City Council Regular Meeting

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CL-2866

New Business Item #: E.

Meeting Date:	11/01/2022
Subject: Additional Standards to the Public Utility Regulatory Policies Act of 1978
From:	Jason Grey

COUNCIL ACTION

Business Meeting: 11/01/2022

SUMMARY

There are two new PURPA, “Public Utility Regulatory Policies Act of 1978” standards that the City is required to start considering by November 15, 2022 due to the 2021 Investment and Infrastructure Jobs Act. The two standards involve:

1) promoting demand response and reduction across all customer classes, and
2) promoting the electrification of the transportation sector by creating rate options and supporting programs.

The City is already far along in supporting these standards as there are demand response programs available to customers, energy efficiency programs to lower demand costs, time-of-use rates to change energy habits, and rebates for electric chargers that have scheduling capabilities. The new standard consideration process concludes on November 15, 2023 after requesting comments and having a public hearing process.

BACKGROUND

New 2021 Infrastructure Investment and Jobs Act (IIJA) Requirements and Deadlines

Under the new IIJA requirements, two new standards must be considered by nonregulated electric utilities with annual retail sales greater than 500,000 MWh: 20) Demand Response and Demand Flexibility; and 21) Electric Vehicle Charging Programs.

For Demand Response and Demand Flexibility, each nonregulated electric utility is required to consider promoting the use of demand-response and demand flexibility practices by commercial, residential, and industrial consumers to reduce electricity consumption during periods of unusually high demand.” “Demand flexibility” connotes such concepts as increasingly sophisticated time-of-use, grid-interactive buildings and controls on water systems.

For Electric Vehicle Charging Programs, “each State shall consider measures to promote greater electrification of the transportation sector, including the establishment of rates that:

(A)	promote affordable and equitable electric vehicle charging options for residential, commercial, and public electric vehicle charging infrastructure;
(B)	improve the customer experience associated with electric vehicle charging, including by reducing charging times for light-, medium-, and heavy-duty vehicles;
(C)	accelerate third-party investment in electric vehicle charging for light-, medium-, and heavy-duty vehicles; and
(D)	appropriately recover the marginal costs of delivering electricity to electric vehicles and electric vehicle charging infrastructure.”

Nonregulated electric utilities must commence consideration of the two new standards by November 15, 2022. The consideration process must be completed by November 15, 2023.

RECOMMENDATION

Staff recommends that the Danville City Council approve beginning the consideration process for two new standards added to the Public Utility Regulatory Policies Act of 1978 as a result of the 2021 Infrastructure Investment and Jobs Act that apply to public power utilities.

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