The Distributed Generation Collaborative presentation to the Restructuring Roundtable March 28, 2003 _______________________ Massachusetts Technology Collaborative

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The Distributed Generation Collaborativepresenta
tion to the Restructuring RoundtableMarch 28,
2003 _______________________Massachusetts
Technology Collaborative HARNESSING THE POWER
OF INNOVATION
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Discussion Points

• MTC the Renewable Energy Trust
• MTC efforts regarding DG
• DTE Order 02-38
• The DG Collaborative Process
• Key Issues Addressed
• Future MTC involvement

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Massachusetts Technology Collaborative (MTC)

• MTC is a quasi-public economic development
  agency with two areas of focus
• The Innovation Economy
• Telecommunications / Internet / MassConnect
• Science Technology / Nanotechnology Initiative
• Index of the Innovation Economy
• The Renewable Energy Trust
• The Trust was established as part of the Electric
  Utility Restructuring Act of 1997

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Renewable Energy Technologiesper MA Electric
Utility Restructuring Act

• Solar
• Wind
• Biomass
• Landfill gas
• Hydroelectric
• Fuel cells
• Ocean Wave/Tidal

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MTC and DG

• The Trust has funded 321 projects as of 2/28/03
• Green Buildings and Green Schools
• Includes over 1 MW of DG at 25 sites of PV, wind,
  fuel cells, co-generation
• Solar to Market Initiative
• Over 200 PV installations to be installed
  throughout Massachusetts in 2003 2004
• Fuel Cell Initiative
• 250 kW at Coast Guard Cape Cod Air Station

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MTC and DG (continued)

• MTC issued an RFI on DG on 5/2/02
• 20 formal written responses
• Public forum held on 7/22/02
• D.T.E. Investigation 02-38
• Issued 6/13/02 Public hearing 8/24/02
• Comments submitted from about 48 stakeholders
  including MTC
• MTC offered to host the DG Collaborative,
  provide support and funding for facilitation
  services

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D.T.E. 02-38

• Investigation of four areas related to DG
• Development of unified, simplified
  interconnection standards
• Appropriate calculation of standby or back-up
  rates and related charges
• Role of DG in distribution company resource
  planning
• Other issues such as fuel diversity,
  environmental impacts, etc.

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D.T.E. 02-38-A

• Order establishing a DG Collaborative Forum
• interconnection standards, policies, and
  procedures
• encourages the full participation of all
  commenters
• Goals
• Simplified, state-wide technical standards
• State-wide interconnection agreement
• Standardized procedures and documents including
  clarification regarding interconnection to
  networks
• Time schedule for responding to applications
• Efficient dispute resolution process

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The DG Collaborative Process

• Structure of the Process
• Professional facilitation
• Meetings working groups
• Representation by various stakeholders
• Decision making
• Final Report filed 3/3/03
• Recommend D.T.E. issue Interim Order
• Tariff group to propose language by 4/15/03
• Stakeholders to continue meeting quarterly
• Recommend D.T.E. issue final Order in two years
  based upon experience gained and the ongoing DG
  Collaborative

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Massachusetts DG Collaborative Stakeholders  

• Govt/Quasi-Govt
• DOER
• MTC
• Cape Light Compact
• Consumers
• Assoc. Ind. of MA
• Wyeth BioPharmaceutical
• Utilities
• FGE/Unitil
• ISO-NE
• NSTAR Electric
• WMECO
• MECO/Nantucket/Natl Grid
• Public Int. Groups
• UCS/CLF/MassPIRG
• Mass Energy Cons. Alliance

• DG Providers
• Aegis Energy Services
• Solar Energy Business Assoc of NE (SEBANE)
• E-Cubed Company, LLC
• Ingersoll-Rand
• NE Combined Heat Power Initiative
• Northeast Energy Commerce Assoc
• RealEnergy
• United Technologies Corp.
• Keyspan
• Plug Power
• Trigen Energy

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Key Interconnection Issues Addressed

• Developed Process Flowcharts
• Simplified, Expedited, and Standard
• Time Frames Fee Schedules
• Unified the Technical Requirements
• Network Interconnection
• Information Tracking and Reporting
• Tariff Interconnection Agreements
• Dispute Resolution

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Interconnection Dispute Resolution

• Recommended a Multi-Stage Process
• Good Faith Negotiation
• Written request elevates dispute to senior
  management
• If not resolved within 8 days .
• Mediation / Non-binding Arbitration
• D.T.E. staff person convenes process
• DG Collaborative to help create a list of neutral
  mediators
• Mediation fees split 50/50 Resolve within 30
  days or .
• D.T.E. Adjudicatory Hearing
• Pre-hearing discovery hearing completed within
  90 days
• D.T.E. issues order within 20 days

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Future DG Collaborative Related MTC Activities

• Survey of Participants Stakeholders
• D.T.E. feedback of the report process
• Alternative types of collaboration
• Negotiation /or information exchange?
• Evaluation of DG pilot projects?
• Consider all remaining issues together
• DG in distribution company planning
• Standby/back-up rate issues
• Fuel Diversity, Environmental, and other issues