Ohio Regulatory Framework For Distributive Generation M. Howard Petricoff Vorys, Sater, Seymour & Pease LLP

Types of Distributive Generation Emergency Back Up Generation – Not Run In Parallel – Required by other state and federal regulations PURPA Co-Generation – 1978 Energy Policy Act – Amended by 2005 Energy Policy Act IPP \ User Owned Generation

Restructuring – Chapter 4928 ORC Franchised Monopoly on the generation and sale of power under state law is ended Permitted to run in parallel for self use Permitted to sell power to others – under CRES Rules

ORC §

Key Points ORC § (A) “The rules regarding interconnection shall seek to prevent barriers to new technology and shall not make compliance unduly burdensome or expensive.” (B) EDU must report annually to the Commission

OAC 4901: Rules on Interconnection Non discriminatory Uniform EDU must file tariffs that provide for interconnection

OAC 4901: EDU to set up a Queue – first come first serve Minor modification – won’t lose your spot Time Schedule – No Construction four weeks – If upgrades are needed – 2 weeks If EDU cannot makes these dates – written notification Pre-interconnection system impact study may be required by the EDU DG and request back up

OAC 4901: (A) Physical connection requirements set by the current IEEE standards (B) OAC apply, including offering discounts for dropping interconnection.

OAC 4901: Net Metering Open to fuel cells, small micro turbines, solar, wind, biomass or hydro No cost to generator – other than site & Prep EDU tariffs Rules for measuring 1% limit on the EDU – Some EDU out now

Hurdles Rate Design POLAR Charges 1% Rule Possible – Pre Installation Study Possible – Upgrade costs