Details for NOTICE TO THE PUBLIC OF A PETITION BY VIRGINIA POWER AND ELECTRIC COMPANY

Updated

NOTICE TO THE PUBLIC OFA PETITION BY VIRGINIA ELECTRIC AND POWER COMPANY FOR APPROVAL OF ITS MULTI-FAMILY SHARED SOLAR PROGRAM ADMINISTRATIVE CHARGES, CASE NO. PUR-2020-00124 As required by Code § 56-585.1:12, the State Corporation Commission ("Commission") has established the Multi-Family Shared Solar Program ("Program"). This Program applies to eligible customers of Virginia Electric and Power Company ("Dominion" or "Company") that live in multi-family dwellings (such as an apartment complex). The Program provides an opportunity for such customers to participate in shared solar projects. Generally speaking, a multi-family customer would purchase one or more subscriptions in a solar facility that qualiies as a "shared solar facility." In return, the customer would receive credit on their utility bill equal to the dollar value of the electricity, in kilowatt-hours ("kWh"), for the portion of that facility's electricity generation represented by the subscription(s) the customer owns. The Commission's Rules Governing Multi-Family Shared Solar Program ("Shared Solar Rules") require Dominion to ile with the Commission any tariffs, agreements, or forms necessary to implement the Program.A utility participating in the Program is allowed to recover reasonable costs to administer the Program; under the Shared Solar Rules the Commission must deem any administrative charge necessary. This notice is to alert the public that Dominion has requested Program administrative charges to be included in its Program tariffs and to provide the opportunity for public input on these proposed charges. Dominion's proposed administrative charges are described in a Petition iled on September 1, 2021, with the Commission in Case No. PUR-2020-00124. There is one administrative charge applicable to shared solar facility subscribers, as set forth in Schedule Multi-Family Shared Solar ("Schedule MFSS"), and one administrative charge applicable to subscriber organizations that own or operate the shared solar facilities, as set forth in Schedule Subscriber Organization Multi-Family Shared Solar ("Schedule SO-MSS"). These schedules are part of Dominion's Petition.A description of these administrative charges follows: Schedule MFSS The proposed administrative charge for Schedule MFSS (the schedule applicable to subscribers) is the sum of four components: the Distribution Service Charge, Transmission Service Charge, Generation Balancing Service Charge, and Program Billing Charge. The proposed Program Billing Charge would be a lat monthly rate. The other three components would vary by month and would be calculated by multiplying the subscriber's portion of the electricity production for a particular month from the shared solar facility (in kWh). Transmission and Distribution Service Charges. Using data from Dominion's Federal Energy Regulatory Commission ("FERC") Form 1, the Company proposes that the transmission and distribution components of the administrative charge be based on a cost per kWh that is determined by taking each component's (transmission or distribution) total revenue for the residential class divided by the sales of the class. The proposed Transmission Service Charge is 1.993¢/kWh, and the proposed Distribution Service Charge is 2.722¢/kWh. Generation Balancing Service Charge. Dominion proposes to calculate the Generation Balancing Service Charge as the higher of (i) the sum of the Generation Service Charge and the Avoided Cost Credit (called the Net Generation Service Charge) and (ii) the sum of all the Company's Non-bypassable Charges. As to (i) above, using FERC Form 1 data the Company would base the Generation Service Charge on a cost per kWh that is derived by taking the generation service total revenue for the residential class divided by the sales of the class. Dominion represents that the Avoided Cost Credit would be the average value of the energy in the regional transmission market (PJM Interconnection, L.L.C.) for a typical shared solar facility for the same time period as the Generation Service Charge component. The Generation Service Charge and the Avoided Cost Credit would be added together to determine the Net Generation Service Charge. Dominion's Non-bypassable Charges are not speciic to Schedule MFSS. Rather, they are charges that all customers of Dominion pay regardless of who supplies the customer's generation service unless speciically exempted by statute. Currently, the Non-bypassable Charges for Dominion consist of Rider CE and Rider RPS, which were approved by the Commission in prior cases. These rider rates are subject to change on an annual basis, and Dominion may in the future receive Commission approval of other riders that are also Non-bypassable charges. For the Generation Balancing Service Charge, Dominion would add all the Non-bypassable Charges together and then compare this sum to the Net Generation Service Charge. The higher number would be used to calculate the Administrative Charge. Currently, Dominion's proposed Generation Service Charge is 7.050¢/kWh, and the proposed Avoided Cost Credit is (4.257¢/kWh), which equates to a Net Generation Service Charge of 2.793¢/kWh. The sum of the applicable Commission-approved Non-bypassable Charges is 0.7088¢/kWh. Thus, at present, the Generation Balancing Service Charge would be 2.793¢/kWh, which is the higher of 2.793¢/kWh and 0.7088¢/kWh. Program Billing Charge. The fourth component of the Administrative Charge is the Program Billing Charge. This charge includes a variety of costs Dominion claims it expects to incur to administer the Program, including technology development, workforce expansion, and billing services, among others. Dominion states that other costs unknown at this time will be included in the future once they are known and determined to be incremental Program costs. Dominion states that it intends to use its forthcoming customer information platform to automate Program billing, but in the meantime, the Company has estimated the costs of doing the manual billing for customers who are Program subscribers. The Company proposes a lat rate for the Program Billing Charge of $13.40 per billing month. Schedule MFSS Administrative Charge Summary. To summarize, Dominion requests that the Commission approve the following proposed components of the administrative