Posts Tagged ‘HB1580’

PSEIA: HB1580 creates thousands of jobs for less than half a penny a day

Posted November 23rd, 2011 by SRECTrade.

On November 16th, 2011, the Pennsylvania Solar Energy Industries Association (PASEIA) released its Ratepayer Cost Analysis regarding PA House Bill #1580. HB1580 was introduced on October 3rd, 2011 by Rep. Chris Ross, and includes 109 co-sponsors as of November 10th, 2011.

The Bill was introduced to address the recent collapse of the PA SREC market by accelerating the solar share requirement from 2012 through 2015. While the solar share requirements from 2012 through 2015 have been accelerated, the solar share requirements in 2016 through 2018 remains the same as SREC prices are expected to have stabilized by then regardless of the present situation. HB1580 will also close the solar market in Pennsylvania to out-of-state systems, thus limiting the supply of SRECs available which will drive up their value. While undoubtedly a blessing for the solar industry within Pennsylvania, some concerns have been raised regarding the impact this program will have on ratepayers. The Ratepayer Cost Analysis aims to address these issues.

Here is the breakdown of HB1580, using figures derived from the Cost Impact Report. The introduction of HB1580 imposes an additional $113,315,417 distributed amongst all residential and commercial power users in Pennsylvania.

Current Scenario

Reporting Year Solar Share SRECs SREC Price* Cost
2012 – 2013 0.0510% 75,189 $50 $3,759,453
2013 – 2014 0.0840% 123,012 $50 $6,250,621
2014 – 2015 0.1440% 216,338 $50 $10,816,879
2015 – 2016 0.2500% 379,150 $70 $26,540,513
2016 – 2017 0.2933% 449,047 $80 $35,923,723
2017 – 2018 0.3400% 525,500 $85 $44,667,471
Total 1,770,235 $127,958,661

Proposed Scenario (HB1850)

Reporting Year Solar Share SRECs SREC Price* Cost Increment
2012 – 2013 0.1500% 221,144 $190 $42,017,420 $38,257,967
2013 – 2014 0.1700% 253,001 $150 $37,950,200 $31,699,579
2014 – 2015 0.2040% 306,478 $125 $38,309,780 $27,492,901
2015 – 2016 0.2500% 379,150 $100 $37,915,019 $11,374,506
2016 – 2017 0.2933% 449,047 $90 $40,414,188 $4,490,465
2017 – 2018 0.3400% 525,500 $85 $44,667,471 $0
Total 2,134,320 $241,274,078 $113,315,417

* SREC price is based on aggregator feedback, as well as average weighted PA SREC prices in GATS

The cost imposed on each ratepayer is than calculated based on an estimated use of 10,716kWh/yr for residential and 150,000kWh/yr for commercial usage.

Reporting Year Estimated Elect Sales Estimated Increased Cost

Cost Increase per kWh

Estimated Increased Residential Cost Estimated Increased Commercial Cost
Annual Monthly Annual Monthly
2013 147,429,544 $38,257,967 $0.0002595 $2.78 $0.23 $38.93 $3.24
2014 148,824,315 $31,699,579 $0.0002130 $2.28 $0.19 $31.95 $2.66
2015 150,234,430 $27,492,901 $0.0001830 $1.96 $0.16 $27.45 $2.29
2016 151,660,076 $11,374,506 $0.0000750 $0.80 $0.07 $11.25 $0.94
2017 153,101,443 $4,490,465 $0.0000293 $0.31 $0.03 $4.40 $0.37
2018 154,558,725 $0 $0
Total $113,315,417 $8.14 $0.68 $113.97 $9.50
Average $0.0001520 $1.63 $0.14 $22.79 $1.90

As the table shows, the residential bill on average increases by less than 14 cents over five years and under $2 for commercial customers with an assumed annual electric usage of 150,000kWh/yr. This amounts to less than half a penny a day for residential owners. In addition, these are pre-tax costs, so for-profit commercial and industrial customers will pay less than these estimates based on their effective tax rates..

For more information, please contact:
Ron Celentano
PASEIA – President
CelentanoR@aol.com

Pennsylvania Legislative Update: HB 1580 Still in Committee and In Need of Support

Posted October 28th, 2011 by SRECTrade.

Over 90 members of the Pennsylvania solar industry lobbied Pennsylvania legislators on Monday, 10/28/11 to voice their support HB 1580 an SREC bill. The effort was part of an official “Pennsylvania Solar Advocacy Day” event put on by PennFuture, Solar Alliance, Vote Solar, PASEIA and others. By the end of the day more than 108 members of the Pennsylvania House (of a required 100) had offered to sponsor the legislation should it make it out of committee.

House Bill 1580 (sponsored by Rep. Chris Ross, R-Chester) proposes to move the total requirement of SRECs forward by three years to increase the number of SRECs Load Serving Entities (utility-scale “dirty” electricity producers) must purchase. The rapid implementation of Pennsylvania SREC eligible facilities over the last year has led to an SREC over-supply of more than double the amount of SRECs needed by utility-scale electricity producers. This over-supply is responsible for low SREC pricing in Pennsylvania.

SREC markets are driven by the fundamentals of supply and demand. However in Pennsylvania demand (the amount of SRECs required for a given year) is significantly lower than the number of SRECs available. The Pennsylvania SREC market is designed in such a way that every year there is a set goal for amount of power that comes from renewable energy sources and any adjustment to the yearly goal requires legislative action.

In order for the bill to move forward it needs the support of Rep. Bob Godshall, Chairman of the House Consumer Affairs Committee for Committee vote. PennFuture has asked the Pennsylvania solar community to write Rep. Godshall to show their support of the bill. However, even if the bill gets out of Committee in its current form it still needs to pass the House and Senate.  With 108 state Representatives co-signing the bill it is expected to pass the House, but it’s unclear how it will fair if it reaches the Senate.

Stay tuned for more HB 1580 Updates.