Conduct Public Hearing to Consider PURPA Standards Resulting from the Energy Policy Act of 2005 Which Amended the Public Utilities Regulatory Policies Act of 1978:

This Hearing will come to order.  My name is Sheila Burton, Vice Chairman.  I have been requested by the Chairman to conduct this Hearing.  With me today are the Board Members and Staff of the Frankfort Electric and Water Plant Board.  We are here to receive comments regarding the PURPA Standards.  This Public Hearing was advertised in accordance with the Regulations for Public Notification and printed April 13, 2007 by the State Journal, May 10, 2007 by the Woodford Sun, and  May 9^th, 11^th and 14^th, 2007 by the Sentinel News. 

We have asked that you register if you request to speak.  If you have not already done so, please register with the Secretary so that we will have a record of those in attendance and wishing to speak today.

A brief further statement about the conduct of this Public Hearing is in order.  This Hearing will be conducted informally.  This Hearing is being conducted per the statutory directives in the Energy Policy Act of 2005.  Formal rules of evidence will not apply.  Both oral and written comments will be accepted.  Any and all persons present who wish to make a statement will be afforded an opportunity to do so.  If you have a written statement to accompany your oral presentation, a copy of the written statement should be provided to me prior to your presentation.   If you have a lengthy statement, I ask that you summarize your comments.  Oral presentations should be limited to no more than 10 minutes. If necessary, I will interrupt and request the presentation to be completed due to this time limit.  I may ask questions of any person presenting oral comments where it is necessary to clarify the nature or substance of the comments.  The reasons for conducting the Hearing by these rules are so that we can collect information, especially information that the Board has not previously considered, and take it under review.

The Board may not answer questions because we do not want to make hasty judgments on specific issues that are brought out if technical in nature.  This is especially true since different points of view may come up during the course of the day from different speakers.  It is the job of the Board to fairly consider these points of view and information as part of the setting.  We do want public input and involvement and I hope you do not find our standard procedures restrictive.

The oral comment period for this Hearing will end at the close of business on  May 15, 2007. Written comments received on or before May 15, 2007 will be accepted and considered.

Before we open the floor to those wishing to comment for the record, Hance Price and David Carpenter will comment on the PURPA Standards listed below:

The Energy Policy Act of 2005 (EPAct 2005) amended the Public Utilities Regulatory Polices Act of 1978 (PURPA).  The amendment directs utilities to consider the implementation of five new PURPA title 1 standards.

Standard 11 – Net Metering section 1251, Subtitle E – Amendments to PURPA of EPAct 2005. Each electric utility shall make available upon request net metering service to any electric consumer that the electric utility serves. For purpose of this paragraph, the term “net metering service” means service to an electric consumer under which electric energy generated by that electric consumer from an eligible on-site generating facility and delivered to the local distribution facilities may be used to offset electric energy provided by the electric utility to the electric consumer during the applicable billing period.

Standard 12 – Fuel Sources section 1251, Subtitle E – Amendments to PURPA of EPAct 2005. Each electric utility shall develop a plan to minimize dependence on one fuel source and to ensure that the electric energy it sells to consumers is generated using a diverse range of fuels and technologies, including renewable technologies.

Standard 13 – Fossil Fuel Generation Efficiency section 1251, Subtitle E – Amendments to PURPA of EPAct 2005. Each electric utility shall develop and implement a 10-year plan to increase the efficiency of its fossil fuel generation.

Standard 14 – Time-Based Metering and Communications section 1252 (Smart Metering), Subtitle E – Amendments to PURPA of EPAct 2005. Not later than eighteen months after the date of enactment of this paragraph, each electric utility shall offer each of its customer classes, and provide individual customers upon customer request, a time-based rate schedule under which the rate charged by the electric utility varies during different time periods and reflects the variance, if any, in the utility’s costs of generating and purchasing electricity at the wholesale level. The time-based rate schedule shall enable the electric consumer to manage energy use and cost through advanced metering and communications technology. [This is the opening paragraph of this standard. The second paragraph of the standard lists the types of time-based rate schedules that maybe offered; and the third paragraph provides that each electric utility subject to the first paragraph shall provide each customer requesting a time-based rate with a time-based meter capable of enabling the utility and customer to offer and receive such rate. The full text of this standard is available on the Plant Boards web site by clicking on PURPA Compliance.]

Standard 15 - Interconnection section 1254, Subtitle E – Amendments to PURPA of EPAct 2005. Each electric utility shall make available, upon request, interconnection service to any electric consumer that the electric utility serves. For purposes of this paragraph, the term “interconnection service” means service to an electric consumer under which an on-site generating facility on the consumer’s premises shall be connected to the local distribution facilities. Interconnection services shall be offered based upon the standards developed by the Institute of Electrical and Electronics Engineers: IEEE Standard 1547 for interconnecting Distributed Resources with Electric Power Systems, as they maybe amended from time to time. In addition, agreements and procedures shall be established whereby the services are offered shall promote current best practices of interconnection for distributed generation, including but not limited to practices stipulated in model codes adopted by associations of state regulatory agencies. All such agreements and procedures shall be just and reasonable, and not unduly discriminatory or preferential.