West Virginia Code of State Rules
Agency 150 - Public Service Commission
Title 150 - EXEMPT LEGISLATIVE RULE PUBLIC SERVICE COMMISSION
Series 150-03 - Government of Electric Utilities
Section 150-3-12 - Cogeneration and Small Power Production
Universal Citation: 150 WV Code of State Rules 150-3-12
Current through Register Vol. XLI, No. 13, March 29, 2024
12.1. Definitions.
12.1.1. Terms defined in the Public Utility
Regulatory Policies Act of 1978 (PURPA),
16
U.S.C. 2601, et seq., shall have the same
meaning for purposes of this Rule 12 as they have under PURPA, unless further
defined in this rule.
12.1.1.a. "Qualifying
facility" means a cogeneration facility or a small power production facility
which satisfies the criteria for qualifying facilities set forth in Subpart B
of Part 292 of the rules of the Federal Energy Regulatory Commission,
Qualifying Cogeneration and Small Power Production Facilities,
18 C.F.R.
§
292.201 through §
292.207.
12.1.1.b. "Purchase" means the purchase of
electric energy or capacity or both from a qualifying facility by an electric
utility.
12.1.1.c. "Sale" means the
sale of electric energy or capacity or both by an electric utility to a
qualifying facility.
12.1.1.d.
"System emergency" means a condition on a utility's system which is likely to
result in imminent significant disruption of service to customers or is
imminently likely to endanger life or property.
12.1.1.e. "Rate" means any price, rate,
charge, or classification made, demanded, observed or received with respect to
the sale or purchase of electric energy or capacity, or any rule, regulation,
or practice respecting any such rate, charge, or classification, and any
contract pertaining to the sale or purchase of electric energy or
capacity.
12.1.1.f. "Avoided costs"
means the incremental costs to an electric utility of electric energy or
capacity or both which, but for the purchase from the qualifying facility or
qualifying facilities, such utility would generate itself or purchase from
another source.
12.1.1.g.
"Interconnection costs" means the reasonable cost of connection, switching,
metering, transmission, distribution, safety provisions and administrative
costs incurred by the electric utility directly related to the installation and
maintenance of the physical facilities necessary to permit interconnected
operations with a qualifying facility, to the extent such costs are in excess
of the corresponding costs which the electric utility would have incurred if it
had not engaged in interconnected operations, but instead generated an
equivalent amount of electric energy itself or purchased an equivalent amount
of electric energy or capacity from other sources. Interconnection costs do not
include any costs included in the calculation of avoided costs.
12.1.1.h. "Supplementary power" means
electric energy or capacity or both supplied by an electric utility, regularly
used by a qualifying facility in addition to that which the facility generates
itself.
12.1.1.i. "Back-up power"
means electric energy or capacity or both supplied by an electric utility to
replace energy ordinarily generated by a facility's own generation equipment
during an unscheduled outage of the facility.
12.1.1aj. "Interruptible power" means
electric energy or capacity or both supplied by an electric utility subject to
interruption by the electric utility under specified conditions.
12.1.1.k. "Maintenance
power" means electric energy or capacity or both supplied by an electric
utility during scheduled outages by the qualifying facility.
12.1.1.l. "Commission" means Public Service
Commission of West Virginia.
12.2. Scope.
12.2.1. Applicability -- The provisions of
Rule 12 et seq., apply to the regulation of sales and purchases between
qualifying facilities with a design capacity in excess of 100 KW and electric
utilities.
12.2.2. Negotiated rates
or terms -- Nothing in Rule 12 et seq:
12.2.2.a. Limits the authority of any
electric utility or any qualifying facility to agree to a rate for any
purchase, or terms or conditions relating to any purchase, which differ from
the rate or terms or conditions which would otherwise be required by this rule;
or
12.2.2.b. Affects the validity
of any contract entered into between a qualifying facility and an electric
utility for any purchase.
12.3. Cost data to be supplied by electric utilities.
12.3.1. Each utility required to
file data with the Federal Energy Regulatory Commission under
18 C.F.R.
292.302, Availability of Electric Utility
System Cost Data, shall file the same data with the Commission in accordance
with the time schedules and utility classifications set forth in that
section.
12.3.2. Any data submitted
by an electric utility under Rule 12.3 shall be subject to Commission review.
In any such review, the electric utility has the burden of coming forward with
justification for its data.
12.4. Electric utility obligation under Rule 12 et seq.
12.4.1. Obligation to purchase from
qualifying facilities -- Each electric utility shall purchase, in accordance
with Rule 12.6, any energy and capacity which is made available from a
qualifying facility:
12.4.1.a. Directly to
the electric utility; or
12.4.1.b.
Indirectly to the electric utility in accordance with Rule 12.4.4.
12.4.2. Obligation to sell to
qualifying facilities -- Each electric utility shall sell to any qualifying
facility, in accordance with Rule 12.7, any energy and capacity requested by
the qualifying facility.
12.4.3.
Obligation to interconnect.
