High energy use facilities; natural gas fuel cell generating resources.

Plain English Breakdown

The official source material did not provide specific details about the terms 'Phase I Utility' and 'Phase II Utility', but these are commonly understood within Virginia law.

High Energy Use Facilities and Natural Gas Fuel Cells

This law allows high energy use facilities that own or operate natural gas fuel cells to enter contracts with utility companies for electricity generation, including bill credits and power purchase agreements.

What This Bill Does

• Defines a 'high energy use facility' as one needing at least 30 megawatts of uninterrupted electric service from a Phase I or Phase II Utility.
• Allows high energy use facilities that own or operate natural gas fuel cells to enter contracts with their incumbent utility companies for electricity generation, including bill credits and power purchase agreements.
• Requires the natural gas fuel cell generating resource to be located on the same property as the high energy use facility.

Who It Names or Affects

• High energy use facilities that need a lot of electricity from Phase I or Phase II Utilities
• Utility companies like Dominion Energy or Appalachian Power Company

Terms To Know

Phase I Utility

A utility company designated as Phase I under Virginia law.

Phase II Utility

A utility company designated as Phase II under Virginia law.

Limits and Unknowns

• Does not change the renewable energy portfolio standard obligations for utilities.
• Does not affect the capacity limit for net energy metering programs.

Official Summary Text

High energy use facilities; natural gas fuel cell generating resources.
Permits a high energy use facility, as defined in the bill, that owns or operates a natural gas fuel cell generating resource to enter a contract to generate electric energy on such terms and conditions negotiated with the Dominion Energy or Appalachian Power Company, including provisions related to (i) issuing utility bill credits equivalent to the value of such energy generation and (ii) the utility's purchase of excess power generated by the high energy use facility. The bill requires such natural gas fuel cell generating resource to be located on the same real property as the high energy use facility.

Current Bill Text

A BILL to amend the Code of Virginia by adding a section numbered
56-589.2
, relating to electric utility customers; high energy use facilities; natural gas fuel cell generating resources.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered
56-589.2
as follows:

§
56-58
9.2.
H
igh energy use facilities;
natural gas fuel cell generating resources
.

A. As used in this section:

"High energy use facility" means a
ny

customer

of a Phase I or Phase II Utility
that requires
30 megawatts
or more of
uninterrupted
electric service
and is located in an urban, suburban, exurban, or rural environment in the Commonwealth. "High energy use facility" includes any data center as defined in subdivision A 43 of §
58.1-3506
.

"Phase I Utility" and "Phase II Utility" have the same meanings as provided
in subdivision A 1 of §
56-585.1
.

"Utility" means a Phase I
Utility or Phase II Utility.

B. A high energy use facility that owns or operates a n
atural gas fuel cell generating resource to generate
electric energy
may enter into a contract to generate such
electric
energy on terms and conditions negotiated between the
high energy use facility
and
its incumbent utility
, provided that the natural gas
fuel cell generating resource is located on the same real property upon which the high energy use facility is located
. Such terms
and conditions
may include provisions related to
(i)
issuing
utility
bill credits equivalent to the value of

such
energy
generation
to
the high energy use facility

and (ii) the
utility's purchase of
excess
power
generated by the high energy use facility
.

C
. Nothing in this section shall be construed to
(i)
amend or affect a Phase I or Phase II Utility's renewable energy portfolio standard obligations under §
56-585.5
,
(ii) count toward the
capacity limit for the net energy metering program under §
56-594
, (iii) limit the right of a customer to self-generate electricity, or (iv) limit the ability of a licensed supplier of electricity to utilize a
natural gas
fuel cell generating resource
to provide electric service to its customers
.