RULES AND REGULATIONS
Title 52--PUBLIC UTILITIES
PENNSYLVANIA PUBLIC UTILITY COMMISSION
[52 PA CODE CH. 57]
[30 Pa.B. 1129] [L-980136]
Annual Resource Report Filing Requirements The Pennsylvania Public Utility Commission (Commission) on December 2, 1999, adopted a final rulemaking to amend annual resource report filing requirements appropriate within a competitive generation market. The contact persons are Carl Hisiro, Law Bureau, (717) 783-2812 and Blaine Loper, Bureau of CEEP, (717) 787-3810.
Executive Summary
Section 524(a) of the Public Utility Code (code), 66 Pa.C.S. § 524(a), requires electric utilities to submit to the Commission information concerning plans and projections for meeting future customer demand. The Commission's regulations under § 57.141(a), promulgated under section 524(c) of the code, require each jurisdictional electric utility to submit, on or before May 1 of each year, an Annual Resource Planning Report (ARPR) which contains information required under section 524(a).
In view of the enactment of the Electricity Generation Customer Choice and Competition Act (act), 66 Pa.C.S. §§ 2801--2812, the Commission is amending its existing reporting requirements which are appropriate within a competitive generation market. On September 3, 1998, the Commission issued an advance notice of proposed rulemaking to solicit comments from electric utilities, electric generation suppliers, power marketers and other interested parties. The notice was published at 28 Pa.B. 4724 (September 19, 1998) with a 30-day comment period. On January 14, 1999, the Commission adopted a proposed rulemaking order which was published at 29 Pa.B. 2025 (April 17, 1999) with a 60-day comment period.
This amendment reduces the reporting horizon for energy demand, connected peak load and number of customers from 20 to 5 years and, in a number of areas, revise the types of information that will be required. Information regarding capital investments, energy costs, expansions of existing facilities and siting of new generating facilities will no longer be required. This amendment reflects the changes brought upon by competition in the electric generation segment of the industry.
Regulatory Review
Under section (a) of the Regulatory Review Act (71 P.S. § 745.5(a)), on March 30, 1999, the Commission submitted a copy of the final-form rulemaking, which was published as proposed at 29 Pa.B. 2025 (April 17, 1999) to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the House Committee on Consumer Affairs and the Senate Committee on Consumer Protection and Professional Licensure for review and comment. In compliance with section 5(b.1), the Commission also provided IRRC and the Committees with copies of all comments received, as well as other documentation.
In preparing these final-form regulations, the Commission has considered all comments received from IRRC, the Committees and the public.
These final-form regulations were deemed approved by the House Committee on Consumer Affairs and were deemed approved by the Senate Committee on Consumer Protection and Professional Licensure, and was approved by IRRC on January 20, 2000, in accordance with section 5(c) of the Regulatory Review Act.
Commissioners Present: John M. Quain, Chairperson; Robert K. Bloom, Vice Chairperson; Nora Mead Brownell; Aaron Wilson, Jr.; Terrance J. Fitzpatrick, Abstaining
Public Meeting held
December 2, 1999
Final Rulemaking Order By the Commission:
On January 14, 1999, the Commission adopted an order proposing to amend its regulations relating to resource planning filing requirements imposed upon electric utilities.1 The Commission proposed these amendments in response to the recent deregulation of the electric generation segment of the industry.2
Comments were received from the Pennsylvania Electric Association (PEA), the Office of Consumer Advocate (OCA) and IRRC. This final order discusses the comments received and sets forth, in Annex A, final amendments to the Commission's regulations regarding electric utility resource planning.
General Comments
The commentators generally support the changes proposed by the Commission in view of the fact that electric generation has been deregulated and is now subject to a competitive market.
The OCA submits that the proposed amendments focus on obtaining the information and data necessary for the Commission to perform its oversight responsibility, under Chapter 28 of the code, of ensuring reliability of the generation, transmission and distribution system. The OCA also believes that the proposed amendments will improve the information which the Commission receives in performing its oversight responsibility.
