Cooperative Living June 2019 - 30

NOTICE OF MOTION BY OLD DOMINION ELECTRIC COOPERATIVE
AND ITS MEMBER DISTRIBUTION COOPERATIVES FOR
THE COMMISSION TO JOIN IN A FERC PETITION
FOR WAIVER OF PURPA REGULATIONS
On April 5, 2019, Old Dominion Electric Cooperative ( " ODEC " ) and
its member distribution cooperatives in the Commonwealth of Virginia
(collectively, with ODEC, the " Co-ops " ) filed with the Virginia State
Corporation Commission ( " Commission " ) their Motion Requesting the
State Corporation Commission to Join Old Dominion Electric Cooperative and
its Member Cooperatives in a Petition to the Federal Energy Regulatory
Commission ( " Motion " ). Through their Motion, the Co-ops seek for the
Commission to join in their Federal Energy Regulatory Commission
( " FERC " ) petition for partial waiver of certain obligations in FERC's rules
implementing Section 210 of the federal Public Utility Regulatory Policies
Act of 1978 ( " PURPA " ). In the alternative, the Co-ops move the
Commission to authorize ODEC to represent in their FERC petition that
the Commission endorses the FERC petition on behalf of the Co-ops.
Under PURPA, both ODEC, which supplies power to its member
distribution cooperatives but does not serve retail customers, and the
member distribution cooperatives, which serve retail customers but own
little or no electric generation sources, are each obligated to sell to and buy
power from certain types of non-utility generation, known as qualifying
facilities ( " QFs " ). The Co-ops intend to seek a waiver from FERC such
that ODEC would be relieved of its obligation to make future sales to QFs,
and the member distribution cooperatives would be relieved of their
obligations to buy power from QFs in the future. ODEC would assume the
obligation to buy all QF power otherwise offered to its member distribution
cooperatives, and the member distribution cooperatives would assume the
obligation to make retail sales of electricity to QFs. The Co-ops propose an
Implementation Plan, included as Appendix B to the Motion, which details
the respective revised responsibilities of ODEC and its member distribution
cooperatives and is intended to advise the public of the basic approach and
general guidelines for QFs to: (i) interconnect with the electric utility
systems of ODEC and its member distribution cooperatives; (ii) sell energy
and capacity to ODEC; and (iii) purchase retail electric service from the
member distribution cooperatives. According to the Motion, the Co-ops'
proposed Implementation Plan is intended to be prospective only: all
current contracts for the sale or purchase of QF power would remain intact
under the terms of the contemplated FERC petition and proposed
Implementation Plan.
Federal regulations enacted by FERC implemented the buy/sell
obligations for electric utilities operating in the United States under
PURPA ( " PURPA regulations " ). The buy/sell requirements of the PURPA
regulations were originally designed with integrated electric utilities, i.e.,
those owning generation, transmission, and distribution facilities, in mind.
Many of the nation's rural electric cooperatives, however, are not vertically
integrated. Rather, ODEC (the generation and transmission cooperative)
and its member distribution cooperatives function together as a verticallyintegrated
electric utility. The Co-ops represent that as a result, the PURPA
regulations create costly and time-consuming inefficiencies for both ODEC
and its member distribution cooperatives. According to the Co-ops'
Motion, FERC has granted numerous petitions over the years similar to
the one contemplated by the Co-ops, with the electric distribution
cooperatives and their separately organized cooperative generation
supplier waiving the must buy and must sell obligations in the manner
contemplated by the Co-ops.
However, the Co-ops represent in their Motion that PURPA regulations
provide no avenue for the Co-ops, as state regulated electric utilities, to file
a FERC petition for waiver on their own behalf. After proper notice, only a
state regulatory authority may apply for waiver of the PURPA regulations
on behalf of its regulated electric utilities, or a nonregulated electric utility
may apply for such waiver on its own behalf. Specifically, the PURPA
waiver provision, 18 C.F.R. § 292.402 (2018), states:
Any State regulatory authority (with respect to any
electric utility over which it has ratemaking authority) or
nonregulated electric utility may, after public notice in the
area served by the electric utility, apply for a waiver from the
application of any of the requirements of subpart C[.]
The Commission regulates the rates of the member distribution
cooperatives operating within the Commonwealth of Virginia and is thus
permitted as a " state regulatory authority " to petition FERC for such
waiver. The Co-ops desire the Commission to become a co-petitioner to
FERC or, in the alternative, the Commission to authorize ODEC to
represent in the FERC petition that the Commission endorses the FERC
petition on behalf of the Co-ops. The Co-ops recognize that they could
request a waiver from FERC of the requirement that the Commission file
the FERC petition, although the Co-ops assert there is no precedent for
such a waiver request.
The Commission entered an Order for Notice and Comment in this
proceeding that, among other things, directed the Co-ops to provide notice
of their Motion and provided interested persons an opportunity to
comment on the Motion.
Copies of the Motion and the Commission's Order for Notice and Comment
may be obtained by submitting a written request to counsel for the Co-ops,
Garland S. Carr, Esquire, LeClair Ryan, 4201 Dominion Boulevard, Suite
200, Glen Allen, Virginia 23060. If acceptable to the requesting party, the
Co-ops may provide the documents by electronic means. Copies of these
documents also shall be available for interested persons to review in the
Commission's Document Control Center, located on the first floor of the
Tyler Building, 1300 East Main Street, Richmond, Virginia 23219, between
the hours of 8:15 a.m. and 5 p.m., Monday through Friday, excluding
holidays. Interested persons also may download unofficial copies from the
Commission's website: http://www.scc.virginia.gov/case.
On or before July 16, 2019, any interested person may file with Joel H.
Peck, Clerk, State Corporation Commission, c/o Document Control
Center, P.O. Box 2118, Richmond, Virginia 23218-2118, written comments
on the Motion. On or before July 16, 2019, any interested person desiring
to submit comments electronically may do so by following the instructions
found on the Commission's website: http://www.scc.virginia.gov/case. All
comments shall refer to Case No. PUR-2019-00047.
All documents filed with the Office of the Clerk of the Commission in
this docket may use both sides of the paper. In all other respects, all filings
shall comply fully with the requirements of 5 VAC 5-20-150, Copies and
format, of the Commission's Rules of Practice and Procedure.
The Commission's Rules of Practice and Procedure may be viewed at
http://www.scc.virginia.gov/case. A printed copy of the Commission's Rules
of Practice and Procedure and an official copy of the Commission's Order
for Notice and Comment may be obtained from the Clerk of the
Commission at the address above.
ODEC AND ITS MEMBER DISTRIBUTION COOPERATIVES
28 | Cooperative Living | June 2019
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Cooperative Living June 2019

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