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San Antonio’s Energy Policy: Trajectory of
Transition
Lanny SinkinExecutive DirectorSolar San AntonioPresentation to
King William Neighborhood AssociationAugust 3, 2011
Solar San Antonio
•Created in 1999 by William Sinkin (86 years after birth on King William Street)
•Non-profit advocacy organization
•First years spent on educating through workshops, power breakfasts, seminars
•More recently focused on building solar industry in San Antonio in household and small commercial area.
City Public Service
•Purchased by City of San Antonio 1942
•Established with independent Board
•Board is self perpetuating
•Powers of City Council limited
•Bond and rate approval
•Confirmation of new Board members
Traditional Utility Model
•Utility viewed as simply energy provider
•Large central generators built as needed
•Little or no public involvement in decision-making
•Service orientation at the customer level
•Sell power, collect revenue, transfer 14% to City general fund
South Texas Nuclear Project
•City Public Service Board voted to join partnership
•Little public discussion
•Approval requested from City Council
•First public involvement
Citizen Involvement
•City Council planned to vote on largest financial decision in the City’s history without one public hearing
•Citizens demanded a public hearing
•Council agreed to public hearing and to pay expenses to bring nationally-recognized opponent to testify
•One hearing, then decision made
Citizen Movement
•Organizations formed to oppose nuclear project
•Linked organizations in Austin and San Antonio
•Public forums/debates
•Media coverage
Troubled Project
•Cost overruns
•Delays
•Safety inspection break down
•Federal enforcement action
•Design and engineering break down
•Contractor fired
Increased Citizen Involvement
•CPS Energy Citizens Advisory Committee created in 1997.
•Ten representatives recommended by City Council
•Five members appointed by CPS Energy Board of Directors
•Briefed monthly on utility-related projects, programs, and strategies - confidential
Long Term Plans
•February 2010 - City Council adopts Mission Verde Sustainability Plan
•Distributed Energy System
•Green Jobs Development
•Sustainable Buildings
•Multi-modal Transportation System
•Green One Stop Center
Long Term Plans (cont)
• CPS Energy adopts Vision 2020 calling for 20% renewables by 2020
• Chair Aurora Geis brings in Jeremy Rifkin; CPS Energy adopts a Third Industrial Revolution plan which calls for
• Energy efficiency at the base
• Pillar 1 Distributed Renewable Energy
• Pillar II Buildings as Power Plant
• Pillar III Energy Storage
• Pillar IV Smart Grids and Infrastructure
STNP 3 and 4•$350 million spent on preliminary
design and engineering without going to City Council = cash reserves
•Community meetings to explain CPS Energy commitment
•Extensive citizen opposition
•City Council cost concerns
Scandal Sinks Project
•October 2009 City Council planning first vote on $400 million bonding authority
•Hidden cost overrun of $4 billion surfaces two days before vote
•Mayor cancels vote
•Investigation initiated
•Litigation ensues
LeadershipTransition
•Top management personnel resign
•Chair CPS Board resigns
•January 2010 new Chairman Charles Foster
•August 2010 new CEO Doyle Beneby recruited by Foster
•Generally hostile attitude toward solar from traditional utility executives - solar = lost revenue
Solar Opportunity•2007 CPS Energy planned one
megawatt solar plant because solar was experimental.
•New CEO in 2010 previously involved in large inner city solar project, committed to transition to renewables
•Two key changes
•CPS Energy leverage to attract new companies
•CPS Energy as economic development partner
New Companies•Five new companies to open
headquarters in San Antonio
•Street light manufacturer
•Electrically cooled truck bed assembly
•Solar manufacturer/integrator
•Energy efficiency equipment
•Clean coal
Rapid Solar Expansion
•November 2010 - Blue Wing Project - 16 megawatts
•Decision made to decommission old coal
•Contract signed for additional 30 megawatts from SunEdison
•RFP issued for 50 megawatts more calls for
•manufacturing or assembly plant
•education component
•research and development component
Rapid Solar Deployment
•111 proposals received in response to 50 MW RFP
•Price per kilowatt hour highly competitive
•RFP revised to include up to 400 MW over next five years
•Outstanding proposals received
Solar at the Household Level
•Focus of Solar San Antonio
•Program to overcome cost and information barriers
•local lending institutions offering solar loan products - San Antonio Credit Union
•Solar San Antonio offering assistance and connecting with local solar industry
Incentives
•CPS Energy Rebate = approximately 40% of cost
•Federal Tax Credit = 30% of total minus rebate
•Commercial - 30% federal cash grant and 100% bonus depreciation in 2011
Bring Solar Home Campaign
•Begun September 2010
•Microsite on website = BringSolarHome.com
•or call 210-22-SOLAR
•Application form on website
•Referral by Solar San Antonio to three solar companies
•Solar companies make appointment and provide information, options, and bids
Beta Test Results•Close to 600 applications
•75 installations
•Value of installations $2.5 to $3 million
•Adding 1/2 megawatt to CPS Energy distributed energy portfolio
•Expenditures by Solar San Antonio for staff, materials, and advertising = $60,000
Bring Solar Home Phase II
•Based on “lessons learned,” revised campaign initiated on May 1, 2011
•Additional funding resources permitting expanded campaign
•Additional lending institutions participation - Frost Bank and BBVA Compass
•More than 250 applications received to date
Solar and Historical Districts•Integration of solar on to historical
buildings is challenging
•More intensive examination on case by case basis
•Ongoing discussion about best practices
•Solar San Antonio works with City Office of Historic Preservation
