UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION MOTION TO INTERVENE, COMMENTS, AND PROTEST OF SOUTHERN CALIFORNIA EDISON

Transcription

1 UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Bloom Energy Corporation ) Docket No. EL MOTION TO INTERVENE, COMMENTS, AND PROTEST OF SOUTHERN CALIFORNIA EDISON In accordance with Rules 211, 212 and 214 of the Federal Energy Regulatory Commission s ( Commission ) Rules of Practice and Procedure, 18 C.F.R , and (2002), and the Commission s Notice of Filing dated October 11, 2017, Southern California Edison Company ( SCE ) respectfully submits this Motion to Intervene, Comments, and Protest in response to Bloom Energy Corporation s ( Bloom Energy ) Petition for Declaratory Order ( Petition ). The Petition requests that the Commission issue a declaratory order certifying that Bloom Energy s fuel cells meet the statutory and regulatory criteria to be classified as cogeneration qualifying facilities ( QFs ) as outlined in 18 C.F.R , 18 C.F.R (a)(1)-(2) and 18 C.F.R (d) of the Commission s regulations implementing the Public Utility Regulatory Policies Act of 1978 ( PURPA ). As discussed below, SCE requests that the Commission grant this request to intervene and deny the Petition. 1

2 I. MOTION TO INTERVENE SCE, a wholly-owned subsidiary of Edison International, is an investor-owned electric utility subject to the Commission s jurisdiction. Section 210 of PURPA requires all electric utilities to purchase electricity at avoided cost 1 from qualifying small power producers or qualifying cogeneration facilities, referred to as QFs. The Commission s regulations implementing PURPA outline the criteria for new cogeneration facilities to qualify as QFs. If the criteria are met, then electric utilities, including SCE, are subject to PURPA s mandatory-purchase requirements, except to the extent that the Commission has terminated such mandatory-purchase requirements. For SCE, FERC terminated the mandatory-purchase requirements for QFs above 20 MW through an Order Granting Application to Terminate Purchase Obligation, dated June 16, However, the mandatory-purchase requirement remains for SCE for QFs 20 MW and under. Through its Petition, Bloom Energy requests that the Commission find that Bloom Energy s fuel cell facilities meet the Commission s criteria for cogeneration facilities and should be classified as QFs. SCE is therefore directly affected by the issues raised in the Petition, because Bloom Energy s fuel cell facilities could be 20 MW and under. SCE s perspective on the issues raised in the Petition cannot be adequately represented by any 1 18 C.F.R (b)(6) defines avoided cost as the incremental costs to an electric utility of electric energy or capacity or both which, but for the purchase from the qualifying facility or qualifying facilities, such utility would generate itself or purchase from another source FERC 61,234. 2

3 other party. Therefore, SCE respectfully requests that the Commission grant this Motion to Intervene and allow SCE to become a party to this proceeding. II. CORRESPONDENCE AND COMMUNICATIONS All communications and correspondence regarding this Motion should be served upon the below-signed individuals, who should be included on the official service lists compiled by the Secretary of the Commission in these proceedings. III. COMMENTS Bloom Energy s fuel-cell technology represents a potentially innovative production resource that should have equal access to the competitive marketplace to determine when it fits within the needs of the power generation sector and can be implemented in a cost-effective manner. But recognizing a Bloom Energy fuel cell as a co-generator merely by virtue of its technological process would allow Bloom Energy to circumvent PURPA s limitations on the use of fossil fuels and disregard other criteria established by Congress. In the instant Petition, Bloom Energy claims that the functionality of the technology means that the request for treatment as a cogeneration facility falls within the spirit of PURPA. However, PURPA mandates that a cogeneration QF must meet other, specific requirements, such as providing a productive and beneficial use. 3 No such use has been shown U.S.C. 824a-3(n)(1) (Section 210(n)(1) of PURPA). 3

4 IV. PROTEST To qualify as a QF, the facility must meet the definition of a cogeneration facility, 4 which states that it must produce electric energy and forms of useful thermal energy (such as heat or steam), used for industrial, commercial, heating, or cooling purposes, through the sequential use of energy. 5 The facility must meet additional requirements, as well as satisfy the following criteria established in the Energy Policy Act of and codified by the Commission in its regulations: (a) That the thermal energy output of the cogeneration facility is used in a productive and beneficial manner; and (b) That the output of the cogeneration facility is used fundamentally for industrial, commercial, residential, or institutional purposes and is not intended fundamentally for sale to an electric utility. 7 The facility described in the Petition fail to meet these criteria because (1) the facility comprises a self-contained reaction and does not produce reject heat from power production processes that is used to provide useful thermal energy under Commission regulations; 8 and (2) the Petition does not demonstrate that electric, thermal, chemical and mechanical output of the Bloom Energy fuel cells is not used fundamentally for 4 18 C.F.R (c) (2017) C.F.R (c) (2017). 6 Energy Policy Act of 2005, Pub. L. No , 119 Stat. 594, 315 and 1283 (2005) U.S.C. 824a-3(n) (Section 210(n) of PURPA); 18 C.F.R (d)(1)-(3) (2017) C.F.R (d) through (h) (2017). 4

5 sale to an electric utility 9 and seems to instead indicate the only purpose of the fuel cell as a PURPA QF is to produce electricity for sale to the utility. V. CONCLUSION For the reasons set forth above, SCE respectfully moves to intervene in the abovecaptioned proceeding and requests that the Commission (a) grant its motion to intervene, (b) consider its comments and protest concerning these issues, and (c) reject the Petition. Respectfully Submitted, /s/ Claire E. Torchia Claire E. Torchia SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Rosemead, CA Telephone: (626) Facsimile: (626) Claire.Torchia@sce.com Dated: November 9, C.F.R (d)(3) (2017). 5

6 CERTIFICATE OF SERVICE I hereby certify that I have this day served the foregoing MOTION TO INTERVENE, COMMENTS, AND PROTEST OF SOUTHERN CALIFORNIA EDISON upon each person designated on the official service list compiled by the Secretary in this proceeding. Dated at Rosemead, California, this 9 th day of November, /s/ Jorge Martinez Jorge Martinez, Legal Administrative Assistant SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California 91770

7 FERC Official Service List_ EL