Departing Load Exit Fees and Determining Exemption Eligibility

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Departing Load Exit Fees and Determining
Exemption Eligibility
Energy Commission Staff Workshop Docket
03-CRS-01 Scott Tomashefsky California Energy
Commission June 6, 2003
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DEPARTING LOAD EXIT FEES AND EXEMPTIONS
SCE Historical Procurement Charges 6/00 -
1/17/01 Costs
DWR LT Contracts Charges 2003 - ???? Costs
DWR Bond Charges 1/17/01 - 12/31/02 Costs
MAJOR SURCHARGE CATEGORIES
2.7 cents/kWh??? Equal to Direct Access Surcharge
2.7 cents/kWh until SCE PROACT paid
0.7 cents/kWh
ACTUAL FEE
CUSTOMER EXEMPTIONS
Exemption from DWR LT Contracts
Complete Exemption

• Departing load Above 1 MW but defined as
  ultra-clean and low emissions (No HPC payment
  either)
• 3000 MW of customer generation as determined by
  the CEC.
• Limit of 1500 MW to generation not classified as
  ultra-clean and low emissions

• Net Metering customers below 1 MW.
• Biogas customers eligible under AB2228.
• Departing load Under 1 MW that is eligible for
  financial incentives from the CEC or CPUC.
• Departing load receiving service on or before
  2/1/01.

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BASIC GROUND RULES FOR 3000 MW CAP PROCEEDING
The CEC is the logical entity to determine
eligibility for qualifying for the exceptions to
paying the CRS as specified in this order, with
additional assistance from an information
provided by the utilities. Conclusion of Law 16,
Decision 03-04-030, Page 63

• Systems under 1 MW count toward to the cap, but
  exceptions are automatically counted. (Conclusion
  of Law 17, Decision 03-04-030, Page 63)
• CEC determines cap on a first-come, first-serve
  basis.
• 1500 MW limit of exempt departing load not
  classified as ultra clean/low emissions
  allocated in the following timeframe
• 600 MW by 2004
• 500 MW by July 1, 2008
• 400 MW thereafter
• UC/CSU receives the following set-aside within
  the caps
• 10 MW by the end of 2004
• 80 MW by the end of 2008
• 75 MW thereafter

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FOLLOW-UP REVIEW PLANNED BY CPUC

• CPUC shall reevaluate the cap by April 2006 or
  when the cap reaches 1000 MW, whichever is first.
  (Ordering Paragraph 12, Page 65)
• CPUC will also reevaluate the 1 MW size limit
  threshhold for ultra-low and low emissions
  technologies at that time. (Ordering Paragraph
  12, Page 65).

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ISSUES TO CONSIDER IN DISCUSSIONS TODAY

• Regulations will take 9-12 months to develop,
  debate, adopt.
• What should be the process for determining
  eligibility in the interim period?
• What process should the Energy Commission use to
  determine the cap?
• What information will be required from applicants
  seeking an exemption?
• Who will collect the data?
• Emerging Program can be used as a model.
• At what stage of the interconnection process
  shall an application be submitted to the Energy
  Commission for eligibility review?
• Who will be responsible for tracking and
  quarterly reports that provide information to
  stakeholders and the CPUC regarding the status of
  the exemptions? What information should be
  provided?

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BEST CASE TIMEFRAME TO ADOPT REGULATIONS

• May 28 Rulemaking initiated
• June 6 Staff Workshop Today (June 6)
• Late June/Early July Committee workshop (Date
  TBD)
• Late July File Notice of Proposed Action (NOPA)
  with Office of Administrative Law (Begins
  Formal 45- Day Public Comment Period
• August-October Workshops and Hearings
• Early October Adoption Hearing (Date Could Be
  Delayed if Significant Changes Required
• November Submit Finalize Documents to OAL for
  30-day review and approval.
• December OAL transmits approved Rulemaking to
  Secretary of State. Regs become effective 30
  days after filing.