Title of Regulation: 20VAC5-315. Regulations Governing Net Energy Metering (amending 20VAC5-315-20).

Statutory Authority: §§ 12.1-13 and 56-594 of the Code of Virginia.

AT RICHMOND, DECEMBER 3, 2021

COMMONWEALTH OF VIRGINIA, ex rel.

STATE CORPORATION COMMISSION

CASE NO. PUR-2021-00251

Ex Parte: In the matter of amending regulations

governing net energy metering

ORDER MODIFYING NOTICE REQUIREMENTS AND PROCEDURAL SCHEDULE

The Regulations Governing Net Energy Metering, 20 VAC 5-315-10 et seq. ("Net Energy Metering Rules"), adopted by the State Corporation Commission ("Commission") pursuant to § 56-594 of the Code of Virginia ("Code"), establish the requirements for participation by an eligible customer-generator in net energy metering in the Commonwealth.

Chapter 266 of the 2021 Acts of Assembly, Special Session I ("Chapter 266"), amended the definition of "[s]mall agricultural generator" in Code § 56-594.2 as follows:

"Small agricultural generator" means a customer that:

"2. Operates a small agricultural generating facility as part of (i) an agricultural business or (ii) any business granted a manufacturer license pursuant to subdivisions 1 through 6 of § 4.1-206.1;"

The current Net Energy Metering Rules must be revised to reflect the change set forth in Chapter 266. Thus, on November 12, 2021, the Commission entered an Order Establishing Proceeding initiating this proceeding to amend the Net Energy Metering Rules in keeping with the expanded definition of "[s]mall agricultural generator" in Chapter 266. Commission Staff ("Staff") prepared a proposed amendment to Rule 20 VAC 5-315-20 of the Net Energy Metering Rules ("Proposed Amendment").

It came to the Commission's attention that the Order Establishing Proceeding was entered without the Proposed Amendment being appended thereto and that Ordering Paragraph (7) of the Order Establishing Proceeding contained an incorrect date reference. Therefore, the Commission entered an Order Nunc Pro Tunc on November 16, 2021, to which the Proposed Amendment was appended thereto and made a part of the record. The Order Nunc Pro Tunc also removed and replaced the incorrect date reference.

Ordering Paragraph (4) of the Order Establishing Proceeding, as modified by Ordering Paragraph (3) of the Order Nunc Pro Tunc, requires each Virginia electric distribution company to which the Net Energy Metering Rules apply to serve, on or before December 2, 2021, a copy of the Order Establishing Proceeding and the Order Nunc Pro Tunc (including the attached Proposed Amendment) upon each of their respective net metering customers and each of their existing small agricultural generators, and to file with the Clerk of the Commission a certificate of service no later than December 22, 2021.

On November 22, 2021, Virginia Electric and Power Company ("Dominion Energy Virginia") and Appalachian Power Company ("Appalachian") (collectively, "the Companies") filed the Joint Motion of Virginia Electric and Power Company and Appalachian Power Company for Amended Notice Requirements ("Companies' Motion") seeking an order from the Commission replacing the above-referenced notice and service requirement with a provision authorizing the Companies to provide notice of this proceeding by publication in newspapers of general circulation throughout their respective service territories in Virginia. The Companies' Motion also seeks to extend the service deadline of December 2, 2021, until December 15, 2021. The Companies' Motion includes a proposed notice to be published. The Companies represent that Staff does not object to the Companies' Motion.

On November 24, 2021, the Virginia Electric Cooperatives ("Cooperatives")¹ filed their Motion to Amend Notice Requirements and Procedural Schedule ("Cooperatives' Motion") seeking to limit the notice and service requirement to only small agricultural generators.² Among other things, the Cooperatives cite the high cost and time constraints of printing and mailing copies of both the Order Establishing Proceeding and Order Nunc Pro Tunc to each affected Cooperative member-consumer in Virginia by December 2, 2021.³

Should the Commission not limit the notice and service requirement to small agricultural generators, the Cooperatives alternatively request that the Commission allow for notice of the Proposed Amendment to the Net Energy Metering Rules by publication in each Cooperative's regular member publication.⁴ The Cooperatives propose a form of notice as an exhibit to the Cooperatives' Motion.

The Cooperatives also move to amend the procedural schedule to accommodate any potential publication requirement, citing that the January/February issue of one member publication has already closed for editorial changes.⁵ As such, the Cooperatives propose the following amended procedural schedule: (i) that notice be published and the publications be mailed to members on or before April 1, 2022; (ii) that certificates of such publication be filed by May 16, 2022; (iii) that the comment period be closed by July 29, 2022; and (iv) that the Staff report be filed in this case by October 31, 2022.⁶

The Cooperatives represent that Commission Staff has no objections to the Cooperatives' Motion. The Cooperatives further represent that Appalachian, Kentucky Utilities Company d/b/a Old Dominion Power Company, and Dominion Energy Virginia have no objections to the Cooperatives' Motion nor to the proposed procedural schedule.⁷

NOW THE COMMISSION, upon consideration of these matters, is of the opinion and finds that the Companies' Motion and the Cooperatives' Motion should be granted in part and denied in part as discussed herein. The Commission finds that Ordering Paragraph (4) of the Order Establishing Proceeding, as modified by Ordering Paragraph (3) of the Order Nunc Pro Tunc, should be amended to allow the option for notice of this proceeding and the Proposed Amendment by publication.⁸ The Commission also amends procedural deadlines in this case to accommodate such publication, while bearing in mind the requirement of Chapter 266 that the Commission complete its rulemaking proceeding within 12 months of initiation of this case.

