Details for NOTICE TO THE PUBLIC OF AN APPLICATION BY MECKLENBURG ELECTRIC COOPERATIVE

Updated

NOTICE TO THE PUBLIC OF AN APPLICATION BY MECKLENBURG ELECTRIC COOPERATIVE, FOR APPROVAL OF A SPECIAL RATE CASE NO. PUR-2021-00059 On April 14, 2021, Mecklenburg Electric Cooperative ("MEC" or "Cooperative") filed an application ("Application") in both public and nonpublic versions with the State Corporation Commission ("Commission"), pursuant to § 56-235.2 of the Code of Virginia ("Code") and the Commission's Rules for Filing an Application to Provide Electric and Gas Service Under a Special Rate, Contract or Incentive. In its Application, the Cooperative seeks approval of a special rate applicable to service provided to a new electric service customer ("Customer") with data center load located within the Cooperative's service territory. The Cooperative requests that the Commission act on its Application on an expedited basis. The Application states that MEC and the Customer have entered into an Energy Services Agreement ("ESA") to govern generation, transmission and distribution services. In addition, as "[n]one of the Cooperative's current tariffs are designed for the magnitude of the new Customer's load," the Cooperative requests approval of a new tariff, designated "Schedule LP - Contract - RTO Large Power Contract Rate" ("Schedule RTO") for the new Customer. According to the Cooperative, the proposed special rate is necessary so that the Cooperative can adequately recoup the expenses it will incur to serve the new Customer. The new rate is designed to (i) recover MEC's projected cost related to serving the new Customer's load, (ii) protect the Cooperative's existing members from subsidizing the new load, and (iii) provide the Cooperative with a reasonable margin to continue to provide reliable electric service to all of its members. The Application states that the special rate consists of distribution delivery charges and electricity supply service ("ESS") charges. The ESS charges are designed to be a direct pass-through to the new Customer from the Cooperative's generation and transmission provider, Old Dominion Electric Cooperative. Therefore, the Cooperative states that any costs that MEC incurs related to purchasing the power to serve the new Customer's load will be passed on to the new Customer directly. These ESS charges include present costs as well as future costs such as trueups or demand-related costs based on the new Customer's load in the prior year. MEC states that distribution delivery charges are made up of three consumer delivery charges and a non-coincident demand charge. The three consumer delivery charges are based on (i) the three phases of the new Customer's load (each phase corresponds to the Customer's anticipated load as its data center ramps up); and (ii) the anticipated construction timelines for the installation of facilities necessary to serve each phase of the load at MEC's existing Boydton Substation and new Coleman Creek Substation. MEC asserts that service to the new Customer under the special rate will not affect the Cooperative's ability to provide reliable electric service to its other members, as the special rate is designed to collect all costs, including power cost, that is attributable to the new Customer's accounts. MEC further asserts that the demand adder in the special rate is designed to cover any unanticipated costs and provide the Cooperative with a reasonable margin. The Cooperative further states that the special rate provided in the Agreement will not jeopardize the continuation of reliable electric service. According to the Cooperative, approval of the special rate will increase MEC's margins, allowing the Cooperative to continue to provide reliable electric service. The Cooperative anticipates that during the first year MEC serves the new Customer, MEC's gross revenues will increase by $4.7 million. When the new Customer's projects are at full capacity, MEC anticipates its gross revenues will increase by $120 million. Interested persons are encouraged to review the Application and supporting documents for the details of these and other proposals. The Commission entered an Order for Notice and Hearing in this proceeding that, among other things, scheduled public hearings on the Application. On August 10, 2021, at 10 a.m., the Commission will hold a telephonic hearing, with no witness present in the Commission's courtroom, for the purpose of receiving the testimony of public witnesses. On or before August 5, 2021, any person desiring to offer testimony as a public witness shall provide to the Commission (a) your name, and (b) the telephone number that you wish the Commission to call during the hearing to receive your testimony. This information may be provided to the Commission in three ways: (i) by filling out a form on the Commission's website at scc.virginia.gov/pages/Webcasting; (ii) by completing and emailing the PDF version of this form to SCCInfo@scc.virginia.gov; or (iii) by calling (804) 371-9141. This public witness hearing will be webcast at scc.virginia.gov/pages/Webcasting. On August 11, 2021, at 10 a.m., either in the Commission's second floor courtroom located in the Tyler Building, 1300 East Main Street, Richmond, Virginia 23219, or by electronic means, the Commission will convene a hearing to receive testimony and evidence related to the Application from the Cooperative, any respondents, and the Commission's Staff. Further details on this hearing will be provided by subsequent Commission Order or Hearing Examiner's Ruling. The Commission has taken judicial notice of the ongoing public health emergency related to the spread of the coronavirus, or COVID-19, and the declarations of emergency issued at both the state and federal levels. In accordance therewith, all pleadings, briefs, or other documents required to be served in this matter should be submitted electronically to the extent authorized by 5 VAC 5-20-150, Copies and format, of the Commission's Rules of Practice and Procedure ("Rules of Practice"). Confidential and Extraordinarily Sensitive information shall not be submitted electronically and should comply with 5 VAC 5-20-170, Confidential information, of the Rules of Practice. For the duration of the COVID-19 emergency, any person seeking to hand deliver and physically file or submit any pleading or other document shall contact the Clerk's Office Document Control Center at (804) 371-9838 to arrange the delivery. Pursuant to 5 VAC 5-20-140, Filing and service, of the Commission's Rules of Practice, the Commission has directed that service on parties and the Commission's Staff in this matter shall be accomplished by electronic means. Please refer to the Commission's Order for Notice and Hearing for further instructions concerning Confidential or Extraordinarily Sensitive Information. An electronic copy of the Cooperative's Application may be obtained by submitting a written request to counsel for the Cooperative, Garland S. Carr, Esquire, Williams Mullen, 200 South 10th Street, Suite 1600, Richmond, Virginia 23219, or gcarr@williamsmullen.com. Interested persons also may download unofficial copies from the Commission's website: scc.virginia.gov/pages/Case-Information. On or before August 3, 2021, any interested person may file comments on the Application by following the instructions found on the Commission's website: scc.virginia.gov/casecomments/Submit-Public-Comments or by filing such comments with the Clerk of the State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118 . All comments shall refer to Case No. PUR202100059. On or before June 29, 2021, any person or entity wishing to participate as a respondent in this proceeding may do so by filing a notice of participation with the Clerk of the Commission at the address above or by filing electronically at scc.virginia.gov/clk/efiling/. Such notice of participation shall include the email addresses of the filer or its counsel. The respondent simultaneously shall serve a copy of the notice of participation on counsel to the Cooperative at the electronic address above. Pursuant to Rule 5 VAC 5-20-80 B, Participation as a respondent, of the Commission's Rules of Practice, any notice of participation shall set forth: (i) a precise statement of the interest of the respondent; (ii) a statement of the specific action sought to the extent then known; and (iii) the factual and legal basis for the action. Any organization, corporation, or government body participating as a respondent must be represented by counsel as required by Rule 5 VAC 52030, Counsel, of the Rules of Practice. All filings shall refer to Case No. PUR-2021-00059. On or before June 29, 2021, each respondent may file with the Clerk of the Commission, at the address set forth above or by filing electronically at scc.virginia.gov/clk/efiling/, any testimony and exhibits by which the respondent expects to establish its case, and each witness's testimony shall include a summary not to exceed one page. The respondent simultaneously shall serve a copy of any such filing on the Staff, the Cooperative, and all other respondents. In all filings, respondents shall comply with the Commission's Rules of Practice, including 5 VAC 520140, Filing and service; and 5 VAC 5-20-240, Prepared testimony and exhibits. All filings shall refer to Case No. PUR202100059. Any documents filed in paper form with the Office of the Clerk of the Commission in this docket may use both sides of the paper. In all other respects, except as modified by the Commission's Order for Notice and Hearing, all filings shall comply fully with the requirements of 5 VAC 5-20-150, Copies and format, of the Commission's Rules of Practice. The Cooperative's Application, the Commission's Rules of Practice and the Commission's Order for Notice and Hearing may be viewed at: scc.virginia.gov/pages/Case-Information. MECKLENBURG ELECTRIC COOPERATIVE

1300 East Main Street, DANVILLE, VA

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