The PEA states that the proposed rulemaking correctly focuses on obtaining information from electric distribution companies (EDCs) regarding the amount of load transported over their transmission and distribution systems. PEA believes that this data will assist the Commission in evaluating the reliability of the transmission and distribution system, and will provide important baseline data (in combination with electricity supply data obtained at the power pool level) from which the Commission can evaluate the adequacy of supply of electricity in the EDC's region.
Both the OCA and PEA agree that system cost data is unnecessary in a fully competitive generation market.
Specific comments regarding recommended revisions to the proposed amendments are discussed as follows.
§ 57.141. General.
Section 57.141(a) replaces the term ''public utility'' with ''electric distribution company'' (as defined in 66 Pa.C.S. § 2803) as the entity responsible for reporting this information. The OCA and IRRC aver that, since a number of electric generation suppliers (EGSs) may eventually become providers of last resort (PLRs), all PLRs that are not EDCs should be required to provide similar information to the Commission. The OCA recommends that, if the information requested under these regulations proves to be inadequate for the Commission to properly monitor reliability, the Commission consider additional reporting requirements for EGSs either through these regulations or through its licensing regulations under § 54.39 (relating to reporting requirements).
As explained in more detail elsewhere in this order, we have chosen to monitor electric service adequacy on a control area basis. This should adequately provide for monitoring of the bulk power supply system without requiring EGSs, as PLRs, to be included in these regulations. Whether an EGS is providing power directly to consumers as an alternate supplier or as a PLR, it still must abide by the rules and requirements set forth by the appropriate regional reliability entity and provide reliable electric service.3 If deemed to be necessary, we may subsequently require all EGSs to provide information relating to their provision of electric service to retail customers either under the Commission's licensing regulations in § 54.39 or under the regulations being considered herein.
Subsection (b) defines the term ''current year'' as ''the year in which the filing is being made.'' IRRC submits that the term is unclear and should be revised to read ''the calendar year preceding the year in which the filing is being made.'' We disagree. As currently used, this term refers to data projected for the present year. For filings submitted on May 1, 2000, the current year would be 2000 and 1999 would be referred to as the ''past year.'' Furthermore, the Commission's regulations have contained this definition for a number of years and all of the responding EDCs fully understand what is meant by it. Nevertheless, to avoid a misinterpretation of this term by any entity, we will remove the definition of ''current year'' and delete reference thereof in subsequent sections. In this way, it should be understood that a 5-year forecast will include the year in which the report is filed with the Commission.
§ 57.142. Forecast of energy demand, peak load and number of customers.
IRRC suggests that we include a definition for ''summer'' and ''winter'' seasons as defined in § 57.146 (relating to system cost data) which had been proposed to be deleted.
To improve the clarity of our regulations, we will add this definition to § 57.142.
As explained further, we shall also add a requirement under § 57.142 to provide for forecasts of energy demand and peak load on both a control area and a regional reliability council basis.
§ 57.143. Existing and planned generating capability.
The OCA supports the addition of the proposed informational requirements calling for a synopsis of major occurrences where EGSs have been unable to supply scheduled loads within the EDC's service territory. The OCA, however, recommends the incorporation of some requirements, proposed to be deleted under § 57.151 (relating to new generating facilities and expansions of existing facilities), such as information on planned generation plants, an identification of generating units that are expected to retire, and environmental considerations of planned facilities, any of which could have an ultimate effect on the reliability of the electric system.
IRRC requests that this section clarify that the term ''other pertinent information'' is related to major occurrences as referred to in § 57.143(b) (as proposed). IRRC also requests that the Commission explain how the proposed amendments will provide complete information on available generating facilities without considering units which will be removed from active service.
PEA, on the other hand, asserts that the Commission should not require EDCs to submit information regarding sources of supply concerning their obligation as the PLR, since this information will not enable the Commission to determine supply reliability. PEA submits that, in order for the Commission to determine adequacy of supply, it must obtain information from regional entities, such as the Pennsylvania-New Jersey-Maryland Interconnection, L.L.C. (PJM), the North American Electric Reliability Council (NERC), and the Mid-Atlantic Area Council (MAAC), which have access to information regarding the full range of generating resources, including wholesale generators. Similarly, PEA suggests that the Commission not require EDCs to submit information on scheduled imports and exports.
