Section 75.1. Definitions

The following words and terms, when used in this chapter, have the following meanings unless the context clearly indicates otherwise:

Act—The Alternative Energy Portfolio Standards Act (73 P. S. § § 1648.1—1648.8).

Alternative energy credit—A tradable instrument that is used to establish, verify and monitor compliance with the act. A unit of credit must equal 1 megawatt hour of electricity from an alternative energy source. An alternative energy credit shall remain the property of the alternative energy system until the alternative energy credit is voluntarily transferred by the alternative energy system.

Alternative energy sources—The term includes the following existing and new sources for the production of electricity:

(i) Solar photovoltaic or other solar electric energy.

(ii) Solar thermal energy.

(iii) Wind power.

(iv) Large-scale hydropower, which means the production of electric power by harnessing the hydroelectric potential of moving water impoundments, including pumped storage that does not meet the requirements of low-impact hydropower.

(v) Low-impact hydropower consisting of any technology that produces electric power and that harnesses the hydroelectric potential of moving water impoundments, provided the incremental hydroelectric development:

(A) Does not adversely change existing impacts to aquatic systems.

(B) Meets the certification standards established by the low impact hydropower institute and American Rivers, Inc., or their successors.

(C) Provides an adequate water flow for protection of aquatic life and for safe and effective fish passage.

(D) Protects against erosion.

(E) Protects cultural and historic resources.

(vi) Geothermal energy, which means electricity produced by extracting hot water or steam from geothermal reserves in the earth’s crust and supplied to steam turbines that drive generators to produce electricity.

(vii) Biomass energy, which means the generation of electricity utilizing the following:

(A) Organic material from a plant that is grown for the purpose of being used to produce electricity or is protected by the Federal Conservation Reserve Program (CRP) and provided further that crop production on CRP lands does not prevent the achievement of the water quality protection, soil erosion prevention or wildlife enhancement purposes for which the land was primarily set aside.

(B) Solid nonhazardous, cellulosic waste material that is segregated from other waste materials, such as waste pallets, crates and landscape or right-of-way tree trimmings or agricultural sources, including orchard tree crops, vineyards, grain, legumes, sugar and other byproducts or residues.

(viii) Biologically derived methane gas, which includes methane from the anaerobic digestion of organic materials from yard waste, such as grass clippings and leaves, food waste, animal waste and sewage sludge. The term also includes landfill methane gas.

(ix) Fuel cells, which means any electrochemical device that converts chemical energy in a hydrogen-rich fuel directly into electricity, heat and water without combustion.

(x) Waste coal, which includes the combustion of waste coal in facilities in which the waste coal was disposed or abandoned prior to July 31, 1982, or disposed of thereafter in a permitted coal refuse disposal site regardless of when disposed of, and used to generate electricity, or other waste coal combustion meeting alternate eligibility requirements established by regulation. Facilities combusting waste coal shall use at a minimum a combined fluidized bed boiler and be outfitted with a limestone injection system and a fabric filter particulate removal system. Alternative energy credits shall be calculated based upon the proportion of waste coal utilized to produce electricity at the facility.

(xi) Coal mine methane, which means methane gas emitting from abandoned or working coal mines.

(xii) Demand-side management consisting of the management of customer consumption of electricity or the demand for electricity through the implementation of:

(A) Energy efficient technologies, management practices or other strategies in residential, commercial, industrial, institutional and government customers that shift electric load from periods of higher demand to periods of lower demand.

(B) Load management or demand response technologies, management practices or other strategies in residential, commercial, industrial, institutional and government customers that shift electric load from periods of higher demand to periods of lower demand.

(C) Industrial by-product technologies consisting of the use of a by-product from an industrial process, including reuse of energy from exhaust gases or other manufacturing by-products that are used in the direct production of electricity at the facility of a customer.

(xiii) Distributed generation systems, which means the small-scale power generation of electricity and useful thermal energy.

Alternative energy system—A facility or energy system that uses a form of alternative energy source to generate electricity and delivers the electricity it generates to the distribution system of an EDC or to the transmission system operated by a regional transmission organization.

Competitive transition charge—A nonbypassable charge applied to the bill of every customer accessing the transmission or distribution network which charge is designed to recover an electric utility’s transition or stranded costs.

Cost recovery period—The longer of:

(i) The period during which competitive transition charges under 66 Pa.C.S. § 2808 (relating to competitive transition charge) or intangible transition charges under 66 Pa.C.S. § 2812 (relating to approval of transition bonds) are recovered.

(ii) The period during which an EDC operates under a Commission-approved generation rate plan that has been approved prior to or within 1 year of February 28, 2005, but the cost-recovery period under the act may not extend beyond December 31, 2010.

Customer-generator—A nonutility owner or operator of a net metered distributed generation system with a nameplate capacity of not greater than 50 kilowatts if installed at a residential service or not larger than 3,000 kilowatts at other customer service locations, except for customers whose systems are above 3 megawatts and up to 5 megawatts who make their systems available to operate in parallel with the electric utility during grid emergencies as defined by the regional transmission organization or where a microgrid is in place for the primary or secondary purpose of maintaining critical infrastructure, such as homeland security assignments, emergency services facilities, hospitals, traffic signals, wastewater treatment plants or telecommunications facilities, provided that technical rules for operating generators interconnected with facilities of an EDC, electric cooperative or municipal electric system have been promulgated by the institute of electrical and electronic engineers and the Commission.

Department—The Department of Environmental Protection of the Commonwealth.

