Mid-Carolina Electric considers PURPA standards

Mid-Carolina Electric Cooperative's Board of Directors ("Board") met recently to consider proposed federal standards pertaining to renewable energy and conservation. The federal Energy Policy Act of 2005 amended the Public Utility Regulatory Policies Act of 1978 (PURPA) to add five proposed regulatory standards relating to fuel sources, fossil fuel generating efficiency, interconnection, smart metering and net metering. Non-regulated electric utilities like Mid-Carolina Electric had to formally consider each of the five proposed standards. Earlier this year, Mid-Carolina Electric participated in statewide hearings in Columbia. Oral testimony and written comments from these hearings were considered by Mid-Carolina Electric's Board.

After reviewing this information, the Board determined that it could not adopt the fuel source and fossil fuel generating standards since they apply to generation utilities. Santee Cooper, which generates the electricity purchased by Mid-Carolina Electric, through its supplier Central Electric Power Cooperative, has indicated that Santee Cooper already meets or exceeds these requirements.

The Board also concluded that the implementation of the PURPA Net Metering Standard would raise issues of rate equity between consumers who would use net metering and consumers who would not. The Board chose not to adopt the net metering standard. In making this decision, Mid-Carolina Electric is recommending that Central Electric, our power supplier, consider purchasing power from Mid-Carolina members/consumers under a net billing arrangement. Net billing is a concept that allows a consumer to sell power back to the utility based on avoided cost, producing a more equitable result for all members of the cooperative.

The Smart Metering Standard also was not adopted by the Mid-Carolina Electric board as several existing rate schedules and energy efficiency programs already offer time-based charges or demand reduction price signals. These rates and programs comply with the intent and goals of PURPA. The Board concluded that the cost of implementing additional smart-metering options would exceed the expected benefits.

Finally, the Board adopted an Interconnection Standard, addressing the process of connecting a consumer's on-site generation (such as solar panels) to the local distribution grid.

For a copy of the full written resolution, please write to PURPA, Mid-Carolina Electric Cooperative, Inc., Post Office Box 669, Lexington, South Carolina 29072.