The PEA also asserts that it is inappropriate to require EDCs to report on occurrences where EGSs are unable to supply scheduled loads within the EDC's service territory. The PEA argues that, if the Commission believes it must collect such information regarding an EGS's failure to provide electricity, it should require the EGS to provide this information, not the EDCs.
It is this Commission's responsibility to ensure the maintenance of adequate and reliable electric service to all retail customers, regardless of their choice of supplier.4 Requesting information on a piecemeal basis (that is, EDCs, EGSs and PLRs), however, will not provide sufficient information to assist the Commission in assessing the reliability of the electric system. As we stated in our proposed rulemaking order, the Commission must rely on such entities as MAAC and the East Central Area Reliability Council (ECAR) to provide regional assessments of the adequacy of generation resources to meet regional needs. In view of the regional aspect of electric generation and transmission, we believe that electric service reliability must be assessed from a regional perspective.
Although we had proposed the collection of information on the activities of EDCs acting as PLRs, this information will only provide a portion of the reliability picture. One obvious problem with this method of data collection is that some EDCs, such as Metropolitan Edison Company, Pennsylvania Electric Company and Duquesne Light Company, are in the process of selling their generating facilities to nonregulated entities. Generation from these facilities may be sold either to retail customers, the EDCs, PJM or entities in other states. Likewise, generating facilities owned by an EDC's affiliate may be used to serve entities other than its own retail customers. In other words, the EDCs will not be able to determine what resources will be committed to local retail loads. The EDCs will be able to provide actual and forecast data on connected load, but not on the resources expected to meet the customer load.
Until those generating assets are transferred or sold to other entities, however, the cost of those assets are being recovered by the EDC through a competitive transition charge, as defined under 66 Pa.C.S. § 2803. Thus, we find it appropriate for the EDC to continue to provide a description of existing generating facilities which are owned in whole or in part by the EDC.
Electric power generation and transmission are controlled on a regional basis. Regional reliability councils are responsible for maintaining system adequacy and security. The PJM,5 as a control area, coordinates the generation and transmission of electricity for a multistate area and orchestrates the implementation of emergency procedures necessary to maintain system integrity. Those Pennsylvania EDCs which are not members of PJM also coordinate operations on a control area basis within the ECAR region. Pennsylvania ECAR members consist of Duquesne Light Company (Duquesne), Pennsylvania Power Company (Penn Power) and Allegheny Power (AP). Duquesne, Penn Power's parent company, FirstEnergy, and AP's parent company, Allegheny Energy, Inc., are control areas operating within the ECAR region and are subject to ECAR reliability standards and protocols.
Annually, the electric utilities and nonutility power producers provide information concerning capacity resource plans to their respective regional reliability councils, which aggregate the data for submission to NERC by April of each year. The aggregated data is then forwarded to the United States Energy Information Administration. The aggregated information includes: projected energy and peak demands, projected generating capacity by fuel type, existing generating capacity, planned generating capacity, projected capacity purchases and sales and proposed bulk power transmission line additions. Some information on planned capacity changes, however, may not be available.6
It is apparent that we must assess reliability of integrated electric power systems in a manner which reflects the mode of real-time operation inherent in the design of the bulk power supply grid. With deregulation of the generation segment of the market, we must focus on regional aspects of the electric utility system consistent with the operation thereof. Thus, we shall require the EDCs to provide aggregate data on existing and planned generating capability on both a control area and a regional reliability council basis. This will provide sufficient information for the Commission's assessment of system reliability.
In response to IRRC's and OCA's concern about information on generating facility retirements, we will require the EDC's data to include any known changes to its own generating capability, including planned retirements. We will also require similar data for the EDC's control area and the area covered by the appropriate regional reliability council.
