Energy Independence and Security Act of 2007 - Process and Findings

Amendments to the Public Utility Regulatory Policies Act of 2007.

The Blue Ridge Electric Board of Directors initiated a process to review standards as required by the Energy Independence and Security Act of 2007. A resolution and notice of proceeding were approved at the November Board Meeting, held in Lenoir, North Carolina on November 20, 2008. The resolution initiated a rulemaking project to consider and determine whether to implement federal ratemaking standards under the Public Utility Regulatory Policies Act of 1978 (PURPA), as amended by the Energy Independence and Security Act of 2007 (EISA), Public Law No. 110-140, 121 Stat. 1492 (2007) to: 1) integrate energy efficiency into the co-op's integrated resource plans and establish cost-effective energy efficiency as a priority resource; 2) establish electric rates to align utility incentives with the delivery of cost effective energy efficiency and to promote energy efficiency investments; 3) consider smart grid investments; and 4) give co-op members direct written or electronic access and other interested persons limited access to information on time-based electricity prices at wholesale and retail, prices and usage on at least a daily basis, and sources of power provided by the co-op. Section 408 of P. L. 111-5, of the American Recovery and Reinvestment Act of 2009, made technical corrections to EISA renumbering the misnumbered subsections (16) and (17) regarding smart grid investments and smart grid information as subsections (18) and (19), respectively. Persons interested in the proceeding were invited to notify the cooperative of their intent to participate and to submit comments, data, views, arguments, and other evidence on the standards that were considered. Blue Ridge Electric (the “Cooperative”) is a non-regulated electric utility with annual retail electric sales greater than 500 million kilowatt-hours and has followed defined procedures for considering the four new PURPA Standards updated and amended by EISA. Blue Ridge Electric was required to consider and to “make a determination whether or not it is appropriate to implement such standards” within certain defined time lines based on evidence collected from interested persons after public notice and hearing. BRE was required to notify members and others via various public notice procedures of the standards under consideration, an explanation of the reason for the proposed standards and citation to PURPA / EISA, proposed effective date if the standards are adopted, and a timeline for the consideration process during which questions and comments may be submitted to the Cooperative. The Cooperative followed these procedures and conducted a Public Hearing on March 3, 2009 without any public participation. A transcript was prepared of the hearing and no additional written comments were received. Staff prepared “Initial Comments Regarding the Four PURPA Standards” and provided this information and other materials to the Board for review and consideration prior to this meeting of the Board. This information was also been posted on the BRE website for public access. The CEO with the assistance of the Cooperative’s staff researched the proposed standards taking into consideration the purposes and goals of PURPA / EISA and presented recommendations to the BRE Board for their consideration of the proposed standards at a meeting of the Board on August 21, 2009. Approval of a Resolution was recommended. Listed below are links to relevant documents.

Board Resolution Adopted November 20, 2008
Notice of Proceeding Adopted on November 20, 2008
Frequently Asked Questions Prepared by Blue Ridge Electric staff November 2008
Initial Comments by Blue Ridge Electric on EISA Standards Prepared by Blue Ridge Electric Staff February 27, 2009
Transcript of EISA Public Hearing on 3-3-2009 Prepared by Blue Ridge Electric Staff March 6, 2009
Board Resolution: Final Determination of PURPA/EISA Standards Adopted August 21, 2009