Florida Regulations 25-6.0438: Non-Firm Electric Service – Terms and Conditions
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(1) Applicability. This rule shall apply to all investor-owned electric utilities.
(2) Purpose. The purposes of this rule are: to define the character of non-firm electric service and various types thereof; to require a procedure for determining a utility’s maximum level of non-firm load; and to establish other minimum terms and conditions for the provision of non-firm electric service.
(3) Definitions.
(a) “”Non-firm electric service”” means electric service that, in accordance with terms and conditions specified in the applicable tariff, can be limited or interrupted. Non-firm service includes interruptible, curtailable, load management, and other types of non-firm electric service offered by the utilities pursuant to tariffs approved by the Florida Public Service Commission.
(b) “”Interruptible electric service”” means electric service that can be limited or interrupted, either automatically or manually, solely at the option of the utility.
(c) “”Cost effective”” in the context of non-firm service shall be based on avoided costs. It shall be defined as the net economic deferral or avoidance of additional production plant construction by the utility or in other measurable economic benefits in excess of all relevant costs accruing to the utility’s general body of ratepayers.
(d) “”Curtailable electric service”” means electric service that can be reduced or interrupted upon request of a utility but solely at the discretion of the customer.
(e) “”Load management service”” means electric service provided under an applicable firm rate schedule whereby electric service to specified components of the customer’s electric load may be interrupted at the discretion of the utility in accordance with conditions specified in the utility’s tariffs.
(4) Availability of Service.
(a) A utility may offer non-firm electric service to any customer or class of customers pursuant to tariffs or contracts approved by the Commission. Each utility that currently offers or proposes to offer non-firm electric service shall demonstrate, no later than its next rate case, that providing such service is cost effective.
(b) Each utility shall state in its tariff the terms and conditions under which non-firm electric service will be offered. If a utility believes that providing interruptible service or another type of non-firm service to a specific customer who otherwise qualifies for such service under the utility’s tariff will not result in benefits accruing to its general body of ratepayers, that utility shall apply to the Commission for authorization to refuse non-firm service to that customer. The provision of non-firm service for standby and supplemental purposes shall be consistent with the Federal Energy Regulatory Commission rule, 18 C.F.R. § 292.305.
(c) When a utility proposes to make a change in any of its non-firm electric service offerings, it must provide written notice to each customer who may be affected by the proposal.
(5) Methods of Determining Maximum Levels of Non-Firm Load. Each utility offering non-firm electric service shall have on file with the Commission a methodology approved by the Commission for determining the cost effectiveness of non-firm load over its generation planning horizon, pursuant to the definition of “”cost effective”” in paragraph (3)(c). Specific consideration must be given to each type of non-firm electric service offered. A utility may petition the Commission to revise their methodology at any time.
(6) Maximum Levels of Non-Firm Load. Each utility shall attempt to maintain its subscribed non-firm loads at or below their maximum cost-effective levels, as determined by the utility’s approved methodology utilizing its most current system expansion plans and approved rates. If, during a revenue or rate review, the Commission finds that a utility’s efforts to maintain its subscribed non-firm loads at or below the maximum cost-effective level have not been prudent, the Commission may impute revenues at otherwise applicable rates for the amount of non-firm load in excess of cost effective levels.
(7) Reporting Requirements. Each utility offering non-firm electric service shall submit to the Commission on January 1 and July 1 of each year a report detailing the type of non-firm service offered and showing the amount of non-firm load on the utility’s system as of the month ending one month prior to the reporting date. In addition, the report shall state the cost-effective levels of non-firm load determined by the utility’s approved methodology.
(8) Minimum Notice to Transfer from Non-Firm to Firm Service. Each utility that offers non-firm service shall include a specific provision in its tariff that requires a customer to provide the utility with at least five years advance written notice in order for the customer to be eligible to transfer from interruptible to firm service. A utility may apply to the Commission for approval of a different minimum notice requirement if it can demonstrate that a different notice requirement is necessary or appropriate, either for all or any individual non-firm service offerings.
Rulemaking Authority Florida Statutes § 350.127(2), 366.05(1) FS. Law Implemented 366.03, 366.04, 366.041, 366.05 FS. History-New 8-21-86, Amended 9-3-91, 1-31-00.
