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HomeMy WebLinkAbout2024-146-12/17/2024-CONCERNING IMPLEMENTATION OF STANDARDS CREATED BYAMENDMENTS TO THE PUBLIC UTILITY REGULATORY POLICIERESOLUTION 2024-146 OF THE COUNCIL OF THE CITY OF FORT COLLINS CONCERNING IMPLEMENTATION OF STANDARDS CREATED BY AMENDMENTS TO THE PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978 BY THE INFRASTRUCTURE INVESTMENT AND JOBS ACT ("IIJA") A.The Public Utility Regulatory Policies Act ("PURPA") of 1978 required public utilities to consider and determine the appropriateness of certain standards set forth in PURPA Article I as applied to certain Fort Collins Electric Utility (the "Electric Utility") operations. B.PURPA requires a "nonregulated" municipally owned electric utilities, including the Electric Utility, to "consider each standard established by [Section 111 (d)] and make a determination concerning whether or not it is appropriate to implement such standard" to carry out PURPA purposes. C.The Energy Policy Act ("EPAct") of 2005 amended PURPA Article I to provide additional standards, including net metering, time-based metering, fuel source reliance, interconnection and fossil fuel generation, to be considered by nonregulated utilities. D.The Energy Independence and Security Act of 2007 ("EISA") further amended PURPA Article I to provide additional standards, including rate designs to promote energy efficiency investments, smart grid investments, and integrated resources planning, to be considered by nonregulated utilities. E.At the annual electric utility rate making proceedings following passage of EPAct and EISA, Council received input from ratepayers and staff regarding consideration of amended PURPA Article I standards, and made determinations and responsive policy adjustments regarding amended PURPA standards, as set forth in City Code Chapter 26 Article VI. F.The 2021 Infrastructure Investment and Jobs Act ("IIJA") further amended PURPA Article I to provide the following additional standards to be considered by nonregulated utilities: •Demand Response and Demand Flexibility, continued, at §111 (d)(20); •Electric Vehicle Charging Programs, at §111(d)(21). G.PURPA requires the governing body of a utility to consider the standards, after notice and public hearing, and make a determination in writing whether or not to implement such standards to carry out the purposes of the statute, but a utility may determine that it is not appropriate to implement a particular standard and decline to do so as long as it sets forth its reasons in writing. - 1 - H.The Electric Utility staff compiled and presented a comprehensive report that explained how the Electric Utility meets or exceeds each standard or is working in a joint effort with Platte River Power Authority ("PRPA") to meet or exceed each amended PURPA standard. I.The Energy Board held a public hearing at its regular meeting held on December 14, 2023, to consider the staff report. The Energy Board voted to recommend that Council pass a resolution adopting the determination made by Electric Utility sta ff that separate adoption of the EPAct standards for demand response and electric vehicle charging is not in the best interest of City electric utility ratepayers. J.Council is asked to review the staff recommendation and public input regarding the PURPA Article I, §111 (d)(20) and (21) standards, and adopt the written determinations made by Electric Utility staff establishing local standards that differ from the amended PURPA standards. In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. Based on the information provided by staff and the public input obtained at the public hearing, the Council declines to adopt the PURPA Article I standard on Demand Response and Demand Flexibility (§111(d)(20)), as set forth in Exhibit "A", attached hereto and incorporated herein by reference. Section 2. Based on the information provided by staff and the public input obtained at the public hearing, the Council declines to adopt the PURPA Article I standard on Electric Vehicle Charging Programs (§111 (d)(21 )), as set forth in Exhibit "A", attached hereto. Passed and adopted on December 17, 2024. ATTEST: �'""-� cifi& Effective Date: December 17, 2024 Approving Attorney: Yvette Lewis-Molock - 2 - EXHIBIT A TO RESOLUTION 2024-146 Fort Collins Electric Utility Staff Recommendation Re garding Infrastructure Investment & Jobs Act of 2021 Amendments to PURPA Art. I Standards 1.STAFF RECOMMENDATION REGARDING HISTORIC STANDARDS in Section 111 {d) (11)-(19): Staff recommends City Council maintain current City Electric Utility polices related to those PURPA Art. I standards set forth in Section 111 (d) (11 )-(19), 16 U.S.C. 2621, as amended by the Energy Policy Act of 2005 and Energy Independence and Security Act of 2007, including policies relating to net metering, time-of-day rates, renewable energy incentives, renewable energy resource integration, and interconnection standards, as amended by Council Ordinances No. 056, 2009; No. 003, 2010; No. 074, 2013; Nos. 053 and 163, 2018; No.125, 2019; No. 139, 2020; and No. 149, 2021. 2.Pursuant to 2021 Infrastructure Investment and Jobs Act ("IIJA"), the following standard was added the PURPA Art. I at Section 111 (d), 16 U.S.C. 2621, applicable to the Fort Collins Electric Utility: ( d)Establishment The following Federal standards are hereby established: (20)Demand-response practices (A)In general Each electric utility shall promote the use of demand-response and demand flexibility practices by commercial, residential, and industrial consumers to reduce electricity consumption during periods of unusually high demand. (8)Rate recovery (ii)Nonregulated electric utilities A nonregulated electric utility may establish rate mechanisms for the timely recovery of the costs of promoting demand response and demand flexibility practices in accordance with subparagraph (A). STAFF RECOMMENDATION REGARDING STANDARD in Section 111 (d) (20): Electric Utilities staff conducted a comparison of existing City electric utility rates and standards with the updated EPAct standards, finding the City's electric utility operations comport with the goals of and demonstrate compliance with the updated demand response standards, determining that separately adopting the EXHIBIT A TO RESOLUTION 2024-146 EPAct standards is not in the best interest of City electric utility �atepayers as it may be duplicative and interfere with current benefits received by ratepayers. 