Accordingly, IT IS ORDERED THAT:

(1) The Companies' Motion and the Cooperatives' Motion are granted to the extent set forth herein.

(2) The Commission's Order Establishing Proceeding and Order Nunc Pro Tunc previously entered in this docket are amended as discussed herein.

(3) The Commission's Division of Information Resources forthwith shall forward a copy of this Order Modifying Notice Requirements and Procedural Schedule to the Registrar of Regulations for publication in the Virginia Register of Regulations.

(4) On or before April 1, 2022, each Virginia electric distribution company to which the Net Energy Metering Rules apply shall serve a copy of the Order Establishing Proceeding, the Order Nunc Pro Tunc (including the attached Proposed Amendment), and this Order Modifying Notice Requirements and Procedural Schedule, upon each of its net metering customers and existing small agricultural generators.⁹ As an alternative to service on such individual customers, on or before April 1, 2022, any Virginia electric distribution company to which the Net Energy Metering Rules apply shall cause the following notice to be published either (i) as display advertising (not classified) on one occasion in newspapers of general circulation throughout that electric distribution company's service territory in Virginia or (ii) for a Cooperative, in that Cooperative's respective regular member publication. In the latter case, the publication and mailing thereof to member-consumers shall be accomplished on or before April 1, 2022. The notice shall read as follows, with the electric distribution company supplying the information required in the bracketed sections:

NOTICE TO THE PUBLIC OF A PROPOSED AMENDMENT

TO THE STATE CORPORATION COMMISSION'S REGULATIONS GOVERNING NET ENERGY METERING

CASE NO. PUR-2021-00251

The Regulations Governing Net Energy Metering, 20 VAC 5-315-10 et seq. ("Net Energy Metering Rules"), adopted by the State Corporation Commission ("Commission") pursuant to § 56-594 of the Code of Virginia ("Code"), establish the requirements for participation by an eligible customer-generator in net energy metering in the Commonwealth. The Net Energy Metering Rules include conditions for interconnection and metering, billing, and contract requirements between net metering customers, electric distribution companies, and energy service providers.

Chapter 266 of the 2021 Acts of Assembly, Special Session I ("Chapter 266"), amended the definition of "[s]mall agricultural generator" in Code § 56-594.2 as follows (with changes noted in italics):

"Small agricultural generator" means a customer that:

"2. Operates a small agricultural generating facility as part of (i) an agricultural business or (ii) any business granted a manufacturer license pursuant to subdivisions 1 through 6 of § 4.1-206.1;"

The added language generally refers to types of manufacturing licensees issued to businesses by the Virginia Alcoholic Beverage Control Authority pursuant to Code § 4.1-206.1, including distilleries, limited distilleries, breweries, limited breweries, wineries, and farm wineries. The current Net Energy Metering Rules must be revised to reflect this change.

On November 12, 2021, the Commission docketed Case Number PUR-2021-00251 and issued an Order Establishing Proceeding seeking to amend the Net Energy Metering Rules in keeping with the expanded definition of "[s]mall agricultural generator" in Chapter 266. The Commission Staff prepared a proposed amendment to Rule 20 VAC 5-315-20 of the Net Energy Metering Rules ("Proposed Amendment"). The Proposed Amendment is appended to the Order Nunc Pro Tunc issued in that docket on November 16, 2021. The Commission subsequently entered an Order Modifying Notice Requirements and Procedural Schedule.

TAKE NOTICE THAT on or before May 27, 2022, any interested person may comment on, propose modifications or supplements to, or request a hearing on the Proposed Amendment following the instructions on the Commission's website: scc.virginia.gov/casecomments/Submit-Public-Comments. Those unable, as a practical matter, to submit such documents electronically may file such comments by U.S. mail to the Clerk of the State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118. All such documents shall refer to Case No. PUR-2021-00251. Individuals should be specific in their comments, proposals, or supplements to the Proposed Amendment and should address only those issues pertaining to the amendment of Code § 56-594.2 pursuant to Chapter 266. Issues outside the scope of this amendment will not be considered. Any request for hearing shall state with specificity why the issues raised in the request for hearing cannot be adequately addressed in written comments. If a sufficient request for hearing is not received, the Commission may consider the matter and enter an order based upon the comments, documents or other pleadings filed in this proceeding.