EDC—Electric distribution company—The public utility providing facilities for the jurisdictional transmission and distribution of electricity to retail customers, except building or facility owners/operators that manage the internal distribution system serving the building or facility and that supply electric power and other related electric power services to occupants of the building or facility.

EGS—Electric generation supplier—

(i) A person or corporation, including municipal corporations which choose to provide service outside their municipal limits except to the extent provided prior to December 16, 2006, brokers and marketers, aggregators or any other entities, that sells to end-use customers electricity or related services utilizing the jurisdictional transmission and distribution facilities of an EDC or that purchases, brokers, arranges or markets electricity or related services for sale to end-use customers utilizing the jurisdictional transmission and distribution facilities of an EDC.

(ii) The term excludes building or facility owner/operators that manage the internal distribution system serving the building or facility and that supply electric power and other related power services to occupants of the building or facility.

(iii) The term excludes electric cooperative corporations except as provided in 15 Pa.C.S. Chapter 74 (relating to generation choice for customers of electric cooperatives).

Force majeure—

(i) Upon its own initiative or upon a request of an EDC or an EGS, the Commission, within 60 days, will determine if alternative energy resources are reasonably available in the marketplace in sufficient quantities for the EDCs and the EGSs to meet their obligations for that reporting period under the act. In making this determination, the Commission will consider whether EDCs or EGSs have made a good faith effort to acquire sufficient alternative energy to comply with their obligations. Evidence of good faith efforts include:

(A) Banking alternative energy credits during transition periods.

(B) Seeking alternative energy credits through competitive solicitations.

(C) Seeking to procure alternative energy credits or alternative energy through long-term contracts.

(D) Other competent evidence the commission credits as demonstrating a good faith effort.

(ii) In further making its determination, the Commission will assess the availability of alternative energy credits in the Generation Attributes Tracking System (GATS) or its successor, and the availability of alternative energy credits generally in this Commonwealth and other jurisdictions in the PJM Interconnection, LLC regional transmission organization (PJM) or its successor. The Commission may also require solicitations for alternative energy credits as part of default service before requests of force majeure may be made.

(iii) If the Commission determines that alternative energy resources are not reasonably available in sufficient quantities in the marketplace for the EDCs and EGSs to meet their obligations under the act, the Commission will modify the underlying obligation of the EDC or EGS or recommend to the General Assembly that the underlying obligation be eliminated. Commission modification of the EDC or EGS obligations under the act will be for that compliance period only. Commission modification may not automatically reduce the obligation for subsequent compliance years.

(iv) If the Commission modifies the EDC or EGS obligations under the act, the Commission may require the EDC or EGS to acquire additional alternative energy credits in subsequent years equivalent to the obligation reduced by a force majeure declaration when the Commission determines that sufficient alternative energy credits exist in the marketplace.

kW—Kilowatt—A unit of power representing 1,000 watts. A kW equals 1/1000 of a MW.

MW—Megawatt—A unit of power representing 1,000,000 watts. An MW equals 1,000 kWs.

Municipal solid waste—The term includes energy from existing waste to energy facilities which the Department has determined are in compliance with current environmental standards, including the applicable requirements of the Clean Air Act (42 U.S.C.A. § § 7401—7671q) and associated permit restrictions and the applicable requirements of the Solid Waste Management Act (35 P. S. § § 6018.101—6018.1003).

RTO—Regional transmission organization—An entity approved by the Federal Energy Regulatory Commission (FERC) that is created to operate and manage the electrical transmission grids of the member electric transmission utilities as required under FERC Order 2000, Docket No. RM99-2-000, FERC Chapter 31.089 (1999) or any successor organization approved by the FERC.

Reporting period—The 12-month period from June 1 through May 31. A reporting year shall be numbered according to the calendar year in which it begins and ends.

Retail electric customer—

(i) A direct purchaser of electric power.

(ii) The term excludes an occupant of a building or facility where the following apply:

(A) The owners/operators manage the internal distribution system serving the building or facility and supply electric power and other related power services to occupants of the building or facility.

(B) The owners/operators are direct purchasers of electric power.

(C) The occupants are not direct purchasers.

Stranded costs—An electric utility’s known and measurable net electric generation-related costs, determined on a net present value basis over the life of the asset or liability as part of its restructuring plan, which traditionally would be recoverable under a regulated environment but which may not be recoverable in a competitive electric generation market and which the commission determines will remain following mitigation by the electric utility.

Tier I alternative energy source—Energy derived from:

(i) Solar photovoltaic and solar thermal energy.

(ii) Wind power.

(iii) Low-impact hydropower.

(iv) Geothermal energy.

(v) Biologically derived methane gas.

(vi) Fuel cells.

(vii) Biomass energy.

(viii) Coal mine methane.

Tier II alternative energy source—Energy derived from:

(i) Waste coal.

(ii) Distributed generation systems.

(iii) Demand-side management.

(iv) Large-scale hydropower.

(v) Municipal solid waste.

(vi) Generation of electricity utilizing by-products of the pulping process and wood manufacturing process, including bark, wood chips, sawdust and lignin in spent pulping liquors.

(vii) Integrated combined coal gasification technology.

True-up period—The period each year from the end of the reporting year until September 1.

The provisions of this § 75.1 amended November 28, 2008, effective November 29, 2008, 38 Pa.B. 6473. Immediately preceding text appears at serial pages (330103) to (330104) and (324585) to (324587).

Notation

Authority

The provisions of this § 75.1 amended 66 Pa.C.S. § § 501 and 1501.

Cross References

This section cited in 52 Pa. Code § 69.2103 (relating to definitions); and 52 Pa. Code § 75.66 (relating to force majeure).