[Gasification] Wheeling electricity - 2007 Energy Bill provisions

[Norma McDonald]

The 2007 Energy Bill enacted at the Federal level on Dec 14 2007 revises the 1978 PURPA provisions, outlining four options for the sale of excess electricity.? Wheeling is one of those.? Further on in the Bill it specifies the formulas to be used to calculate wheeling charges.


`(b) Standard for Sales of Excess Power- For purposes of this section, the standard referred to in subsection (a) shall provide that an owner or operator of a waste energy recovery project identified on the Registry that generates net excess power shall be eligible to benefit from at least 1 of the options described in subsection (c) for disposal of the net excess power in accordance with the rate conditions and limitations described in subsection (d).

`(c) Options- The options referred to in subsection (b) are as follows:

`(1) SALE OF NET EXCESS POWER TO UTILITY- The electric utility shall purchase the net excess power from the owner or operator of the eligible waste energy recovery project during the operation of the project under a contract entered into for that purpose.

`(2) TRANSPORT BY UTILITY FOR DIRECT SALE TO THIRD PARTY- The electric utility shall transmit the net excess power on behalf of the project owner or operator to up to 3 separate locations on the system of the utility for direct sale by the owner or operator to third parties at those locations.

`(3) TRANSPORT OVER PRIVATE TRANSMISSION LINES- The State and the electric utility shall permit, and shall waive or modify such laws as would otherwise prohibit, the construction and operation of private electric wires constructed, owned, and operated by the project owner or operator, to transport the power to up to 3 purchasers within a 3-mile radius of the project, allowing the wires to use or cross public rights-of-way, without subjecting the project to regulation as a public utility, and according the wires the same treatment for safety, zoning, land use, and other legal privileges as apply or would apply to the wires of the utility, except that--

`(A) there shall be no grant of any power of eminent domain to take or cross private property for the wires; and

`(B) the wires shall be physically segregated and not interconnected with any portion of the system of the utility, except on the customer side of the revenue meter of the utility and in a manner that precludes any possible export of the electricity onto the utility system, or disruption of the system.
`(4) AGREED ON ALTERNATIVES- The utility and the owner or operator of the project may reach agreement on any alternate arrangement and payments or rates associated with the arrangement that is mutually satisfactory and in accord with State law.




Norma McDonald
Operating Manager
Phase 3 Renewables, LLC
7155 Five Mile Road
Cincinnati, OH 45230
Phone: 513-265-2758
Fax: 330-319-8152
www.phase3renewables.com

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