§ 62‑133.10. Retentionof fuel and fuel‑related cost savings associated with the purchase orconstruction of a carbon offset facility.
(a) The Commissionshall permit an electric public utility that purchases or constructs a carbonoffset facility to adjust its fuel and fuel‑related costs in G.S. 62‑133.2to retain the North Carolina retail allocation of the system fuel and fuel‑relatedcost savings resulting from the purchase or construction of the facility, notto exceed the annual revenue requirement associated with the allocated NorthCarolina retail portion of the facility as determined using the cost of servicemethodology approved by the Commission in the utility's last general rate case.
(b) For purposes ofthis section, "carbon offset facility" means a facility in this Statethat meets all of the following:
(1) The facility ispurchased or constructed by an electric public utility between July 1, 2009,and July 1, 2014.
(2) The facility usessolar electric, solar thermal, wind, hydropower, geothermal, or ocean currentor wave energy to generate electricity or equivalent BTUs.
(3) The electricity orequivalent BTUs produced by the facility will displace electric generation soas to reduce greenhouse gas emissions from existing fossil fuel fired generatingfacilities used by the utility to meet the electricity needs of its NorthCarolina customers.
(c) An electric publicutility seeking the adjustment authorized by this section first shall file withthe Commission a petition requesting a determination that the facility theutility proposes to purchase or construct is a carbon offset facility. Theutility shall include in its petition all of the following information in suchform and detail as the Commission may require:
(1) Description andlocation of the facility.
(2) The benefit of thefacility.
(3) A list of allnecessary permitting and approvals and their status.
(4) Purchase orconstruction schedule, with in‑service or completion date.
(5) Projected costs topurchase or construct and the annual revenue requirement for the facility.
(6) Projected annualgeneration output of the facility and information detailing how the generationprojections were calculated.
(7) Informationdemonstrating that the operation of the facility will displace electric generationresulting in a reduction of greenhouse gas emissions from existing fossil fuelfired facilities used by the utility to meet the electricity needs of its NorthCarolina customers.
(8) The projected fueland fuel‑related cost savings the utility seeks to retain and how thesavings were calculated.
(d) Upon the filing ofthe petition, the Public Staff shall conduct an investigation and shall file areport with the Commission setting forth the results of its investigation andstating whether the facility is a carbon offset facility. The Public Staff'sreport shall be filed not later than 45 days after the date the petition wasfiled, unless the Commission grants an extension of time not to exceed 15 daysfor good cause shown. Other interested persons may file comments in response tothe utility's petition and the Public Staff's report not later than 15 daysafter the Public Staff files its report. The Commission shall enter an ordereither granting or denying the petition not later than 105 days after the datethe petition was filed. A finding by the Commission that the facility is acarbon offset facility shall establish that the utility's decision to purchaseor construct the facility is reasonable and prudent.
(e) Nothing in thissection shall be construed to exempt an electric public utility from obtainingall applicable permits and certificates, including a certificate of publicconvenience and necessity required by G.S. 62‑110.1. An electric publicutility shall file annual cost and schedule updates with the Commission untilthe purchase or construction of an approved carbon offset facility iscompleted.
(f) Upon placementinto service of an approved carbon offset facility, the electric public utilityshall, in addition to the information and data provided under G.S. 62‑133.2,submit the following in conjunction with its application for a fuel and fuel‑relatedcharge adjustment:
(1) A calculation of theannual revenue requirement associated with the carbon offset facility.
(2) Informationdemonstrating the specific items of costs associated with the carbon offsetfacility's annual revenue requirement are reasonable and prudent.
(3) The fuel and fuel‑relatedcost savings resulting from operation of the carbon offset facility.
(4) Actual generationoutput of the carbon offset facility, including a demonstration andquantification of how this generation displaced electric generation resultingin reduced greenhouse gas emissions from existing fossil fuel fired facilitiesused by the utility to meet the electricity needs of its North Carolinacustomers during the test year.
