In 2012 the City of Austin developed the Value of Solar Tariff or VOS, and set 12.8 cents as the amount it would credit consumers for the solar you produce on your roof (you pay for 100% of all the electricity you use regardless if it is provided by AE or produced on your roof). In 2014 AE dropped the VOS to 10.8 cents, with no city council approval and no input from consumers.
For 2015 the City Council is finally having a public discussion about the VOS. In June I spoke at the City Council Committee on Austin Energy.
Two improvements are being proposed by Austin Energy.
1. Any annual credit gained from a homeowners rooftop solar panels will be rolled over from year to year rather than zeroed out.
2. The VOS will now be a rolling average of the previous four (4) years, and VOS for the current year, based on a complex formula. For 2015 the underlying VOS is going down from 10.8 cents to 10.0 cents, but because it is now a rolling average the 2015 VOS will be set at 11.3 cents. Based on the rolling average the 2016 VOS is projected to be 10.9 and 2017 will be 10.7. 2018 although not included could be around 10.3, all the while NG prices are rising.
Austin Energy’s General Manger, Larry Weiss and VP Deborah Kimberly presented the 2015 update to the VOS to the City Council.
During the first presentation, about the overall Power Supply Adjustment (PSA) Austin Energy talked about how they were going to have to raise everyone's PSA because the cost of Natural Gas is going up.
And then 15 minutes later in the second presentation about the VOS, AE talked about how the VOS was going to go down because the guaranteed price of NG used in the formal was going down.
Council Member Laura Morrison and Chris Riley asked the majority of the questions, and they noted the above disconnect in NG pricing. They talked about the need for the VOS to reflect the huge increase in the ERCOT Offer Cap from $3,000 per MWH in 2012 to $7,000 on June 1, 2014 and then $9,000 on June 1, 2015.
For 2015 the City Council is finally having a public discussion about the VOS. In June I spoke at the City Council Committee on Austin Energy.
Two improvements are being proposed by Austin Energy.
1. Any annual credit gained from a homeowners rooftop solar panels will be rolled over from year to year rather than zeroed out.
2. The VOS will now be a rolling average of the previous four (4) years, and VOS for the current year, based on a complex formula. For 2015 the underlying VOS is going down from 10.8 cents to 10.0 cents, but because it is now a rolling average the 2015 VOS will be set at 11.3 cents. Based on the rolling average the 2016 VOS is projected to be 10.9 and 2017 will be 10.7. 2018 although not included could be around 10.3, all the while NG prices are rising.
Austin Energy’s General Manger, Larry Weiss and VP Deborah Kimberly presented the 2015 update to the VOS to the City Council.
During the first presentation, about the overall Power Supply Adjustment (PSA) Austin Energy talked about how they were going to have to raise everyone's PSA because the cost of Natural Gas is going up.
And then 15 minutes later in the second presentation about the VOS, AE talked about how the VOS was going to go down because the guaranteed price of NG used in the formal was going down.
Council Member Laura Morrison and Chris Riley asked the majority of the questions, and they noted the above disconnect in NG pricing. They talked about the need for the VOS to reflect the huge increase in the ERCOT Offer Cap from $3,000 per MWH in 2012 to $7,000 on June 1, 2014 and then $9,000 on June 1, 2015.
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