12.4.3.a. Any
electric utility shall make such interconnection with any qualifying facility
as may be necessary to accomplish purchases or sales under these rules (Rule 12
et seq.): provided, however, that if, solely by reason of purchases or sales
over the interconnection, the electric utility would become subject to
regulation as a public utility under Part II of the Federal Power Act, then the
electric utility will not be required to interconnect.
12.4.3.b. The obligation to pay for any
interconnection costs shall be determined in accordance with Rule
12.8.
12.4.4.
Transmission to other electric utilities -- If a qualifying facility agrees, an
electric utility which would otherwise be obligated to purchase energy or
capacity from such qualifying facility may transmit the energy or capacity to
any other electric utility. Any electric utility to which such energy or
capacity is transmitted shall purchase such energy or capacity under this
paragraph as if the qualifying facility were supplying energy or capacity
directly to such electric utility. The rate for purchase by the electric
utility to which such energy is transmitted shall be adjusted up or down to
reflect line losses and shall not include any charges for
transmission.
12.4.5. Parallel
operation -- Each qualifying facility shall agree to operate in parallel with
the electric utility; provided that the qualifying facility complies with the
utility's reliability and safety standards on file with the
Commission.
12.5. Procedure for establishing rates for purchases.
12.5.1. Utilities and qualifying facilities
shall negotiate a mutually acceptable rate for purchase of power taking into
consideration all relevant factors, including the factors set forth in Rule
12.6.4. Prior to becoming effective, all negotiated contracts between utilities
and qualifying facilities shall be filed with the Commission and approved by
the Commission. Unless the Commission specifically modifies or disapproves a
negotiated contract within thirty (30) days after filing, the contract shall be
approved, as filed.
12.5.2. If a
utility and a qualifying facility cannot negotiate terms acceptable to both
parties, either party, or both, may request an informal conference with the
Commission Staff wherein the matters in controversy will be discussed. If after
such conference a resolution acceptable to both parties has not been reached,
either party, or both, may file a formal complaint with the Commission,
pursuant to the Commission's Rules of Practice and Procedure, 150 C.S.R. 1,
setting forth in detail the matters in controversy; the basis for that party's
position, including the necessary data in support thereof; and a history of the
negotiations.
12.5.2.a. Prefiled testimony
shall be required unless waived by the Commission for good cause
shown.
12.5.2.b. The Commission
shall make such order as necessary to reasonably resolve the
controversy.
12.6. Rates for purchases.
12.6.1. Rates for purchases -- Rates for
purchases shall:
12.6.1.a. Be just and
reasonable to the electric consumer and in the public interest, and
12.6.1.b. Not discriminate against qualifying
cogeneration and small power production facilities: however, nothing in this
rule shall require an electric utility to pay more than the avoided costs for
purchases, as those costs are defined in Rule 12.1.1.f.
12.6.2. Relationship to avoided costs:
12.6.2.a. For purposes of this paragraph,
"new capacity" means any purchase from capacity of a qualifying facility,
construction of which was commenced on or after November 9, 1978.
12.6.2.b. Rates for purchases of new capacity
shall equal the avoided costs determined after consideration of the factors set
forth in Rule 12.6.4., regardless of whether the electric utility making such
purchases is simultaneously making sales to the qualifying facility. A rate so
determined satisfies the requirements of Rule 12.6.1.
12.6.2.c. A rate for purchases (other than
from new capacity) may be less than the avoided cost if the Commission
determines that a lower rate is consistent with Rule 12.6.1 and is sufficient
to encourage cogeneration and small power production.
12.6.2.d. In the case in which the rates for
purchases are based upon estimates of avoided costs over the specific term of
the contract or other legally enforceable obligation, the rates for such
purchases do not violate this rule if the rates for such purchases differ from
avoided costs at the time of delivery.
12.6.3. Purchases "as available" or pursuant
to a legally enforceable obligation -- Each qualifying facility shall have the
option either:
12.6.3.a. To provide energy as
the qualifying facility determines such energy to be available for such
purchases, in which case the rates for such purchases shall be based on the
purchasing utility's avoided costs calculated at the time of delivery;
or
12.6.3.b. To provide energy or
capacity pursuant to a legally enforceable obligation for the delivery of
energy or capacity over a specified term, in which case the rates for such
purchases shall, at the option of the qualifying facility exercised prior to
the beginning of the specified term, be based on either:
12.6.3.b.1. The avoided costs calculated at
the time of delivery, or
12.6.3.b.2. The avoided costs calculated at
the time the obligation is incurred.
12.6.4. Factors affecting rates for purchases
-- In determining avoided costs, the following factors shall, to the extent
practicable, be taken into account:
12.6.4.a.
