Solar Economics

Solar Economics

Press release: For immediate release

Fishers Island Electric Corporation

Solar Economics
By Tom Siebens, Director
September 28, 2023

Context

Fishers Island Electric Corporation (“FIEC”)* has recently made a filing with the New York Public Service Commission (the “PSC”) as required to allow FIEC to interconnect with the island’s electricity distribution network a rooftop solar facility proposed by the Fishers Island Community Center (“FICC”) and another solar facility already built by Mr. Brad Burnham.

As part of that filing and in compliance with New York law and PSC policies, FIEC has proposed special tariff terms that will allow interconnection of both facilities with the island’s electricity network without awaiting the new electric rate structure that needs to be developed for FIEC to remain economically viable.

At present, FIEC’s revenues from sales of electricity do not cover its fixed costs for operating and maintaining the island’s electrical infrastructure. All revenues are applied to ongoing operations. FIEC does not pay dividends to shareholders.

Under its current rate structure, FIEC earns some of its revenue from a set minimum charge on each customer designed to cover administrative costs associated with metering, billing and basic customer service. Most of FIEC’s revenue comes from sales of electricity at regulated rates which are intended to cover its fixed costs to maintain the distribution network as well as its variable costs, primarily to purchase power as needed to meet demand.

Accommodating more solar facilities would reduce sales of electricity and further erode FIEC’s revenues. Revenue erosion with no replacement revenues would make it very challenging for FIEC to continue its mission for the community: providing reliable electric service to all customers.

The filing with the PSC accommodates the two solar facilities while FIEC develops a more sustainable rate structure.

Proposed Rate Accommodation

The filing provides that a customer with a residential-sized facility, like Mr. Burnham’s, will pay only for power drawn from the FIEC’s electric network. Under its current rate structure, FIEC will have no way to make up the shortfall in revenues needed to cover the fixed costs of operating and maintaining the island’s network. This adverse result would be magnified if more residential solar facilities were interconnected.

For FICC’s commercial scale facility, the filing proposes a tariff that will value, at FIEC’s applicable rates, the total network and solar power used by FICC and then deduct, as a credit to FICC, the solar power it uses, valued at FIEC’s cost to otherwise buy that amount of power from Groton.  This “avoided cost” formula has been used elsewhere in New York, is economically neutral for FIEC and is relatively easy to implement. FICC would still be paying its proportionate share of the fixed costs for the network.

Interim Limit on Solar Interconnections

The filing with the PSC will allow the interconnection of rooftop solar facilities with a combined generating capacity of up to 30 kW on terms that will accommodate both Mr. Burnham’s and FICC’s facilities. The limit is double what FIEC is obligated to interconnect under New York law.

Some have assumed that the proposed limit is permanent, preventing future development of solar on Fishers Island. That is not the case. The limit could be raised. For reasons explained below, this should be considered only after FIEC’s rate structure has been changed to ensure that its revenues always cover the fixed costs for operating and maintaining the electricity distribution network, regardless of how much network power customers actually use.

FIEC could accommodate more solar interconnections by simply increasing its existing rates for all customers. The increase would replace shortfalls in the revenues necessary to cover its fixed costs for the network infrastructure. However, under FIEC’s current rate structure, a rate increase, in effect, would recover disproportionately more of the fixed cost of the infrastructure from customers without rooftop solar. That outcome would be inequitable because customers with interconnected solar would continue to rely on the same infrastructure for power when their solar generation is inadequate to meet their electric demands.

Economically Viable Solution

The economically fair and sustainable solution for increasing the amount of interconnected solar generation is to change FIEC’s rate structure so that the fixed costs of the electric distribution network are matched by revenues from a fixed charge each customer pays to remain connected to the network.  Such a distribution charge is payable regardless of how much network power a customer consumes. As a result, the utility can afford to operate and maintain its network regardless of variations in the demands for network power. Rates for power actually consumed can be set and charged separately to cover the utility’s variable costs.

Redesigning FIEC’s rate structure will take time. FIEC’s new automated metering infrastructure (“AMI”) will be fully installed in the next few weeks and will be used to collect detailed data on power usage through next summer’s peak season. Independent utility rate consultants will use the AMI data to design a rate structure that equitably recovers FIEC’s costs using both fixed distribution charges for network access and variable rates for network power. The proposed rate structure will then be submitted to the PSC. New rates will not be implemented until the PSC completes a review and is satisfied as to their necessity and fairness.

Until rates can be redesigned, a limit on the amount of interconnected solar is necessary to avoid economically unsustainable revenue losses from lower sales of electricity and to avoid unfair cross-subsidies for solar paid by non-solar customers. Meantime, the limitation will nonetheless specifically accommodate the first two rooftop solar facilities seeking interconnection with the island’s electricity network.

