PURPA - Public Utility Regulatory Policies Act of 1978
The purpose of PURPA is the encouragement of investments in conservation and efficient use of facilities by electric utilities and equitable rates to electric customers. In 2009, PURPA required qualified electric utilities to consider three new 111(d) standards pursuant to the Energy Independence and Security Act of 2007 (EISA).
Most recently, the 2021 Infrastructure Investment and Jobs Act (IIJA) requires non-regulated cooperatives (such as SECO Energy), municipal utilities, and state regulators (for regulated utilities) to consider adopting two new standards under Section 111(d) of PURPA.
There are two new PURPA 111(d) Standards Under IIJA to consider:
1. Demand-Response Practices
(A) In General – Each electric utility shall promote the use of demand-response and demand flexibility practices by commercial, residential, and industrial consumers to reduce electricity consumption during periods of unusually high demand.
(B) Rate Recovery
(i) In General – Each State regulatory authority shall consider establishing rate mechanisms allowing an electric utility with respect to which the State regulatory authority has ratemaking authority to timely recover the costs of promoting demand-response and demand flexibility practices in accordance with subparagraph (A).
(ii) Nonregulated Electric Utilities – A nonregulated electric utility may establish rate mechanisms for the timely recovery of the costs of promoting demand-response and demand flexibility practices in accordance with subparagraph (A).
2. Electric vehicle charging programs
Each State shall consider measures to promote greater electrification of the transportation sector, including the establishment of rates that—
(A) promote affordable and equitable electric vehicle charging options for residential, commercial, and public electric vehicle charging infrastructure;
(B) improve the customer experience associated with electric vehicle charging, including by reducing charging times for light-, medium-, and heavy-duty vehicles;
(C) accelerate third-party investment in electric vehicle charging for light-, medium-, and heavy-duty vehicles; and
(D) appropriately recover the marginal costs of delivering electricity to electric vehicles and electric vehicle charging infrastructure.
Determination Process to Consider Adopting new PURPA Standards:
Following direction from NRECA, SECO does not presently intend to conduct a live hearing but will, via its comment and response periods, along with the opportunity for member attendance at Board meetings where they are allowed to be heard on matters affecting the Cooperative, enable our members to be heard throughout this process. Consideration of standards needs to focus on how implementation is consistent with the purpose of PURPA:
- the promotion of energy conservation
- optimization of the efficiency of use of facilities and resources, and
- equitable rates to electric consumers
SECO Energy’s Board of Trustees approved a Resolution at the October 24, 2022, Board Meeting to determine the hearing process to consider the standard and to engage in a public comment period to consider our members’ input on the topic. Notice of these objectives was published in November SECO News.