With regard to the reporting of major occurrences where an EGS failed to supply scheduled retail loads, we expect the EDC to provide such information, whether it must first obtain the information from its control area operator or elsewhere. It is noted that 66 Pa.C.S. § 2807(e)(3) states that, when a customer contracts for electric energy and it is not delivered, the EDC must acquire electric energy to serve the customer, unless the Commission has approved an alternative PLR. This information will assist the Commission in monitoring the provision of service of an EGS in accordance with § 57.196 (relating to generation reliability) and related impacts on the EDC. We also accept IRRC's request to relate the phrase ''other pertinent information'' to major occurrences.
We reject the OCA's recommendation to add reporting requirements under § 57.143 which we proposed to delete under § 57.151. As we stated in our proposed rulemaking order, the information required under § 57.151 relates to the siting of generating facilities, which is beyond the scope of the Commission's regulatory authority.
§ 57.145. Cogeneration and independent power production.
IRRC recommends that we include a cross-reference to the definition of the term ''independent power producer'' as set forth under § 57.31.
In the final rulemaking, we have added this reference.
§ 57.146. System cost data.
The OCA submits that some cost information will be needed until the Commission is satisfied that the competitive generation market is providing a visible price signal.
We disagree. Cost data required under this section was related to the cost of energy generated by an electric utility and used to determine its avoided cost for calculation of capacity credits under § 57.34(c) (relating to purchases of capacity and energy) to be paid to a cogeneration facility or small power production facility which meets the criteria contained in 18 CFR Part 292. On June 22, 1995, the Commission adopted an order approving final-form regulations which established mandatory all-source competitive bidding programs for the purchase of capacity and associated energy, thus replacing the former process of administratively determining capacity and energy payments to qualifying facilities.7 Furthermore, since electric generation has been deregulated, we will not continue the collection of system cost data.
§ 57.147. Scheduled imports and exports.
As stated earlier, the PEA submits that the Commission should not require EDCs to submit information on scheduled imports and exports. Although EDCs are able to provide this information, the data will not assist the Commission in determining the adequacy of supply, according to the PEA.
Although information on imports and exports may not provide enough additional information with which to ensure overall electric service reliability, we shall continue to require the submission of this information. The competitive retail marketplace is relatively new to this Commonwealth and this information will be helpful in assessing the impact of competition on power transactions. We shall also require purchases and sales of generating capacity on a control area basis.
§ 57.152. Formats.
IRRC and the PEA assert that the Commission should develop or revise, as necessary, reporting formats which are consistent with the new reporting requirements, and officially approve such formats.
We shall accept this suggestion. We have revised § 57.152 to include a listing of forms for reporting information.
Conclusion
Thus, we find the revisions to our existing regulations, §§ 57.141--57.154, to be necessary and appropriate to reflect the changes taking place in the electric service industry and to ensure the reliability of electric service in this Commonwealth. Accordingly, under sections 501, 524, 1501, 1504 and 2809 of the code, 66 Pa.C.S. §§ 501, 524, 1501, 1504 and 2809, and the Commonwealth Documents Law (45 P. S. § 1202 et seq.) and the regulations promulgated thereunder in 1 Pa. Code §§ 7.1--7.4, we amend Chapter 57 by revising filing requirements for the annual resource planning report; Therefore,
It Is Ordered That:
1. The regulations of the Commission, 52 Pa. Code Chapter 57, are amended by amending §§ 57.144, 57.148, 57.149 and 57.154 and by deleting §§ 57.146, 57.150, 57.151 and 57.153 to read as set forth at 29 Pa.B. 2025; and by amending §§ 57.141--57.143, 57.145, 57.147 and 57.152 to read as set forth in Annex A.
2. The Secretary shall certify this order and Annex A and deposit them with the Legislative Reference Bureau for publication in the Pennsylvania Bulletin.
3. The Secretary shall submit this order and Annex A to the Office of Attorney General for approval as to legality.
4. The Secretary shall submit this order and Annex A to the Governor's Budget Office for review of fiscal impact.
5. The Secretary shall submit this order and Annex A for review by the designated standing committees of both houses of the General Assembly, and for review and approval by IRRC.
6. A copy of this order and Annex A shall be served upon the OCA, the Office of Small Business Advocate, all jurisdictional electric distribution companies and all parties of record.
