2109670 Formal Case No. 945, In the Matter of the Investigation into Electric Services Market Competition and Regulatory Practices
-
PUBLIC SERVICE COMMISSION OF THE DISTRICT OF COLUMBIA
NOTICE OF FINAL RULEMAKING
FORMAL CASE NO. 945, IN THE MATTER OF THE INVESTIGATION INTO ELECTRIC SERVICES MARKET COMPETITION AND REGULATORY PRACTICES
1. The Public Service Commission of the District of Columbia (Commission), hereby gives notice, pursuant to section 34-802 of the D.C. Official Code and in accordance with section 2-505 of the D.C. Official Code, of its final rulemaking action, amending chapter 29 of title 15 of the District of Columbia Municipal Regulations (DCMR) in its entirety and adopting the revised Electricity Supplier Annual Compliance Report Form for the District of Columbia's Renewable Energy Portfolio Standard Program (Annual Compliance Report Form).
2. A Notice of Proposed Rulemaking (NOPR) was published on January 13, 2011.[1] No comments were filed in response to the NOPR. The Commission determined that no further revisions of chapter 29 or the Annual Compliance Report Form were warranted. Accordingly, in Order No. 16738 issued on March 15, 2012, the Commission adopted the revised chapter 29 and revised Annual Compliance Report Form as they appeared in the NOPR.[2] The amendments to chapter 29 and the revised Annual Compliance Report Form will become effective upon the publication of this Notice of Final Rulemaking in the D.C. Register.
Chapter 29, RENEWABLE ENERGY PORTFOLIO STANDARD, is amended in its entirety to read as follows:
2900 APPLICABILITY
2900.1 This chapter establishes the Public Service Commission's (Commission) rules and regulations governing the Renewable Energy Portfolio Standard (RPS) applicable to an Electricity Supplier as provided in D.C. Official Code §§ 34-1431 through 34-1439 (2010 Repl. & 2011 Supp.).
2901 RPS COMPLIANCE REQUIREMENTS
2901.1 An Electricity Supplier shall meet the Renewable Energy Portfolio Standard requirement by obtaining Renewable Energy Credits (RECs) that equal the annual percentage requirement for electricity sold at retail or by paying the specified compliance fee. An Electricity Supplier shall not apply any surplus RECs derived from voluntary purchases of energy from qualified renewable sources toward its mandatory compliance requirements.
2901.2 An Electricity Supplier shall meet the solar requirement by obtaining the equivalent amount of RECs from solar energy systems no larger than five megawatts (5 MW) in capacity that are located within the District of Columbia or in locations served by a distribution feeder serving the District of Columbia, except that RECs generated by solar energy facilities that are not located within the District of Columbia nor in locations served by a distribution feeder serving the District of Columbia that the Commission certified prior to February 1, 2011, may be used to meet the solar requirement.
2901.3 Each District of Columbia Electricity Supplier must establish a Generation Attribute Tracking System (GATS) account for the load it serves within the District of Columbia. Suppliers shall maintain that account in good standing.
2901.4 Electricity Suppliers may acquire and accumulate RECs as of January 1, 2006, in accordance with D.C. Official Code § 34-1433(c) (2010 Repl.).
2901.5 Compliance with the Renewable Energy Portfolio Standard is on a calendar year basis beginning with calendar year 2007.
2901.6 Each Electricity Supplier must prepare and submit an annual Compliance Report to the Commission containing the following information:
(a) The quantity of its annual District of Columbia retail electricity sales;
(b) A calculation of the annual quantity of required Tier One, Tier Two, and Solar Energy RECs;
(c) The quantity of Tier One, Tier Two, and Solar Energy RECs purchased and evidence of those purchases;
(d) The quantity of Tier One, Tier Two, and Solar Energy Credits transferred to the Electricity Supplier by a Renewable On-Site Generator;
(e) A calculation of any compliance fees that the Electricity Supplier owes;
(f) Certification of the accuracy and veracity of the report;
(g) All documentation supporting the data appearing in the annual compliance report;
(h) A list of all RECs used to comply with the Renewable Energy Portfolio Standard;
(i) A summary report of RECs retired during the reporting period; and
(j) The total price paid for Tier One, Tier Two, and Solar Energy RECs. The total price paid may be submitted confidentially so long as the words "Protected-Materials - Contains Competitive Business Information" or words of similar import are clearly printed on the top of each page. Suppliers that purchase RECs solely via bundled products are exempt from including the total price paid for Tier One, Tier Two and Solar Energy RECs in their annual compliance reports.
