Current through February, 2024
Section 4.300
SUSTAINABLY PRICED ENERGY ENTERPRISE DEVELOPMENT PROGRAM
The
purpose of this rule is to implement the Sustainably Priced Energy
Enterprise Development ("SPEED") program created under
30
V.S.A §
8005. The goal of the
SPEED program is to achieve the goals of
30 V.S.A. §
8001 related to the promotion of
renewable energy and long-term stably priced contracts for such
energy that are anticipated to be below the market price.
Section 4.301
Purpose
The purpose of this rule is to implement the Sustainably
Priced Energy Enterprise Development ("SPEED") program created under
30
V.S.A §
8005. The goal of the
SPEED program is to achieve the goals of
30 V.S.A. §
8001 related to the promotion of
renewable energy and long-term stably priced contracts for such
energy that are anticipated to be below the market price.
Section 4.302
Scope
This rule applies to all Vermont electric distribution and
transmission utilities, to any facilitator appointed by the
Commission under this rule, and to any in-state generation facility
eligible to be a SPEED project. This rule addresses the establishment
of the SPEED program, the appointment of a SPEED Facilitator, and the
SPEED Facilitator's role in identifying and procuring SPEED
resources. The rule does not address bilateral or multilateral
arrangements under which Vermont utilities purchase power from
renewable resources without the involvement of the SPEED Facilitator
and shall not be construed as restricting utilities' abilities to
enter into such contracts on other terms. The provisions of this rule
shall not apply to net metering projects under
30 V.S.A. §
219a and Commission Rule
5.100.
Section
4.303 Definitions
For purposes of this rule, the
following definitions apply:
(A) "Allocate equally" or
"allocated equally," when used in reference to apportioning costs
between a set of one or more SPEED project owners and a set of one or
more Vermont utilities, means that half of the costs to be
apportioned are allotted to the SPEED Projects collectively and half
of the costs to be apportioned are allocated to the Vermont utilities
collectively.
(B)
"Auction" means a public sale of energy, capacity, ancillary
services, or other electricity products produced by a SPEED project
to the highest bidder.
(C) "Commission" means the Vermont
Public Utility Commission.
(D) "Capacity" means the capability
to produce, transmit or deliver electric energy, measured in
megawatts (MW) or kilowatts (kW).
(E) "Certification" means a
determination by the Commission that a generation facility
constitutes a SPEED project.
(F) "CHP" means combined heat and
power facilities, which in turn are defined as facilities that
produce both electric power and thermal energy from a single
process.
(G) "Department"
means the Vermont Department of Public Service.
(H) "Energy" means electric energy
measured in megawatt-hours (MWh) or kilowatt-hours (kWh).
(I) "Existing generation facility"
means a generation facility that existed and was placed in service on
or before December 31, 2004.
(J) "Facilitator" means a SPEED
Facilitator appointed by the Commission under Section 4.306 of this
rule.
(K)
"Interconnecting utility" means the utility to whose electric system
a SPEED project is connected.
(L) "ISO-NE" means the Independent
System Operator of New England or any successor entity that fulfills
the same functions.
(M)
"LMP" means locational marginal price for the product or service
produced by a generation facility at the node where the facility
delivers such product or service to the interconnecting utility as
calculated by ISO-NE, under its rules, as those rules may be amended,
or any equivalent pricing mechanism designed to serve the same or
similar function.
(N)
"New renewable energy" is as defined in
30 V.S.A. §
8002(4).
(O) "Nonqualifying SPEED resource"
is as defined in
30 V.S.A. §
8002(6).
(P) "Qualifying SPEED resource" is
as defined in
30 V.S.A. §
8002(5).
(Q) "Regional market" means the
wholesale electric power markets overseen and operated by the
ISO-NE.
(R) "Renewable
energy" is as defined in
30 V.S.A. §
8002(2).
(S) " Section
248
" means
30
V.S.A. §
248.
(T) "SPEED" means "Sustainably
Priced Energy Enterprise Development."
(U) "SPEED program" means the
Sustainably Priced Energy Enterprise Development program established
under
30
V.S.A. §
8005.
(V) "SPEED project" means an
in-state generation project which meets the requirements of section
4.304 of this rule.
(W)
"SPEED resource" means a contract with a SPEED project for
electricity products, including, but not limited to, energy or
capacity products.
(X)
"Sponsoring utility" means a Vermont utility which has executed a
contract or letter of intent with a SPEED project.
