|
FERC: Eco Green not a ‘qualified facility’
Kristen Nelson Petroleum News
Eco Green Generation wants Golden Valley Electric Association to develop an interconnection tariff for a self-certified hybrid qualifying facility with nine wind turbines, a battery storage facility and 20 reciprocating engine cogeneration facilities. Eco Green wants to develop a hybrid wing-propane generation facility and sell the power to GVEA, with thermal power being used for district heating needs.
GVEA filed with the Regulatory Commission of Alaska for a stay of its obligations to develop a tariff, and with the Federal Energy Regulatory Commission for a declaratory order challenging Eco Green’s qualifying facility status.
FERC granted GVEA’s petition June 6, revoking Eco Green’s qualifying facility status; RCA granted GVEA’s petition for stay June 17.
In addition to granting GVEA’s petition to stay, RCA is also requiring GVEA to notify it when the FERC order becomes final and non-appealable.
RCA said it previously granted GVEA a temporary stay of its obligation to provide an interconnection tariff.
There have been numerous RCA filings by both parties, but RCA said that since FERC has revoked Eco Green’s qualifying facility, QF, status, GVEA is no longer required to file a tariff under the commission’s regulations.
Because the FERC order can be appealed, RCA said, “we find good cause to grant GVEA’s Petition for Stay,” until a FERC decision on the QF status of the Eco Green hybrid projects becomes final and non-appealable. If GVEA were required to develop a tariff, its ratepayers would have to pay the cost.
FERC order FERC said in its June order that “Eco Green’s facility does not meet the requirements for QF status under the Public Utility Regulatory Policies Act of 1978,” and therefore it revokes the self-certification for QF status “without prejudice to Eco Green filing new Form No. 556s that address the deficiencies identified in this order.”
FERC said Eco Green’s hybrid facility does not qualify as either a small power production facility or a cogeneration facility, and said a facility seeking to qualify as both must meet the requirements for both.
Eco Green does not quality as a small power production QF, FERC said, because it is larger than 80 megawatts, the maximum allowed for a small power production facility, and the 20 cogeneration units in the project would burn 97% propane, which does not meet the fuel use requirements for a small power production QF.
FERC said that Eco Green’s hybrid facility not meet the four criteria to qualify as a cogeneration facility: it does not meet the definition; Eco Green has not provided enough information to demonstrate that the hybrid facility would satisfy the operating and efficiency standards in federal statute; does not meet the requirement that thermal output be used in a productive and beneficial manner; and does not meet the requirement that the energy output not be intended fundamentally for sale to an electric utility.
FERC also said that since Eco Green has not secured users for thermal power, “the thermal uses of the output of the facilities are too speculative to justify finding that at least 50 percent of the total output of the facilities will be used fundamentally for industrial, commercial, residential, or institutional purposes.”
Other requests denied FERC denied requests from both parties.
Eco Green asked FERC to fine GVEA at least $10,000 for including false facts and legal requirements in its petition. “We cannot find on the record before us that the Petition was made in anything other than good faith and represents anything other than vigorous advocacy of Golden Valley’s position,” FERC said.
Eco Green asked for a waiver of unspecified regulations to allow it to retain QF status, “asserting that the air pollution in Fairbanks is grounds for granting waiver,” but FERC said the specific regulations to be waived are not specified, nor is sufficient explanation provided for such a waiver, and that request is also denied.
GVEA asked FERC to require Eco Green to obtain FERC certification for all future QF projects that require interconnection with GVEA. FERC denied the request, saying its regulations do not require an application to obtain FERC certification.
| 