The North Carolina Utilities Commission issued a May 22 order that requires Virginia Electric and Power d/b/a Dominion North Carolina Power (DNCP) to respond to a May 20 complaint from Battleboro Farm LLC and its parent, Cypress Creek Renewables LLC.
The complainants allege that Battleboro is developing a 5-MW solar photovoltaic facility to be located in DNCP’s service territory and that Battleboro is entitled to sell power to DNCP under terms established pursuant to the Public Utility Regulatory Policies Act of 1978 (PURPA). In addition, they allege that Battleboro is a qualifying facility under PURPA, has obtained a certificate of public convenience and necessity (CPCN) from the commission authorizing construction of its facility, and has committed to sell its electric output to DNCP. Further, complainants allege that Battleboro has the right under PURPA to enter into a long-term power purchase agreement (PPA) for the sale of Battleboro’s capacity and energy to DNCP at the avoided cost rates established by the commission in a February 2014 order.
Moreover, the complainants maintain that Battleboro has taken the required steps to create a legally enforceable obligation (LEO) upon DNCP to purchase Battleboro’s electrical output. Complainants contend that the date of the LEO is April 22, 2014, based primarily on a commission order issued on that date. That order grants Battleboro a CPCN and states that Battleboro plans to sell its electricity to DNCP. The complainants further aver that there is a dispute between complainants and DNCP as to the date on which the LEO for Battleboro was established, and that DNCP has failed to provide the complainants with proposed avoided cost rates that are consistent with a commission order.
Said the May 22 order: “Based on the allegations of the verified Complaint, it appears that the Complainants and DNCP have a controversy regarding a PPA sought to be negotiated by Battleboro with DNCP. Therefore, the Chairman finds good cause to serve the Complaint, attached hereto as Attachment A, and this Order on DNCP. Further, the Chairman finds good cause to direct that DNCP shall either satisfy the demands of the Complainants and so advise the Commission, or file a response to the Complaint on or before June 17, 2015.”
Cypress Creek is a developer of solar photovoltaic generating facilities across the United States and in various locations in North Carolina.