Avoided Energy Costs – Time Periods Sample Clauses

Avoided Energy Costs – Time Periods. In brief: the Commission considers whether the time periods used to price avoided energy are appropriate. This includes evaluation of short- and long-term periods, as well as the four pricing periods used by DESC to value avoided energy cost. Using the DRR methodology, DESC proposes to calculate its avoided energy costs over two time periods. Tr. at 308.8 – 308.9. The short-run avoided energy costs13, which are reflected in Rate PR-1 and which apply to small QFs of not more than 100 kilowatts (“kW”), are calculated for a 12-month period. Tr. at 308.8. For solar QFs that have production capacity up to 2 megawatts (“MW”) and that are subject to Rate PR-Standard Offer, and for solar QFs that have production capacity greater than 2 MW and that will sell the energy generated pursuant to an executed PPA, DESC calculates the long-run avoided energy costs for a 10-year period. Tr. at 308.8 – 308.9; 308.11. The Company then divides these ten-year periods into two groups of five years. Id. For non-solar QFs subject to Rate PR-1 or Rate PR-Standard Offer, DESC then accumulates the avoided energy costs into four time-of-use periods reflecting the amounts non-solar QFs would be paid based on how much energy they produce in each of the four time-of-use periods. Tr. at 308.11; 308.18. 13 Short-run and long-run avoided energy costs are also discussed at pp. 44 – 45. Although the other parties of record raised concerns with certain inputs and assumptions used in connection with the DRR methodology, only SCSBA addressed any issues with respect to the time periods used by DESC to calculate avoided energy costs. Specifically, SCSBA Witness Xxxxxxx expressed a concern that DESC’s selection of the four pricing periods was potentially biased against solar QFs on the basis that DESC’s proposed avoided energy costs are higher during the winter “Off Peak Season” months and lower during the summer “Peak Season” months when solar resources are more abundant. Tr. at 523.25. As DESC Witness Xxxxx testified, however, the four time-of-use rates are not applicable to solar QFs, but only to non-solar QFs. Tr. at 308.11. Although Witness Xxxxxxx testified in surrebuttal that the four time-of-use rates were included in certain modeling information produced by DESC in discovery, Tr. at 527.8, SCSBA failed to demonstrate how this information evidenced bias by DESC in proposing rates for non-solar QFs. Power Advisory, the qualified independent third-party consultant, concludes that the pricing ...
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