Section 4.304 SPEED
Projects
(A) SPEED projects shall be
located within Vermont and shall include new generation facilities,
or modifications or expansions of existing generation facilities,
which:
(1) Come into service after
December 31, 2004; and
(2) Produce renewable energy, or
are fossil-fueled CHP that meet efficiency requirements stated in
30 V.S.A. §
8002(6).
(B) A generation
facility that does not use fossil fuel, except for incidental use,
shall be deemed under this rule to produce renewable energy if:
(1) it is a hydroelectric facility
of 200 MW or less or uses one or more of the following fuel sources:
biodiesel, biomass, farm methane, geothermal, landfill methane, solar
energy, or wind;
(2) it
is a CHP that relies on a fuel source listed in subsection (B)(1),
immediately above, or
(3)
it uses fuel cells that rely on a fuel source listed in subsection
(B)(1), immediately above.
(C) In addition to the fuels listed
in Subsection (B), immediately above, a generation facility that does
not use fossil fuel, except for incidental use, may be a SPEED
project if it uses a fuel source determined to be renewable energy
under the certification process established in Section 4.305,
below.
(D) A generation
facility located in Vermont that, after December 31, 2004, is brought
back into service after a prolonged outage of five years or more,
shall be deemed for purposes of this rule to have come into service
after December 31, 2004.
(E) Where a project involves the
modification or expansion of an existing generation facility, the
following shall be considered a SPEED project within the meaning of
this rule:
(1) the incremental
increase in the electricity product(s) of the facility enabled by the
modification or expansion, to the extent that the increase is
produced using renewable fuels, and
(2) the entire output resulting
from replacement of a fossil-fuel fired generation source by a
renewable source.
Section 4.305 Certification
(A) A sponsoring utility or a
developer of an in-state generation facility may request, at any
time, including after construction of the facility, that the
Commission provide a certification as to whether the generation
facility constitutes a SPEED project. In the case of a blend of
fossil and renewable fuels, such certification shall include
establishment of a procedure for determining what portion of the
facility's production is new renewable energy. Any such request and
all supporting materials shall be copied to the Department, the SPEED
Facilitator, the Vermont Agency of Natural Resources and the
interconnecting utility.
(B) If the type of fuel source for
the generation project changes after issuance of a decision on a
certification request under subsection 4.305.A, above, the sponsoring
utility or developer of an in-state generation facility shall apply
to the Commission for a revised certification.
Section 4.306 Establishment of
SPEED Facilitator
(A) After a public
process for solicitation of competitive bids, the Commission shall
appoint one or more facilitators for the SPEED program for up to four
years and on such other terms as the Commission may deem appropriate.
Following the initial appointment of a SPEED Facilitator, the
Commission may renew the appointment for an additional four years or
conduct a competitive solicitation for a Facilitator. In any
appointment of a SPEED Facilitator, the Commission shall consider at
least the following factors: ownership, management, financial
stability and expertise of the candidate; capability of the candidate
to carry out the duties assigned by this rule; issuance of
indebtedness by, and protection of the assets of, the candidate;
changes in management or control of the candidate; the quality and
value of the services provided by the candidate; the continuance or
the abandonment of provision of service by the candidate; the manner
of operating and conducting business by the candidate; the proposed
prices, terms, or rates charged by the candidate; and the general
good of the State.
(B) A
SPEED Facilitator shall provide information in its possession on
SPEED resources and projects upon request of the Commission or the
Department.
(C) A SPEED
Facilitator shall be authorized to perform those functions and
activities that are assigned to it under this rule and such other
functions and activities related to the SPEED Program as the
Commission may assign the facilitator.
(D) The facilitator may engage in
activities unrelated to the SPEED Program, and may serve as a
facilitator or agent for one or more Vermont utilities or the
Department in any competitive solicitation of resources, provided
that such activities do not conflict with its responsibilities and
activities under this rule.
(E) Obligations of a SPEED
Facilitator shall not be obligations of the State of
Vermont.
Section
4.307 Compensation of SPEED Facilitator
(A) Immediately following
appointment, and two months prior to the completion of each two-year
period thereafter, a SPEED Facilitator shall submit to the
Commission, the Department, and Vermont utilities a proposed budget
for costs in the upcoming two-year period that are not expected to be
recovered under other provisions of this rule. The SPEED Facilitator
also shall propose how these costs and the costs of performing the
clearinghouse function under Section 4.308(B) of this rule will be
shared between Vermont utilities and SPEED projects. To the extent
possible, considering the number and size of the SPEED projects, the
SPEED Facilitator shall attempt to allocate these costs equally
between Vermont utilities and the owners of SPEED projects.