2901.7 Each Electricity Supplier's annual compliance report shall be submitted to the Commission by May 1 of the calendar year following the year of compliance. The Commission shall complete its review of each Electricity Supplier's Compliance Report within seventy-five (75) business days after submission. After notification of a decision of non-compliance by the Commission, a supplier shall submit the appropriate payment (or its response contesting the notification) within thirty (30) days.
2901.8 Any Electricity Supplier that fails to file the annual compliance report as required by this chapter and D.C. Official Code § 34-1434(a) may be subject to Commission action to compel submission of the required report. Such action may include the issuance of an Order to Show Cause by the Commission.
2901.9 Any Electricity Supplier that fails to meet its Renewable Energy Portfolio Standard requirements must submit the required annual Compliance Fee to the District of Columbia Renewable Energy Development Fund administered by the District of Columbia Department of the Environment's Energy Office (DDOE or Energy Office) by May 1 of the calendar year following the year of compliance.
2091.10 An Electricity Supplier may apply the Solar Energy RECs, retired for compliance with the Solar Energy requirement, to meet the Tier One Renewable Energy requirement as well.
2901.11 An Electricity Supplier may not apply RECs from a facility that uses the incineration of solid waste to meet more than twenty percent (20%) of the standard for Tier Two renewable resources in a given compliance year.
2901.12 After December 31, 2012, an Electricity Supplier may not apply RECs from a facility that uses the incineration of solid waste to meet the standard for Tier Two renewable resources.
2901.13 After December 31, 2019, RECs from a Tier Two renewable resource shall not apply toward meeting the Renewable Energy Portfolio Standard requirements.
2901.14 Energy supply contracts entered into prior to August 1, 2011, shall not be subject to the increased Solar Energy requirement as required by law.
2901.15 The Compliance Fee shall be:
(a) Fifty dollars ($50) for each REC shortfall for Tier One resources;
(b) Ten dollars ($10) for each REC shortfall for Tier Two resources; and
(c) Three hundred dollars ($300) for each REC shortfall for Solar Energy resources in 2008; five hundred dollars ($500) for each REC shortfall for Solar Energy resources in 2009 through 2016; three hundred fifty dollars ($350) for each REC shortfall for Solar Energy resources in 2017; three hundred dollars ($300) for each REC shortfall for Solar Energy resources in 2018; two hundred dollars ($200) for each REC shortfall for Solar Energy resources in 2019 and 2020; one hundred fifty dollars ($150) for each REC shortfall for Solar Energy resources in 2021 and 2022; and fifty dollars ($50) for each REC shortfall for Solar Energy resources in 2023 and thereafter.
2902 GENERATOR CERTIFICATION AND ELIGIBILITY
2902.1 Renewable electricity generators, including behind-the-meter (BTM) generators, must be certified as a qualified resource by the Commission. After January 31, 2011, the Commission shall not certify any Tier One solar energy system larger than five megawatts (5 MW) in capacity or any Tier One solar energy system not located within the District of Columbia or in locations served by a distribution feeder serving the District of Columbia.
2902.2 Renewable electricity generators, including BTM generators, may be certified as a Tier One or Tier Two resource. In order to be certified, applicants must:
(a) Complete the Commission's "Application for Certification as an Eligible District of Columbia Renewable Energy Standards Generating Facility" (Regular Application); or
(b) Complete the Commission's "Streamlined Application for Certification as an Eligible District of Columbia Renewable Energy Standards Generating Facility" (Streamlined Application) in cases where the applicant has already been certified as a renewable energy resource by another PJM state and the Commission determines certification to be comparable to the Renewable Energy Portfolio Standards requirements in the District of Columbia. The applicant should refer to the Tier One and Tier Two eligibility matrices available on the Commission's website to determine if the Streamlined Application can be submitted.
