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NOTICE OF HEARING AND CONSIDERATION OF PURPA STANDARDS

Summary. Each below named Electric Cooperative (“Cooperative”), individually, 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 (“EISAct 2007”) which amended the Public Utilities Regulatory Policies Act of 1978 (“PURPA”). EISAct 2007 established new Federal standards under Section 111(d) of PURPA, which the Cooperative is required to consider and make a determination of whether or not to implement based on evidence collected from interested persons after public notice and hearing.

Inquiries. All inquiries should be in writing and mailed to PURPA HEARING COORDINATOR, POST OFFICE BOX 1455, COLUMBIA, SOUTH CAROLINA 29202.

PURPA Standards. The four new PURPA standards defined by EISAct 2007 are described below. EISAct 2007 REQUIRES THE COOPERATIVE TO CONSIDER WHETHER OR NOT TO IMPLEMENT THESE STANDARDS, BUT DOES NOT REQUIRE THAT THEY BE ADOPTED BY THE COOPERATIVE. No later than December 19, 2009, the Cooperative will decide whether or not to implement each standard. Any person desiring a copy of the EPAct 2005 language relevant to these standards should write to the PURPA Hearing Coordinator at the indicated address and a copy will be provided at cost.

1. Integrated Resource Planning. The term “Integrated Resource Planning” (IRP) refers to a comprehensive planning process intended to systematically consider appropriate supply and demand resources to meet current and future load requirements in the context of government policy goals and objectives. This standard addresses one aspect of an IRP, that is, integrating energy efficiency into utility plans and adopting policies that encourage cost-effective energy efficiency.

2. Rate Design Modifications to Promote Energy Efficiency Investments. This standard is intended to address concerns that utility ratemaking practices may not encourage utilities from adopting energy conservation measures. The six policy options in the standard for utilities to consider are:

(i) removing the throughput incentive and other regulatory and management disincentives to energy efficiency;
(ii) providing utility incentives for the successful management of energy efficiency programs;
(iii) including the impact on adoption of energy efficiency as one of the goals of retail rate design, recognizing that energy efficiency must be balanced with other objectives;
(iv) adopting rate designs that encourage energy efficiency for each customer class;
(v) allowing timely recovery of energy efficiency-related costs; and
(vi) offering home energy audits, offering demand response programs, publicizing the financial and environmental benefits associated with making home energy efficiency improvements, and educating homeowners about all existing Federal and State incentives, including the availability of low-cost loans, that make energy efficiency improvements more affordable.

3. Consideration of Smart Grid Investments. This standard asks that states consider requiring utilities to invest in smart grid technologies before investing in traditional transmission and distribution systems, allowing utilities to recover the costs of smart grid investments, and permitting utilities to be compensated for the remaining book value of infrastructure made obsolete by smart grid investments. Investments are to be based on appropriate factors, including:

(i) total costs;
(ii) cost-effectiveness;
(iii) improved reliability;
(iv) security;
(v) system performance; and
(vi) societal benefits.

4. Smart Grid Information. This standard asks that states consider providing electricity purchasers with access to information concerning pricing, usage, intervals and projections, and sources, either in writing or electronic form.

Procedure. In order for Cooperative to fully consider the views of the public 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:

  • The Cooperative will accept written comments from interested parties. Written comments should be submitted on or before July 31, 2009.
  • Determination will be rendered on or before December 19, 2009.

Notice. This Notice is being posted at the Cooperative’s offices and published in the local newspapers of the communities served by the Cooperative. Any person may obtain at cost a copy of the relevant portions of EISAct 2007 at the offices or by writing the PURPA Hearing Coordinator.

Comments. 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, the mailing address of the commenting party, and if a consumer of an electric cooperative, indicate the name of the Cooperative. The Cooperative requests that the comments be filed with the PURPA Hearing Coordinator at the mailing address indicated above. The PURPA Hearing Coordinator will make copies of the comments available at cost to any member of the public that requests a copy.

Determination. The Determination to be made by the Board of Trustees of each Cooperative on each of the standards will be in writing, will be based on findings supported by the evidence of record, and will be available to the public.

Participating Electric Cooperative.

Aiken Electric Cooperative, Inc.
Berkeley Electric Cooperative, Inc.
Black River Electric Cooperative, Inc.
Blue Ridge Electric Cooperative, Inc.
Fairfield Electric Cooperative, Inc.
Horry Electric Cooperative, Inc.
Laurens Electric Cooperative, Inc.
Marlboro Electric Cooperative, Inc.
Mid-Carolina Electric Cooperative, Inc.
Palmetto Electric Cooperative, Inc.
Pee Dee Electric Cooperative, Inc.
Santee Electric Cooperative, Inc.
York Electric Cooperative, Inc.

May 1, 2009