Duke Energy’s CPRE Program Approved (with Modifications) for First Solicitation under H.B. 589

Author: Bradley J. Nowak

On February 21, 2018, the North Carolina Utilities Commission (the “NCUC”) issued an order (the “Order”) approving, with numerous required modifications, the application of Duke Energy Carolinas, LLC (“DEC”) and Duke Energy Progress, LLC (“DEP” and, together with DEC, “Duke”) for a joint competitive procurement for renewable energy program (“CPRE Program”).  With the NCUC’s Order, Duke’s first solicitation for competitive procurement of 680 MW of energy and capacity from renewable energy facilities is expected to begin in May 2018.

Background

On November 27, 2017, DEC and DEP jointly filed a petition for approval of their proposed CPRE Program (pursuant to N.C. Gen Stat. § 62-110.8 and NCUC Rule R8-71). Along with the proposed initial CPRE Program guidelines, Duke’s petition requested approval of (i) a pro forma power purchase agreement, (ii) initial CPRE Program plan, and (iii) waivers of regulatory conditions and code of conduct requirements. In the CPRE Program filing, Duke proposed four solicitations, or tranches, to allocate its obligation to procure 2,660 MWs of renewable energy, with Tranche 1 to begin in 2018. For the Tranche 1 CPRE RFP Solicitation, Duke proposes to allocate 600 MWs for the DEC service territory and a maximum of 80 MWs for the DEP service territory.

Following the NCUC’s order on December 1, 2017 requiring the Public Staff to file a report concerning Duke’s proposed CPRE Program and allowing intervention by interested persons, in January 2018, Public Staff submitted its report and comments, and other stakeholders, including the North Carolina Sustainable Energy Association (NCSEA), the North Carolina Clean Energy Business Alliance (NCCEBA) and Duke Energy Renewables, Inc., also filed comments on Duke’s proposal.

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