3.Pursuant to IIJA, the following standard was added the PURPA Art. I at Section 111 (d), 16 U.S.C. 2621, applicable to the Fort Collins Electric Utility: (d)Establishment The following Federal standards are hereby established: (21)Electric vehicle charging programs Each State shall consider measures to promote greater electrification of the transportation sector, including the establishment of rates that-- (A)promote affordable and equitable electric vehicle charging options for residential, commercial, and public electric vehicle charging infrastructure; (B)improve the customer experience associated with electric vehicle charging, including by reducing charging times for light-, medium-, and heavy-duty vehicles; (C)accelerate third-party investment in electric vehicle charging for light-, medium-, and heavy-duty vehicles; and (D)appropriately recover the marginal costs of delivering electricity to electric vehicles and electric vehicle charging infrastructure. STAFF RECOMMENDATION REGARDING STANDARD in Section 111 (d) (21): Electric Utilities staff conducted a comparison of existing City electric utility rates and standards with the updated EPAct standards, finding the City's electric utility operations comport with the goals of and demonstrate sufficient compliance with updated electric vehicle charging standards, determining that separately adopting the EPAct standards, including shifting how marginal costs are recovered under existing rate schedules, is not in the best interest of City electric utility ratepayers as it may be duplicative and interfere with current ratepayer incentives. EXHIBIT A TO RESOLUTION 2024-146 ATTACHMENT A Infrastructure Investment & Jobs Act of 2021 Amendments to PURPA 16 U.S.C.A. § 2621. Consideration and determination respecting certain ratemaking standards (a)Consideration and determination Each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated electric utility shall consider each standard established by subsection (d) and make a determination concerning whether or not it is appropriate to implement such standard to carry out the purposes of this chapter. For purposes of such consideration and determination in accordance with subsections (b) and (c), and for purposes of any review of such consideration and determination in any court in accordance with section 2633 of this title, the purposes of this chapter supplement otherwise applicable State law. Nothing in this subsection prohibits any State regulatory authority or nonregulated electric utility from making any determination that it is not appropriate to implement any such standard, pursuant to its authority under otherwise applicable State law. (b)Procedural requirements for consideration and determination (1)The consideration referred to in subsection (a) shall be made after public notice and hearing. The determination referred to in subsection (a) shall be-­ (A)in writing, (B)based upon findings included in such determination and upon the evidence presented at the hearing, and (C)available to the public. (2)Except as otherwise provided in paragraph (1 ), in the second sentence of section 2622(a) of this title, and in sections 2631 and 2632 of this title, the procedures for the consideration and determination referred to in subsection (a) shall be those established by the State regulatory authority or the non regulated electric utility. (c)Implementation (1)The State regulatory authority (with respect to each electric utility for which it has ratemaking authority) or nonregulated electric utility may, to the extent consistent with otherwise applicable State law-- (A)implement any such standard determined under subsection (a) to be appropriate to carry out the purposes of this chapter, or (B)decline to implement any such standard. (2)If a State regulatory authority (with respect to each electric utility for which it has ratemaking authority) or nonregulated electric utility declines to implement any standard established by subsection (d) which is determined under subsection (a) to be appropriate to carry out the purposes of this chapter, such EXHIBIT A TO RESOLUTION 2024-146 authority or nonregulated electric utility shall state in writing the reasons therefor. Such statement of reasons shall be available to the public. (3)If a State regulatory authority implements a standard established by subsection (d)(7) or (8), such authority shall-- (A)consider the impact that implementation of such standard would have on small businesses engaged in the design, sale, supply, installation or servicing of energy conservation, energy efficiency or other demand side management measures, and (B)implement such standard so as to assure that utility actions would not provide such utilities with unfair competitive advantages over such small businesses. (d)Establishment The following Federal standards are hereby established: (20)Demand-response practices (A)In general Each electric utility shall promote the use of demand-response and demand flexibility practices by commercial, residential, and industrial consumers to reduce electricity consumption during periods of unusually high demand. (B)Rate recovery (i)In general Each State regulatory authority shall consider establishing rate mechanisms allowing an electric utility with respect to which the State regulatory authority has ratemaking authority to timely recover the costs of promoting demand-response and demand flexibility practices in accordance with subparagraph (A). (ii)Nonregulated electric utilities A nonregulated electric utility may establish rate mechanisms for the timely recovery of the costs of promoting demand response and demand flexibility practices