Title
Draft Resolution - Approval to Amend Tariff and Business Rules - Interconnected Generation 50kW and Below - N Mack/D Thompson
Other Info
Submitted By: Audri Nelson 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.
Recommended rate changes are to address the under-collection from interconnected Members with Distributed Generation (DG) installations of 50 kW and below.
Discussion
The Cooperative's Tariff and Business Rules currently defines "Distributed Generation (DG)" as an electrical generating facility located at a Member's service location, which may be connected in parallel to the Cooperative's delivery system. In addition, the Tariff and Business Rules refers to "Interconnection" as the physical connection of a DG facility to the utility system in accordance with the requirements of the Interconnection Policy of the Cooperative.
In April 2016, the PEC Board approved Interconnect Net Metering (currently found in Sections 500.1.13 and 500.3.1 of the Tariff and Business Rules as to a Net Energy Credit and Interconnection Net Metering Rate) for distributed generation systems at 50 kW AC and below.
The Cooperative, pursuant to its Rate Policy, conducted its 2020 Cost of Service Study which determined that the Cooperative is under-collecting from current DG Members through the net metering aspect of the rate design. The under-collection mainly from the rate component of these interconnection rates that is allocated to maintain the Cooperative's distribution/delivery system.
In December 2020, the Board of Directors approved rate design changes to the Distributed Generation Interconnection Rates in the Tariff and Business, including as to the Net Energy Credit Rate and Wholesale Energy Rate and as to Interconnect Net Metering Rate and the Interconnect Wholesale Energy Rate The prop...
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