2902.3 The following states are deemed to be within the PJM Interconnection Region as of October 2011: Delaware, the District of Columbia, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia.
2902.4 The Renewable Energy Portfolio Standard (RPS) Working Group shall identify any new renewable energy resource that has been certified by another PJM state that is eligible for participation in the District of Columbia's RPS. This information shall be included in the filing of the annual update to the Tier One and Tier Two eligibility matrices to be submitted by February 1 of each calendar year.
2902.5 An applicant submitting a Regular Application or a Streamlined Application for certification as a renewable resource shall state, at a minimum:
(a) The name of the Renewable Energy Facility for which the application is made and its address;
(b) The name of the owner of the facility and the owner's contact information;
(c) The name of the operator of the facility and the operator's contact information;
(d) The name of a contact person and the person's contact information;
(e) The location of the resource;
(f) The renewable fuel type(s) and capacity information;
(g) The commercial operation start date (or date of approved interconnection with the Potomac Electric Power Company (PEPCO));
(h) Whether the facility is a "behind-the-meter" generator;
(i) Whether the facility is certified by another state as an eligible generation resource to meet the portfolio standards of that state; and
(j) The Office of Regulatory Information Systems Plant Location (ORISPL) Code for the facility.
2902.6 In addition to the information required in § 2902.5, an applicant submitting a Regular Application must also attach:
(a) A current Certificate of Good Standing for the applicant issued by the state in which the business was formed;
(b) A copy of the U.S. Department of Energy, Energy Information Administration Form EIA 860, if the rated capacity is greater than one megawatt (1 MW);
(c) A Certificate of Authorization to Conduct Business in the District of Columbia, if applicable;
(d) An Affidavit of General Compliance;
(e) Documentation of authority to sign on behalf of the Applicant;
(f) An Affidavit of Environmental Compliance, if the rated capacity is greater than ten kilowatts (10 kW);
(g) Documentation that the energy output of the non-residential solar heating, cooling, or process heat property systems producing or displacing greater than ten thousand kilowatt hours (10,000 kWh) per year is determined by an on-site energy meter that meets performance standards established by the International Organization of Legal Metrology (OIML) and the solar collectors used have a OG-100 certification from the Solar Rating and Certification Corporation (SRCC), if applicable;
(h) Documentation that the energy output of the non-residential solar heating, cooling, or process heat property systems producing or displacing ten thousand (10,000) or less kilowatt-hours per year is determined by the SRCC OG-300 annual system performance rating protocol applicable to the property or by an on-site energy meter that meets performance standards established by OIML and the solar collectors used have a OG-100 certification from the SRCC, if applicable;
(i) Documentation that the residential solar thermal system energy output is determined by the SRCC OG-300 annual rating protocol or by an on-site energy meter that meets performance standards established by OIML and the solar collectors used have a OG-100 certification from the SRCC, if applicable; and
(j) Interconnection Approval Letter from the PEPCO for the solar energy system, if applicable.
2902.7 In addition to the information required in § 2902.5, an applicant submitting a Streamlined Application must also attach:
(a) An Affidavit of General Compliance;
(b) An Affidavit of Environmental Compliance, if the rated capacity is greater than ten kilowatts (10 kW);
(c) Documentation of authority to sign on behalf of the Applicant;
(d) Documentation that the energy output of the non-residential solar heating, cooling, or process heat property systems producing or displacing greater than ten thousand kilowatt hours (10,000 kWh) per year is determined by an on-site energy meter that meets performance standards established by the OIML and the solar collectors used have a OG-100 certification from the SRCC, if applicable;
(e) Documentation that the energy output of the non-residential solar heating, cooling, or process heat property systems producing or displacing ten thousand (10,000) or less kilowatt-hours per year is determined by the SRCC OG-300 annual system performance rating protocol applicable to the property or by an on-site energy meter that meets performance standards established by OIML and the solar collectors used have a OG-100 certification from the SRCC, if applicable;
(f) Documentation that the residential solar thermal system energy output is determined by the SRCC OG-300 annual rating protocol or by an on-site energy meter that meets performance standards established by OIML and the solar collectors used have a OG-100 certification from the SRCC, if applicable; and
(g) Interconnection Approval Letter from PEPCO for the solar energy system, if applicable.
