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Ohio Regulatory Framework For Distributive Generation

This document outlines the regulatory framework for distributive generation in Ohio, focusing on emergency backup generation, interconnection rules, and net metering relevant to various energy sources like solar, wind, and biomass. It explores the implications of the Public Utility Regulatory Policies Act (PURPA) and the 1978 and 2005 Energy Policy Acts, highlighting how Ohio has transitioned from a franchised monopoly to a more competitive market. Key points include requirements for equitable interconnection, tariff filings by electric distribution utilities (EDUs), and adherence to current IEEE standards.

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Ohio Regulatory Framework For Distributive Generation

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  1. Ohio Regulatory FrameworkForDistributive Generation M. Howard Petricoff Vorys, Sater, Seymour & Pease LLP

  2. 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

  3. 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

  4. ORC § 4928.11

  5. 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

  6. OAC 4901:1-22-01 Rules on Interconnection • Non discriminatory • Uniform • EDU must file tariffs that provide for interconnection

  7. 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

  8. 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.

  9. 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

  10. Hurdles • Rate Design • POLAR Charges • 1% Rule • Possible – Pre Installation Study • Possible – Upgrade costs

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