* Fishers Island Electric Corporation is a New York corporation, regulated by the New York State Public Service Commission. It is managed and 51% owned by Fishers Island Utility Company, Inc. and 49% owned by Fishers Island Development Corporation.

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Fishers Island Utility Prepares for Hurricane Lee

Fishers Island Utility Prepares for Hurricane Lee

As is always the case with significant storms, the smart thing to do is to be prepared.

FIUC crews will be ready in the event of a power outage. We will do our best to restore power as soon as possible while keeping our employees safe. Our Utility employees are making preparations to all vehicles and equipment. We have contacted contractors on the island in the event that assistance is necessary.

Please be advised if warranted, the power may be purposely disconnected. This will be done in the event that sustained wind reaches unsafe levels to operate utility equipment. If this becomes necessary, utility crews will evaluate damage after the winds have subsided and will work to restore power as soon as possible.

To report an outage call: 1-844-461-5722

Please stay off the roads during the storm and away from any downed wires you may encounter outside your home/business or on the roads.

Here are a few windstorm preparation tips:

FOR YOUR BUSINESS:

  • Be certain to have backup power options if needed.
  • If you have onsite generation, check to see if you have sufficient fuel.
  • Secure outdoor equipment.
  • Test UPS’s
  • Charge your mobile devices and power banks.
  • Power Outage in the WorkplaceEmergency Plan Guide

FOR YOU, YOUR FAMILY AND YOUR HOME:

  • Make an emergency kit for at least three days of self-sufficiency.
  • Stock up on batteries and have flashlights and candles on hand.
  • Charge your mobile devices and power banks.
  • Secure outdoor recreational equipment.
  • Consider alternate methods of cooking your meals in case there is a power outage in your area. Cooking your meal ahead of time and storing it in the refrigerator is an option.
  • Fill your propane tank for your gas grill. Never use your gas grill indoors.
  • Bring outside patio and lawn furniture, potted plants, and any other loose outdoor items indoors. Close and secure all awnings and tie down any other loose items.
  • Never use a generator inside your home. Locate the unit away from doors, windows, and vents that could allow carbon monoxide to come indoors. Keep at least 20 feet from doors, windows, and vents.
  • Clear your gutters and storm drains.
  • Emergency Plan GuideSurviving a disaster takes neighbors working together.

Fishers Island Utility Co.

 

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FIEC Power Outage Report for 27AUG23

Wednesday, August 30, 2023

Dear Fishers Island Community:

Please join us in thanking the crews of the electric, telephone, and water companies on Fishers Island and the team at Groton Utilities for their collective efforts this past Sunday to limit the duration of power outages on the island while fixing a serious line failure in Groton. The responsiveness and competence of these professionals during an emergency, on a summer Sunday,, was a reminder that we are fortunate to have them working for our island community.

Power was lost at 10:24 a.m. August 27, 2023, and Electric superintendent Jay Cushing immediately alerted Groton Utilities.  Electric crew members Matt Larson and Harrison Hall joined Jay on duty within fifteen minutes of the outage and within 45 minutes confirmed the system failure was in Groton.  

At 11:30 a.m. crews mustered by Groton Utilities found a fault in the circuit dedicated to sending power to the transformer at Groton Long Point that feeds the submarine cable to Fishers Island.  It became apparent that the fault in Groton would take time to pinpoint and rectify.  Fishers Island Electric asked Connecticut Municipal Electric Energy Cooperative (CMEEC) to fire up its generator, located near Dock Beach, to power the island.  In that way, power was restored at 11:51 a.m. 

During the morning, Fishers Island Electric had an outage notice posted on Fishnet, and paper notices were posted at the post office, Village Market, both cafés and outside Shutters and Sails.  The fire chief, school superintendent, ferry manager, Community Center, Goose Island gas station, and the three clubs were all notified directly.  As a precaution, a telephone crew set up an emergency generator at Top of the World to power the island’s microwave link to the mainland.

Power was lost again at 5:00 p.m. when a surge in energy demand caused the CMEEC generator to overheat and trip off.  In order to reduce demand, water superintendent Chad Mrowka switched off the high lift pumps in the surface water plant at Middle Farms.  The generator faults were cleared, and the generator was restarted.  Power was restored on the island at 6:10 p.m.

The CMEEC generator ran through Sunday night while Groton Utilities worked to replace 300 feet of underground cable in the faulty circuit to the Fishers Island submarine cable. Fishers Island Electric arranged a 6:00 a.m. Monday fuel delivery by truck to the generator in case it would have to run longer.

