[52 PA. CODE CHS. 54 AND 57]
[L-00040169]Provision of Default Service; Reopening of the Comment Period [36 Pa.B. 956] February 8, 2006
Implementation of the Alternative Energy Portfolio Standards Act of 2004; Doc. No. M-00051865 Rulemaking Re Electric Distribution Companies' Obligation to Serve Retail Customers at the Conclusion of the Transition Period Pursuant to 66 Pa.C.S. § 2807(e)(2); Doc. No. L-00040169
The Alternative Energy Portfolio Standards Act of 2004 (Act 213) (73 P. S. §§ 1648.1--1648.8) provides for the full recovery of compliance costs by electric distribution companies. The Pennsylvania Public Utility Commission (Commission) announced through an Order entered at the previously referenced dockets on November 18, 2005, that it would be reopening the comment period for its default service rulemaking to consider this issue. The proposed rulemaking was published at 35 Pa.B. 1421 (February 26, 2005).
As the first step in this process, the Commission requests that all interested parties provide written comments to the following issues list. The issues list includes those questions and issues identified in the order of November 18, 2005. Parties may offer comments on other Act 213 cost-recovery issues not included in this list.
Comments should be submitted to the Commission by e-mail by March 8, 2006, to Carrie Beale, cbeale@ state.pa.us. Reply comments may be submitted by April 7, 2006. Comments will be posted to the Commission's public internet domain.
After it has reviewed the comments, the Commission will consider whether additional opportunities for discussion are needed. This may include convening a meeting of the Alternative Energy Portfolio Standards Working Group.
Issues List
1. Should Act 213 cost recovery be addressed in the Default Service regulations as opposed to a separate rulemaking? Is it necessary to consider Act 213 cost recovery regulations on a different time frame in order to encourage development of alternative energy resources during the ''cost recovery period''?
2. Do the prevailing market conditions require long-term contracts to initiate development of alternative energy resources? May Default Service Providers employ long-term fixed price contracts to acquire alternative energy resources? What competitive procurement process may be employed if the Default Services Provider acquires alternative energy resources through a long-term fixed price contract?
3. Should the force majeure provisions of Act 213 be integrated into the Default Service procurement process? Should Default Service Providers be required to make force majeure claims in their Default Service implementation filing? What criteria should the Commission consider in evaluating a force majeure claim? How may the Commission resolve a claim of force majeure by an electric generation supplier?
4. Given that Act 213 includes a minimum solar photovoltaic requirement as part of Tier I, should these resources be treated differently from other alternative energy resources in terms of procurement and cost recovery?
5. Should the Commission integrate the costs determined through a § 1307 process for alternative energy resources with the energy costs identified through the Default Service Provider regulations? How could these costs be blended into the Default Service Providers Tariff rate schedules?
6. May a Default Service Provider enter into a long-term fixed price contract for the energy supplies produced by coal gasification based generation if the resulting energy costs reflected in the tariff rate schedules are limited to the prevailing market prices determined through a competitive procurement process approved by the Commission?
7. Should the Commission delay the promulgation of default service regulations until a time nearer the end of the transition period, as suggested by the Independent Regulatory Review Commission in its comments on the proposed regulations?
8. Does the Commission need to make any revisions to its proposed default service regulations to reflect the mandates of the Energy Policy Act of 2005?
JAMES J. MCNULTY,
Secretary[Pa.B. Doc. No. 06-327. Filed for public inspection February 24, 2006, 9:00 a.m.]