(g) The Commissionshall approve an estimate of the projected fuel and fuel‑related costsavings and an annual revenue requirement for an approved facility, asappropriate, in each G.S. 62‑133.2 proceeding. The Commission also mayapprove a true‑up procedure for the projected fuel and fuel‑relatedcost savings. In the first G.S. 62‑133.2 proceeding conducted after theapproved facility is placed in service, the Commission shall determine the reasonableand prudent cost of the facility for ratemaking purposes. The revenuerequirement associated with the facility shall include but not be limited to:depreciation; operating and maintenance costs; applicable taxes; and a returnon investment, net of accumulated depreciation, accumulated deferred incometaxes, and other applicable savings or adjustments. The rate of return oninvestment shall be based on the then current capital structure, embedded costof preferred stock, and embedded cost of debt of the public utility net ofappropriate income taxes, and the cost of common equity approved in the publicutility's then most recent general rate case.
(h) The Commissionshall authorize the electric public utility to utilize deferral accounting forthe fuel and fuel‑related cost savings realized in conjunction with theoperation of an approved facility. The Commission shall, by rule or order,approve the terms and conditions of the deferral accounting.
(i) The annual revenuerequirement of the approved facility in excess of the annual fuel and fuel‑relatedcost savings shall be deemed recovered through the utility's then current baserates.
(j) The adjustmentauthorized by this section shall terminate upon the establishment of new ratesin the electric public utility's next general rate case following the placementinto service and inclusion into base rates of the approved facility. (2009‑390, s. 2.)
§ 62‑133.10. Retentionof fuel and fuel‑related cost savings associated with the purchase orconstruction of a carbon offset facility.
(a) The Commissionshall permit an electric public utility that purchases or constructs a carbonoffset facility to adjust its fuel and fuel‑related costs in G.S. 62‑133.2to retain the North Carolina retail allocation of the system fuel and fuel‑relatedcost savings resulting from the purchase or construction of the facility, notto exceed the annual revenue requirement associated with the allocated NorthCarolina retail portion of the facility as determined using the cost of servicemethodology approved by the Commission in the utility's last general rate case.
(b) For purposes ofthis section, "carbon offset facility" means a facility in this Statethat meets all of the following:
(1) The facility ispurchased or constructed by an electric public utility between July 1, 2009,and July 1, 2014.
(2) The facility usessolar electric, solar thermal, wind, hydropower, geothermal, or ocean currentor wave energy to generate electricity or equivalent BTUs.
(3) The electricity orequivalent BTUs produced by the facility will displace electric generation soas to reduce greenhouse gas emissions from existing fossil fuel fired generatingfacilities used by the utility to meet the electricity needs of its NorthCarolina customers.
(c) An electric publicutility seeking the adjustment authorized by this section first shall file withthe Commission a petition requesting a determination that the facility theutility proposes to purchase or construct is a carbon offset facility. Theutility shall include in its petition all of the following information in suchform and detail as the Commission may require:
(1) Description andlocation of the facility.
(2) The benefit of thefacility.
(3) A list of allnecessary permitting and approvals and their status.
(4) Purchase orconstruction schedule, with in‑service or completion date.
(5) Projected costs topurchase or construct and the annual revenue requirement for the facility.
(6) Projected annualgeneration output of the facility and information detailing how the generationprojections were calculated.
(7) Informationdemonstrating that the operation of the facility will displace electric generationresulting in a reduction of greenhouse gas emissions from existing fossil fuelfired facilities used by the utility to meet the electricity needs of its NorthCarolina customers.
(8) The projected fueland fuel‑related cost savings the utility seeks to retain and how thesavings were calculated.
(d) Upon the filing ofthe petition, the Public Staff shall conduct an investigation and shall file areport with the Commission setting forth the results of its investigation andstating whether the facility is a carbon offset facility. The Public Staff'sreport shall be filed not later than 45 days after the date the petition wasfiled, unless the Commission grants an extension of time not to exceed 15 daysfor good cause shown. Other interested persons may file comments in response tothe utility's petition and the Public Staff's report not later than 15 daysafter the Public Staff files its report. The Commission shall enter an ordereither granting or denying the petition not later than 105 days after the datethe petition was filed. A finding by the Commission that the facility is acarbon offset facility shall establish that the utility's decision to purchaseor construct the facility is reasonable and prudent.
