distributed generation: jurisdiction and integration...distributed generation: jurisdiction and...
TRANSCRIPT
![Page 1: Distributed Generation: Jurisdiction and Integration...Distributed Generation: Jurisdiction and Integration Remarks by Frank R. Lindh Crowell & Moring LLP – San Francisco Office](https://reader034.vdocuments.us/reader034/viewer/2022042305/5ed0a9260b370e0edc660524/html5/thumbnails/1.jpg)
Distributed Generation: Jurisdiction and Integration
Remarks by Frank R. Lindh Crowell & Moring LLP – San Francisco Office
Before the Energy Bar Association
Annual Meeting Washington, D.C.
April 8, 2014
![Page 2: Distributed Generation: Jurisdiction and Integration...Distributed Generation: Jurisdiction and Integration Remarks by Frank R. Lindh Crowell & Moring LLP – San Francisco Office](https://reader034.vdocuments.us/reader034/viewer/2022042305/5ed0a9260b370e0edc660524/html5/thumbnails/2.jpg)
Recent Energy Law Journal Article
State Jurisdiction Over Distributed Generators, by Frank R. Lindh and Thomas W. Bone, Jr. 34 Energy L.J. 499 (2013)
![Page 3: Distributed Generation: Jurisdiction and Integration...Distributed Generation: Jurisdiction and Integration Remarks by Frank R. Lindh Crowell & Moring LLP – San Francisco Office](https://reader034.vdocuments.us/reader034/viewer/2022042305/5ed0a9260b370e0edc660524/html5/thumbnails/3.jpg)
3 segments:
• Generation
• Transmission
• Distribution
No generators
on distribution
network
Traditional Electric System
Source: Wikipedia, Electric Power Distribution, http://en.wikipedia.org/wiki/Electric_power_distribution (Visited February 17, 2014)
![Page 4: Distributed Generation: Jurisdiction and Integration...Distributed Generation: Jurisdiction and Integration Remarks by Frank R. Lindh Crowell & Moring LLP – San Francisco Office](https://reader034.vdocuments.us/reader034/viewer/2022042305/5ed0a9260b370e0edc660524/html5/thumbnails/4.jpg)
EPRI: Depicting an “integrated grid with [Distributed Energy Resources] in residences, campuses, and commercial
buildings networked as a distributed energy network.”
Source: Electric Power Research Institute, ”The Integrated Grid: Realizing the Full Value of Central and Distributed Energy Resources” (February 2014), Figure 12, p. 31. http://www.epri.com/search/Pages/results.aspx?k=system+of+the+future&v1=-mpacd (Visited February 17, 2014)
![Page 5: Distributed Generation: Jurisdiction and Integration...Distributed Generation: Jurisdiction and Integration Remarks by Frank R. Lindh Crowell & Moring LLP – San Francisco Office](https://reader034.vdocuments.us/reader034/viewer/2022042305/5ed0a9260b370e0edc660524/html5/thumbnails/5.jpg)
What is the Scope of Regulation Over Distributed Energy Resources?
• Interconnection rules and cost allocation
(including distribution system upgrades)
• Pricing and terms and conditions of
output sales arrangements
• “Must take” purchase obligation for the
utility
![Page 6: Distributed Generation: Jurisdiction and Integration...Distributed Generation: Jurisdiction and Integration Remarks by Frank R. Lindh Crowell & Moring LLP – San Francisco Office](https://reader034.vdocuments.us/reader034/viewer/2022042305/5ed0a9260b370e0edc660524/html5/thumbnails/6.jpg)
FERC’s Rulings
Distributed generators must have authorization to interconnect and sell their output, either:
1. As “Qualifying Facilities” under PURPA, with terms set by a State Commission, or
2. As FERC-regulated wholesalers under the Federal Power Act.
See, e.g., Calif. Pub. Utilities Comm’n, Declaratory Order,
132 FERC ¶61,047 at Para. 72 (2010);
Sun Edison Co., 129 FERC ¶61,146 at Para. 18 (2019).
![Page 7: Distributed Generation: Jurisdiction and Integration...Distributed Generation: Jurisdiction and Integration Remarks by Frank R. Lindh Crowell & Moring LLP – San Francisco Office](https://reader034.vdocuments.us/reader034/viewer/2022042305/5ed0a9260b370e0edc660524/html5/thumbnails/7.jpg)
We Challenge FERC’s Legal Theory
We argue the States have jurisdiction to regulate distributed generators.
• States not preempted by Federal Power Act.
• Federal Power Act carves out “facilities used in local distribution.”
• Sales confined to local distribution circuits are not “in interstate commerce.”
![Page 8: Distributed Generation: Jurisdiction and Integration...Distributed Generation: Jurisdiction and Integration Remarks by Frank R. Lindh Crowell & Moring LLP – San Francisco Office](https://reader034.vdocuments.us/reader034/viewer/2022042305/5ed0a9260b370e0edc660524/html5/thumbnails/8.jpg)
Integration Must Be The Focus for Distributed Energy Resources
• EPRI: Distributed energy resources should operate synergistically with the grid.
• Distribution “islands,” isolated from the grid, would be inefficient.
• California leads the way with innovations in distributed energy resources of all types.
• Rate “decoupling” mitigates the risk of revenue erosion.