7. This regulation shall become effective upon publication in the Pennsylvania Bulletin.
JAMES J. MCNULTY,
Secretary(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 30 Pa.B. 736 (February 5, 2000).)
Fiscal Note: Fiscal Note 57-203 remains valid for the final adoption of the subject regulations.
Annex A
TITLE 52. PUBLIC UTILITIES
PART I. PUBLIC UTILITY COMMISSION
Subpart C. FIXED SERVICE UTILITIES
CHAPTER 57. ELECTRIC SERVICE
Subchapter L. ANNUAL RESOURCE PLANNING REPORT § 57.141. General.
(a) An electric distribution company (EDC), as defined in 66 Pa.C.S. § 2803 (relating to definitions), shall submit to the Commission the Annual Resource Planning Report (ARPR) that contains the information prescribed in this subchapter. An original and three copies of the report shall be submitted on or before May 1, 2000 and May 1 of each succeeding year. One copy of the report shall also be submitted to the Office of Consumer Advocate (OCA) and the Office of Small Business Advocate (OSBA). The name and telephone number of all persons having knowledge of the matters, and to whom inquiries should be addressed, shall be included.
(b) As a condition to receiving a copy of the ARPR, the OCA and OSBA shall be obligated to honor and treat as confidential those portions of the report designated by the utility as proprietary.
(1) If the Commission, OCA, OSBA or any person challenges the proprietary claim as frivolous or not otherwise justified, the Secretary's Bureau will issue, upon written request, a Secretarial letter directing the ECC to file a petition for protective order under § 5.423 (relating to orders to limit availability of proprietary information) with 14 days.
(2) Absent the timely filing of such a petition, the proprietary information) within 14 days deemed to have been waived. The proprietary claim will be honored during the Commission's consideration of the petition for protective order.
§ 57.142. Forecast of energy demand, peak load and number of customers.
(a) The Annual Resource Planning Report (ARPR) shall include a forecast of energy demand in megawatt-hours per calendar year.
(1) The data shall include actual data for the past year and estimated data for the ensuing 5 years.
(2) The data shall be displayed by the following component parts:
(i) Residential, commercial and industrial sectors.
(ii) Other demand, including public street and highway lighting, other sales to public authorities and sales to railroads and railways.
(iii) Sales for resale.
(iv) Total consumption, as the sum of (i), (ii) and (iii).
(v) System losses and company use.
(vi) Net energy for load, as (iv) minus (v).
(b) The ARPR shall include a forecast of connected peak load.
(1) The data shall include actual data for the past year and estimated data for the ensuing 5 years.
(2) The data shall be displayed by the following component parts:
(i) Peak loads for both summer and winter seasons, the latter being the winter following the summer of the past year.
(ii) The date and time of the summer and winter peak loads.
(iii) Annual peak load.
(iv) Annual load factor.
(3) The summer season is June through September and the winter season is December through March.
(c) The ARPR shall include a forecast of the number of connected customers.
(1) The data shall include actual data for the past year and estimated data for the ensuing 5 years.
(2) The data shall be displayed by the following component parts:
(i) Residential, commercial and industrial sectors.
(ii) Other, including public street and highway lighting, other sales to public authorities and sales to railroads and railways.
(iii) Total number of customers.
(d) The ARPR shall include an aggregate forecast of energy demand and peak load for the EDC's control area and appropriate regional reliability council, as defined under § 57.192 (relating to definitions). The data shall include actual data for the past year and estimated data for the ensuing 5 years.
§ 57.143. Existing and planned generating capability.
(a) The Annual Resource Planning Report (ARPR) shall include a description of existing generating capability, the cost of which is being recovered by the EDC in a competitive transition charge, as defined under 66 Pa.C.S. § 2803 (relating to definitions), and planned generating capability installations, changes and removals.
(1) The data shall include station name and unit number, location, date installed or to be installed, unit type, primary fuel type and fuel transportation method, summer and winter net capability in megawatts, changes in capability occurring during the past year and percent ownership share.
(2) The data shall include those facilities which are owned in whole or in part by the reporting EDC. A jointly owned unit shall be designated as such and the EDC's share of the unit shall be indicated.
