Ohio Regulatory FrameworkFor

Distributive Generation

M. Howard PetricoffVorys, Sater, Seymour & Pease LLP

Types of Distributive Generation

Emergency Back Up Generation– Not Run In Parallel– Required by other state and federal regulations

PURPA Co-Generation– 1978 Energy Policy Act– Amended by 2005 Energy Policy Act

IPP \ User Owned Generation

Restructuring – Chapter 4928 ORC

Franchised Monopoly on the generation and sale of power under state law is ended

Permitted to run in parallel for self use

Permitted to sell power to others – under CRES Rules

ORC § 4928.11

Key Points ORC § 4928.11

(A) “The rules regarding interconnection shall

seek to prevent barriers to new technology and shall not make compliance unduly burdensome or expensive.”

(B) EDU must report annually to the Commission

OAC 4901:1-22-01 Rules on Interconnection

Non discriminatory Uniform EDU must file tariffs that provide for

interconnection

OAC 4901:1-22-04

EDU to set up a Queue – first come first serve Minor modification – won’t lose your spot Time Schedule

– No Construction four weeks– If upgrades are needed – 2 weeks

If EDU cannot makes these dates – written notification

Pre-interconnection system impact study may be required by the EDU

DG and request back up

OAC 4901:1-22-03

(A) Physical connection requirements set by the current IEEE standards

(B) OAC 4928.17 apply, including offering discounts for dropping interconnection.

OAC 4901:1-10-28 Net Metering

Open to fuel cells, small micro turbines, solar, wind, biomass or hydro

No cost to generator – other than site & Prep EDU tariffs Rules for measuring 1% limit on the EDU – Some EDU out now

Hurdles

Rate Design POLAR Charges 1% Rule Possible – Pre Installation Study Possible – Upgrade costs