HomeMy WebLinkAbout08-81
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RESOLUTION NO. i- ~I
A RESOLUTION of the City of Port Angeles,
establishing a policy for the purchase
of power from, and the sale of power to,
cogenerators and small power producers,
in complaince with the Public Utility
Regulatory Policy Act of 1978.
WHEREAS, the Congress of the United States enacted the
Public Utility Regulatory Policy Act of 1978 (hereafter ITPURPAIT),
Sections 201 and 210 of which require the Federal EnergY_Begulator~
Commission (hereafter '''FERC'') to perscribe rules necessary to en-.
courage cogeneration and small production; and
tVHEREAS, FERC issued rules in February and March, 1980,
for implementation of Sections 201 and 210 of that Act, which rules
set forth the utility's responsibilities unde~ Section 210 of the
Act: and
tiHEP~AS, the FERC rules require nonregulated utilities
such as the City of Port Angeles to purchase energy and capacity
which is made available from small generation and cogeneration
facilities; and
WHEREAS, the FERC rules provide guidance ,for the deter-
mination of appropriate rates and terms for the purchase and sale
of power between utilities and qualified facilities: and
WHEREAS, the FERC rules require nonregulated utilities
to prepare policies in accordance with ~he utility's responsibili-
ty to purchase power and determine appropriate rates and terms for
that purchase; and
WHEREAS, the City of Port Angeles presented proposed
policies for the implementation of Sections 201 and 210 and the
FERC regulations, at an advertised hearing held on April 7, 1981,
and received comment on such plans; and
WHEREAS, the City Council determines it necessary and
appropriate to implement such policy; now, therefore,
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BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT
ANGELES that the policy of the City of Port Angeles concerning the
purchase and sale of power to and ,from cogenerators and small
power producers shall be as stated in Exhibit ITA" to this resolu-:'
tion, incorporated herein by this reference.
DATED this 7 ~ day of ~
, 1981.
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ATTEST:
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~arian C. Parrish, C~ty Clerk
APPROVED AS TO FORM:
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C7" Miller, City
Attorney
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POLICY ON IMPLEMENTATION OF SECTION 210
PUBLIC UTILITIES REGUALTORY POLICY ACT OF 1978
(PURPA)
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It is the intention of the Port Angeles City Light Department (City
Light to comply with the Federal Energy Regulatory Commission (FERC) regulations
Order No. 69, Paragraph 292, Subpart C, which applies to the regulation of sales
and purchases between qualifying facilities (Q.F.'s as defined by Section 210 of
PURPA) and electric utilities.
In order to encourage cogeneration and small power production, City Light
will purchase any energy and capacity made available to it from a Q.F. at rates
based upon the "avoided" costs at the time of delivery. Purchases from Q.F.IS
under 100 kilowatts, (which normally are not demand metered) will be only for
energy.
With permission of the Q.F., City Light will pursue transmission agreements
with the Bonneville Power Administration or with other utilities whose avoided
costs are higher than City Light's. Rates of purchase under a transmission
agreement will reflect the higher avoided costs. City Light will sell
any capacity and energy requested by a Q.F. on a nondiscriminatory basis
consistent with applicable rate schedules and policies for other customers
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in a similar class.
City Light and each Q.F. shall enter into a written contract specifying
intercommunication facilies, metering, operating reliability, safey standards
and other provisions as determined by City Light. All provisions will be
consistent with FERC regulations.
A Q.F. shall be required to pay interconnection costs consistent with
policies affecting other customers of the same class. All interconnection
facilities above and beyond what City Light would normally provide to a customer
of the same class will be provided by the Q. F. or at the expense of the Q.F.
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PUBLIC N()TICE
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Section 210 (f) of the Federal Public Utility Regulatory
Policies Act of 1978 (PURPA), Public Law 95-517, requires the
City of Port Angeles to i:nplem_:!1't a policy, c.fter :1otice and an
opportunity for public hearine, as is necessary to encourage
cogeneration and small power production. Sec~ion 210 goes on
to say that the Port Angeles City Light Department must purchase
all energy produced from a qualifying cogenerator or small power
producer at a price which reflects the avoided cost of power,
and is reasonable, just, in the public in~erest, and nondis-
criminatory. For purposes of this notice, the following defi-
nitions are offered:
1. A small power production facility - a facility which produces
electric energy solely by the use, as a primary energy source,
of biomass, \vaste, renewal resources or any other combination
thereof and has a power ?~oduction capability which, together
with any other facilities ~ocated at the same site, is no
greater than 80 megawatts.
2. Cogeneration facility - a facility which produces electric
energy and steam or forms of ~sable energy such as heat
which are used for industrial, commercial heating or cooling
purposes through the sequencial use o~ energy.
3. Avoided cost of power - the cost to the electric utility of
the electric energy which, but for the purchase from such
cogenerator or small power purchaser, such utility would
generate or purchase from another source.
~The Port Angeles City Light Department supports the intent
of Section 210 of PURPA, and is formulating a draft policy within
the spirit of the law to promote cogeneration 2nd small pOVler
production. City Light of Port Angeles will be pleased to dis-
cuss a specific application with any interested party.
At its regularly scheduled meeting of April 7, 1981, at~
the Council Chambers of the City of ?ort Angeles, 134 West
Front Street, Port Angeles, Washington 98362, the City Council
will entertain comment from interested parties in a public
hearing.
All questions, comments or inquiries regarding Section 210
of PURPA should be addressed to:
11r. Greg Booth
Port Angeles City Lif;ht Department
P. O. BOX 1150, 240 W. Front
Port Angeles, WA 98362
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