Final IPL Feed-in Tariff Effective March 30, 2010

Earlier this year, the Indiana Utility Regulatory Commission (IURC) approved the DSM order for IPL that contained a Feed-in Tariff (FiT) or Rate REP (Renewable Energy Production)  

See https://indianadg.wordpress.com/2010/02/11/iurc-approves-ipl-feed-in-tariff-or-rate-rep-renewable-energy-production/

Summary of Rate REP (Renewable Energy Production)

by John Haselden, IPL,  john.haselden@aes.com

 IPL’s new Rate REP, approved by the Indiana Utility Regulatory Commission (“IURC”) in Cause No. 43623, authorizes IPL to purchase renewable energy produced by wind, solar and biomass generated by its customers’ projects connected to IPL’s distribution system in Indianapolis, Indiana. It also offers the option for customers to contract the production for up to 10 years which will provide pricing certainty over the long term. The rates are tailored to the size and technology of the production and vary from 7.5 ¢/kWh for large wind turbines to 24 ¢/kWh for solar projects up to 100 kW of nameplate capacity.

Sometimes called an “Advanced Renewable Contract” or a renewable energy “Feed-in Tariff,” Rate REP is another step taken by IPL to help develop renewable energy investments in Indiana for the benefit of its customers. In an agreement previously approved by the IURC, IPL currently purchases the power from the 106 MW Hoosier Wind Farm located in Benton County, Indiana.

IPL is a low cost provider of electricity which has made it difficult for alternative energy technologies, which typically have high capital costs, to compete on an economic basis. However, with the current federal tax incentives coupled with IPL’s Rate REP compensation, such projects can be economically viable.

A key requirement of Rate REP is that all of the renewable energy production is separately metered and purchased by IPL. The customer continues to purchase all of their electrical energy requirements from IPL. IPL retains all environmental attributes such as Renewable Energy Credits (“RECs”), Greenhouse Gas (“GHG”) Offsets, etc. to be used or sold for the benefit of its customers.  For those customers who wish to purchase renewable energy, IPL offers this product through its Green Power program at one of the lowest costs in the US.

Getting Started:

The first step is to obtain approval for interconnection to IPL’s electric system and enter into an interconnection agreement. Standard forms for this process are available at www.iplpower.com under the Business tab or by calling IPL.

Next, contact IPL about participation in Rate REP. One or more IPL meters will be required and located in an acceptable location in order to meter the output of the renewable energy generator. IPL must have clear access to meters. This can be determined in the interconnection design process.

Choose Your Pricing Method:

Pricing shown on the current approved Rate REP is not fixed. IPL may, with IURC approval, change pricing as cost variables significantly change. Such variables include tax effects, system costs, efficiency improvements, etc. To mitigate the risk of changing prices, a customer may enter into a pricing contract with IPL for up to ten years. Such contracts will generally allow customers to lock in pricing which will include an annual price escalation (fixed percentage) and includes other terms and conditions. There are no financial penalties for performance or quotas for energy production. All long-term contracts require the approval of the IURC.

Potential participants should be aware that IPL is only authorized to offer Rate REP and long-term contracts for a period of three years. Nine months prior to that time, IPL is required to present recommendations to the IURC for approval to continue the rate, modify I, or possibly terminate the rate, if appropriate.

IPL Rate REP_Effective_Mar 30 2010