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NIPSCO files Settlement Agreement for Voluntary Feed-in Tariff (VFIT) in Indiana

October 14, 2014

NEWS RELEASE: Indiana utility proposes expansion of its feed-in tariff program

Northern Indiana Public Service Company announces FIT 2.0 to support the development of local renewable generation

Merrillville, IN — On Thursday, Northern Indiana Public Service Company (NIPSCO), an investor owned utility serving nearly a half million customers, filed a proposal to expand its voluntary feed-in tariff (FIT) program.

The proposed program, known as FIT 2.0, is a renewable energy purchasing program that enables NIPSCO to procure 16 megawatts (MW) of electricity from small-scale, renewable electricity projects within its service territory. This program is the successor to FIT 1.0, which created 30 MW of market capacity for local renewables.

“Given the success of NIPSCO’s initial feed-in tariff, it is natural to see an expansion of the program,” said Craig Lewis, Executive Director of the Clean Coalition. “Feed-in tariffs are the world’s most successful policy for deploying local renewable energy in a straightforward and cost-effective manner. In addition, given that feed-in tariffs avoid critical issues associated with net metering, by maintaining customer loads and eliminating multi-tenant complexities, utilities and communities across the country should be implementing feed-in tariffs.”

FIT 2.0 is the result of a months-long settlement process between NIPSCO and numerous parties including the Indiana Office of Utility Consumer Counselor, Sierra Club, Citizens Action Coalition, and Indiana Distributed Energy Alliance, which the Clean Coalition advised.

“Indiana is unique to have voluntary feed-in tariffs to promote the development of renewable energy resources,” said Laura Ann Arnold, President of Indiana Distributed Energy Alliance. “We worked very hard to develop a logical continuation of the NIPSCO FIT that is fair to everyone, including non-participating ratepayers. We are pleased with the outcome of the settlement and encourage other electric utilities in Indiana and elsewhere to pursue this type of collaborative process to develop additional voluntary feed-in tariffs.”

Under FIT 2.0, NIPSCO will offer 15-year contracts to solar, wind and biomass projects. The standard offer contract price varies by both technology and project size, as shown below:

Technology	Capacity (MW)	Project Size	Price ($/kWh)
Micro Solar	2	5 kW and ≤ 10kW	$0.1700
Intermediate Solar	8	> 10 kW and ≤ 200kW	$0.1500
Micro Wind	1	3 kW and ≤ 10 kW	$0.2500
Intermediate Wind	1	> 10 kW and ≤ 200 kW	$0.1500
Biomass	4	100 kW and ≤ 1 MW	$0.0918

All capacity for Micro Solar, Micro Wind and Intermediate Wind will be made available when the program is approved. However, half of the Intermediate Solar and Biomass capacity will be reserved for a second allocation period, which will occur two years after program approval. Contract prices for the second allocation will decrease to $0.1380/kWh for Intermediate Solar, and the second allocation of biomass capacity will be contracted through a reverse auction with the purchase rate not to exceed $0.0918/kWh.

Projects submitted to NIPSCO within 90 days of the program launch date will be entered into a blind lottery. A Clean Coalition recommendation to require a non-refundable application fee of $25 plus $1 for each kilowatt of project capacity was adopted. This will ensure a more efficient program by deterring non-viable bids from clogging the lottery and project queue. However, other Clean Coalition and Indiana Distributed Energy Alliance recommendations regarding program capacity, project sizes, and pricing were not incorporated in the final settlement agreement.

A decision from the Indiana Utility Regulatory Commission on the FIT 2.0 settlement agreement is expected during the first quarter of 2015.

For additional details on the FIT 2.0 proposal, please see the settlement agreement.

###

Contacts:
John Bernhardt, Outreach & Communications Director

Clean Coalition
john@clean-coalition.org
(703) 963-8750

Laura Ann Arnold, President

Indiana Distributed Energy Alliance

Laura.Arnold@IndianaDG.net

(317) 635-1701

About the Clean Coalition

The Clean Coalition is a nonprofit organization whose mission is to accelerate the transition to renewable energy and a modern grid through technical, policy, and project development expertise. For further information on the Clean Coalition, please visit www.clean-coalition.org.