(e) Nothing in thissection shall be construed to exempt an electric public utility from obtainingall applicable permits and certificates, including a certificate of publicconvenience and necessity required by G.S. 62‑110.1. An electric publicutility shall file annual cost and schedule updates with the Commission untilthe purchase or construction of an approved carbon offset facility iscompleted.
(f) Upon placementinto service of an approved carbon offset facility, the electric public utilityshall, in addition to the information and data provided under G.S. 62‑133.2,submit the following in conjunction with its application for a fuel and fuel‑relatedcharge adjustment:
(1) A calculation of theannual revenue requirement associated with the carbon offset facility.
(2) Informationdemonstrating the specific items of costs associated with the carbon offsetfacility's annual revenue requirement are reasonable and prudent.
(3) The fuel and fuel‑relatedcost savings resulting from operation of the carbon offset facility.
(4) Actual generationoutput of the carbon offset facility, including a demonstration andquantification of how this generation displaced electric generation resultingin reduced greenhouse gas emissions from existing fossil fuel fired facilitiesused by the utility to meet the electricity needs of its North Carolinacustomers during the test year.
(g) The Commissionshall approve an estimate of the projected fuel and fuel‑related costsavings and an annual revenue requirement for an approved facility, asappropriate, in each G.S. 62‑133.2 proceeding. The Commission also mayapprove a true‑up procedure for the projected fuel and fuel‑relatedcost savings. In the first G.S. 62‑133.2 proceeding conducted after theapproved facility is placed in service, the Commission shall determine the reasonableand prudent cost of the facility for ratemaking purposes. The revenuerequirement associated with the facility shall include but not be limited to:depreciation; operating and maintenance costs; applicable taxes; and a returnon investment, net of accumulated depreciation, accumulated deferred incometaxes, and other applicable savings or adjustments. The rate of return oninvestment shall be based on the then current capital structure, embedded costof preferred stock, and embedded cost of debt of the public utility net ofappropriate income taxes, and the cost of common equity approved in the publicutility's then most recent general rate case.
(h) The Commissionshall authorize the electric public utility to utilize deferral accounting forthe fuel and fuel‑related cost savings realized in conjunction with theoperation of an approved facility. The Commission shall, by rule or order,approve the terms and conditions of the deferral accounting.
(i) The annual revenuerequirement of the approved facility in excess of the annual fuel and fuel‑relatedcost savings shall be deemed recovered through the utility's then current baserates.
(j) The adjustmentauthorized by this section shall terminate upon the establishment of new ratesin the electric public utility's next general rate case following the placementinto service and inclusion into base rates of the approved facility. (2009‑390, s. 2.)
§ 62‑133.10. Retentionof fuel and fuel‑related cost savings associated with the purchase orconstruction of a carbon offset facility.
(a) The Commissionshall permit an electric public utility that purchases or constructs a carbonoffset facility to adjust its fuel and fuel‑related costs in G.S. 62‑133.2to retain the North Carolina retail allocation of the system fuel and fuel‑relatedcost savings resulting from the purchase or construction of the facility, notto exceed the annual revenue requirement associated with the allocated NorthCarolina retail portion of the facility as determined using the cost of servicemethodology approved by the Commission in the utility's last general rate case.
(b) For purposes ofthis section, "carbon offset facility" means a facility in this Statethat meets all of the following:
(1) The facility ispurchased or constructed by an electric public utility between July 1, 2009,and July 1, 2014.
(2) The facility usessolar electric, solar thermal, wind, hydropower, geothermal, or ocean currentor wave energy to generate electricity or equivalent BTUs.
(3) The electricity orequivalent BTUs produced by the facility will displace electric generation soas to reduce greenhouse gas emissions from existing fossil fuel fired generatingfacilities used by the utility to meet the electricity needs of its NorthCarolina customers.
(c) An electric publicutility seeking the adjustment authorized by this section first shall file withthe Commission a petition requesting a determination that the facility theutility proposes to purchase or construct is a carbon offset facility. Theutility shall include in its petition all of the following information in suchform and detail as the Commission may require:
(1) Description andlocation of the facility.
