Biennial Determination of Avoided Cost Rates For
Electric Utility Purchases of Electricity From
Qualifying Small Power Producers and Co-Generators
(Docket No. E-100 Sub 158)
1:30 pm, Monday, July 15, 2019
Hearing Room 2115, Dobbs Building 430, N. Salisbury, Raleigh
On April 24, 2019, the Commission issued an order in which it scheduled an evidentiary hearing and established a procedural schedule in this matter.
The hearing will begin at 1:30 on Monday, July 15th and will likely continue most of the week. Please see the order for scheduling details, which are subject to change.
The hearing will be for the purpose of hearing expert witness testimony from the parties regarding these issues:
1) Duke Energy’s integrated resource planning assumptions regarding expiring wholesale contracts.
2) NCSEA’s recommendation to calculate avoided capacity rates based upon a hypothetical 12/31/2021 in-service date.
3) Duke Energy’s quantification of ancillary services cost of integrating solar facilities.
4) Duke Energy’s proposed solar integration charge “average cost” rate design and biennial update.
5) Dominion Energy’s proposed re-dispatch charge.
6) NCSEA and Public Staff proposals related to ancillary services costs for innovative qualifying facilities.
7) Duke Energy’s proposed modifications to the standard terms and conditions for buying power from QFs.
8) The Stipulation jointly filed by Duke Energy and the Public Staff on April 18, 2019.
Members of the public may attend the hearing, but there will be no opportunity for public witness testimony. (The Commission hosted a public witness hearing in this matter on February 19, 2019.) Members of the public can submit comments to the Commission, which will become part of the official record, by sending the Commission an email. Be sure to reference the docket number in the subject line.
Background: Section 210 of the Public Utility Regulatory Policies Act (PURPA) of 1978 requires electric utilities to buy power from small power producers and co generators. It is the NC Utilities Commission’s responsibility to determine the price that utilities pay for that power. This proceeding, held every two years, is for that purpose.
A small power producer is a person or corporation that owns or operates an electricity production facility that uses renewable resources and is 80 megawatts or less in capacity. Co generation facilities make electricity from waste heat or steam, typically as a by-product of a manufacturing process.
Setting rates for small power producers and co-generators is extremely complex. The Commission is required to base these prices on the costs that the utility is expected to avoid in the future by buying the small power producer’s electricity. As a result, these prices are called “avoided cost rates.”
People who are interested in this proceeding are encouraged to review the Commission’s last order establishing avoided cost rates, which was issued October 11, 2017, and is available here.
All of the documents in the current proceeding are available in Docket No. E-100 Sub 158.