About Indiana Distributed Energy Alliance (IndianaDG)

IndianaDG is a nonprofit coalition of businesses, individuals, elected officials, local units of government, colleges and universities, labor unions, economic development groups as well as environmental and consumer organizations joining together to promote renewable energy and distributed generation. For further information on IndianaDG, please visit www.IndianaDG.net.

DOWNLOAD SUMMARY HERE> Cause No 44393 FIT 2 0 Overview 10 14 14

Solar Uniting Neighbors (SUN) Workshops for I&M/AEP Customers to Learn About Solar PV Grants

Posted by Laura Arnold / October 08, 2014 / Posted in Indiana Michigan Electric Power (I&M), Uncategorized / No Comments

SUN Community Solar Workshops Announce

SCP is excited to be partnering with IACED on the Solar Uniting Neighbors (SUN) program to build capacity for solar projects in Indiana. Recently, we announced the SUN Community Solar Workshops will be held later this month.

The Indiana Association for Community Economic Development (IACED) announces three SUN Community Solar Workshops to be held at the end of October.

Solar Uniting Neighbors (SUN) is a financial incentive program for solar photovoltaic (PV) installations that brings together local leaders in the Indiana portion of the Indiana-Michigan (I&M) service territory of American Electric Power (AEP) to design, finance, and install solar PV projects. For a map of AEP’s I&M service territory, visit https://www.indianamichiganpower.com/info/facts/ServiceTerritory.aspx

Through the SUN program, IACED will offer technical and financial assistance to its members and other partners to install small solar energy projects (less than 0.5 megawatts). The grants likely will range from $20,000 to $30,000 for 10 to 17 separate installations.

IACED is hosting three Community Solar Workshops to educate local leaders about the project and strategies for implementing solar PV projects. The workshops will be held in Muncie, Fort Wayne, and South Bend – the urban centers within AEP’s I&M service territory, where electric utility ratepayers are eligible applicants. The workshops are free and individuals interested in attending are asked to register online before October 25. The dates, times, and registration links for the workshops are as follows:

Muncie Community Solar Workshop
Monday, October 27-- 8:30 am – 11:30 am
Register here: http://events.constantcontact.com/register/event?llr=sude6qbab&oeidk=a07e9wek0zmf3882e09

Fort Wayne Community Solar Workshop
Monday, October 27-- 2:00 pm – 5:00 pm
Register here: http://events.constantcontact.com/register/event?llr=sude6qbab&oeidk=a07e9wew16xb5ccc262

South Bend Community Solar Workshop

Tuesday, October 28-- 9:00 am – 12:00 pm
Register here: http://events.constantcontact.com/register/event?llr=sude6qbab&oeidk=a07e9weyeyx8c3759a4

The workshops will discuss the SUN program and components of a successful solar PV project including design, zoning and permitting, financing, installation and maintenance. Hypothetical project examples will be used to illustrate costs, power output, and return on investment scenarios, and case studies from existing solar PV projects will be highlighted. Solar PV installers, financing partners, and renewable energy consultants and advocates will be available to answer questions about solar PV projects and provide guidance to potential SUN program applicants.

“Solar and other types of renewable energy are a strategy for community sustainability and resiliency,” said Andy Fraizer, IACED executive director. “This program will provide resources for local organizations, remove barriers and teach neighborhoods and communities across the state about the benefits of solar energy projects.”

IACED has partnered with Sustainable Catalyst Partners (SCP) to design and implement the SUN program. Allyson Mitchell, President of SCP and Program Manager for the SUN program, is thrilled to leverage the IACED member network to host and gather potential applicants for these workshops. “IACED brings their reputation for relevant and valuable community trainings to an engaged, passionate membership of community leaders as workshop attendees, and I am honored to develop and administer this program and these workshops in the collaborative spirit exemplified by IACED’s mission and practice.”

“IACED’s sole goal is to help local leaders and residents build and revitalize communities across the state,” said Andy Fraizer, IACED executive director. “We are excited to work with SCP to host these workshops to build capacity for solar installations in communities in Indiana. Our partners in north and northeast Indiana will benefit not only from the available grant funding, but from the opportunity to learn about the components of solar PV projects and discover resources within their communities for implementing them. The goal is to build a legacy of increased capacity for community solar projects.”