(2) The benefit of thefacility.
(3) A list of allnecessary permitting and approvals and their status.
(4) Purchase orconstruction schedule, with in‑service or completion date.
(5) Projected costs topurchase or construct and the annual revenue requirement for the facility.
(6) Projected annualgeneration output of the facility and information detailing how the generationprojections were calculated.
(7) Informationdemonstrating that the operation of the facility will displace electric generationresulting in a reduction of greenhouse gas emissions from existing fossil fuelfired facilities used by the utility to meet the electricity needs of its NorthCarolina customers.
(8) The projected fueland fuel‑related cost savings the utility seeks to retain and how thesavings were calculated.
(d) Upon the filing ofthe petition, the Public Staff shall conduct an investigation and shall file areport with the Commission setting forth the results of its investigation andstating whether the facility is a carbon offset facility. The Public Staff'sreport shall be filed not later than 45 days after the date the petition wasfiled, unless the Commission grants an extension of time not to exceed 15 daysfor good cause shown. Other interested persons may file comments in response tothe utility's petition and the Public Staff's report not later than 15 daysafter the Public Staff files its report. The Commission shall enter an ordereither granting or denying the petition not later than 105 days after the datethe petition was filed. A finding by the Commission that the facility is acarbon offset facility shall establish that the utility's decision to purchaseor construct the facility is reasonable and prudent.
(e) Nothing in thissection shall be construed to exempt an electric public utility from obtainingall applicable permits and certificates, including a certificate of publicconvenience and necessity required by G.S. 62‑110.1. An electric publicutility shall file annual cost and schedule updates with the Commission untilthe purchase or construction of an approved carbon offset facility iscompleted.
(f) Upon placementinto service of an approved carbon offset facility, the electric public utilityshall, in addition to the information and data provided under G.S. 62‑133.2,submit the following in conjunction with its application for a fuel and fuel‑relatedcharge adjustment:
(1) A calculation of theannual revenue requirement associated with the carbon offset facility.
(2) Informationdemonstrating the specific items of costs associated with the carbon offsetfacility's annual revenue requirement are reasonable and prudent.
(3) The fuel and fuel‑relatedcost savings resulting from operation of the carbon offset facility.
(4) Actual generationoutput of the carbon offset facility, including a demonstration andquantification of how this generation displaced electric generation resultingin reduced greenhouse gas emissions from existing fossil fuel fired facilitiesused by the utility to meet the electricity needs of its North Carolinacustomers during the test year.
(g) The Commissionshall approve an estimate of the projected fuel and fuel‑related costsavings and an annual revenue requirement for an approved facility, asappropriate, in each G.S. 62‑133.2 proceeding. The Commission also mayapprove a true‑up procedure for the projected fuel and fuel‑relatedcost savings. In the first G.S. 62‑133.2 proceeding conducted after theapproved facility is placed in service, the Commission shall determine the reasonableand prudent cost of the facility for ratemaking purposes. The revenuerequirement associated with the facility shall include but not be limited to:depreciation; operating and maintenance costs; applicable taxes; and a returnon investment, net of accumulated depreciation, accumulated deferred incometaxes, and other applicable savings or adjustments. The rate of return oninvestment shall be based on the then current capital structure, embedded costof preferred stock, and embedded cost of debt of the public utility net ofappropriate income taxes, and the cost of common equity approved in the publicutility's then most recent general rate case.
(h) The Commissionshall authorize the electric public utility to utilize deferral accounting forthe fuel and fuel‑related cost savings realized in conjunction with theoperation of an approved facility. The Commission shall, by rule or order,approve the terms and conditions of the deferral accounting.
(i) The annual revenuerequirement of the approved facility in excess of the annual fuel and fuel‑relatedcost savings shall be deemed recovered through the utility's then current baserates.
(j) The adjustmentauthorized by this section shall terminate upon the establishment of new ratesin the electric public utility's next general rate case following the placementinto service and inclusion into base rates of the approved facility. (2009‑390, s. 2.)
