Order 15510 - Narr.,Newport & BV Elec: Arrangements Between Elec. Utils & Qualifying Cogeneration

 

STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS

PUBLIC UTILITIES COMMISSION

ORDER

WHEREAS, On June 20, 1997, the Blackstone Valley Electric Company ("BVE") and Newport Electric Corporation ("Newport") filed with the Public Utilities Commission ("Commission") a petition for waiver of the annual filing requirements in the above-captioned docket; and

WHEREAS, On June 26, 1997, the Narragansett Electric Company ("Narragansett") made a similar filing in the above-captioned docket; and

WHEREAS, BVE, Newport, and Narragansett were required by the terms of certain Commission orders, Order No. 10391 (issued March 20, 1981), and Order No. 12258 (issued February 18, 1987), to enter into long term contracts with any Qualifying Facility ("QF") that is five MW or less and is located in Rhode Island; and

WHEREAS, In addition, Order No. 12991 (issued May 30, 1989), required the utilities to file annually revised ceiling price schedules and statements of the previous year's peak-load requirements, to be used to establish the following year's QF procurement requirements, and to report on any resources procured during the past year; and

WHEREAS, For several years, no QF has requested to sell power to BVE, Newport, or Narragansett at the ceiling price under the terms and conditions of the Standard Contract; and

WHEREAS, Pursuant to the Utility Restructuring Act of 1996, electric distribution companies following implementation of their restructuring plans "shall be prohibited from * * * owning, operating, or controlling * * * generating plants," R.I.G.L. Section 39-1.27.3(d).

WHEREAS, The Division of Public Utilities and Carriers ("Division") supported the petitions, in a memorandum filed on July 18, 1997; and

WHEREAS, A careful reading of the URA and the implementing orders reveal that the original requirements have lost their purpose, and are indeed inconsistent with the public policy of the state, as expressed through the URA.

Accordingly, it is

(15510) ORDERED:

1. The requirement that the Blackstone Valley Electric Company, the Newport Electric Corporation, and the Narragansett Electric Company must enter into long term standard contracts to purchase electricity from QF projects of 5 MW or less at ceiling prices is hereby eliminated.

2. The associated annual reporting requirements regarding new resource acquisitions, peak load, and ceiling price schedules are hereby rescinded.

EFFECTIVE AT PROVIDENCE, RHODE ISLAND ON JULY 29, 1997, PURSUANT TO AN OPEN MEETING DECISION. WRITTEN ORDER ISSUED JANUARY 30, 1998.

PUBLIC UTILITIES COMMISSION