New rates for wind generation

Carbon Power & Light establishing new rates for utility-scale wind generation in service area

Carbon Power & Light, Inc., a nonprofit member-owned cooperative that distributes electricity, has established a new rate which affects three members operating utility-scale wind generation systems in its service area.

Carbon Power and Light, Inc. serves 1,974 miles of energized line across 4,500 square miles in portions of Carbon and Albany counties in south central Wyoming, according to its website at https://www.carbonpower.com/service-area.

This new rate does not affect the remaining 4,397 members belonging to the cooperative, said Joe Parrie, director of member services and marketing for Carbon Power & Light. Some of the three utility-scale members own more than one wind farm.

The new rate will go into effect on July 1.

Carbon Power & Light is exempt from rate regulation by the public service commission under Wyoming state statute 37-17-103, as stated in as stated in Carbon Power & Light's public notice of its new rate published in May.

Under this statute, the member owners may vote to exempt themselves from rate regulation by the public service commission, according to the statute.

The members voted to exempt themselves.

Parrie explained how the new rate to provide Station Power Service (SPS) for large Utility Scale generation at 34.5 kV and above differs from the rate billed to the members who are not large utility scale generation companies.

He said in addition to a facility charge and a charge per killowatt hours used that the majority of the members are billed, the new rate for the three utility-scale members will include an additional peak demand charge.

Carbon Power & Light purchases the electricity it distributes from Tri-State Generation and Transmission, a Colorado based wholesale power supplier.

“Carbon Power is constantly looking at the power rate to be sure our members are being properly billed according to their usage,” he said. Carbon Power has been aware of this Tri-State charge for some time.

The issue is Tri-State has been charging Carbon Power a peak usage rate that Carbon Power has not been passing on to the three utility-scale members, he said.

“The timing of their usage didn’t really match the rate they were on,” he said. Carbon Power needed to “develop a rate that more suited the usage.”

“If this trend [had] continued, it would [have ended] up impacting other members because the cooperatives would not be collecting all the money that would be required to cover the cooperatives cost to serve those members,” he said.

“On April 24, Carbon’s Board of Directors reviewed and approved the rate to provide Station Power Service (SPS) for large Utility Scale generation at 34.5 kV and above,” as stated in the public notice published in the Saratoga Sun.

The rate information is posted on the website at https://www.carbonpower.com/new-rates.

Parrie said he cannot provide The Sun with the names of the wind generation company members.

The Sun was not successful in obtaining the names of the wind generation companies to get their comments.

Carbon Power is taking comments on the new rate until June 23.

“The State Statute requires 30 days from the first public notice which would have been May 17th in the Laramie Boomerang,” Parrie said. “But because the Saratoga Sun came out on the 23rd of May, we are ending the comment period June 23rd. We have had no comments thus far, so the rate will go into effect on July 1st as scheduled. Being a Member-Owned Cooperative, we would consider comments at any time.”

As stated in the public notice published in the Saratoga Sun: “Anyone desiring to file a complaint with Carbon must do so in writing per Wyoming state statute 37-17-104, b. Any comment may be made via Mail PO Box 579, Saratoga WY 82331, Email at [email protected]  or for questions call 307-326-5206.”

 

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