CASE STUDY
Led Expert Testimony to Expand Opportunities for Solar Development in South Carolina
Opportunity
Federal law requires utilities to purchase electricity from small-scale qualifying facilities (QFs), including solar plants, if the power from the QF can be purchased for less than the utility’s calculated avoided cost energy rate.
In 2019, South Carolina passed the Energy Freedom Act, establishing, among other things, that it is a policy of the state to promote renewable energy. The law called for a new methodology for calculating avoided costs in order to encourage opportunities for solar and other renewables.
In response, Dominion Energy South Carolina (DESC), the main electric utility in the state, proposed a historically low avoided cost energy rate for solar qualifying facilities, one that was much lower than in nearby states such as Virginia and North Carolina.
Approach
“In a technically complex regulatory proceeding moving forward on an extremely compressed timeline, Strategen was able to deliver the high-quality analysis and expert testimony SCSBA needed to achieve a favorable ruling.”
Strategen expert testimony contained meticulous technical analysis addressing the avoided cost rates proposed by DESC.
The testimony provided:
An analysis and critique of issues contained in DESC’s proposed avoided energy cost rates, avoided capacity cost rates, and proposed integration charge.
Alternative approaches for calculating the avoided cost rates for energy and capacity.
A recommendation that the Commission reject DESC’s proposed integration charge and a framework for how such a charge could be determined in the future.
A rationale of how QFs contain and reduce risk for customers.
Results
In early January 2020, the South Carolina Public Service Commission voted unanimously to raise the avoided cost rate Dominion Energy must pay to independent solar providers in that service territory. In a quick reversal from an earlier decision, the Commission created a major win for expanding solar power in South Carolina.