Boerner R Final Presentation

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Managing Unprecedented Solar Growth on Long Island Bob Boerner Manager, Renewable Programs

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PSEG Long Island • PSEG Long Island is a subsidiary of Public Service Enterprise Group Incorporated (NYSE:PEG), a publicly traded diversified energy company with annual revenues of approximately $11 billion.

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PSEG Long Island Service Territory • PSEG Long Island operates the Long Island Power Authority’s transmission and distribution system under a 12-year contract.

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PSEG Long Island Electric System • Nassau, Suffolk & Most of Rockaway Peninsula (1,200 sq. miles) • 1.1 Million Customers 80% Residential • 20% Commercial •

• 1,300 miles of Transmission Lines 300 of which are underground or submarine

• 180 Substations • 13,600 miles of Distribution Lines 795 Circuits - 13kV • 122 Circuits - 4kV •

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PSEG Long Island System Capability • Current Capacity is 6,765 MW • 13 On-Island Generating Stations + (~25 Peaking Stations) • Balance is met through wholesale electricity markets

System Operation Capability (MW)

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Long Island Generation

4,632

Import

2133

Total

6,765

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PSEG LI Solar PV Program NY-Sun Incentive Program • Offers Incentives to help reduce the installation costs associated with solar electric systems • Up to 25 kW for residential customers, and up to 200 kW for nonresidential

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PSEG LI Interconnection Procedures • Smart Grid Small Generator Interconnection Procedures (SGSGIP) • PSEG Long Island - Power Asset Management (PAM)

• SGSGIP Procedures establishes requirements for new distributed resources 20MW or less • SGSGIP fees and requirements vary according to system size

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Interconnection Procedures

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Unprecedented Solar PV Growth on Long Island

Rebates Paid

15,000

10,000

5,000

0 2000

2005

2010

2015 2015 includes extrapolated forecast

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Factors Driving Customer Demand • Increased installer competition Increased marketing efforts o Decreased installation costs o

• Decreasing balance of system costs • Introduction of new financing methods o Leasing/PPA o GJGNY Low-interest Loans o On-bill recovery

• Streamlined/standardized municipal permitting processes LONG ISLAND

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Managing Market Activity – Program Inception • CRM Software • Rebate process initiates critical path • Net meter installation • 5-minute time out test • Customer and installer satisfaction

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Managing Market Activity – Process Improvements • Rebate processing separated from Interconnection • Only interaction is submittal of COD letter to receive rebate • Net meter installation upon initial technical approval • Use of installer self certification to verify inverted compliance with UL 1741 5-minute time out test. • COD letter to be issued upon receipt and review of Close Out documents and verification of net meter installation

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Lessons Learned • Traditional solar offerings have dramatically changed as a result of new market players, products and challenges. • Utilities must be flexible and continuously evolve to meet the customer demands and expectations. • The 15-year success of the PSEG Long Island Solar Program: Engaging a robust contractor workforce • Partnering to lower balance of system costs (permitting) • Improvement of implementation strategies without increasing utility costs •

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Thank you

Questions?

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