Title
Public Utilities Regulatory Policy Act (PURPA) Requirements (B)
On December 18, 2008, staff presented the federally required schedule and public participation procedure for consideration of four standards of the Public Utility Regulatory Policies Act of 1978 as amended by The Energy Independence Security Act (EISA) of 2007. At that time, the City Commission adopted the schedule for PURPA proceedings as recommended. The current presentation is consistent with said schedule and will review the topics to be considered prior to the General Manager making a final recommendation, which staff will present in March 2009.
Explanation
The Public Utility Regulatory Policies Act of 1978 (PURPA) was initially enacted as part of the National Energy Act by President Jimmy Carter. The Energy Independence Security Act (EISA) of 2007 adds four additional PURPA standards that state commissions and nonregulated utilities must consider. These include (1) Integrated Resource Planning; (2) Rate Design to Promote Energy Efficiency Investments; (3) Smart Grid Investments; and (4) Smart Grid Information.
By action taken December 18, 2008, the City Commission met the deadline requirements to begin consideration of Rate Design to Promote Energy Efficiency Investments and Smart Grid Information. There is no timeline imposed for the Integrated Resource Planning Standard or the Smart Grid Investment Standard, but it is staff's recommendation that all four standards be addressed at this time due to their related issues and to aid in budget planning.
The PURPA Integrated Resource Planning (IRP) Standard requires that each electric utility shall 1) integrate energy efficiency as a resource into capacity plans, State and regional plans; and 2) adopt policies establishing cost-effective energy efficiency as a priority resource. Note that IRP was adopted by GRU as a planning standard in the early 1990s.
The PURPA Rate Design Modifications to...
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