In the event, the generator was shut off at 6:19 a.m. on Monday so that the power supply via the submarine cable could be restored three minutes later at 6:22 a.m.

In short, although it took nearly twenty hours to fix the fault in Groton, Fishers Island was without power for less than three hours in total, thanks in large part to the island’s utilities team.

We would also like to thank Jane Ahrens, for assisting with posting community updates on FishersIsland.net during the day Sunday, and Dave McCall and Captain John Haney at the Fishers Island ferry, for organizing on short notice the special ferry run for the generator fuel truck early Monday.

Chris Finan, President               Tom Siebens, Chairman

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ISLANDWIDE ELECTRIC POWER RESTORED

UPDATE 7:30AM 28AUG23: The electric cable from Groton was repaired as of 6 AM this morning and Fishers Island is now back on Groton Electric power.

The cause for the outage was a cable coming out of the Groton Long Point Substation. A terminator failed and could not be repaired. The final solution was for them to replace about 300 feet of underground cable.

“A big shout out for Groton Electric working all night to repair the electricity supply back to Fishers Island.” FIUC

FIEC chartered a Fishers Island ferry at 6 AM for the fuel truck to deliver and refill the Island generator.


UPDATE 12:30PM 27AUG23: The issue in Groton continues. The Island Generator (by the FIYC) has been turned on. It will provide power to our homes for about 6 hours. At that time the Groton source should be fixed.

There will be another ISLANDWIDE OUTAGE for another hour while the FIUC switches us back from our generator to Groton.


10:30AM 27AUG23: The power is out due to an issue at the source in Groton. When there is more information, it will be shared. The estimated time to repair is unknown at this time.
Thank you for your patience.

FIUC

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FI Electric Company Proposed Electric Tariff Revisions

The Fishers Island Electric Company published a legal notice in The Suffolk Times on July 27, 2023, referencing a change in rates that might affect anyone interested in putting solar on their properties on Fishers Island. The ICB shares information on this filing here.

Matter/Case Title: Tariff Filing by Fishers Island Electric Corporation to Modify Its Electric Tariff Schedule, P.S.C. No. 2, to include Rules and Regulations Governing the Purchase of Renewable Energy from New Distributed Generators.

The Suffolk Times classified published on July 27, 2023

The Fishers Island Electric Corporation

Case 23-E-0394

NOTICE OF PROPOSED ELECTRIC TARIFF REVISIONS

NOTICE IS HEREBY GIVEN by the The Fishers Island Electric Corporation (“FIEC”) that on July 17, 2023, it issued and filed with the New York State Public Service Commission (“Commission”) Tariff leaves to amend its Schedule for Electric Service, P.S.C. No. 2, Electricity to become effective December 1, 2023Changes in the Tariff leaves are proposed as follows:

Service Classification Nos. 1, 2, 5, and 7: Residential and Non- Residential Customers:

  • New provisions to govern the rules for interconnection of distributed generation to FIEC’s system by residential and non-residential customers who receive service under Service Classification Nos. 1, 2, 5, and 7 and who own or operate electric generating equipment located and used at their premises.
  • The program will be available to qualifying customers on a first-come, first-served basis until total rated generating capacity for electric generating equipment owned or operated by customers in FIEC’s service territory is equivalent to 30 kilowatts (“KW”).

The proposed Tariff is available via the internet on the Department of Public Service’s (“DPS”) Document and Matter Management (“DMM”) system under Case 23-E-0394 (https://documents.dps.ny.gov/public e-0394&CaseSearch=Search)Questions or comments may be addressed to FIEC at (631) 788- 7251 or 161 Oriental Avenue, P.O. Box 604, Fishers Island, New York 06390; or by posting a comment to [NYSDPS]

New York State Department of Public Service

Find FIEC tariff filing letter, application, and public comment links

Company/Organization: Fishers Island Electric Corporation
Matter #: 23-01526
Case #: 23-E-0394
Link to Documents: NYSDPS

Find FIEC tariff filing letter, application, and public comment links:

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Fishers Island Evernet2 Fiber

Fishers Island Telephone Company (FITC) has installed and migrated from copper to the new fiber, a group of first adopters in the Fishers Island Central Office (FICO) South Area; see map below. These subscribers are now experiencing significant improvement in their internet connections with speeds of up to 500Mb.  As we migrate these subscribers from their legacy copper connection to the Fiber, we are removing the aging copper cables to these initial subscribers. Once they are cut over to fiber, we are hearing from subscribers, “… the crackling noise is gone, and my calls are much clearer…”  We still have work to do in the area to enable those that have shown interest to jump onto the EverNet 2 Fiber links. Reliable high-speed internet and clear telephone are now available to interested customers located in the FICO South area. Sign up with your interest today at evernet.fiuc.net.

