Title
Public Utilities Regulatory Policy Act (PURPA) Requirements (B)
Staff will make a presentation on the schedule and public participation procedure for consideration and determination of Standards 16, 17, 16 and 17 of the Public Utility Regulatory Policies Act of 1978 as amended by The Energy Independence Security Act (EISA) of 2007. PURPA jurisdictional members have until December 19, 2008, to begin consideration of Integrated Resource Planning, Rate Design to Promote Energy Efficiency Investments, Smart Grid Investments and Smart Grid Information.
Note that the numbering of the standards is redundant. Standard numbers 16 and 17 were each used twice when the legislation was written and we must now refer to these items as designated in the legislation.
Explanation
The Public Utility Regulatory Policies Act of 1978 (PURPA) was 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 non-regulated 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.
PURPA jurisdictional members have until December 19, 2008, to begin consideration of Standard 17, Rate Design to Promote Energy Efficiency Investments and Standard 17, Smart Grid Information. There is no timeline imposed for Standard 16 Integrated Resource Planning or Standard 16, Smart Grid Investment, but it is staff's recommendation that all four standards be addressed at this time for simplicity.
The PURPA Integrated Resource Planning Standard (16) requires that each electric utility shall: 1) integrate energy efficiency resources into utility, State and regional plans; and 2) adopt policies establishing cost-effective energy efficiency as a priority resource.
The PURPA Rate Design Modifications to Promote Energy Efficiency Investments Standard (17) 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.
Standard 16, 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.
Standard 17, 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.
Staff recommends the following timeline:
January 30, 2009 - GRU staff recommendation 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 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 Standards 16, 17, 16 and 17.
PURPA requires that all consideration and determination on implementation be completed by December 19, 2009.
Recommendation
The City Commission receive a presentation regarding the schedule for consideration and determination of Standards 16, 17, 16 and 17 of the Public Utility Regulatory Policies Act of 1978 as amended by The Energy Independence Security Act (EISA) of 2007 and the public participation procedure for PURPA standards and adopt staff's recommended schedule.
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 of Strategic Planning
Submitted by Robert E. Hunzinger, General Manager
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