(3) The data shall include actual data for the past year and estimated data for the ensuing 5 years.
(b) The ARPR shall include a description of existing generating capability and planned generating capability installations, changes and removals for the EDC's control area and appropriate regional reliability council, as defined under § 57.192 (relating to definitions).
(1) The data shall include actual data for the past year and estimated data for the ensuing 5 years.
(2) The data shall include station name and unit number, location, date installed or to be installed, unit type, primary fuel type and fuel transportation method and summer and winter net capability in megawatts.
(c) The ARPR shall include a synopsis of major occurrences where electric generation suppliers were unable to supply scheduled loads within the EDC's service territory during the previous year. The synopsis shall include the electric generation supplier's name, the amount of energy and capacity involved in megawatt-hours and megawatts, respectively, the period of time involved and other pertinent information relating to the major occurrences.
§ 57.145. Qualifying facility and independent power producer.
The Annual Resource Planning Report (ARPR) shall include a description of each existing and planned qualifying facility and independent power producer, as defined under § 57.31 (relating to definitions), from which the EDC will purchase energy or capacity, or both. Projects shall be grouped by status and subtotals shall be provided.
(1) The data shall include the amount of energy in kilowatt-hours from each facility during the past calendar year, or the expected amount of energy to be purchased from the facility, and the contract capacity in kilowatts, if applicable.
(2) Facilities with an individual annual output of less than 20,000 kilowatt-hours or capacity less than 5 kilowatts may be consolidated by customer class and energy source--for example: residential/wind.
(3) If an entity has requested anonymity, the EDC does not have to name it, but shall only provide the facility's characteristics.
§ 57.147. Scheduled imports and exports.
The Annual Resource Planning Report (ARPR) shall include a forecast of scheduled imports and exports in megawatts for the EDC, the EDC's control area and appropriate regional reliability council, as defined under § 57.192.
(1) Actual data for the past year and estimated data for the ensuing 5 years shall be provided.
(2) The data shall be provided for both summer and winter seasons, the latter being the winter following the summer of the past year.
(3) A breakdown of scheduled imports and exports shall be provided including the name and type of each participating entity.
§ 57.152. Formats.
In preparing the Annual Resource Planning Report required by this subchapter, each EDC shall use the current forms and schedules specified by the Commission, which shall include the following:
(1) ARPR 1--Historical and Forecast Energy Demand.
(2) ARPR 2--Historical and Forecast Connected Peak Load.
(3) ARPR 3--Historical and Forecast Number of Connected Customers.
(4) ARPR 4--Historical and Forecast Peak Load and Energy.
(5) ARPR 5--Existing Generating Capability.
(6) ARPR 6--Future Generating Capability Installations, Changes and Removals.
(7) ARPR 7--Projected Capacity and Demand.
(8) ARPR 8--Qualifying Facility and Independent Power Production Facilities.
(9) ARPR 9--Scheduled Imports and Exports.
(10) ARPR 10--Summary of Demands, Resources and Energy for the Previous Year.
(11) ARPR 11--Transmission Line Projection.
(12) ARPR 12--Conservation and Loan Management Program Description.
______
1 29 Pa.B. 2025 (April 17, 1999).
2 Electricity Generation Customer Choice and Competition Act, 66 Pa.C.S. §§ 2801--2812.
3 52 Pa. Code § 57.196.
4 66 Pa.C.S. § 2804(1).
5 PJM is geographically synonymous with MAAC.
6 The U.S. Office of Budget and Management ruled on December 29, 1998 (Frn 63 FR 64680), that ''[a]ll information about proposed changes to existing generators, planned retirement dates for existing generators, all information about proposed new plants and/or generators are to be held as confidential. Data from individually identifiable plants may not be disclosed until the units or plants are designated as 'in commercial service.' Planning data regarding retirement of plants/equipment may not be disclosed until the units is 'out of commercial service.' ''
7 I-860025; 25 Pa.B. 6085.
[Pa.B. Doc. No. 00-338. Filed for public inspection February 25, 2000, 9:00 a.m.]
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