2902.8 A Regular or Streamlined Application may be submitted at any time on the Commission-approved application forms. All application forms are available from the Office of the Commission Secretary or the Commission's website at www.dcpsc.org/applications/applications.asp.
2902.9 The Commission shall issue a decision on the Regular Application forms within thirty (30) business days of filing. The generation resource shall be considered certified if the Commission has not acted within the thirty (30) business-day period, except where the Commission or its staff has issued a request for further information that is still outstanding.
2902.10 The Commission shall issue a decision on the Streamlined Application forms within fifteen (15) business days of filing. The generation resource shall be considered certified if the Commission has not acted within the fifteen (15) business-day period, except where the Commission or its staff has issued a request for further information that is still outstanding.
2902.11 In cases where the Commission or its staff determines that a Regular Application is insufficient or incomplete, the Commission or its staff will send a written request for additional information within fifteen (15) business days of the date of the filing of the application. In such cases, the applicant shall have fifteen (15) days to submit the additional information.
2902.12 In cases where the Commission or its staff determines that a Streamlined Application is insufficient or incomplete, the Commission or its staff will send a written request for additional information within ten business (10) days of the date of the filing of the application. In such cases, the applicant shall have fifteen (15) days to submit the additional information.
2902.13 A request for additional information from the Commission or its staff shall toll the deadline in these rules for issuing a decision on the applicant's Regular or Streamlined Application.
2902.14 Upon receipt of the additional information from the applicant or its authorized representative, the Commission shall issue a decision on the application in accordance with the time periods prescribed in § 2902.9 for Regular Applications and § 2902.10 for Streamlined Applications.
2902.15 Upon approval of an application, the Commission shall assign a unique GATS certificate number to the eligible renewable energy generating resource. The Commission should be notified of any planned substantive changes in the operating characteristics of a certified generating facility at least thirty (30) days prior to the effective date of such changes. Substantive changes include, but are not limited to, changes in fuel type, fuel mix, and generator type. A revised application should be submitted for Commission review, subject to the time periods prescribed in § 2902.9 for Regular Applications and § 2902.10 for Streamlined Applications. In addition, applicants and District-certified generating facilities shall notify the Commission of any substantive changes in information provided in an original or amended application within thirty (30) days. If a system is already certified, the changes to the system or facility shall be deemed approved unless the Commission requests additional information within fifteen (15) business days. If a request for additional information is issued for a system that is already certified, the changes to the system or facility shall be deemed approved within fifteen (15) business days after a response is received, unless further information is requested.
2902.16 A Renewable electricity generator may be decertified by the Commission if it is determined to no longer be an eligible renewable resource due to fraud or a material change in the nature of the resource. Before being decertified, a renewable electricity generator will be given thirty (30) days' written notice and an opportunity to show cause why it should not be decertified.
2902.17 Any generating facility that is decertified due to fraud may not create any District of Columbia RECs for a three (3)-year period and may not retroactively create RECs for that same three (3)-year period.
2902.18 Any subsequent unrelated owner of the decertified renewable electricity generator, pursuant to § 2902.16 above, is not subject to the three (3)-year exclusion beginning with its effective date of ownership.
2902.19 RECs created prior to decertification of the generating facility by the Commission, pursuant to § 2902.16 above, shall be eligible to be used for Renewable Energy Portfolio Standard compliance purposes, subject to the restrictions identified in § 2903.2.