The Commission takes judicial notice of the ongoing public health issues related to the spread of the coronavirus, or COVID-19. The Commission has taken certain actions, and may take additional actions going forward, that could impact the procedures in this proceeding. In accordance therewith, all comments and other documents and pleadings filed in this matter shall be submitted electronically to the extent authorized by Rule 5 VAC 5-20-150, Copies and format, of the Commission's Rules of Practice and Procedure ("Rules of Practice"), as modified and described in the Order Establishing Proceeding. Confidential and Extraordinarily Sensitive Information shall not be submitted electronically and shall comply with Rule 5 VAC 5-20-170, Confidential information, of the Rules of Practice. At this time, any person seeking to hand deliver and physically file or submit any pleading or other document shall contact the Clerk's Office Document Control Center at (804) 371-9838 to arrange the delivery.

Any documents filed in paper form with the Office of the Clerk of the Commission in this docket may use both sides of the paper. In all other respects, except as modified by the Commission's Order Establishing Proceeding, all filings shall comply fully with the requirements of 5 VAC 5-20-150, Copies and format, of the Commission's Rules of Practice.

An electronic copy of the Order Establishing Proceeding, Order Nunc Pro Tunc, Order Modifying Notice Requirements and Procedural Schedule, and the Proposed Amendment may be obtained by submitting a written request to counsel for [name of electric distribution company ], [name and title of counsel, mailing and e-mail addresses].

An electronic copy of the Proposed Amendment itself may be obtained by submitting a request to Michael A. Cizenski in the Commission's Division of Public Utility Regulation at the following email address: mike.cizenski@scc.virginia.gov. An electronic copy of the Proposed Amendment can be found at the Division of Public Utility Regulation's website: scc.virginia.gov/pages/Rulemaking.

The Commission's Rules of Practice, the Order Establishing Proceeding, Order Nunc Pro Tunc and Proposed Amendment, and the Order Modifying Notice Requirements and Procedural Schedule may be viewed at: scc.virginia.gov/pages/Case-Information.

[NAME OF ELECTRIC DISTRIBUTION COMPANY]

(5) Proof of service on the individual customers or proof of publication, as applicable, shall be filed with the Clerk of the Commission on or before May 16, 2022, at scc.virginia.gov/clk/efiling/. Any proof of publication shall include a clear and accurate representation of what information the electric distribution company inserted into the bracketed areas marked of the sample public notice set forth in Ordering Paragraph (4).

(6) The deadline for any interested person to comment on, propose modifications or supplements to, or request a hearing on the Proposed Amendment is changed to on or before May 27, 2022.

(7) The deadline for the Staff's report on or response to any comments, proposals, or requests for hearing submitted to the Commission on the Proposed Amendment is changed to on or before July 29, 2022.

(8) To the extent necessary, the Commission explicitly waives, for all Virginia electric distribution companies to which the Net Energy Metering Rules apply, the requirements of the Order Establishing Proceeding and the Order Nunc Pro Tunc that service be made on net energy metering customers and small agricultural generators by December 2, 2021, and that proof of such service be filed by December 22, 2021.

(9) All other provisions of the Order Establishing Proceeding and Order Nunc Pro Tunc remain in full force and effect.

(10) This matter is continued.

A COPY hereof shall be sent electronically by the Clerk of the Commission to all persons on the official Service List in this matter. The Service List is available from the Clerk of the Commission.

_______________________________

¹The Cooperatives that join the Cooperatives' Motion are: A&N Electric Cooperative, BARC Electric Cooperative, Central Virginia Electric Cooperative, Community Electric Cooperative, Craig-Botetourt Electric Cooperative, Mecklenburg Electric Cooperative, Northern Neck Electric Cooperative, Northern Virginia Electric Cooperative, Prince George Electric Cooperative, Rappahannock Electric Cooperative, Shenandoah Valley Electric Cooperative, and Southside Electric Cooperative. Not included in the Cooperative Motion is Powell Valley Electric Cooperative. See Cooperatives' Motion at 1, n.1.

²Id. at 2-3. The Cooperatives state that small agricultural generators for the Cooperatives would be subscribers to their Schedule SAG. The Cooperatives represent that they have no subscribers to Schedule SAG at this time. Id. at 3.

³Id. at 2-3.

⁴Id. at 3-4. The Cooperatives represent that notice by publication could be accomplished in Cooperative Living magazine, which is already distributed to every member-consumer in Virginia, except for members of Central Virginia Electric Cooperative, who receive the Current Communicator. Id. at 4.

⁵Id. at 5.

⁶Id.

⁷Id. at 6.

⁸The Commission will not require notice by publication for any Virginia electric distribution company to which the Net Energy Metering Rules apply who desires to provide notification of the Proposed Amendment and this proceeding by service by mail upon each of their respective net metering customers and each of their existing small agricultural generators. See infra Ordering Paragraph (4).

⁹To the extent any of these Orders already have been served upon net metering customers and existing small agricultural generators, the electric distribution company need not re-send those specific Orders.

The State Corporation Commission noticed a public comment period on amendments to the Regulations Governing Net Energy Metering (20VAC5-315) in the December 6, 2021, issue of the Virginia Register of Regulations (38:8 V.A.R. 789-793 December 6, 2021).

The public comment period has been extended through May 27, 2022.

Agency Contact: Mike Cizenski, Principal Utility Engineer, Public Utility Regulation Division, State Corporation Commission, P.O. Box 1197, Richmond, VA 23218, telephone (804) 371-9441, or email mike.cizenski@scc.virginia.gov.