charge for Schedule MFSS. Component Cost Distribution Service Charge 2.722¢/kWh Transmission Service Charge 1.993¢/kWh Generation Balancing Charge Higher of 2.793¢/kWh and 0.788¢/kWh Program Billing Charge $13.40 TOTALMonthly Rate 7.508¢/kWh + $13.40 Under Schedule MFSS, the administrative charge would be offset by a monthly bill credit that the Commission already has determined to be 11.765¢/kWh. Schedule SO-MSS Dominion requests Commission approval of a proposed administrative charge in Schedule SO-MSS (applicable to subscriber organizations). Dominion states that Schedule SO-MSS is designed to be a companion schedule established under any non-residential, non-lighting rate schedule (e.g., Schedule GS-1, Schedule GS-2, Schedule GS-3, Schedule GS-4). The administrative charge for this tariff includes three components: a one-time set-up charge as well as monthly charges related to meter reading and processing and Program administration. To summarize, Dominion requests that the Commission approve the following proposed components of the administrative charge for Schedule SO-MSS: Component Cost One-time set-up fee $700/facility Meter reading and processing $5.25 to $96.88/month, depending on type of meter Program Administration Charge $95 lat rate/month/facility TOTAL $700 once plus $100.25 to $191.88/month Further details about the Schedule MFSS and Schedule SO MSS administrative charges are included in the Company's September 1, 2021 Petition. Interested persons are strongly encouraged to review the Petition for further details on the administrative charges. TAKE NOTICE that the Commission may design the administrative charges in a manner differing from that shown in the Petition and thus may adopt administrative charges that differ from those appearing in the Company's Petition. The Commission has taken judicial notice of the ongoing public health issues related to the spread of the coronavirus, or COVID-19. In accordance therewith, all pleadings, briefs, or other documents required to be served in this matter shall be submitted electronically to the extent authorized by 5 VAC 5-20-150, Copies and format, of the Commission's Rules of Practice and Procedure ("Rules of Practice"). Conidential and Extraordinarily Sensitive Information shall not be submitted electronically and should comply with 5 VAC 5-20-170, Conidential information, of the Rules of Practice. Any person seeking to hand deliver and physically ile or submit any pleading or other document shall contact the Clerk's Ofice Document Control Center at (804) 371-9838 to arrange the delivery. Pursuant to 5 VAC 5-20-140, Filing and service, of the Rules of Practice, the Commission has directed that service on parties and the Commission's Staff in this matter shall be accomplished by electronic means. Please refer to the Commission's Order for Notice and Comment for further instructions concerning Conidential or Extraordinarily Sensitive Information. Electronic copies of the Petition may be obtained by submitting a written request to counsel for the Company, Timothy D. Patterson, Esquire, McGuireWoods LLP, Gateway Plaza, 800 East Canal Street, Richmond, Virginia 23219, or tpatterson@mcguirewoods.com. On or before December 1, 2021, any interested person may submit comments on the proposed administrative charges electronically by following the instructions on the Commission's website: scc.virginia.gov/casecomments/Submit-Public-Comments. Those unable, as a practical matter, to submit comments electronically may ile such comments by U.S. mail to the Clerk of the State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118. All comments shall refer to Case No. PUR- 2020-00124. On or before December 1, 2021, any person or entity wishing to participate as a respondent in this proceeding may do so by iling a notice of participation with the Clerk of the Commission at: scc.virginia.gov/clk/eiling. Those unable, as a practical matter, to ile a notice of participation electronically may ile such notice by U.S. mail to the Clerk of the Commission at the address listed above. Such notice of participation shall include the email addresses of such parties or their counsel, if available.A copy of the notice of participation as a respondent also must be sent to counsel for the Company. Pursuant to 5VAC 5-20-80 B, Participation as a respondent, of the Rules of Practice, any notice of participation shall set forth: (i) a precise statement of the interest of the respondent; (ii) a statement of the speciic action sought to the extent then known; and (iii) the factual and legal basis for the action. Any organization, corporation, or government body participating as a respondent must be represented by counsel as required by 5VAC 5-20-30, Counsel, of the Rules of Practice. All ilings shall refer to Case No. PUR-2020-00124. On or before December 1, 2021, any interested person may ile a written request for a hearing on the proposed administrative charges with the Clerk of the Commission at scc. virginia.gov/clk/eiling. Those unable, as a practical matter, to ile a request for hearing electronically may ile such notice by U.S. mail to the Clerk of the Commission at the address listed above. Such request for hearing shall include the email addresses of such parties or their counsel, if available. A copy of the notice of participation as a respondent also must be sent to counsel for the Company. Requests for a hearing shall include: (i) a precise statement of the iling party's interest in the proceeding; (ii) a statement of the speciic action sought to the extent then known; (iii) a statement of the legal basis for such action; and (iv) a precise statement why a hearing should be conducted in this matter. All requests for a hearing shall refer to Case No. PUR 2020-00124. Any documents iled in paper form with the Ofice of the Clerk of the Commission in this docket may use both sides of the paper. In all other respects, except as modiied by the Commission's Order for Notice and Comment, all ilings shall comply fully with the requirements of 5VAC 5-20-150, Copies and format, of the Rules of Practice. The Company's Petition containing information on the proposed administrative charges, the Commission's Rules of Practice, and the Commission's Order for Notice and Comment may be viewed at: scc.virginia.gov/pages/Case-Information. Legal Notice

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