October 4, 2024
FERC Upholds VEPCO Obligation to Purchase Solar Energy from Small QFs
FERC denied a request by VEPCO to terminate its obligation to purchase electricity from nine North Carolina solar facilities.

The Federal Energy Regulatory Commission last week denied a request by Virginia Electric and Power Co. to terminate its obligation to purchase electricity from nine North Carolina solar facilities. The facilities, owned by Community Energy Solar, each have a net capacity of 4.99 MW.

VEPCO had filed the request last October.

solarIn 2008, FERC terminated VEPCO’s obligation to purchase energy from qualifying facilities (QFs) larger than 20 MW in its service territory, with the presumption that such facilities have nondiscriminatory access to the PJM markets.

At the same time, FERC created the presumption that smaller qualifying facilities did not have the same access to the markets because of their size. The commission placed the burden of proof on utilities seeking to terminate agreements to show otherwise.

“We find that the nine Community Energy QFs established legally enforceable obligations under [the Public Utilities Regulatory Policies Act] prior to VEPCO’s filing of its application to terminate its mandatory purchase obligation for those QFs, and we therefore deny VEPCO’s application,” FERC said in its April 16 ruling (QM15-1-000).

— Suzanne Herel

Generation

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