The data provided pursuant to Rule 12.3., including Commission review of any
such data:
12.6.4.b. The
availability of capacity or energy from a qualifying facility during the system
daily and seasonable peak period, including:
12.6.4.b.1. The ability of the utility to
dispatch the qualifying facility;
12.6.4.b.2. The expected or demonstrated
reliability of the qualifying facility;
12.6.4.b.3. The terms of any contract or
other legally enforceable obligation, including the duration of the obligation,
termination notice requirement and sanctions for noncompliance;
12.6.4.b.4. The extent to which scheduled
outages of the qualifying facility can be usefully coordinated with scheduled
outages of the utility's facilities;
12.6.4.b.5. The usefulness of energy and
capacity supplied from a qualifying facility during system emergencies,
including its ability to separate its load from its generation;
12.6.4.b.6. The individual and aggregate
value of energy and capacity from qualifying facilities on the electric
utility's system; and
12.6.4.b.7.
The smaller capacity increments and the shorter lead times available with
additions of capacity from qualifying facilities.
12.6.4.c. The relationship of the
availability of energy or capacity from the qualifying facility as derived in
Rule 12.6.4.b. to the ability of the electric utility to avoid costs, including
the deferral of capacity additions and the reduction of fossil fuel use;
and
12.6.4.d. The costs or savings
resulting from variations in line losses from those that would have existed in
the absence of purchases from a qualifying facility, if the purchasing electric
utility generated an equivalent amount of energy itself or purchased an
equivalent amount of electric energy or capacity.
12.6.5. Periods during which purchases are
not required.
12.6.5.a. Any electric utility
which gives reasonable notice pursuant to Rule 12.6.5.b, below, will not be
required to purchase electric energy or capacity during any period during
which, due to operational circumstances, purchases from qualifying facilities
will result in costs greater than those which the utility would incur if it did
not make such purchases, but instead generated an equivalent amount of energy
itself. The costs referred to herein shall be calculated in the same or a
similar manner that was used to calculate the costs for the purpose of
establishing the rate for purchases from the qualifying facility.
12.6.5.b. For the purposes of Rule 12.6.5.a,
reasonable notice is that which provides each affected qualifying facility
adequate time to cease delivery of energy or capacity to the electric utility.
12.6.5.b.1. Any utility failing to provide
reasonable notice will be required to pay the contract rate for such purchase
of energy or capacity from the facility.
12.6.5.c. A claim by an electric utility that
such period as described in Rule 12.6.5.a, has occurred or will occur is
subject to verification by the Commission.
12.7. Rates for sales.
12.7.1. Rates for sales shall be just and
reasonable and in the public interest and not discriminate against any
qualifying facility in comparison to rates for sales to other customers served
by the electric utility.
12.7.2.
When a qualifying facility's load or other cost-related characteristics are
similar to those of other customers receiving service under a given rate
schedule, the same rate schedule shall apply to the qualifying facility. If
there is no existing rate schedule applicable to the qualifying facility, the
utility shall file with the Commission a proposed tariff and supporting
cost-of-service data.
12.7.3. Upon
request of a qualifying facility, each electric utility shall provide
supplementary power, back-up power, maintenance power and interruptible power;
provided, however, that if, after public notice and hearing, it is determined
that compliance with any of these requirements will impair the electric
utility's ability to render adequate service to its customers or will place an
undue burden on the electric utility, then the Commission may waive such
requirement(s).
12.7.3.a. The rates for sale
of back-up power or maintenance power shall not be based upon an assumption
(unless supported by factual data) that forced outages or other reductions in
electric output by all qualifying facilities on an electric utility's system
will occur simultaneously, or during the system peak, or both, and shall take
into account the extent to which scheduled outages of the qualifying facilities
can be usefully coordinated with scheduled outages of the utility's
facilities.
12.8. Interconnection costs.
12.8.1. Each qualifying facility shall be
obligated to pay any interconnection costs as defined in Rule 12.1.1.g. Such
costs shall be assessed on a nondiscriminatory basis with respect to other
customers with similar load characteristics. Reasonable costs of
interconnection shall be negotiated by the qualifying facility and the utility,
and any disputes shall be resolved in accordance with the procedure established
in Rule 12.5.2.
12.8.2. The utility
shall be reimbursed by the qualifying facility at the time interconnection
costs are incurred. Upon petition by any party involved and for good cause
shown, the Commission may allow for reimbursement of costs over a reasonable
period of time and upon such conditions as the Commission may determine:
Provided, however, that no other customers of the utility shall bear any of the
costs of interconnection.
12.9. System emergencies or maintenance period -- During a system emergency:
12.9.1.
A qualifying facility will be required to supply energy or capacity only to the
extent:
12.9.1.a. Provided by contract
between the utility and qualifying facility; or
12.9.1.b. Ordered under Section 202(c) of the
Federal Power Act;
12.9.2. An electric utility may discontinue:
12.9.1.a. Purchases from a qualifying
facility if such purchases would contribute to the emergency; and
12.9.2.b. Sales to a qualifying facility:
Provided, that such discontinuance is on a nondiscriminatory basis.
12.9.3. During system maintenance
periods -- An electric utility may discontinue purchases from a qualifying
facility during periods of maintenance when safety conditions would require the
de-energizing of facilities.
All forms are available from the P.S.C.
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