2902.20 After December 31, 2012, a facility that uses the incineration of solid waste shall not be eligible to generate RECs for the District of Columbia’s RPS program.
2901.21 After December 31, 2019, a facility certified as a Tier Two renewable resource shall not be eligible to generate RECs for the District of Columbia’s RPS program.
2903 CREATION AND TRACKING OF RENEWABLE ENERGY CREDITS
2903.1 RECs shall be created and tracked through the PJM Environmental Information Service GATS (PJM-EIS GATS) beginning January 1, 2006. The accumulation of RECs derived from generation occurring prior to the date of January 1, 2006, is not permissible.
2903.2 Behind-the-Meter generators with a capacity of less than ten kilowatts (10 kW) may submit engineering based estimates of their output if the generator is not directly metered by a revenue grade utility meter. For solar thermal energy systems that do not generate electricity:
(a) If the output is to be estimated, the Commission will provide PJM-EIS with the output in kilowatt-hour savings for the system, based on SRCC’s estimated annual system performance of OG-300 certified systems; or
(b) If the solar thermal energy system uses an energy meter that meets the performance standards established by OIML, then the solar thermal energy produced by the system shall be credited with one kilowatt hour (1 kWh) of electricity generated for each three thousand four hundred twelve British thermal units (3,412 BTUs) produced by the solar thermal energy system.
2903.3 RECs created by behind-the-meter generators must be recorded in GATS at least once each calendar year in order to be eligible for compliance.
2903.4 RECs shall be valid for a three (3)-year period from the date of generation beginning January 1, 2006, except where precluded by statute. The last business day of January of each year shall be the deadline for the creation of RECs for the previous year, subject to further changes in GATS provisions.
2903.5 A REC shall be retired after it is used to comply with any state's Renewable Energy Portfolio requirement.
2903.6 Retroactively created RECs must be created and tracked through PJM-EIS GATS.
2904 RECOVERY OF FEES AND COSTS
2904.1 Recovery of any fees and costs by the local electric distribution company and electric suppliers shall be in accordance with D.C. Official Code § 34-1435 (2010 Repl.).
2904.2 No electric supplier shall recover any compliance fee levied pursuant to D.C. Official Code § 34-1434 (2010 Repl.) from its customers without receiving prior approval from the Commission.
2904.3 Pursuant to D.C. Official Code § 34-1435(a) (2010 Repl.), the local electric distribution company may recover prudently incurred Renewable Energy Portfolio Standard compliance costs, including REC purchases and any compliance fees.
2904.4 Electric distribution company compliance costs for Standard Offer Service (SOS) shall be considered prudent if SOS energy suppliers are selected through a competitive bid process and the cost of complying with the Renewable Energy Portfolio Standard is included in the supplier's bid prices.
2904.5 Electric distribution company compliance costs for Market Price Service shall be recovered through the Market Price Service Procurement Rate Schedule.
2904.6 Any cost recovery approved by the Commission may be in the form of a non-bypassable surcharge to current applicable customers and shall be disclosed on their bills.
2905 WAIVER
2905.1 The Commission reserves the right to waive any provision of these rules for good cause shown.
2906-2998 [Reserved]
2999 DEFINITIONS
2999.1 For the purposes of this chapter, the following terms and phrases have the following meanings:
Adjacent PJM State - a state that is adjacent to the PJM Interconnection Region. The following states are deemed adjacent to the PJM Interconnection Region as of October 2011: Alabama, Arkansas, Georgia, Iowa, Mississippi, Missouri, New York, South Carolina, and Wisconsin. The adjacent states will vary as the boundary of the PJM Interconnection Region changes over time.
Behind-the-meter generator or BTM generator - a renewable on-site generator that is located behind a retail customer meter such that no utility-owned transmission or distribution facilities are used to deliver the energy from the generating unit to the on-site generator's load.
Brush - shrubs and stands of short, scrubby trees that do not reach merchantable size.
Commission - the Public Service Commission of the District of Columbia.
