Electric Co-op Today

NRECA is asking the Federal Energy Regulatory Commission to reconsider a recent order requiring an Iowa electric cooperative to obtain its authorization before disconnecting retail service to a couple operating a small wind turbine in its territory.

FERC’s order in an Iowa wind generator case is the first federal foray into PURPA-related retail disconnection decisions, NRECA notes. (Photo By: Jorgen Jacobsen)

Jefferson-based Midland Power Cooperative initiated the disconnection when Gregory and Beverly Swecker, with whom it is involved in a long-running dispute, refused to pay their bill for back-up power.

The couple premised their refusal on a claim they are entitled to credits for power sold back to the co-op under the Public Utility Regulatory Policies Act. However, the Sweckers are seeking payment based on a rate far in excess of Midland’s avoided cost rate.

The controversy involves whether Midland can discontinue providing back-up power in light of this refusal. While state regulators—the Iowa Utilities Board—ruled in Midland’s favor, FERC’s Dec. 15 order held that the co-op needed the federal agency’s authorization prior to shutting off power.

“This case is important because FERC is inserting Washington into retail disconnection decisions for the first time in the 34 years since PURPA was enacted,” said Jay Morrison, NRECA vice president, regulatory issues. “This hands every customer with a small renewable generator a huge club they can use in disputes with their utilities.”

NRECA contends in its Jan. 17 filing (Dockets EL11-39 and EL11-39-001) that FERC “simply does not have jurisdiction under PURPA over retail disconnection.”

PURPA does require utilities to sell retail back-up service to qualifying facilities, a class of generators eligible for special rate and regulatory treatment under the act, the association noted. “But it does not require that they provide such service for free.”

The Iowa board expressly found that Midland’s disconnection of retail service to the Sweckers’ facility “was appropriate and consistent with all state requirements for disconnecting retail service,” NRECA underscored.

The association claims that federal regulators are using the “obscure” Swecker proceeding to dramatically increase their role in retail matters traditionally reserved to the states.

To sign up for the latest Industry news alerts, click here.

Tags: Business & Finance, Federal Energy Regulatory Commission