Corporate

Non-Residential Distributed Generation FAQs

Program Overview

What is Dominion’s Non-Residential Distributed Generation program?

The Dominion Virginia Power (DVP) Non-Residential Distributed Generation Program will pay participating customers an incentive to use their on-site backup generation to reduce consumption of electricity from DVP when electrical demand is high.  Participating customers operate their on-site backup generation to supply part or all of their electrical needs during load control events called by DVP.  These events typically last 4-6 hours and are limited to a total of 120 hours per year.

What is a control event?

A control event is a specific period of time during which participating customers are required to reduce electrical demand from DVP and use on-site backup generation as supplementary power.

Does participation in the Program affect a customer’s ability to use on-site generation during periods outside of a control event?

No.

When can a control event be called?

A control event may be called at any time with at least 30 minutes advance notice to PowerSecure.

How long will a control event last?

Control events typically last four to six hours; however, during some instances, control events may be called for longer periods.  Up to a total of 120 hours of load control may be called in a calendar year.

How long will the program be offered?

The program has been approved by the Virginia State Corporation Commission for five-year implementation.

What is PowerSecure’s role in the program?

DVP has partnered with PowerSecure International, Inc. to implement the program and remotely operate and monitor enrolled backup generation equipment when called upon by DVP.  DVP selected PowerSecure because of their extensive experience with installation, remote operation and maintenance of backup generators and associated switchgear.

PowerSecure will enter into individual contracts with participating DVP customers and is responsible for providing incentive payments to participating customers either as a direct payment or in the form of discounted backup generation service or equipment.

Participation and Eligibility

Who is eligible to participate?

Non-residential customers of Dominion Virginia Power are eligible to participate in the program if they:

  1. purchase electricity pursuant to schedules other than Schedule CS, Schedule SG, Schedule 10, Schedule DP-1 or Schedule DP-2,
  2. have use of backup generation facilities of 200 kW or greater that are either owned by such customer or that are subject to a lease that is used as a financing instrument to facilitate the sale of such backup generation facilities to such customer, and
  3. agree to allow Vendor to dispatch such backup generation facilities as directed by DVP for up to 120 hours per year.  Load curtailment enrolled in this program may not simultaneously be enrolled in a demand response program offered by PJM Interconnection, L.L.C.

Participation by a customer is subject to approval by DVP and PowerSecure and is subject to available program funding.

Will it cost me anything to participate?

Participating customers may be required to install additional electrical metering at their cost.

What are the steps to participate?

You may contact PowerSecure International (757-284-9187) who is DVP’s implementation partner or your Key Account Representative.

What do I have to do once I enroll in the program?

Participating customers must provide information requested by DVP to ensure compliance with DVP’s Program requirements and must allow PowerSecure necessary access to install and maintain equipment necessary to remotely operate and monitor backup generation.

PowerSecure will manage load curtailment events and serve as the primary interface with the customer regarding Program implementation.

How long am I an enrolled in the program once I join?

The program has been approved for implementation for five years.  Once enrolled, either Dominion or the participating customer may terminate participation in the program within certain limitations. 

Who can I contact if I’m not sure about my eligibility?

PowerSecure International (757-284-9187) who is DVP’s Program implementation partner or your Key Account Representative.

Incentive Information

What is my incentive for participating?

Your incentive for participating is based on the amount of load curtailed and upon the amount of fuel consumed during load control events.  The formula for calculation of the incentive is below.  DVP has the right to adjust the payment to reflect actual load curtailed (see the Program Terms and Conditions for additional details.)

DVP will pay Vendor as consideration for its services an incentive payment each month (“Monthly Participation Payment”) based on:

  1. the amount of load curtailment enrolled and actually delivered during control events (“Load Curtailment Capability Payment”)
  2. the amount of fuel consumed during control events (“Fuel Payment”), and
  3. the amount of operations and maintenance fees incurred during control events (“Variable Operations & Maintenance Adder”).

The Monthly Participation Payment will be calculated as follows:

Monthly Participation Payment =
Load Curtailment Capability Payment + Fuel Payment + Variable Operations & Maintenance Adder

  1. The Load Curtailment Capability Payment for 2012 is equal to $4.67/kW-month, escalating annually, of load curtailment committed by the customer for dispatch by Vendor as directed by DVP, escalating annually commencing in the first payment period of 2013.
  2. The Fuel Payment is calculated on a monthly basis as (Fuel Index Price/0.14) x Generator Heat Rate (MMBTU/MWh) x Generator Output (MWh), where:

    Fuel Index Price - Closing price for Ultra-Low Sulfur No. 2 Diesel Fuel – New York Harbor (in $/gallon) set by the United States Energy Information Administration on the first working day of each month or other reasonably comparable index selected by the DVP from time to time - (http://tonto.eia.doe.gov/dnav/pet/pet_pri_spt_s1_d.htm).  DVP reserves the right to use comparable indices and calculation methodologies as necessary to accommodate fuel(s) other than Ultra-Low Sulfur #2 Diesel Fuel if a participating customer elects to use such other fuel(s).

    Generator Heat Rate – Heat Rate (in MMBTU/MWh) of backup generator unit as set forth in the individual agreement between the third party implementation contractor and customer.

    Generator Output – Metered generator output (in MWh) of dispatched operation delivered during all control events and any tests of enrolled backup generators called by DVP occurring within the monthly payment period.
  3. The Variable Operations and Maintenance Adder is equal to $3.00/MWhfor each metered MWh of dispatched operation delivered during all control events occurring within the monthly payment period.
When will I receive my incentive payment?

Monthly, unless other arrangements are requested from and approved by PowerSecure.

How will I receive my incentive payment?

The incentive may be provided in the form of a direct payment or in the form of discounted backup generation service or equipment from the program implementation vendor, PowerSecure.

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