The remaining 8 Fiber Serving Area’s (FSA) to be built are targeted to be completed in a coordinated build plan by the Spring of 2027.  For your information, below is a map of our FSA’s:

We are analyzing the next FSA to commence deploying the fiber infrastructure this fall.

Below are our Fiber bandwidth options being offered – all are 12-month service contracts only. 
Telephone service and Fishers Island Long Distance are separate products and are not included in the FTTH Product.

100 MBPS
250 MBPS 
500 MBPS 

If there are any questions, please email the Evernet team at Evernet@fiuc.net

161 Oriental Ave
PO Box 604
Fishers Island, NY  06390
Office: 631-788-7001   Fax: 631-788-7999

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Fishers Island Long Distance Calling

After our posting in the July Foghorn, we have had good success in helping subscribers save on their National and International Long Distance bills.  

It is quick and easy to switch, and our team can assist you in making this cost-saving change.  If you are already a Fishers Island Long Distance subscriber, you are already experiencing the savings, and we thank you for your subscription.  If you are not sure which long-distance plan you have, give us a call, and we can help you identify your Long Distance Carrier.  

Fishers Island Telephone offers a National Plan to help lower your long-distance bill with an offering of $17.00 per month.  This special offer provides you with the first 500 minutes of calls for free, and then after the 500 minutes the cost is only 3 cents a minute!  You will also notice an improvement in the quality of the call as Fishers Island Long Distance utilizes state-of-the-art technology to complete your call.  Our International Plan is only an additional $3.00 per month and the per-minute rates can be as low as 3 cents a minute depending on the country you are calling.  

If you are an AT&T Long Distance subscriber, you may want to compare your AT&T bill and review the cost per minute for making calls off the island, which are long-distance calls.  By switching, you will be surprised at how much money you will save! 

If you have any questions about the program or would like to make the change, give us a call at the telephone office (631) 788-7001 x4 or send an e-Mail to telephone@fiuc.net.  

Telephone Co. Logo Phone logo

161 Oriental Ave
PO Box 604
Fishers Island, NY  06390
Office: 631-788-7001   
Fax: 631-788-7999

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911 Emergency Services Upgrade

Fishers Island Telephone, Chief Flatley of the Southold Police Department, and Michael Postel the communications director for 911 in Suffolk County have been working together these past 18 months to develop an improved 911 emergency services access. The current system connected through antiquated AT&T network equipment installed in the 90’s has experienced decades of connectivity issues on the route between Fishers Island and the Southold Public Service Answer Point (PSAP).  Making this state-of-the-art upgrade to the network will increase the number of available circuits from one (1) to twenty (20).  We don’t anticipate 20 simultaneous 911 calls but, we are now ready to accommodate more than one.  Finally, the new solution is to be implemented in July.  

The importance of having reliable 911 emergency services is paramount for our community.  

Please note that if you are calling 911 from a Cellular Phone, the call will be routed over the Cellular Network and not through the Fishers Island Telephone Network.  This upgrade applies only to your local telephone service.  

An additional Enhancement to 911 service is described below: 

There is a new program called SMART911 for residents to identify key information about members of your household that would help anyone you care for in the event of an emergency whether the call to 911 is from the home or any mobile phone. You can register information that enables first responders to have visual details on an emergency location and provides information on access points like hidden driveways or gate codes. You can also provide critical medical conditions of members of your household that may need special attention to prepare first responders before they arrive.  You can also add information such as your vehicles, pets, and service animals, along with any special notes that you would want responders to know.

Your Safety Profile is Free, Private, and Secure. There is also an App for mobile phones as well.

Check for more information and registration at smart911.com or on the App

If there are any questions regarding these upgraded services, please contact the Telephone Office either via email (telephone@fiuc.net) or by calling 1 (631) 788-7001 x4.

Thank you for your support of the Fishers Island Telephone Company.

Steve Head
Telecom Superintendent
Fishers Island Telephone Company
Telephone@fiuc.net
1 (631) 788-7001 x4

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AT&T Long Distance Troubles

There is an issue with Long Distance calls from Fishers Island subscribers completing some long distance calls using the AT&T Long Distance Network.  Subscribers signed up and receive their bills directly from AT&T, customers need to contact AT&T Customer Service at 1-800-288-2020, with your account number ready, and open a trouble ticket. 

Calls are being sent from Fishers Island Telephone’s network into AT&T’s network and are being received into their network. Unfortunately, FITC cannot open tickets for AT&T Long Distance Subscribers.

If you have any questions, please contact 1-631-788-7001 extension 4.

Steve Head
Telecom Superintendent
Fishers Island Telephone Company

www.fiuc.net/telephone

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