(B) After reviewing the proposed
budget and assignment of costs submitted under subsection 4.307(A),
and considering any comments, the Commission shall establish the
compensation for a SPEED Facilitator's costs identified in the
budget. These costs shall be recovered from the Vermont utilities and
from SPEED projects according to a formula approved by the
Commission.
(C) On its
own initiative or upon request, the Commission may at any time
determine to review and adjust the budget of a SPEED Facilitator
approved under these rules. Prior to making such an adjustment, the
Commission will provide notice and opportunity for comment to the
SPEED Facilitator, the Department, affected utilities, and owners of
SPEED projects.
Section
4.308 SPEED Facilitator Role in Promoting SPEED
Resources; Contract Types
(A) The
primary purpose of a SPEED Facilitator is to promote the development
of SPEED resources by bringing together SPEED projects and Vermont
utilities seeking to purchase power. In addition, after making all
reasonable attempts to find one or more Vermont utilities to purchase
such product(s) through bilateral or multilateral contract, the SPEED
Facilitator shall promote the development of SPEED projects by
selling electricity products from such projects into the regional
market, to an out-of-state utility, or to Vermont utilities on a
pro-rata basis as provided in Section 4.308(E) of this
rule.
(B) A SPEED
Facilitator shall serve as a clearinghouse for information related to
purchase and sale of SPEED resources, information provided by Vermont
utilities to the SPEED Facilitator concerning their supply and
reliability needs, and the availability of SPEED projects. A SPEED
Facilitator shall submit an annual budget for such service to the
Commission for its review and approval. The cost of such service
shall be allocated to the Vermont utilities and SPEED projects
according to the formula approved by the Commission under subsection
4.307(B) of this rule.
(C) A SPEED Facilitator may be
employed to administer a contract between one or more Vermont
utilities and the owner(s) of one or more SPEED projects and shall
charge a fee for such administration as agreed to by the contracting
parties. The fee shall include all of the SPEED Facilitator's costs
associated with performing the contract administration. Such
employment may include the aggregation and proration of power in
cases where there are more than one sponsoring utility, more than one
SPEED project, or both. Such employment may also include the
administration and scheduling of needed wheeling service for the
transmission of power to a sponsoring utility or the regional
market.
(D)
Voluntary Contracts by Vermont
Utilities. A SPEED Facilitator shall encourage
the formation of contracts between Vermont utilities and the owners
of SPEED projects.
(1) Any such
contract may be one of the following types:
(a) A voluntary contract between
the owner(s) of one or more SPEED projects and one or more Vermont
utilities, with the Vermont utility or utilities purchasing the
entirety of an electricity product (e.g., all energy) from the SPEED
project(s). In such case, the SPEED facilitator shall recover its
reasonable costs related to formation of the contract through a
charge allocated equally to the signatory SPEED project owner(s) and
the Vermont utility or utilities.
(b) A voluntary contract between
the owner(s) of one or more SPEED projects and one or more Vermont
utilities, with the Vermont utility or utilities taking less than the
entirety of an electricity product (e.g., less than all energy) from
the SPEED project(s), and the balance of that product being sold into
the regional market or by contract to one or more out-of-state
purchasers. In such case:
(i) The
SPEED Facilitator shall recover its reasonable costs related to the
formation of the contract through a charge allocated equally between
the signatory SPEED project owner(s) and the Vermont utility or
utilities. The charge to the owner(s) of the SPEED projects shall
include any costs of the SPEED facilitator related to obtaining the
participation of the out-of-state purchaser(s) in the
contract.
(ii) The SPEED
facilitator shall recover its ongoing costs under the contract
related to the sale of power to an out-of-state purchaser from that
purchaser or the owner of the SPEED project.
(iii) The SPEED Facilitator shall
recover its ongoing costs under the contract related to the sale of
power into the regional market from the owner of the SPEED project,
through a mechanism agreed upon by the owner of the SPEED project and
the SPEED Facilitator.
(iv) Such other type of contract as
the Commission may authorize by rule, order, or through the
contract.
(E)
SPEED
Facilitator Contracts Allocated to Vermont
Utilities. The SPEED Facilitator may purchase
electricity products associated with one or more SPEED projects and
allocate the products to Vermont utilities.
