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 Promote Energy Efficiency Investments Standard states that the rates allowed to be charged by any utility shall 1) align utility incentives with the delivery of cost-effective energy efficiency; and 2) promote energy efficiency investments.
The standard for Consideration of Smart Grid Investments states that prior to undertaking investments in non-advanced grid technologies, an electric utility must consider investment in a qualified smart grid system based on appropriate factors.
The standard for Smart Grid Information, states that all electricity purchasers shall be provided direct access to information from their electricity provider regarding prices, usage, intervals and projections and sources.
The following timeline was adopted by the City Commission on December 18, 2008:
January 30, 2009 - GRU staff's preliminary recommendation whether to consider adopting these standards will be released and available at the Office of the General Manager at 301 SE 4th Avenue, Gainesville, Florida 32614-7117, or by telephone at 352-393-1000. The GRU staff recommendation will also be available at the Office of the Clerk of the Commission at 200 East University Avenue, Gainesville Florida 32602-0490, or by telephone at 352-334-5015. The Notice (attached) of Hearing will be published in the Gainesville Sun.
On, or before February 5, 2009 - members of the general public planning to participate in the hearing must file a Notice of Intent to Participate in Hearing (attached) and may file written testimony and any other information in support of or in opposition to the adoption of the GRU staff recommendation. Notice of Intent may be filed at the meeting.
February 5, 2009 - public hearing shall be held at the City Commission meeting, after 6 pm.
March 5, 2009 - The General Manager shall issue a final Recommended Decision for Gainesville City Commission consideration
March 19, 2009 - The Gainesville City Commission shall issue their decision adopting, modifying or rejecting the Recommended Decision regarding the implementation of the standards discussed above.
PURPA requires that all consideration and determination on implementation be completed by December 19, 2009.
Recommendations
The City Commission receive a presentation on the amended Standards related to (1) Integrated Resource Planning; (2) Rate Design to Promote Energy Efficiency Investments; (3) Smart Grid Investments; and (4) Smart Grid Information as part of the process of determining whether or not to adoption these standards. Staff's recommendation to the City Commission will follow in March 2009.
Fiscal Note
The estimated cost for consideration and determination of PURPA requirements is included in the FY 2009-10 Budget.
Drafter
Prepared by Ed Regan, P. E. AGM Strategic Planning
Submitted by Robert E. Hunzinger, General Manager
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