Title
Resolution - Approval to Amend Tariff and Business Rules - Interconnected Generation and Other Direction as to 2022 Rate Plan - N Mack | D Thompson
Other Info
Submitted By: Robyn Miller on behalf of Markets
Department: Markets
Financial Impact and Cost/Benefit Considerations: Expenditure of Cooperative funds is not anticipated to be impacted; expenditures of staff time is not anticipated to be impacted.
Discussion
In December 2020 the Board of Directors approved changes to the Distributed Generation Interconnection fees in the Tariff and Business Rules Fee Schedule (Section 500.4) and updated the form Applications and Interconnect Agreements (Section 700.7 and Section 700.8). The changes to these fees approved were informed by the 2020 Cost of Service Study.
In response to members’ comments regarding changes to the distributed generation process and fees, at the April 2021 Board meeting, the Board directed ”that no changes be made at this time to the interconnect rates, and directed PEC to hold at least three virtual town hall meetings with members for member input through the July Board meeting, and to further research other possible changes to ensure an equitable and sustainable rate, and that a final proposal be presented at the July 2021 Board meeting to be effective January 1, 2022 upon approval.”
Therefore, PEC has held three virtual town hall meetings with members in May, June and July 2021, met with solar installers and other stakeholders, researched other possible rate changes to ensure an equitable and sustainable rate, and received and provided significant feedback to the PEC Board of Directors.
At this time accounting for the feedback provided from the affected members as well as due to the financial impacts from Winter Storm Uri in February 2021 and the rate adjustments required to address those costs, the following changes are to be considered, however, such changes may be re-evaluated upon the Cooperative’s 2022 Rate Plan review. PEC will continue to review the interconnection application, fees and interconnect processes to identify efficiencies.
Resolution 1 - Distributed Generation Fees
1. Reduce the Distributed Generation Interconnection Fee, 50kW and under from $400 to $250 to be effective upon approval and rename the application and interconnection fees.
2. Make the Application Fee refundable in the case that an Applicant’s costs to Interconnect a DG system would require Cooperative Delivery System upgrades as per the Line Extension Policy in the Tariff and Business Rules, Section 400.
Resolution 2 - Interconnection Rates
1. Revise the terms in the blue box language in Section 500.3.1 as to the Interconnect Net Metering Rate as of January 1, 2022 to reflect the language prior to the December 2020 language.
2. Delete the blue box language in Section 500.1.13, Net Energy Credit to become effective upon Board approval.
3. 2022 Rate Plan
In addition, PEC staff will provide, as part of the 2022 Rate Plan a recommendation for updates to the Service Availability, Delivery, Base Power, and Transmission Charges for members in the current Interconnect Net Metering rate class, with any such recommendations to be guided by: (1) the Rate Policy objectives of the Cooperative, including equitable rates, sufficient cost recovery, sending accurate price signals, and stability in rates and (2) equity so that costs for the distribution system are paid in a just, reasonable and non-discriminatory manner by all members and with equity as to the Net Energy Credit rate (interconnect energy buy-back rate).
Resolution 3 - Large Power Service
1. Revise the blue box language in Section 500.1.7, Peak Demand Charge to show the rate measured as hourly and to make applicable to Large Power Service members to become effective January 1, 2022.
2. Revise the Transmission Cost of Service (TCOS) Charge, per kW in Section 500.1.9.2 to make applicable to Large Power Service members to become effective January 1, 2022.
3. Revise the blue box language for Peak Demand Charge, per kW in Section 500.2.2.2 from $5.00 to $6.50.
4. Revise blue box language in Section 500.3.1, Interconnect Net Metering Rate to make applicable to Large Power Service members to become effective January 1, 2022.
Tariff amendments and effective dates shown below -
Resolution 1 - Distributed Generation Fee Schedule
• Fee Schedule, 500.4, Effective upon Board approval.
• Reduce the Distribution Generation Interconnection Fee to $250
• Change the name of the Application Fee for Distributed Generation Interconnections for systems 50kW and below to “Application and Engineering Study Fee”
• Change the name of the Interconnection Fee for Distributed Generation Interconnections for both those systems above 50kW and below to “Interconnect Agreement and Inspection Fee”
• Make the Application Fee refundable in the case that an Applicant’s costs to Interconnect a DG system would require Cooperative Delivery System upgrades as per the Line Extension Policy in the Tariff and Business Rules, Section 400.
Resolution 2 - Interconnection Rates
• Interconnect Net Metering Rate, Section 500.3.1 - Effective upon Board approval
• Net Energy Credit, Section 500.1.13 - Effective upon Board approval.
Resolution 3 - Large Power Service
• Peak Demand Charge, Section 500.1.7, Effective January 1, 2022
• Primary Service Adjustment (PSA), Section 500.1.11, Effective upon Board approval.
• To add Peak Demand reference.
• Transmission Cost of Service Charge per kW, Section 500.1.9.2, Effective January 1, 2022.
• Large Power Service Peak Demand Charge, Section 500.2.2.2 - Effective January 1, 2022
• Interconnect Net Metering Rate, Section 500.3.1 - Effective January 1, 2022
Body
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE that PEC amend the Tariff and Business Rules as to its interconnection rates, fees, and processes; and
Resolution 1
BE IT FURTHER RESOLVED that the Distributed Generation Fee Schedule be updated to revise the names of certain fees as described herein and include a reduction of the Interconnect Agreement and Inspection Fee from $400 to $250 as described herein; and
Resolution 2
BE IT FURTHER RESOLVED that portions of the Interconnection Net Metering and Net Energy Credit rates will be revised to reflect language effective as before the December 2020 Board Meeting; and
BE IT FURTHER RESOLVED that as part of the 2022 Rate Plan scheduled to be presented to the Board in October 2021, recommendations for the Interconnect Net Metering Rate are to be included; and
Resolution 3
BE IT FURTHER RESOLVED that the Cooperative approves the amendments to the Tariff and Business Rules to facilitate and clarify the implementation of the Large Power Service rate changes; and
BE IT FURTHER RESOLVED, that the Cooperative approve all amendments to the Tariff and Business Rules as reflected in Resolutions 1, 2, and 3, as attached hereto with such changes, if any, as were approved by the Board, to become effective upon Board approval, unless otherwise specified in the Tariff and Business Rules; and
BE IT FURTHER RESOLVED that the Chief Executive Officer, or designee, is authorized to take all such actions as needed to implement this resolution.