Customer generation - generation that is not principally dedicated for sale into the wholesale electricity market.
Dunnage - loose materials or padding used to support or protect cargo within shipping containers.
Energy Office - the District of Columbia Department of the Environment's Energy Office.
Electricity supplier - a person, including an aggregator, broker, or marketer, who generates electricity; sells electricity; or purchases, brokers, arranges or, markets electricity for sale to customers. The term excludes the following:
(a) Building owners, lessees, or managers who manage the internal distribution system serving such building and who supply electricity solely to occupants of the building for use by the occupants;
(b) Any person who purchases electricity for his or her own use or for the use of his or her subsidiaries or affiliates; or
(c) Any apartment building or office building manager who aggregates electric service requirements for his or her building or buildings, and who does not:
(1) Take title to the electricity;
(2) Market electric services to the individually-metered tenants of the building; or
(3) Engage in the resale of electric services to others;
(d) Property owners who supply small amounts of power, at cost, as an accommodation to lessors or licensees of the property; and
(e) A consolidator.
Fund - the District of Columbia Renewable Energy Development Fund.
PJM Interconnection - the regional transmission organization that is regulated by the Federal Energy Regulatory Commission and functionally controls the transmission system for the region that includes the District of Columbia.
PJM Interconnection region - the area within which the movement of wholesale electricity is coordinated by the PJM Interconnection, L.L.C. With respect to qualifying RECs, the following states are deemed within the PJM Interconnection Region as of October 2011: Delaware, the District of Columbia, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia.
Qualifying biomass - a solid, non-hazardous, cellulosic waste material that is segregated from other waste materials, and is derived from any of the following forest-related resources, with the exception of old growth timber, unsegregated solid waste, or post-consumer wastepaper:
(a) Mill residue;
(b) Precommercial soft wood thinning;
(c) Slash;
(d) Brush;
(e) Yard waste;
(f) A waste pallet, crate, or dunnage;
(g) Agricultural sources, including tree crops, vineyard materials, grain, legumes, sugar, and other crop by products or residues; or
(h) Cofired biomass, subject to the condition under D.C. Official Code § 34-1433(f) (2010 Repl.).
Renewable energy credit or REC - a credit representing one megawatt (1 MWH) hour of electricity produced by a Tier One or Tier Two renewable resource located within the PJM Interconnection region or within a state that is adjacent to the PJM Interconnection region.
Renewable energy portfolio standard or standard - the percentage of electricity sales at retail in the District of Columbia that is to be derived from Tier One renewable sources and Tier Two renewable sources in accordance with D.C. Official Code § 34-1432(c) (2011 Supp.; as amended by Distributed Generation Amendment Act of 2011, effective October 20, 2011 (D.C. Law 19-36)).
Renewable on-site generator - a person that generates electricity on site from a Tier One renewable source or Tier Two renewable source for the person's own use.
Slash:
(a) Tree tops, branches, bark, or other residue left on the ground after logging or other forestry operations; or
(b) Tree debris left after a natural catastrophe.
Solar energy - radiant energy, direct, diffuse, or reflected, received from the sun at wavelengths suitable for conversion into thermal, chemical, or electrical energy.
Tier one renewable source - one (1) or more of the following types of energy sources:
(a) Solar energy;
(b) Wind;
(c) Qualifying biomass;
(d) Methane from the anaerobic decomposition of organic materials in a landfill or wastewater treatment plant;
(e) Geothermal;
(f) Ocean, including energy from waves, tides, currents, and thermal differences; and
(g) Fuel cells producing electricity from a Tier One renewable source under paragraph (c) or (d) of this paragraph.
Tier two renewable source – one (1) or more of the following types of energy sources:
(a) Hydroelectric power other than pumped storage generation; or
(b) Waste-to-energy.
Waste-to-energy - waste treatment, including the use of a licensed facility that burns waste resources in high-efficiency furnaces or boilers, to produce electricity. Such resources include municipal solid waste but exclude waste coal.
