Energy Policy Act
The Perspective
from The Enlightener, August 2006
by Doug Johnson,
Chief Executive Officer, Blue Ridge Electric
Last year, Congress passed the Energy Policy Act of 2005 which, among other things, amended the Public Utilities Regulatory Policy Act (PURPA). The objective of this change in law is to provide greater encouragement for the conservation of energy, to make more efficient use of electric utility facilities, and to help ensure equitable rates for consumers.
At Blue Ridge Electric, we believe the objectives of energy conservation and efficiency are important components of our nation’s long-range energy policy.
As part of our commitment to begin a dialogue with our members about the new PURPA standards, I have listed below the standards along with a brief overview of each standard. Over the next several months, we will commence a consideration and determination process for each standard. This process will include the opportunity for member input and will lead to a decision on the appropriateness of implementing the standards at Blue Ridge Electric. Our decision to implement each standard will be based on our studies and the input we receive from members. The decisions will also be presented in writing to the public through this newsletter and by official notice.
The standards include Net Metering, Time Based Metering, Interconnection, Fuel Source Diversity, and Fossil Fuel Generation Efficiency
Net Metering allows consumers to sell any excess power generated by a system they own to the utility and offset electricity from that utility during the applicable billing period.
Time-Based Metering offers consumers a time-based rate schedule for their power consumption that reflects any rate variances the utility incurs in purchasing wholesale power for the specific time of day the consumer utilizes the power.
Interconnection means that any consumer who has their own generation system may connect to the local distribution utility’s system.
The last two standards, Fuel Source Diversity and Fossil Fuel Generation Efficiency, apply to utilities with generation facilities. Because Blue Ridge Electric is a distribution utility and does not generate our own electricity, we will be working with our wholesale power providers on these two standards. Fuel Source Diversity is designed to ensure the energy sold to consumers is generated using a diverse range of fuels and technologies, including renewables. Fossil Fuel Generation Efficiency encourages utilities to do just that: increase the efficiency of their fossil fuel generation plants.
The Energy Policy Act of 2005 establishes a long-range energy policy for our nation and we believe it provides a good framework that will help meet its objectives of energy conservation and efficient electric utility facilities. To fully consider the standards of the Act as well as the views of our member-owners, Blue Ridge Electric will be announcing and conducting member meetings in the coming months. We look forward to your participation in this process.
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