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G. Thomas Upshaw | President & CEO
Palmetto Electric Cooperative’s Board of Directors met recently
to consider proposed federal standards pertaining to renewable energy
and conservation according to Palmetto Electric’s President & CEO,
G. Thomas Upshaw.
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. According to PURPA,
non-regulated electric utilities like Palmetto Electric had to formally
consider adoption of the five proposed standards. Earlier this year, Palmetto
Electric hosted a public hearing at its New River office in Hardeeville and
also participated in statewide hearings in Columbia. Oral testimony and
written comments from these hearings were considered by Palmetto Electric’s
board.
After reviewing this information Palmetto Electric’s board determined
that it could not adopt the fuel source and fossil fuel generating standards
since they apply to generation utilities. Santee Cooper who generates the
electricity purchased by Palmetto Electric, through its supplier Central
Electric, has indicated that they already meet or exceed these requirements.
The board also concluded that the implementation of the PURPA Net
Metering Standard as drafted would raise issues of rate equity between
consumers who would use net metering and consumers who would not. Therefore,
the board chose not to adopt the net metering standard. In making this decision,
Palmetto Electric is recommending that Central Electric, our power supplier,
consider purchasing power from Palmetto Electric 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. “Palmetto Electric has been,
and remains, committed to programs that encourage energy efficiency and
the use of renewable resources,” said Upshaw. “Palmetto Electric is a leader in
offering programs such as Green Power, the energy-efficient Touchstone Home
Program, and the highly successful H2O Select off-peak water heating program.
Palmetto Electric will continue to explore new opportunities to promote energy
efficiency to our members.”
The Smart Metering Standard was also not adopted by the Palmetto Electric
board. Several of Palmetto Electric’s existing rate schedules and energy
efficiency programs already offer timebased 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 decision, write to PURPA, Palmetto Electric
Cooperative, Inc., Post Office Box 820, Ridgeland, SC 29936.
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