Utility Ownership of Renewable Energy Assets

Utility Ownership of Renewable Energy Assets

October 28-29, 2021 | Online :: Central Time

Overview

Direct ownership of solar assets by regulated utilities is a complicated proposition in most states and under most circumstances.  Enough exceptions exist so that it’s not correct to characterize utility-owned solar as infeasible in most cases.  In fact, many holding companies that own regulated utilities also develop and manage renewable energy assets, including solar, through merchant organizations that some consider utilities.  Even so, to this point in its maturity as a generation type, solar as a portfolio asset follows the more familiar paradigm of third party as developer and owner, and utility as off-taker through a power purchase agreement (PPA).

Shoots are emerging on the landscape, however, that suggest policy-makers, utilities and – most importantly – the market may be shifting their perspectives on this solar development convention.  The mushrooming demand and accelerating competition for solar assets across the consumer, corporate and power system user spectrum are important drivers.  They may erode regulatory, accounting and tax provisions that have impeded regulated utility solar asset ownership. 

This course will evaluate the elements contributing to practices that dominate the renewable energy project development and asset ownership landscape.  In addition, it will examine the shifts underway contributing to the perception that more and wider utility engagement in solar asset ownership is a real prospect.  The program will also spell out the paths that utilities themselves are pursuing to convert the possibility of solar asset ownership into their rate- based portfolios.

Learning Outcomes

Attendees will gain practical skills and insights on how to:

  • Review the state of the utility solar asset market
  • Discuss the full range of renewable energy resource supply options and scenarios
  • Examine how utilities are working within the normalization rules applicable to utility accounting to accommodate renewable energy asset ownership
  • Assess how utilities are addressing the net operating loss for tax purposes (NOL) to accommodate renewable energy asset ownership
  • Describe the influence that tax Incentives and regulatory policies have on utility asset decisions
  • Evaluate state + federal policy and tax outlook/scenarios
  • Analyze the economics and finance of transactions that favor utility ownership of renewable energy assets
  • Assess the considerations associated with the various O&M options to utilities when they own renewable energy assets

Agenda

Thursday, October 28, 2021 : Central Time

8:45 – 9:00 a.m.
Log In and Welcome

12:15 – 1:00 p.m.
Lunch Break

9:00 a.m. – 4:45 p.m.
Course Timing

 

9:00 a.m. – 12:15 p.m.

  1. State Of The Utility Renewable Energy Asset Market
    • ISO’s and regulated markets, structures, responsibilities
    • Renewable energy capacity in each region or state
    • Ownership by type
    • Available off-take solutions
      • PPAs
      • Hedges
      • Rate-base assets
  1. Utility Market Participants & Roles
    • IOU’s (regulated, operating vs unregulated, merchant), Muni, Coop, Public Power
      • Relationship to IPP, Infrastructure Funds/Private Equity (PE)
      • Relationship to Federal Power Agencies
    • Regulatory/capital approval process of the participants

12:15 – 1:00 p.m. :: Lunch Break

1:00 – 4:45 p.m.

  • Utility-Specific Criteria
    • Regulatory Compact
    • Normalization Rules Applicable to Utility Accounting
    • Net Operating Loss for Tax Purposes (NOL)
    • Internal capabilities and balance sheet considerations
  1. How Incentives/Drivers Influence The Utility Asset Decision
    • RPS (Define and status by state) and state incentives.
    • REC’s, carbon credits….
    • ESG Goals
    • ITC/PTC
      • How does tax equity work, grandfathering (grandfathering matters because it is a pre-NTP expense that is at-risk – regulated utilities cannot ratebase such an expense)
  1. What Utilities Need To Know And How They Need To Position Vis-À-Vis TEI Structuring & Tax Treatment
    • Partnership Flip, Sale-Leaseback, Inverted Lease, Pre-Pay
    • Status of Incentives
    • How does a Build Transfer Agreement (BTA) and/or utility cash equity investment differ from a traditional tax equity financing?
    • Tax equity as acquisition financing
    • Coordination with seller

4:45 p.m. :: Course Adjourns for Day

 

Friday, October 29, 2021 : Central Time

8:45 – 9:00 a.m.
Log In

9:00 a.m. – 12:15 p.m.
Course Timing

 

9:00 a.m. – 12:15 p.m.

  • Economics / Finance
    • PPA
      • Assuming TEI
      • 15 year tenor
      • Typical flip timing
      • Buyout clause
    • Utility Self-build
      • With and without direct pay
      • Assume amortization schedule & bond finance
    • BTA/BOT transactions
    • Utility BTA/BOT of cash equity shares @ NTP or COD
      • Implications for rate-basing
      • Risks
    • Full BOT at COD
  • Operations
    • Self-perform vs 3rd party
    • FOM (Fixed O&M)
    • VOM (Variable O&M)
    • Balancing
    • Transportation (Basis or tariff)
    • Lifecycle cost considerations
  • State + Federal Policy & Tax Outlook/Scenarios
    • Under discussion
      • Direct Pay (Cash Grant) and potential implications
      • What would this mean for non-tax paying entities?
    • What if normalization rules of utility accounting are relaxed to accommodate the development and ownership of solar and other renewable energy assets under certain conditions?