in accordance with subparagraph (A). (21)Electric vehicle charging programs Each Stale shall consider measures to promote greater electrification of the transportation sector, including the establishment of rates that-- (A)promote affordable and equitable electric vehicle charging options for residential, commercial, and public electric vehicle charging infrastructure; (B)improve the customer experience associated with electric vehicle charging, including by reducing charging limes for light-, medium-, and heavy-duty vehicles; (C)accelerate third-party investment in electric vehicle charging for light-, medium-, and heavy-duty vehicles; and(D)appropriately recover the marginal costs of delivering electricity to electric vehicles and electric vehicle charging infrastructure. EXHIBIT A TO RESOLUTION 2024-146 16 U.S.C.A. § 2622. Obligations to consider and determine (a)Request for consideration and determination Each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated electric utility may undertake the consideration and make the determination referred to in section 2621 of this title with respect to any standard established by section 2621 (d) of this title in any proceeding respecting the rates of the electric utility. Any participant or intervenor (including an intervenor referred to in section 2631 of this title) in such a proceeding may request, and shall obtain, such consideration and determination in such proceeding. In undertaking such consideration and making such determination in any such proceeding with respect to the application to any electric utility of any standard established by section 2621 (d) of this title, a State regulatory authority (with respect to an electric utility for which it has ratemaking authority) or nonregulated electric utility may take into account in such proceeding-- (1)any appropriate prior determination with respect to such standard-- (A)which is made in a proceeding which takes place after November 9, 1978, or (8)which was made before such date (or is made in a proceeding pending on such date) and complies, as provided in section 2634 of this title, with the requirements of this chapter; and (2)the evidence upon which such prior determination was based (if such evidence is referenced in such proceeding). (b)Time limitations (7)(A) Not later than 1 year after November 15, 2021, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority) and each nonregulated electric utility shall commence consideration under section 2621 of this title, or set a hearing date for consideration, with respect to the standard established by paragraph (20) of section 2621 {d) of this title. (8)Not later than 2 years after November 15, 2021, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority), and each nonregulated electric utility shall complete the consideration and make the determination under section 2621 of this title with respect to the standard established by paragraph (20) of section 2621 {d) of this title. (8)(A) Not later than 1 year after November 15, 2021, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority) and each nonregulated utility shall commence consideration under section 2621 of this title, or set a hearing date for consideration, with respect to the standard established by paragraph (21) of section 2621 (d) of this title. EXHIBIT A TO RESOLUTION 2024-146 (B)Not later than 2 years after November 15, 2021, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority), and each nonregulated electric utility shall complete the consideration and make the determination under section 2621 of this title with respect to the standard established by paragraph (21) of section 2621 (d) of this title. (c)Failure to comply Each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated electric utility shall undertake the consideration, and make the determination, referred to in section 2621 of this title with respect to each standard established by section 2621 (d) of this title in the first rate proceeding commenced after the date three years after November 9, 1978, respecting the rates of such utility if such State regulatory authority or non regulated electric utility has not, before such date, complied with subsection (b)(2) with respect to such standard In the case of the standard established by paragraph (20) of section 2621 (d) of this title, the reference contained in this subsection to November 9, 1978, shall be deemed to be a reference to November 15, 2021. In the case of the standard established by paragraph (21) of section 2621 (d) of this title, the reference contained in this subsection to November 9, 1978, shall be deemed to be a reference to November 15, 2021. (g)Prior State actions Subsections (b) and (c) shall not apply to the standard established by paragraph (20) of section 2621 (d) of this title in the case of any electric utility in a State if, before November 15, 2021-- (1)the State has implemented for the electric utility the standard (or a comparable standard); (2)the State regulatory authority for the State or the relevant non regulated electric utility has conducted a proceeding to consider implementation of the standard (or a comparable standard) for the electric utility; or (3)the State legislature has voted on the implementation of the standard (or a comparable standard) for the electric utility. (h)Other prior State actions Subsections (b) and (c) shall not apply to the standard established by paragraph (21) of section 2621 (d) of this title in the case of any electric utility in a State if, before November 15, 2021-- (1)the State has implemented for the electric utility the standard (or a comparable standard); (2)the State regulatory authority for the State or the relevant non regulated electric utility has conducted a proceeding to consider implementation of the standard (or a comparable standard) for the electric utility; or EXHIBIT A TO RESOLUTION 2024-146 (3)the State legislature has voted on the implementation of the standard (or a comparable standard) for the electric utility during the 3-year period ending on November 15, 2021 .