July 1, 2001
L.A. Loves a Loophole
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N.C. Reviews QF Avoided-cost Rates
The North Carolina Utilities Commission (UC) has completed its latest biennial proceeding to establish rates and contract terms for utility power purchases from qualifying facilities (QFs). In addition, the UC found that 1) utilities should continue to offer long-term levelized contracts for hydroelectric facilities of 80 megawatts or less and other small power producers, except Nantahala Power & Light Co.; 2) utilities should not be required to include unknown or uncertain environmental compliance costs in their avoided-cost calculations; and 3) guidelines for negotiations between utilities and QFs were not necessary at the current time. Re Biennial Determination of Avoided Cost Rates, Dkt. No. E-100, Sub 74, June 23, 1995 (N.C.U.C.).
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