2nd largest solar electric state in the US by installs
 Suite of policies that made a market
 Incentives
 Interconnection
 Net metering
 Long term growth rates – business planning
opportunities
 Limits on rate impacts
 1 MW installed at program concept - 2001
 90 MW target 2009; 300MW installed last as of 4/11;
5% by 2025

7. Contact Information
Christopher Cook, Keyes & Fox LLP
ccook@keyesandfox.com
202-465-4827