NC Sustainable Energy Association


Avoided Cost Rates Filed and 2014 Biennial Avoided Cost Proceeding Open

March 20, 2014 9:52 AM | Posted By: Kacey Hoover

The Investor Owned Utilities (IOUs) filed their avoided cost rates last week in accordance with the NC Utilities Commission February 21, 2014 Order. Most notably for NCSEA members , in the Order the Commission directed (1) IOUs to make available long-term rates for QFs that have a CPCN and have expressed intent to sell the generation- a legally enforceable obligation (LEO), (2) DEP and DNCP to offer “Option B” avoided capacity rates calculated using the same on-peak hours (for both summer months and non-summer months) as used by DEC in its “Option B”– which is selected over DEC’s “Option A” rate by most solar developers, (3) DEC and DEP to include actual avoided cost rates in their 2014 REPS Compliance Plans and thereafter, and (4) DNCP to remove the Regulatory Disallowance Clause in contracts with QFs that are subject to rates approved by the Commission.

Duke Energy Carolinas’ and Duke Energy Progress’ (DEC and DEP) Rate Schedules and Contracts can be found here.

Dominion North Carolina Power’s (DNCP) Rate Schedules and Contracts can be found here.

The Commission issued an Order establishing a 2014 Biennial Avoided Cost proceeding on February 25, 2014.  The methodology used to calculate avoided cost rates prior to the filing of new proposed rates in the fall of 2014 will be addressed in 2014 Biennial Avoided Cost proceeding. An evidentiary hearing is scheduled for July 7, 2014 to discuss the appropriate methodology for determining avoided cost payments, including capacity payments. (Commission Order in Docket E-100, Sub 140- here)