2010 Report - Pennsylvania Public Utility Commission

egulatory treatment. Generating facilities in this group are known as qualifying facilities (QFs),and fall into two categories: qualifying small power production facilities and qualifyingcogeneration facilities.A small power production facility is a generating facility of 80 MW or less whose primaryenergy source is renewable (hydro, wind or solar), biomass, waste, or geothermal resources. Acogeneration facility is a generating facility that sequentially produces electricity and anotherform of useful thermal energy (such as heat or steam) in a way that is more efficient than theseparate production of both forms of energy. With some limited exceptions, these facilities arealso limited in size to 80 MW.Although enacted more than 30 years ago, PURPA continues to have an impact onPennsylvania’s EDCs. The Commission’s regulations govern the purchases and sales of energybetween QFs and electric utilities. It also governs the purchases and sales of capacity andassociated energy between suppliers of electric generation and electric utilities. 46Under the provisions of purchase power agreements, utilities are required to purchase any energywhich is made available from a qualifying facility. 47 In 2009, 8,400 GWh were purchased fromindependent power producers (IPPs) and QFs, representing 5.6 percent of net energy for load.See Table 4. Contract capacity refers to the amount of the facilities’ total capacity that the EDCcontracts for; some purchases are for energy only.Table 4 2009 purchases from IPPs and QFs by Pennsylvania EDCsPurchased Percent of Contract TotalEnergy Net Energy Capacity CapacityCompany (MWh) for Load (kW) (kW)Citizens' 3,296 1.97% 0 6,000Duquesne 0 0.00% 0 0Met-Ed 2,201,773 15.29% 295,000 354,900Penelec 3,082,343 21.47% 370,350 410,850Penn Power 2 0.00% 0 10,600PPL 1,091,468 2.72% 0 152,517PECO 1,033,939 2.54% 181,000 384,082West Penn 987,023 4.66% 136 151UGI 0 0.00% 0 0Total 8,399,843 5.59% 846,486 1,319,10046 52 Pa. Code §§ 57.31-57.39.47 Under PURPA Section 210(m)(1)(A), enacted in response to § 1253 of the Energy Policy Act of 2005, no electricutility shall be required to enter into a new contract or obligation to purchase electric energy from a QF underSection 210(m) if FERC finds that the QF has nondiscriminatory access to: “(i) independently administered,auction-based day ahead and real time wholesale markets for the sale of electric energy; and (ii) wholesale marketsfor long-term sales of capacity and electric energy.” FERC Docket No. RM06-10-001.Electric Power Outlook for Pennsylvania 2009-2014 19