Serving Commercial Customers Melisa Johns
SEPA Utility Solar Conference April 29 -30, 2014 Melisa Johns, Director –Business Development Renewable Generation Development
Duke Energy Overview: Scale, Diversity and Flexibility Geographic diversity
Largest utility in the United States − Total assets: ~$115 billion − Market capitalization: ~ $50 billion − U.S. generation capacity: ~ 58 GW diversified portfolio − Electric customers: 7.2 million −Gas customers: 0.5 million
Midwest
Carolinas
Florida
Highly-regulated business with earnings diversity
Region
Electric Customers
Carolinas
3.9 million
Florida
1.7 million
Midwest
1.6 million
3%
Fuel diversity (MWh output) 12%
2005 5%
3%
1%
55%
3% 24%
85%
36%
38%
55% 35%
Regulated Utilities
International
38%
2015
Commercial Power
Coal Nuclear Natural Gas Oil Hydro/ Renewables
2
NC Green Source Rider Pilot Program Definition: Voluntary pilot program Commercial/industrial customers Enables participants to “green” new load Renewable resources built after 1/1/2007 Process • Application and qualification of supply needs • Duke builds or procures renewable resource • Customer payment: Total cost of renewable energy $500/month administrative fee $0.20/MWh REC retirement fee $2,000 Application fee • Customer is credited for the avoided cost Duration • Three year enrollment window • Capped at 1,000,000 MWhs/year • Contract terms 3-15 years 3
Designing the Green Source Rider Customers want to… •
Achieve their sustainability goals
•
Enable the development of new renewable energy
•
Assist customers in achieving their sustainability goals
•
Encourage local firm generation
Encourage the development of renewable energy
•
Invest in assets
•
Own and retire RECs
•
•
Ensure cost certainty
Ensure costs are fair and equitable for all customers
•
Regulators want to…
wants to…
•
Ensure costs are fair and equitable for all customers
4
Green Source Interest Multiple applications received Interest from various customer segments Anticipate full subscription by year end Anticipate green energy offsets to begin late 2014 to early 2015
5
Duke Energy Overview: Scale, Diversity and Flexibility Geographic diversity
Largest utility in the United States − Total assets: ~$115 billion − Market capitalization: ~ $50 billion − U.S. generation capacity: ~ 58 GW diversified portfolio − Electric customers: 7.2 million −Gas customers: 0.5 million
Midwest
Carolinas
Florida
Highly-regulated business with earnings diversity
Region
Electric Customers
Carolinas
3.9 million
Florida
1.7 million
Midwest
1.6 million
3%
Fuel diversity (MWh output) 12%
2005 5%
3%
1%
55%
3% 24%
85%
36%
38%
55% 35%
Regulated Utilities
International
38%
2015
Commercial Power
Coal Nuclear Natural Gas Oil Hydro/ Renewables
2
NC Green Source Rider Pilot Program Definition: Voluntary pilot program Commercial/industrial customers Enables participants to “green” new load Renewable resources built after 1/1/2007 Process • Application and qualification of supply needs • Duke builds or procures renewable resource • Customer payment: Total cost of renewable energy $500/month administrative fee $0.20/MWh REC retirement fee $2,000 Application fee • Customer is credited for the avoided cost Duration • Three year enrollment window • Capped at 1,000,000 MWhs/year • Contract terms 3-15 years 3
Designing the Green Source Rider Customers want to… •
Achieve their sustainability goals
•
Enable the development of new renewable energy
•
Assist customers in achieving their sustainability goals
•
Encourage local firm generation
Encourage the development of renewable energy
•
Invest in assets
•
Own and retire RECs
•
•
Ensure cost certainty
Ensure costs are fair and equitable for all customers
•
Regulators want to…
wants to…
•
Ensure costs are fair and equitable for all customers
4
Green Source Interest Multiple applications received Interest from various customer segments Anticipate full subscription by year end Anticipate green energy offsets to begin late 2014 to early 2015
5