Following the three Community Solar Workshops, interested applicants will be required to submit a letter of intent. In the two-page letter, potential project sponsors will outline project concepts, describe partners, outline funding strategies, and define how the project will meet program requirements, including matching funds. Qualified applicants will be invited to respond to a Request for Proposals (RFP). RFP submittals will be reviewed in spring 2015 and financial awards will be distributed in summer and fall 2015.

For more information on the SUN Program or the SUN Community Solar Workshops, contact Allyson Mitchell at sun@iaced.org

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About IACED IACED is a statewide organization that supports a network of organizations that builds vital communities and resilient families. It advocates for public policies and assists members and community partners in developing solutions that engage local leaders in rebuilding and revitalizing Indiana communities and neighborhoods. IACED has worked alongside its members in Elkhart, Fort Wayne, South Bend and Evansville and other communities on a variety of comprehensive community development strategies.

About SCP SCP is a sustainability planning and consulting firm in Indianapolis that assists clients in understanding the breadth of sustainability principles, creating more sustainable policies and operations, and identifying and solving problems for a more profitable, equitable and sustainable outcome. In addition to sustainability planning and consulting, SCP performs strategic team building from an independent third-party perspective to achieve our clients’ sustainability goals.

FYI: Laura Ann Arnold with The Arnold Group is serving as a Technical Consultant to this program. Laura.Arnold@thearnoldgroup.biz or (317) 635-1701.

Also see these past posts:

http://www.indianadg.net/iaced-using-400000-for-solar-uniting-neighbors-sun-grant-program-funded-by-aepepa-settlement/

http://www.indianadg.net/aep-agrees-to-retire-3-coal-plants-including-tanners-creek-in-indiana/

Tipmont (IN) REMC to Unveil 240-panel solar PV for Community Solar Program on 10/10/14

Posted by Laura Arnold / October 08, 2014 / Posted in Uncategorized / No Comments

REMC to Showcase New Solar Farm

InsideINdianaBusiness.com Report

Linden-based Tipmont REMC is set Friday to unveil a 240-panel solar array. The energy cooperative will also detail a new community solar program for customers in its eight-county service area.

October 7, 2014

News Release

LINDEN, Ind. - Representatives of Tipmont REMC, including Ron Holcomb, chief executive officer will unveil a new solar array installed at Tipmont REMC and announce Tipmont's Community Solar Program.

When:
Friday, October 10, 2014
10 a.m., brief news conference
9 a.m. to noon, open house and tour of 240-panel solar array

Where:
Tipmont REMC headquarters in Linden

Why:
This is Indiana's first Community Solar Array, allowing members (those served by) Tipmont REMC to purchase energy from the solar panels and receive credits on their electric energy bills from Tipmont.

Founded in 1939 and headquartered in Linden, Tipmont REMC is a member-owned cooperative providing electric service to some 21,000 members, primarily in Tippecanoe, Fountain, and Montgomery counties as well as portions of Benton, Boone, Carroll, Clinton and White counties.

Tipmont is a Touchstone Energy Cooperative, a national alliance of local, consumer-owned electric cooperatives providing high standards of service and dedicated to serving members with integrity, accountability, innovation and commitment to community.

Ft. Wayne Newspaper Editorial Says Benefits of ‘Energizing Indiana’ will be hard to top

Posted by Laura Arnold / September 25, 2014 / Posted in 2014 Indiana General Assembly / 2 Comments

Energy well spent

Benefits of Energizing Indiana will be hard to top

Published: September 25, 2014 3:00 a.m.

Illustration by Gregg Bender | The Journal Gazette

Who could be against energy conservation? Certainly not the Indiana General Assembly, or Gov. Mike Pence. Legislators who fought to terminate the highly successful Energizing Indiana program at the end of this year promised that this was just a “pause” to make the state's conservation efforts more effective.

Pence let that bill become law without his signature to signal that despite his concerns about Energizing Indiana, he was solidly behind the idea of helping Hoosiers make their electric power use more efficient.