12:15 p.m. :: Course Adjournment

Instructors

David Daley, Regional Practice Manager – Power Generation, Burns & McDonnell

David Daley is Regional Practice Manager of Power Generation at joined Burns & McDonnell.  He joined the engineering firm in 2016 as leader of a new group in Houston focusing on development of power generation projects. Mr. Daley has a 25-year resume of developing and optimizing merchant and cogeneration power facilities and negotiating power agreements with utilities and large power users. At Burns & McDonnell, he will lead efforts to support utilities and private power owners with a full scope of engineering design, procurement and construction services for new generation and existing plant retrofit projects.  Previously, he was senior vice president, operations and development at Perennial Power Holdings. There he led efforts to develop and grow a portfolio of power generation assets providing electricity, steam and process water to utilities, refineries and other industrial clients. Mr. Daley also has experience at BP Alternative Energy, Chevron and Texaco. He began his career with GHG/Lockheed as an engineer on the space shuttle program at the NASA Johnson Space Center.


Jim Piotrowski, Director – Solar Generation and Distributed Energy Resources, APS

Jim Piotrowski is Director of Solar Generation and Distributed Energy Resources at Arizona Public Service (APS).  He has worked at the utility for almost four decades, the majority of which time he has held the Director of Solar Generation position.  In that capacity, he leads a team of APS staff responsible for the management of the company’s solar and distributed resources.


Andrew Campbell, Director – Energy Supply & Optimization, Northern Indiana Public Service Company

Andrew Campbell is Director of Energy Supply & Optimization at Northern Indiana Public Service Company.  His experience spans supply and demand planning, wholesale energy markets, commercial negotiations: wholesale energy/asset acquisitions/interconnections, coordination of request for proposals to locate and evaluate potential transactions, and tax equity financing/diligence. He has executed commercial agreements supporting some $5 billion in capital investment, with agreements covering 3,400+ MW, nearly all of that being renewable forms of generation to include wind, solar, and solar paired with battery storage.  Mr. Campbell began his employment with NIPSCO in 2009 as an Operations Analysis Engineer, later promoted to the Manager of Operations & Market Support then assumed the role of  Manager of Planning & Regulatory Support.  He was promoted to his current role In 2017.  Prior to joining NIPSCO, he worked as an engineer for an industrial manufacturing company that specialized in engine attachments for marine and small power generation applications. He is a 10-year veteran of the Army National Guard and earned a Bachelor of Science degree in Mechanical Engineering from Purdue University Northwest and an MBA from the University of Notre Dame.


Lon Huber, Vice President – Rate Design and Strategic Solutions, Duke Energy (invited)

Lon Huber is a Vice President at Duke Energy overseeing the development, analysis, and implementation of pricing and rate design for the collection of over $20 billion in regulated revenues per year.  As part of this position, he is tasked with leading strategies, innovation, and development of new rate designs in response to changing customer needs in all ten jurisdictions of Duke Energy.   Before joining Duke in 2019, Mr. Huber led Navigant’s North American retail regulatory offering. In this capacity, he provided expert witness testimony, proceeding strategy, and pricing solutions on behalf of clients across the energy sector.  he has received numerous awards for his creative solutions to the electricity industry’s most pressing issues, including the top honor from the Energy Storage Association as well as the Utility Dive’s Innovator of the Year award.

Online Delivery

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

  • IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
  • You will receive a meeting invitation will include a link to join the meeting.
  • Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
    • You will need to join the appropriate meeting at the appropriate time.
  • If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
  • The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

Register

Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event

Event Standard RateAttendees
Single Connection - Utility Ownership of Renewable Energy AssetsUS $ 1195.00
Pack of 5 connectionsUS $ 4,780.00
Pack of 10 ConnectionsUS $ 8,365.00
Pack of 20 ConnectionsUS $ 14,340.00
Call us at 303.770.8800 if you have any specific questions on the volume discounts
* all other discounts do not apply to license packs

This event has the following related events:

Build-Transfer Agreement FundamentalsUS $ 1295.00
Pack of 5 connectionsUS $ 5,180.00
Pack of 10 ConnectionsUS $ 9,065.00
Pack of 20 ConnectionsUS $ 15,540.00

By registering I indicate I agree with EUCI's privacy policy and understand I may receive emailed reports, articles, event invitations and other information related to products and services from EUCI and any of our business partners. I understand I may unsubscribe at any time by clicking the link included in emails.

Take advantage of these discounts!

  • Attend the Course and Build-Transfer Agreement Fundamentals and pay US $ 2,295.00 per attendee (save US $ 195.00 each)

Cancellation Policy

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before September 24, 2021 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

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CEUs

Credits

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EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.0 CEUs for this event.

Instructional Methods

Case studies and PowerPoint presentations will be used in this program.

Requirements For Successful Completion Of Program

Participants must log in for the entirety of the event to be eligible for continuing education credit.

Who Should Attend

  • Integrated resource planning
  • Strategic and long-range planning
  • Forecasting and analysis
  • Transmission planning
  • Renewable energy planning
  • State regulatory and commission staff
  • Regulatory affairs
  • Asset management
  • Financial analysis
  • Treasury

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