(1) Prior to initiating the first
such arrangement, the SPEED Facilitator shall obtain authorization
from the Commission and must demonstrate that the purchase and
allocation of electricity products will promote the general good of
the state. Upon receipt of the request from the SPEED Facilitator,
the Commission will provide the Department and Vermont utilities an
opportunity to submit written comments. If the Commission authorizes
the SPEED Facilitator to purchase and allocate electricity products
under this section, the Commission may assign to a SPEED Facilitator,
as it deems appropriate, functions and responsibilities related to
the administration of the authorization and the requirements imposed
therein.
(2) At the time
the SPEED Facilitator seeks to enter into a specific purchase and
allocation of electricity products, it shall provide notice to the
Vermont utilities of the proposal, including the proposed amount of
electricity products to be allocated to each utility. Unless the
Commission determines that good cause exists for a different
allocation, energy products shall be allocated on the basis of each
utilities' proportionate annual energy usage and capacity products
shall be allocated based upon each utility's proportionate
contribution to the State's annual coincident peak. Each utility may,
within 30 days of such a notification, request an exemption from the
proposed allocation pursuant to section 4.310 of these rules.
However, this subsection shall not create a requirement for a utility
to petition for an exemption if it has received an exemption under
Section 4.310(A)(2) of these rules and that exemption remains in
effect. Instead, any such utility shall, within 30 days of a
notification by the SPEED Facilitator under this subsection, provide
the Commission, the Facilitator, and the Department with a sworn
statement as to whether the utility continues to retain each SPEED
resource relied upon in the grant of the exemption.
(3) If the proposed project is
approved, the SPEED Facilitator shall assign the costs associated
with purchase and allocations under this subsection to the proposed
project.
(4) The price
for the electricity products under this subsection shall be less than
the anticipated market price for those products over the term of the
proposed purchase.
(a) In
establishing the price, the SPEED Facilitator (and upon review, the
Commission) shall take into consideration anticipated market prices,
the then-current market price for forward power contracts for the
longest term available in the market, and any adjustment appropriate
to reflect material differences between the contract for SPEED
project output and forward power contracts (such as firmness of the
output).
(b) If there are
costs to the purchasing utilities in connection with the transaction,
such as transmission charges, that are in addition to the electricity
products being purchased, the price shall include a discount at least
equal to those additional costs.
(c) As long as the contract price
is below the anticipated market price for power over the term of the
proposed purchase by at least the discount set out in subsection
(E)(4)(b), the SPEED Facilitator may adopt such pricing structures as
it (and the Commission, upon review) finds reasonable, including
price floors, price caps or pricing collars.
(d) The SPEED Facilitator may
instead purchase the electricity products at a price that is a
specified margin below the hourly spot market price at the node where
the generator is interconnected, by an amount that at least equals
the discount set out in subsection (E)(4)(b) of this
section.
(5)
The Commission will determine the formula for allocation and purchase
under this subsection in conjunction with its review of the proposed
generation facility under Section
248.
The Commission will also determine the reasonableness of the prices
and other terms and conditions of any contract entered into under
this subsection and subsection 4.308(F) in conjunction with its
review of the proposed generation facility under Section
248.
If, at the time of the contract, the SPEED project already has
approval under Section
248,
the SPEED Facilitator shall separately request approval from the
Commission of the formula for allocation and purchase of the
contract.
(F)
SPEED Facilitator Contract for Sale into Regional
Market. A SPEED Facilitator may offer a contract
to SPEED projects under which the SPEED Facilitator purchases the
power and resells it into the regional market. Such contract may be
executed by a SPEED project only after the SPEED Facilitator has made
all reasonable efforts to obtain the purchase by Vermont utilities of
the electricity product(s) offered by the SPEED Project and has
considered the merits of allocating the power to Vermont utilities
pursuant to subparagraph (E) of this section.
(1)
Length. The contract offered to
SPEED projects for sale into the regional market shall be of ten
years' duration, unless the Commission authorizes a different term.
Notwithstanding the foregoing requirement and subject to Commission
approval, the SPEED Facilitator from time to time shall determine the
appropriate length of such standard contract, taking into account the
need to enable project development, current and forecasted market
conditions, and current industry practice regarding contract
length.
