News

SMUD reports 'huge' response from feed-in tariff opportunity


February 15, 2010 issue of Public Power Weekly

In the first week of the Sacramento Municipal Utility District's standard
tariff for qualifying renewable and combined heat and power generating
facilities, the utility received applications for its feed-in tariff that
exceed the program's 100-megawatt capacity, the California utility said. All
of the applications were for solar photovoltaic technology.

"We are very pleased with the interest and heartened by the possibility of
bringing another 100 MW of clean electricity to the area," said Jim Shetler,
SMUD's assistant general manager of energy supply.

The program is designed to remove barriers to interconnection with the
utility by providing standard rates and contract conditions. It also will
help the region by protecting the environment, saving money and reducing
climate impacts of electrical generation, SMUD said.

The day after applications were received, SMUD posted a list of accepted
applications, including location and size information, on its Web site and
updated the list as additional applications were accepted. To maintain
confidentiality, the names of counter-parties will not be announced until
contracts have been signed, the municipal utility said.

Last September, the SMUD board of directors approved a feed-in tariff, or
FIT, for the purchase of energy from eligible renewable energy resources and
combined heat and power installations. Under a feed-in tariff, a utility
offers standard published rates and standard contract terms for generation
that qualifies under the feed-in tariff criteria.

SMUD said it is on track to become the first large California utility to
receive 20% of its energy from renewable resources.