North Carolina commission opens biennial review of QF avoided costs

The North Carolina Utilities Commission issued a June 22 order establishing the schedule for its 2016 biennial proceedings under Section 210 of the Public Utility Regulatory Policies Act of 1978 (PURPA) and the Federal Energy Regulatory Commission regulations implementing those provisions which delegated to this state commission certain responsibilities for determining each utility’s avoided costs with respect to rates for purchases from qualifying cogenerators and small power production facilities.

These proceedings are also being held under a legal requirement for the commission to determine the rates to be paid by electric utilities for power purchased from small power producers. In order to facilitate the determination of avoided cost rates, the commission is of the opinion that the June 22 order should be entered at this time to establish a schedule for the 2016 biennial determination of such rates in this docket.

Duke Energy Carolinas LLC (DEC), Duke Energy Progress LLC (DEP), Virginia Electric and Power d/b/a Dominion North Carolina Power (DNCP), Western Carolina University (WCU) and New River Light and Power Co. were made parties to these proceedings. The commission has determined that it will attempt to resolve all issues arising in this docket based on a record developed through public witness testimony, statements, exhibits and avoided cost schedules verified by persons who would otherwise be qualified to present expert testimony in a formal hearing, and written comments on the statements, exhibits and schedules, rather than a full evidentiary hearing for the purpose of receiving expert testimony.

All parties, other than the five electric utilities, need to file with the commission comments and exhibits by Jan. 9, 2017. The electric utilities and intervenors need to file reply comments by Feb. 15, 2017. Parties are requested to file proposed orders on or before March 15, 2017. A public hearing solely for the purpose of taking non-expert public witness testimony is scheduled to begin on Feb. 21, 2017, in the commission hearing room in Raleigh, North Carolina.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.