(2)
Price. The energy price of the
regional sales contract offered to SPEED projects shall be a discount
off the applicable hourly Real-time LMP, as calculated by the ISO-NE
under its rules, as those rules may be amended. The price in such
contract offered to SPEED projects for capacity and ancillary
products and services shall be a discount off the applicable prices
for the product or service in the regional market. The SPEED
Facilitator shall propose the amount of the discount for energy,
capacity, and ancillary services, subject to Commission approval. The
amount of the discount shall be, at a minimum, the sum of expected
administrative costs of the SPEED Facilitator and reasonable
compensation for the use of facilities or services of the
interconnecting utility and any other utility over whose system the
energy must be transmitted. However, the transmission component of
the discount may be adjusted to conform to applicable requirements of
a Commission order issued under Section 4.318, below.
(3)
Commission
Review of Contract. The SPEED Facilitator shall
request approval from the Commission for the proposed contract either
in conjunction with review of the SPEED project under Section
248
of Title 30 or in a separate proceeding. The Commission will assess
the reasonableness of the contract terms and conditions, including
the discount, in this proceeding
(4)
Sale. The SPEED Facilitator
shall sell SPEED resources acquired through the contract offer
authorized under this section through the regional market. In doing
so, the SPEED Facilitator may aggregate such resources.
(5)
Profit or
Loss. To the extent that a SPEED Facilitator's
recovery of costs associated with the contracts authorized by this
subsection, after accounting for any transmission charges and
compensation due to the relevant SPEED project owners, exceeds or is
less than the actual amount of the Facilitator's administrative
costs, the SPEED Facilitator shall allocate the difference equally to
the Vermont utilities and the owners of SPEED projects to which
regional sales contracts apply. The SPEED Facilitator shall allocate
the utility portion of the costs according to a formula approved by
the Commission.
(G) The offer of a contract by a
SPEED Facilitator under subsection (F) of this section shall not
preclude the SPEED Facilitator's acquisition with prior Commission
approval of SPEED resources on different terms for resale into the
regional market.
(H) To
effect its duties under this rule, a SPEED Facilitator may:
(1) Sell electricity products
acquired through the contract described in subsections (F), (G), or
(J) to the regional market through an existing participant in that
market, rather than incurring costs to become such a participant. The
SPEED Facilitator shall ensure that the market participant is
compensated for reasonable costs associated with such sales and these
added costs shall be incorporated into the discount off the market
price; and
(2) Conduct
auctions or solicit competitive bids with respect to the acquisition
of SPEED resources, when employed to do so by the owner of a SPEED
project or a Vermont utility. The costs associated with such auction
or solicitation shall be recovered solely from the SPEED project(s)
and/or Vermont utility(ies) that employ the SPEED
Facilitator
(I) The owner of a SPEED project or
a Vermont utility which is a party to a contract under subsections
(C) through (G) or (J), and which disputes the costs assigned to it
by the SPEED Facilitator, may petition the Commission for review and
determination of the appropriate charge.
(J) After providing notice and
opportunity to comment to the SPEED Facilitator, the Department,
affected utilities, and SPEED project owners, the Commission may
authorize the SPEED Facilitator to participate in a contract type not
otherwise described in this rule.
Section 4.309 Required Purchases
SPEED Projects of 250 kW or Less
(A)
A Vermont utility which is the interconnecting utility to a SPEED
project with an installed capacity of two hundred fifty kilowatts or
less shall purchase electricity products offered by the SPEED
project, unless
(1) the capacity of
the project would constitute more than 10% of the peak load of the
interconnecting utility or
(2) the owner of the SPEED project
elects to sell to a different purchaser or execute the standard
contract offered by the SPEED Facilitator under section 4.308(F),
above.
(B) The
rate to be paid for electricity products from a SPEED project under
this section shall be the rate available for the product in the
regional market minus the Discount set out in subsection
4.308(E)(4)(b), above.
(C) If the owner of a SPEED project
eligible for treatment under this section agrees, a Vermont utility
which would otherwise be obligated to purchase electricity offered by
the SPEED project under this section may transmit the electricity to
any other Vermont utility that agrees to purchase the power. Any
Vermont utility to which such electricity is transmitted shall
purchase such electricity as if it were the interconnecting
utility.