(2) Purpose. The purposes of this rule are: to define the character of non-firm electric service and various types thereof; to require a procedure for determining a utility’s maximum level of non-firm load; and to establish other minimum terms and conditions for the provision of non-firm electric service.
(3) Definitions.
(a) “”Non-firm electric service”” means electric service that, in accordance with terms and conditions specified in the applicable tariff, can be limited or interrupted. Non-firm service includes interruptible, curtailable, load management, and other types of non-firm electric service offered by the utilities pursuant to tariffs approved by the Florida Public Service Commission.
(b) “”Interruptible electric service”” means electric service that can be limited or interrupted, either automatically or manually, solely at the option of the utility.
(c) “”Cost effective”” in the context of non-firm service shall be based on avoided costs. It shall be defined as the net economic deferral or avoidance of additional production plant construction by the utility or in other measurable economic benefits in excess of all relevant costs accruing to the utility’s general body of ratepayers.
(d) “”Curtailable electric service”” means electric service that can be reduced or interrupted upon request of a utility but solely at the discretion of the customer.
(e) “”Load management service”” means electric service provided under an applicable firm rate schedule whereby electric service to specified components of the customer’s electric load may be interrupted at the discretion of the utility in accordance with conditions specified in the utility’s tariffs.
(4) Availability of Service.
(a) A utility may offer non-firm electric service to any customer or class of customers pursuant to tariffs or contracts approved by the Commission. Each utility that currently offers or proposes to offer non-firm electric service shall demonstrate, no later than its next rate case, that providing such service is cost effective.
(b) Each utility shall state in its tariff the terms and conditions under which non-firm electric service will be offered. If a utility believes that providing interruptible service or another type of non-firm service to a specific customer who otherwise qualifies for such service under the utility’s tariff will not result in benefits accruing to its general body of ratepayers, that utility shall apply to the Commission for authorization to refuse non-firm service to that customer. The provision of non-firm service for standby and supplemental purposes shall be consistent with the Federal Energy Regulatory Commission rule, 18 C.F.R. § 292.305.
(c) When a utility proposes to make a change in any of its non-firm electric service offerings, it must provide written notice to each customer who may be affected by the proposal.
(5) Methods of Determining Maximum Levels of Non-Firm Load. Each utility offering non-firm electric service shall have on file with the Commission a methodology approved by the Commission for determining the cost effectiveness of non-firm load over its generation planning horizon, pursuant to the definition of “”cost effective”” in paragraph (3)(c). Specific consideration must be given to each type of non-firm electric service offered. A utility may petition the Commission to revise their methodology at any time.
(6) Maximum Levels of Non-Firm Load. Each utility shall attempt to maintain its subscribed non-firm loads at or below their maximum cost-effective levels, as determined by the utility’s approved methodology utilizing its most current system expansion plans and approved rates. If, during a revenue or rate review, the Commission finds that a utility’s efforts to maintain its subscribed non-firm loads at or below the maximum cost-effective level have not been prudent, the Commission may impute revenues at otherwise applicable rates for the amount of non-firm load in excess of cost effective levels.
(7) Reporting Requirements. Each utility offering non-firm electric service shall submit to the Commission on January 1 and July 1 of each year a report detailing the type of non-firm service offered and showing the amount of non-firm load on the utility’s system as of the month ending one month prior to the reporting date. In addition, the report shall state the cost-effective levels of non-firm load determined by the utility’s approved methodology.
(8) Minimum Notice to Transfer from Non-Firm to Firm Service. Each utility that offers non-firm service shall include a specific provision in its tariff that requires a customer to provide the utility with at least five years advance written notice in order for the customer to be eligible to transfer from interruptible to firm service. A utility may apply to the Commission for approval of a different minimum notice requirement if it can demonstrate that a different notice requirement is necessary or appropriate, either for all or any individual non-firm service offerings.
Rulemaking Authority Florida Statutes § 350.127(2), 366.05(1) FS. Law Implemented 366.03, 366.04, 366.041, 366.05 FS. History-New 8-21-86, Amended 9-3-91, 1-31-00.