PURPA Standards
Baldwin Electric Membership Corporation, Inc. (the “Cooperative”) hereby gives public notice regarding the process to be followed by it in implementing the statutory directives in the Energy Independence and Security Act of 2007 (EISA 2007), which amended the Public Utilities Regulatory Policies Act of 1978 (PURPA). EISA 2007 established new Federal standards under Section 111(d) of PURPA, which each non-regulated electric utility (such as the Cooperative) is required to consider and to “make a determination whether or not it is appropriate to implement such standard[s]” within certain defined time lines based on evidence collected pursuant to a public notice and hearing.
The four new PURPA Standards defined by EISA 2007 which the cooperative must consider are summarized below:
1. Integrated Resource Planning. Each electric utility shall integrate energy efficiency into its plans, and adopt policies establishing cost-effective energy efficiency as a priority resource.
2. Rate Design Modifications to Promote Energy Efficient Investments. The rates allowed to be charged by any electric utility shall align utility incentives with the delivery of cost-effective energy efficiency, and promote energy efficiency investments.
3. Smart Grid Investment. Each State shall consider requiring that, prior to undertaking investments in non-advanced grid technologies, an electric utility of the State demonstrate to the State that the electric utility considered an investment in a qualified smart grid system based on appropriate factors, including total costs, cost-effectiveness, improved reliability, security, system performance, and societal benefits.
4. Smart Grid Information. All electricity purchasers shall be provided from their electricity provider direct access, in written or electronic machine-readable form as appropriate, to information concerning their energy usage and time-based electricity prices in the wholesale electricity market, along with retail prices or rates that are available to purchasers. Further, purchasers shall be provided annually with written information on the sources of power provided by the utility, by type of generation, including the greenhouse gas emissions associated with each type of generation for intervals during which such information is available on a cost-effective basis.
In order for the Cooperative to fully consider the views of the Eligible Participants regarding the standards so that it may determine whether or not it is appropriate to implement such standards, the Cooperative will follow the procedural schedule set forth below:
• Notice of Public Hearing– December 2008 issue of Alabama Living
• Notice of PURPA Considerations and Hearing Process – May 2009 The Powerline (Baldwin EMC’s E-Newsletter) and June 2009 Alabama Living
• Paper Hearing –June 1 – 16
Paper Hearing. These comments (if possible) should be typed (double spaced) and paginated, with appropriate headings so that the reader will know with specificity which of the four standards is being addressed. The comments should identify the name of the commenting party along with the address, telephone number, account number, and (if available) the email address of the commenting party. The Cooperative requests that all comments be submitted by U.S. Mail to its office at Baldwin EMC, Attn: PURPA, P. O. Box 220, Summerdale, Alabama, 36580 or by email to purpa@baldwinemc.com. All comments must be received by close of business on June 16.
Determination. The Determination to be made by the Cooperative as to whether or not it is appropriate to implement any of the four standards will be in writing, will be based on findings supported by the evidence of record, and will be posted on the Cooperative’s Web site.
We urge persons interested in this matter to contact us with any questions as to any of the items discussed above. Thank you in advance for your interest.