Title
Solar Feed-in-tariff (FIT) Update and 2014 Pricing Options (B)
Explanation
The Solar (FIT) program was launched in early 2009 stipulating GRU purchase solar photovoltaic electricity from system owners at a guaranteed price via a twenty year contract. The program includes an annual capacity limit of 4 megawatts (MW) per year. Each year, the commission determines whether new capacity will be offered to the public, how much capacity will be offered under the program guidelines, and approves the pricing associated for that capacity.
Should new additional capacity be approved, GRU's Purchasing Department will publicly announce an open solicitation process and provide applicable rules for the capacity solicitation. Currently there is 2.65 MW in queue from the original 2009 open solicitation, leaving 1.35 MW available for open solicitation in 2014. There is also an estimated .5 MW that will likely not be constructed from the 2013 offering.
Staff has performed the requisite analysis and is recommending new Solar FIT rates for the 2014 solicitation. The proposed rates are 0.18 $/kWh for Class 1 systems, 0.16 $/kWh for Class 2 systems, and 0.14 $/kWh for Class 3 systems.
Fiscal Note
The additional capacity would have an annual cost over 20 years determined by the capacity amount approved by the City Commission. Staff will provide analysis of several options including the estimated additional cost to GRU and resulting rate impacts. The purchased power cost of the FIT program was estimated at 4 MW in the fuel expenditures included in the GRU budget proposal for FY 2014.
Recommendation:
The City Commission 1) receive a presentation from staff; and 2) determine capacity allocation for 2014, and direct the City Attorney to draft, and City Clerk to advertise an ordinance for any rate changes necessary to implement that capacity option.