Explanation
BACKGROUND:
It is necessary under the amendments to the Public Utility Regulatory Policies Act of 1978 (“PURPA”), made in the Infrastructure Investment and Jobs Act of 2021 (“IIJA”), for the City of Columbus Department of Public Utilities (“CDPU”) Division of Power (“DOP”) to consider adopting two federal standards related to demand response and demand flexibility and electric vehicle charging programs and provide a written determination of its decision after a public hearing process.
Title
To recommend that the Department of Public Utilities adopt two new Public Utility Regulatory Policies Act standards pursuant to the Infrastructure Investment and Jobs Act of 2021.
Body
WHEREAS, the Infrastructure Investment and Jobs Act of 2021 (“IIJA”), which amended the Public Utility Regulatory Policies Act of 1978 (“PURPA”), requires non-regulated electric utilities that have annual retail electric sales greater than 500 million kilowatt-hours to consider adoption of two new PURPA standards relating to: (20) demand response and demand flexibility and (21) electric vehicle charging programs; and
WHEREAS, the City of Columbus’ Department of Public Utilities (“CDPU”) Division of Power (“Columbus Power”) is a non-regulated electric utility with annual retail electric sales greater than 500 million kilowatt-hours and has generally followed the IIJA’s procedures for considering the two new PURPA standards, including providing the public with an opportunity to be heard and undertaking a public hearing process; and
WHEREAS, the Columbus City Council initiated the process to consider the two standards in response to a request from CDPU; and
WHEREAS, as part of its consideration, Columbus City Council was required to convene a public hearing and issue a final determination, in writing, based upon evidence presented in the hearing process and upon findings specifically included in its written determination, and thereafter, make that determination available to the public; and
WHEREAS, Columbus City Council issued a notice of public hearing on November 12, 2022 and again on January 7 and 14, 2023, inviting all interested residents to provide public testimony by submitting written comments on the CDPU’s potential adoption of the two PURPA standards by the hearing date of January 31, 2023; and
WHEREAS, Columbus City Council received no comments on its consideration of the adoption of the aforementioned PURPA standards from any member of the public; and
WHEREAS, on January 31, 2023, Columbus City Council held the public hearing and heard testimony from two representatives of CPDU: Kristian Fenner, Assistant Administrator of the Division of Power (“Columbus Power”), and Alana Shockey, the Deputy Director of Sustainability and Regulatory Compliance; and
WHEREAS, based on that testimony, Columbus City Council finds that:
1. Columbus Power is a full-service, publicly owned electrical utility that provides power to more than 17,000 industry, business, and residential customers through its own distribution system. It has retail electric sales greater than 900 million kilowatt-hours a year. As a nonprofit municipal utility, any proceeds from providing service to Columbus Power customers fund city streetlights. Columbus Power is committed to provide reliable and low-cost energy services to its electricity customers.
2. Columbus Power and CDPU recommended that CDPU adopt the PURPA standard regarding demand response to continue to promote the use of demand response.
3. Columbus Power has an existing demand response program. The City originally enacted legislation in 2009 to aggregate demand response of retail customers. Since 2011, Columbus Power has contracted with a curtailment service providers. The current contract is with NRG through May 31, 2023.
4. In adoption of the PURPA demand response standard, Columbus Power plans to promote the existing opportunities to its customers to encourage additional participation in the demand response program established with NRG.
5. CDPU houses Columbus Power and the City’s sustainability program, Sustainable Columbus. The City is committed to a 45% reduction in emissions by 2030 to meet its goal of carbon neutrality by 2050, as pledged in the Columbus Climate Action Plan. Columbus Power is a full participant in the Plan and is charged with evaluating and implementing projects in the plan.
6. Columbus Power and CDPU recommends that CDPU adopt the PURPA standard regarding electronic vehicle charging rates to further consider measures to promote greater electrification of the transportation sector.
7. Columbus Power has already considered the efficacy of an electric vehicle charging rate for its customers. In 2017, Columbus Power hired a contractor to analyze setting an electric vehicle charging rate as part of cost of service analysis. At that time, the consultant recommended against adopting the rate to allow further development of data related to energy usage and demands specific to electric vehicle charging sources. To date, Columbus Power has not implemented a specific electric vehicle charging rate.
8. In adoption of the PURPA electric vehicle charging rate standard, Columbus Power plans to re-evaluate the efficacy of an electric vehicle charging rate through its current cost of service evaluation.
9. The cost of service evaluation is a study that will determine the cost to provide power to each segment of Columbus Power’s customers, including electric vehicle charging stations. The main considerations for electric vehicle charging station rate design are: (1) providing a rate that is structured such that the station is economical for electric vehicle owners to use; and, (2) the rate should adequately recover the costs incurred by the system to provide electric service at the station. Typically, a cost of service study takes a year to complete. Therefore, we anticipate recommendations on electric vehicle charging rates to be complete in first quarter 2024.
10. Although the PURPA requirements only apply to nonregulated utilities, it is worth noting the strides that the City has made in promoting the greater electrification of the transportation sector through its sustainability work. The City recently adopted the EV Ready Parking Ordinance, which was passed after public notice, comment, and hearing. The implementation of the Ordinance will begin in 2024. Additionally, as part of its Columbus Climate Action Plan, the City is committed to having a zero emissions vehicle fleet by 2030. To support that goal, the City intends to develop an equitable electric vehicle charging plan by 2025; and
WHEREAS, in consideration of the IIJA PURPA standards and these findings, Columbus City Council determines that CDPU should adopt the PURPA standards regarding (1) demand response and (2) electronic vehicle charging rates to further consider measures to promote greater electrification of the transportation sector; now, therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City of Columbus has complied with the requirements of the Infrastructure Investment and Jobs Act of 2021 with regard to the consideration of the PURPA standards.
SECTION 2. That the public interest is served by the City adopting the aforementioned PURPA standards.
SECTION 3. The City of Columbus shall cause this final determination to be made to the public by publication in the City Bulletin.
SECTION 4. That this resolution shall take effect and be in force from and after the earliest period allowed by law.