Section 30. Final order; implementing federal rules concerning cogeneration and small power production facilities

Pursuant to § 210 of the Public Utility Regulatory Policies Act of 1978 ("PURPA") (Public Law 95-617, Title II, § 210, 92 Stat. 3144, 16 USCS § 824a-3) the Commission entered an order on November 26, 1980, establishing the present case for the purpose of determining appropriate rates and provisions under said section for the above listed Virginia electric cooperatives ("Cooperatives"). By that same order, Cooperatives were directed to file proposed rates and information relating to the development of rates pursuant to PURPA § 210. The Commission also scheduled a public hearing for January 20, 1981.

By order dated January 13, 1981, the Commission allowed the Division of Consumer Counsel (Office of the Attorney General) additional time to file its information and made similar changes for filing protests and protestant testimony.

A public hearing was held before Charles W. Hundley, Hearing Examiner, on January 20, 1981, in the Jefferson Building, Richmond, Virginia. Counsel appearing were James V. Lane, for Cooperatives; Walter A. Marston, Jr., for the Virginia Hydro Power Association ("Hydro"); Eric M. Page, for the Division of Consumer Counsel, Office of Attorney General; and Glenn P. Richardson and A. Lynn Ivey, III, for the Commission. Protestant Jerry S. Rosenthal appeared pro se.

One intervenor appeared at the hearing.

On March 6, 1981, the Hearing Examiner filed his report. Subsequent to that date, the Attorney General, Jerry Rosenthal, and Hydro filed exceptions to the report.

NOW, THE COMMISSION, having considered the record and the applicable law FINDS:

1. That Cooperatives avoided costs based upon Cooperatives cost of wholesale power is reasonable;

2. That each Qualifying Facility ("QF") with a capacity exceeding 100 KW shall negotiate the terms of its sale of electricity with Cooperative and that the Commission will stand ready to arbitrate in the event that an agreement cannot be reached;

3. That interconnection costs, as defined by FERC Rule, 18 CFR § 292.101(7), should be prepaid at the time of installation or over a period of up to three years, at the option of the QF, or over such longer period of time as may be mutually agreeable to the parties;

4. That, in cases in which QF's pay interconnection costs over a period of time, Cooperatives should be allowed to collect interest, the rate of such interest not to exceed the cost of Cooperatives most recent issue of long term debt;

5. That the record is inadequate to establish a metering charge, however, the costs associated with the installation of additional metering may be included as an interconnection cost;

6. That the QF should have the option of either a simultaneous purchase-sale transaction or the sale only of its excess power; selection of such option shall be expressed in its contract and shall be for a period of not less than one year;

7. That Cooperatives shall revise their rates for the purpose of power from QF's in accordance with any permanent change in wholesale power costs;

8. That Cooperatives shall comply with the Staff proposal for the annual filing of cogeneration information with this Commission; accordingly,

IT IS ORDERED:

1. That on or before September 1, 1981, each Cooperative shall file revised schedules in accordance with the findings herein;

2. That each Cooperative shall file the following data with the Commission on or before March 1 of each year, beginning March 1, 1982 (such data shall cover the twelve months ending the previous December 31):

- The name and location of each QF interconnected with Cooperative

- The design capacity of each QF

- The amount of energy purchased from each QF

- The amount of energy sold to each QF

- Copies of any contracts entered into between Cooperative and QF's

- Avoided cost data of the type required by 18 CFR § 292.302

3. That, there appearing nothing further to be done in this matter, the case be dismissed from the docket and the papers placed in the file for ended causes.

Historical Notes

Derived from Case No. PUE800117, eff. August 14, 1981.

Statutory Authority

§§ 56-235.1, 56-235.2 and 56-249.3 of the Code of Virginia and 16 U.S.C.A. § 824a-3.