But being for conservation isn't enough, especially when you're letting a program die that was getting results. Lawmakers who were willing to see the program die have so far been vague on how it will be replaced.

Last week, a legislative study committee heard the results of a study by the respected Energy Center of Wisconsin, which had helped the Indiana Utility Regulatory Commission set up the ambitious energy conservation program that began in 2012.

The study confirmed that Energizing Indiana had been a success. The program offers energy audits and assistance for residences and businesses, helping homeowners weatherize, insulate and use lighting more efficiently, and encouraging commercial and industrial operations to upgrade to more-efficient equipment. The efforts have reduced electricity use by hundreds of millions of kilowatt-hours and saved individuals and companies millions of dollars.

According to the report, produced under the auspices of the Indiana Utility Regulatory Commission, every dollar invested in Energizing Indiana's efforts has produced more than $3 in benefits. The commercial and industrial efforts have been even more successful, yielding more than $5 worth of benefits for every dollar invested.

Those figures refer to the general benefits of energy conservation – separate from the immediate savings that residents or business operators may realize.

“If you reduce the amount of electricity that's used in your home, there's less demand on the system,” said Natalie Derrickson, communications manager for the IURC. If homes and businesses are reducing energy consumption, “there's less need for energy to be created.” Reducing the need for new production capacity helps hold down the price of energy as well as benefiting the environment.

According to the IURC, commercial and industrial customers alone saved 294,986 kilowatt-hours of electricity in 2012 directly because of Energizing Indiana programs. In 2013, that savings increased by 72 percent, to 508,178 kilowatt hours, Derrickson said.

Some on the legislative study commission did not seem impressed with the savings in money and energy.

State Sen. Jim Merritt, R-Indianapolis, who wrote the bill to kill the program, contends that the costs of Energizing Indiana would have continued to go up, but further benefits would have been harder and harder to achieve. Merritt said he wants to work with constituents, power companies and the administration to replace the program with something that's less costly and more helpful to all consumers, Brandon Smith of the Indiana Public Broadcasting System reported.

Merritt's approach sets a very high goal – to construct a successor to Energizing Indiana that works even better than this demonstrably successful program. Let's hope the effort proves serious and sincere.

USDA Announces Rural Energy for America Program (REAP) Grants; 13 Indiana projects funded for $353,533

Posted by Laura Arnold / September 25, 2014 / Posted in Uncategorized / No Comments

USDA REAP grants in Indiana total $355,533 with $73,984 or 21% going to solar projects.

Image result for Agriculture Secretary Tom Vilsack

Thomas James "Tom" Vilsack is an American politician who has served as the United States Secretary of Agriculture since 2009. A member of the Democratic Party, Vilsack served as the 40th Governor of Iowa from 1999 to 2007.

September 19, 2014

News Release

BUNN, N.C. -- Agriculture Secretary Tom Vilsack today announced that USDA is investing in 540 renewable energy and energy efficiency projects nationwide.

“These loan guarantees and grants will have far-reaching impacts nationwide, particularly in the rural communities where these projects are located,” Vilsack said. “Investing in renewable energy and energy efficiency will continue the unprecedented increase in home-grown energy sources and American energy independence we’ve seen in recent years. This is creating jobs, providing new economic opportunities and leading the way to a more secure energy future.”

Secretary Vilsack made the announcement while in North Carolina to highlight USDA's investments in rural renewable energy projects, as part of the Obama Administration's 'all-of-the-above' energy strategy. It is the most recent of a series of USDA actions to strengthen the country’s energy sector. Two weeks ago, Vilsack announced a $105 million loan guarantee to a company that will produce jet fuel from municipal solid waste.

Today’s funding is being provided through USDA Rural Development’s Rural Energy for America Program (REAP). REAP was created by the 2008 Farm Bill and was reauthorized by the recently passed 2014 Farm Bill.

The announcement comes on a day when President Obama is announcing new executive actions to further advance the development of solar technologies across the country. These new investments in solar will reduce America's energy consumption, cut carbon pollution by nearly 300 million metric tons – equivalent to taking more than 60 million cars off the road for a year – and save businesses nearly $45 billion on their energy bills. The renewed effort to invest in solar energy also includes commitments from a broad coalition of 50 public and private sector partners, including leading industry, community development organizations and housing providers in 28 states. To learn more about this new Obama Administration initiative to increase the use of solar power, visit the White House website.

