posted on Friday, September 07, 2007 9:43 AM
by
Andrea Kells
North Carolina Brings Southeast to RPS Table; Illinois & Delaware Expand RPS Laws
Various states around the country have recently created or expanded their renewable portfolio standard (RPS) requirements. The combination of traditional RPS requirements with complimentary initiatives, including cost recovery incentives, energy efficiency directives and voluntary green power programs, characterize these recent additions to the nation's RPS goals.
With its recent enactment of a Renewable Energy and Energy Efficiency Portfolio Standard (REPS), North Carolina has become the first southeastern state to join the ranks of RPS states. The REPS will be phased in beginning in 2012; it requires that by 2021 all investor-owned utilities within the state meet 12.5% of their 2020 energy needs from renewable energy resources or energy efficiency measures. A reduced requirement of 10% applies to rural electric cooperatives and municipal electric suppliers. Until 2018, up to 25% of the requirement may be met through energy efficiency efforts, including combined heat-and-power systems powered by non-renewable fuels. After 2018, 40% of the standard may be met by energy efficiency strategies. Other noteworthy facets of the new law are its provisions (1) permitting utilities to recover certain incremental costs incurred to comply with the REPS, to fund renewable energy or energy efficiency research, or comply with any future federal RPS mandate, (2) requiring electric power suppliers to implement demand-side management and energy efficiency measures and providing for cover recovery for those measures, and (3) extending rate recovery to construct costs associated with out-of-state generating facilities.
Building on its previous voluntary renewable portfolio goal of 8% by 2013, Illinois recently enacted a new law that creates the Illinois Power Agency (IPA) and charges it with developing electricity procurement plans for state utilities serving over 100,000 customers and then competitively procuring energy according to those plans. The IPA's procurement activities must also meet an expanded and now-mandatory RPS of 25% by 2025, beginning in 2008 with a 2% requirement. A minimum of 75% of the renewable energy must be produced from wind. The new law also requires that utilities establish annual energy savings goals in order to meet a percentage of their energy delivery requirements through efficiency efforts.
In another expansion of an existing RPS, Delaware has increased its requirement, previously at 10% by 2019, to 20%, 2 percent of which must be obtained from solar photovoltaics. The expanded RPS applies to investor owned utilities, municipal utilities and rural electric cooperatives, though the municipals and rural coops were permitted to opt out of the RPS requirements upon establishment of a voluntary green power program and creation of a green energy fund.