Section
4.310 Exemption from Cost Allocations and Power Purchase
(A) A Vermont utility may petition
the Commission for an exemption from a requirement to purchase power
under subsection 4.308(E) or section 4.319. The Commission may grant
such exemption upon a finding that:
(1) The purchase would impair the
provider's ability to meet the public's need for energy services
after safety concerns are addressed at the lowest present value life
cycle cost, including environmental and economic costs; or
(2) Equity requires the Vermont
utility be relieved of such purchase requirement. A utility seeking
such relief on grounds of equity shall demonstrate that the exemption
will not be detrimental to the general good of the state and that the
utility has acquired SPEED resources which equal or exceed the lesser
of either 10% of the utility's total 2005 retail sales of energy or
100% of the utility's projected new retail load between January 1,
2005, and January 1, 2012.
(B) A Vermont utility may petition
the Commission for a determination that equity requires it to be
relieved from bearing costs related to the clearinghouse function
described in section 4.307(B), above, and losses related to the
standard contract described in section 4.308(F), above.
(1) A utility seeking relief on
grounds of equity shall demonstrate that the exemption will not be
detrimental to the general good of the state and that the utility has
acquired SPEED resources which equal or exceed the lesser of either
10% of the utility's total 2005 retail sales of energy or 100% of the
utility's projected new retail load between January 1, 2005, and
January 1, 2012.
(2) In
determining whether to grant relief from allocation of losses related
to the standard contract described in section 4.308(F), above, the
Commission shall consider the extent to which the utility has
received profits from the standard contract.
(C) In approving any petition for
exemption under this rule, the Commission shall:
(1) State the length of the
exemption granted.
(2)
Require the petitioning utility periodically to file a sworn
statement as to whether the facts underlying the grant of the
exemption remain true.
(D) With respect to any petition
for exemption under this rule, the Commission shall provide notice,
with opportunity for hearing, to the petitioning utility, the
Department, the SPEED Facilitator, and any other person or entity the
Commission deems appropriate.
(E) If the Commission grants an
exemption under subsection (A) to one or more utilities, the SPEED
Facilitator shall either (1) sell the power that was proposed to be
allocated to an exempted utility into the regional market, (2) enter
into a contractual arrangement with one or more utilities to purchase
the power (consistent with the provisions of section 4.308, or(3)
propose to reallocate the power to the non-exempt Vermont
utilities.
Section
4.311 Utility Ratemaking
A Vermont utility's
revenue requirement for ratemaking purposes shall include all
reasonable costs incurred by a utility related to cost allocations
and purchases under sections 4.307, 4.308, 4.309, and 4.319.
Section 4.312
Certificates of Public Good for SPEED Projects under 30 V.S.A.
Section 248
(A) A facility that had
been certified as a SPEED project, and that is not financed directly
or indirectly through investments backed by ratepayers of a Vermont
utility other than power contracts, need not demonstrate compliance
with
30
V.S.A. §
248(b)(2).
(B) At the time that the developer
of a generation facility seeking to participate in the SPEED program
applies for a certificate of public good under
30
V.S.A. §
248, the applicant
shall also request a certification from the Commission that the
facility constitutes a SPEED project. However, the applicant need not
make such a request if:
(1) the
Commission has previously issued a certification under subsection
4.305(A), above;
(2) the
project has not materially changed, with respect to the requirements
of section 4.304 of this rule, since the Commission issued the
certification; and
(3)
the applicant submits, with its application under
30
V.S.A. §
248, the Commission's
certification and a sworn statement that the fuel type on which the
certification was based has not changed in any material
respect.
Section
4.313 Interconnection
The provisions of Rule 5.500
apply to interconnection of SPEED projects.
Section 4.314 Reporting
(A) A SPEED Facilitator shall:
(1) Report annually to the
Commission by March 1 on the SPEED resources that have come into
service during the year ending the preceding December 31. Such report
shall include at least the following:
(a) the identity, owner, location,
capacity and energy production of the relevant SPEED
projects;
(b) the
identity of the sponsoring utilities;
(c) whether the SPEED resources
constitute qualifying or nonqualifying SPEED resou
(d) the identity, owner, location,
capacity, and energy production of any project that is not a SPEED
resource but is a facility owned by or under long-term contract to a
Vermont utility and which constitutes a new renewable energy
resource;
(e) advice as
to where SPEED generation projects would provide benefit to the
electric system; and
(f)
such other information as the Commission may deem
appropriate.
(2) Provide an annual financial
accounting to the Commission in such form and by such date as the
Commission requires. This accounting shall be publically
available.