“USDA is proud to play a key role in Obama Administration’s efforts to promote the use of solar technologies," Vilsack said. "Of the REAP projects funded today, 240 projects are for solar investments of $5.2 million in grants and $55.3 million in loans.”

During Secretary Vilsack's trip to North Carolina, he visited Progress Solar in Bunn, N.C., which received a $3.4 million REAP loan guarantee in 2012 for installation of a solar array. Progress Solar now produces enough solar energy to power 540 average-sized homes each year. The 4.5 megawatt array was developed by North Carolina-based O2 Energies, Inc. The Progress Solar site is a dual-use solar power plant and a working farm where a 10th generation farming family raises free range sheep and lambs. The project serves as a test site for herd management best practices on a solar farm, and the goal is to model future collaborative efforts that marry solar-energy production with agriculture production. This is the seventh solar farm venture that O2 Energies has developed in North Carolina.

In North Carolina alone, Vilsack announced $55.3 million in new REAP program loan guarantees and grants for 22 solar energy projects. For example, USDA is awarding a $3 million loan guarantee to Broadway Solar Center, LLC to help finance a 5 megawatt solar array in Columbus County, a $4.9 million loan guarantee for a similar project in Hertford County and a $2.1 million guarantee for a project in Warren County.

In total, Vilsack announced $68 million in REAP loan guarantees and grants today. Funding is contingent upon the recipients meeting the terms of the loan or grant agreement.

Eligible agricultural producers and rural small businesses may use REAP funds to make energy efficiency improvements or install renewable energy systems including solar, wind, renewable biomass (including anaerobic digesters), small hydroelectric, ocean energy, hydrogen, and geothermal.

Since the start of the Obama Administration, REAP has supported more than 8,800 renewable energy and energy efficiency projects nationwide. During this period, USDA has provided more than $276 million in grants and $268 million in loan guarantees to agricultural producers and rural small business owners.

President Obama’s historic investments in rural America have made our rural communities stronger. Under his leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America's economy, small towns and rural communities.

Indiana:

-AFFORDABLE ASPHALT PAVING, LLC | $14,125 | SOLAR | SOLAR PANELS TO GENERATE ELECTRICITY

-BRAD STARR FARMS, INC. | $32,323 | ENERGY EFFICIENCY | GRAIN DRYER

-CREEKSIDE FARMS, INC. | $11,200 | SOLAR | SOLAR PV – 24,000 kWh/yr

-D&D MEAT PROCESSING, LLC. | $10,450 | SOLAR | SOLAR PV – 13,800 kWh/yr

-DUCK IT FARM, LLC. | $49,761 | ENERGY EFFICIENCY | UPGRADE LIGHTING, VENT, HVAC FOR POULTRY HOUSE

-KBS FARMS, LLC | $49,978 | ENERGY EFFICIENCY | GRAIN DRYER

-LOWES PELLETS & GRAIN INC | $28,477 | ENERGY EFFICIENCY | HVAC, INSULATION, ETC.

-MARTIN, DARRELL | $38,209 | SOLAR | SOLAR – 76,937 kWh/yr

-MCCORMICK FARMS, INC. | $8,653 | ENERGY EFFICIENCY | IRRIGATION

-NEWLIN'S WELDING & TANK MAINTENANCE | $7,049 | ENERGY EFFICIENCY | LIGHTING

-SHEL-MAR FARMS, INC. | $21,312 | ENERGY EFFICIENCY | GRAIN DRYER

-SPEAR CORPORATION | $49,875 | GEOTHERMAL | UPGRADE HVAC SYSTEM TO GEOTHERMAL

-STEVENSON FARMS | $32,121 | ENERGY EFFICIENCY | GRAIN DRYER

Source: U.S. Department of Agriculture

Link to complete listing of USDA REAP grant awards:

http://www.rurdev.usda.gov/supportdocuments/rdREAPProjectsSept2014.pdf