Utah Geothermal Power Generation Workshop Regulatory Issues August

Utah Geothermal Power Generation Workshop Regulatory Issues August 17, 2005 Presented by Becky Wilson Utility Economist Utah Public Service Commission

Utah Public Service Commission • Created in 1917 to regulate retail utility services offered by “public utilities” • Private companies granted exclusive franchise to serve all requests for service at rates, terms and conditions set by the State of Utah Public Service Commission (PSC). • No authority over municipal power utilities and limited authority over electric power cooperatives.

Utah Public Service Commission • Regulates Pacifi. Corp dba Utah Power. – Pacifi. Corp operates a utility system of generation, transmission and distribution plant located throughout the west and serves retail customers in six states. – This system provides about 75 -80% of the electricity service in Utah.

Utah Public Service Commission Regulatory Process and Geothermal Power • Planning: 1992 PSC Order requires Utah Power to perform Integrated Resource Planning (IRP). • Procurement Process: New legislation, “SB 26” Utah State law 54 -17 -101. • Construction: Issues Certificate of Convenience and Necessity • QF Price Setting: Sets price Utah Power pays to purchase power from a Qualifying Facility.

Qualifying Facilities • Created in 1978 to encourage efficient and clean sources of domestic electricity generation. • Cogeneration projects • Small power production plant, i. e. , biomass, waste, renewable resources and geothermal resources, 80 megawatts or less. • Utility must purchase QF power. • Price, terms and conditions set by PSC.

Regulatory Process for QF • QF must first certify with Federal Energy Regulatory Commission. www. ferc. gov • Obtain power purchase contract and interconnection agreement with Utah Power. • If > 3 MW, or if there are contract disputes, submit contract to PSC for approval.

Utah Public Service Commission QF Regulatory Process • For geothermal projects less than 3 MW, the PSC has approved Utah Power Rate Schedule No. 37 prices, terms and conditions. • http: //www. pacificorp. com/Regulatory_Rul e_Schedule/Regulatory_Rule_Schedule 22 86. pdf

Utah Public Service Commission QF Regulatory Process • For projects greater than 3 MW the PSC has approved Utah Power Schedule No. 38 procedures for obtaining indicative pricing and a power purchase contract. • http: //www. pacificorp. com/Regulatory_Rul e_Schedule/Regulatory_Rule_Schedule 28 325. pdf

Utah Public Service Commission QF Regulatory Process • Copy of generic Power Purchase Agreement is online at: • http: //www. pacificorp. com/File 25896. p df

Pending PSC Activities • Schedule No. 38 indicative pricing method is under review in Docket No. 03 -035 -14. Hearings scheduled for mid-September. • Pacifi. Corp’s proposed solicitation for additional power supply in summer 2009 is under review in Docket No. 04035 -47. Comments due August 22, 2005. • Rules to implement SB 26 are being developed in 05 R 403 -01. • For more information: www. psc. utah. gov

Future Activities • New Energy Bill includes changes to federal QF purchase requirements. • Pacifi. Corp to file interconnection process description to supplement Schedules 37 and 38 for distribution connections up to 4 megawatts.

Questions?