(B)
At the same time that they file quarterly and annual resource reports
under Commission Rule 5.206, each Vermont utility shall provide the
SPEED Facilitator with sufficient information concerning the
utility's supply portfolio to enable the Facilitator to complete its
report under subsection (A)(1) of this section. Such information
shall include the amount of capacity and energy associated with the
utility's SPEED resources and such other information as the SPEED
Facilitator reasonably may require.
Section 4.315 Disclosure; Call
Option
(A) Separation of Attributes
from Electricity Products. The Commission may authorize the SPEED
Facilitator to purchase and resell attributes from SPEED projects
from time to time subject to such terms and conditions as the
Commission may establish. In the absence of any such authorization,
SPEED resources shall be presumed to represent only contracts
acquired in accordance with this rule for energy, capacity, and
ancillary products or services associated with projects that produce
renewable energy or are CHP that meet the requirements of section
4.304 of this regulation. The attributes of SPEED projects that
produce renewable energy may be sold and accounted for in other
markets including, but not limited to, the retirement of renewable
energy credits in Vermont for products and services that require
renewable resource attributes.
(B) Disclosure Requirements. The
following shall apply:
(1) An owner
of a SPEED resource shall comply with any rules and standards for
disclosure established by the Commission regarding the representation
of the owner's generation resource mix.
(2) Without owning the attributes
associated with the SPEED resource, an owner of a SPEED resource or a
utility that purchases power from a SPEED resource shall not make any
claims or representations in public or in a regulatory filing that
underlying renewable resources are a part of its mix of generation
resources. However, this provision shall not prohibit the owner of a
SPEED resource from discussing the fuel type associated with an
underlying SPEED project in a filing under
30
V.S.A. §
8005 or this Rule
4.300.
(3) All claims
concerning the amount of SPEED resources owned shall clearly
distinguish the ownership claim for SPEED resources from any claim as
to the ownership or retirement of the renewable attributes derived
from the development of SPEED resources.
(C) Call Option. Each SPEED
resource may include a call option, right of first refusal, or other
term for the purchase of renewable attributes associated with that
resource, in order to enable such a purchase by the SPEED Facilitator
or purchasing utility should a renewable portfolio standard in
Vermont come into effect.
Section 4.316 Sale of Electricity
by a Vermont Utility to a SPEED Project
(A) Unless otherwise provided for
in the interconnecting utility's electric service tariff, upon
request of the owner of a SPEED project, the interconnecting utility
shall, by tariff or special contract, provide the following:
supplementary power, backup power, maintenance power, and
interruptible power.
(B)
Rates for sales of electricity by a Vermont utility to a SPEED
project shall not discriminate against SPEED projects in comparison
to rates for sales to other customers by the Vermont utility or in
the allocation of costs to similarly situated utility-owned projects.
Rates for sales which are based on accurate data and consistent
system-wide costing principles shall not be considered to
discriminate against a SPEED project to the extent such rates apply
to the utility's other customers with similar load or other
cost-related characteristics and the utility uses the same
methodologies for projects that it owns.
Section 4.317 Metering
After
consultation with the sponsoring utility, the interconnecting utility
and the owner of the relevant SPEED project, the SPEED Facilitator
shall determine the metering requirements applicable to the output of
each project that is the subject of a SPEED resource, provided that
in a given instance the sponsoring utility, interconnecting utility,
or owner of a SPEED project may appeal that determination to the
Commission. To the extent practicable, such metering requirements
shall be designed to ensure that the SPEED project is recognized by
ISO-NE and satisfies all of ISO-NE's requirements so that the project
is recognized for participation in applicable regional markets
including the regional Generation Information System.
Section 4.318 Mechanism
to Allocate Transmission Charges
After notice and opportunity
for hearing, the Commission may establish one or more mechanisms to
minimize and allocate transmission charges applicable to SPEED
resources to the extent permitted by law.
Section 4.319 Department of Public
Service Contracts
The Department or any interested person may
request that the Commission approve a form of contract or contract
type for use with SPEED projects. The Department also may request
that the Commission approve a contract with a SPEED project
regardless of whether the SPEED Facilitator is a signatory to that
contract. A request by the Department under this section may include
a request to allocate associate electricity products or costs to
Vermont utilities. The price for any such products shall be below the
anticipated market price for those products over the term of the
proposed purchase. Prior to approval of a contract or contract type
under this section, the Commission shall provide a notice and an
opportunity for comment to Vermont utilities, the SPEED Facilitator,
and any other affected parties.
STATUTORY AUTHORITY:
30 VS.A. §§
2,
209,
8005