Virginia Administrative Code › Title 20 - PUBLIC UTILITIES AND TELECOMMUNICATIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 315 - REGULATIONS GOVERNING NET ENERGY METERING › Section 20VAC5-315-77 - Rules governing PPA providers and third-party partial requirements power purchase agreements in electric cooperative service territories

Current through Register Vol. 40, No. 24, July 15, 2024
A. The provisions
				of this section are promulgated pursuant to §
									56-594.01K
				and L of the Code of Virginia.
B.
				Pursuant to §
									56-594.01L
				of the Code of Virginia, the commission has no jurisdiction over civil contract
				disputes and claims for damages against PPA providers.
C. PPA providers shall only enter into third
				party partial requirements power purchase agreements with those retail
				customers and nonjurisdictional customers of the electric cooperative that are
				exempt from federal income taxation, unless otherwise permitted by §
									56-585.4
				of the Code of Virginia.
D. The
				commission's Division of Public Utility Regulation shall administer and
				maintain a registry of PPA providers eligible to offer third-party partial
				requirements power purchase agreements.
E. Prior to entering into a third-party
				partial requirements power purchase agreement with an eligible customer, a PPA
				provider shall submit a complete Form PPAR to the commission's Division of
				Public Utility Regulation and be listed on the registry of eligible PPA
				providers.
F. PPA provider
				registration shall be of two classes: residential and nonresidential. A PPA
				provider shall submit a Form PPAR for each class of customers it desires to
				serve.
G. The PPA provider shall
				submit a $250 registration fee payable to the State Corporation Commission. If
				the PPA provider intends to be registered to serve both residential and
				nonresidential customers, then a $500 registration fee shall be paid.
H. In addition to a completed Form PPAR, a
				PPA provider shall provide to the Division of Public Utility Regulation,
				contemporaneously with submitting Form PPAR, demonstration of its financial
				ability by providing one of the following:
1.
				Evidence of an investment-grade credit rating of BBB+ or higher;
2. Liquid assets of at least $150,000, as
				shown by the per books balance sheet, income statement, and statement of
				changes in financial position of the applicant or the entity responsible for
				the financing of the applicant, for the two most recent annual periods. Audited
				financial statements shall be provided, if available, including notes to the
				financial statements and auditor's letter. Published financial information that
				includes Securities and Exchange Commission forms 10K and 10Q shall be
				provided, if available; or
3. A
				continuous or renewable performance or surety bond, an irrevocable letter of
				credit, or an irrevocable guaranty from a creditworthy corporate parent of the
				applicant in a minimum amount of $50,000 in a form to be prescribed by the
				commission staff. A certified copy of the bond, letter of credit, or guaranty
				shall be provided to the Division of Public Utility Regulation simultaneously
				with the application.