ML17209A993

Notice of Qualifications of Resource Recovery Facility as Small Power Production Facility.Dj Bardin 810403 Ltr to LC Hauck,Portions of Transcript & Certificate of Svc Encl

ML17209A993
Person / Time
Site:	Saint Lucie
Issue date:	03/13/1981
From:	Boyhan G PERSONNEL DECISIONS, INC.
To:
Shared Package
ML17209A992	List: ML17209A991 ML17209A993
References
NUDOCS 8104280480
Download: ML17209A993 (30)

Text

1 I BEFORE THE UNITED.S +ZES OF AMERICA

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FEDERAL ENERGY REGULATORY COLSfISSZON i.!U' '- ru- '"F.Cpa t(Y Docket No. QF-="~IiL~fjj"'~C".~v j)gq)oi:

Resources Recovery (Dade County), Znc.

NOTICE OF QUALIFICATION PURSUANT TO 18 C.F.R. 5 292.207 (a},

OF A RESOURC RECOVERY FACILITY ZN. DADE COUNTY, FLORIDA, AS A, QUAY Z=YING SPML POWER PRODUCTION FACILITY Resources Recovery (Dade County}, Znc., owner and operator

~ ~ ~

of a resources recovery fa'cility in Dade County, Florida= (the- .

"Facility") hereby gives notice pursuant to 18 C.F.R. 5292.207 (a) that the Facility is a "cpxalifying small power production facility" within tne meaning o Section 201 of the Public Util'ty Regu atory Polic'es Ac, of 1978 ("PURPA"), 16 U.S.C. 5 796, and 18 C.F.R.

Part 292, 45 Fed. Rea.17959 (March 20, 1980), and is thereby en-titled to the benefits conferred by Section 210 of PURPA, 16 U.S.C.

5824a-3, and the regulations promulgated thereunder. Zn accordance with 18 C.F.R. 5292.207(a), the following information is provided:

1) The name and address of the crualifying small power producer is Resources Recovery (Dade County), Inc.

P.O. Box 524056 Miami, Florida 33152 The facility is located in northeastern Dade County, Florida.

8104280 '-:

2) The Facility is a small power production facility which will process solid waste, recover recyc}.able material, handle up to 18,000 tons pe>> week of solid waste, conve'rt combustible .

materials into refuse-derived fue}. ("RDP"), and burn the fuel to raise steam which in turn generates e ectricity.-'- The Facial'i's the largest of its kind in the United States. The aualifyz".ng facility includes four boilers, four sets of mechanical cyclone dust collectors and our e}.ectric tu bogenerators, two turbogenerators P

and condensers and all recpzired auxiliary and control eauipment.

. All eauipmen for combustion of the RDP and generation of electric energy and its delivery to the transmission network is included.

2) The primary energy source is biomass.

3) The Facility has an installed nameplate electric gene a-tion capacity of approximately 76 megawatts at 13.8 KV, 3 phs 60 cycles.

DATE: March 13,1981

'RESOURCES RECOVERY (DADE .COUNTY), TMC.

By G rge E. Boyhan Executive Vice President

.. CERT1-"P lCATE OP SERVT.~

I hereby certify 'that Z have this day served a copy of he foregoing documen upon:

Mr. Robert Talion Executive Vice President Florida Power a. Light Company P.O. Box 529100 Miami, r lorida 33152

'n accordance with the requirements of. Section 1.17.o'f the Rules o Practice and P ocedures.

Dated a Washington, D.C. tnis 13th dav o March 1981.

Lewis "-. Leihowitz Counsel for Resources Recovery (Dade County), Tnc.

APPENDlX 8 I

I,

Arent, Fox, Kintner, Pitkin 8c Kahn Federal Bar BuBding, 1815 H Saeet, iVP4

%bshmyon, D.C. 20006 Tdcpbooc: (%2) 85M000 Ca8e hRSOX Tdaa WU 8%d& llT ~

David J. Bardin Could (202) 8574089 Apri,l 3, 1981 CERTZFZED MAZL RETURN RECEXPT REQUESTED L. Christian Hauck, Esq.

Vice President, Legal Affairs Florida Power & Light Company 9250 West Flagler Street Miami, Florida 33152

Dear Mr. Hauck:

Our client, Resources Recovery (Dade County), Xnc.

(RRD) now owns and operates in Dade County, Florida, a qualifying small power production facility (QF), as noticed to the Federal Energy Regulatory Commission (FERC) and Florida Power and Light Company (FPL) on March 13, 1981.

As an alternative to the exclusive sale of electric energy to FPL, RRD wishes to explore .competitive opportunities for sales to other electric utility entities. To that end, RRD wou3.d have to turn to FPL for transmission services; since FPL is the monopoly owner of the transmission network in the area, we believe that the antitrust laws require FPL to provide such services.

More directly, we understand that upon approval of the proposed settlement agreement pending in NRC Docket No. 50-389A (St. Lucie Plant, Unit No. 2), the terms of that.

agreement, in the context of general law, wi13. oblige FPL to transmit electricity on beha3.f of RRD to potential customers other than FPL. Please confirm our understanding, or advise us of any impediments that you see to full implementation of such obligation on behalf of RRD.

Zn order to exercise its rights, RRD also needs the fo13.owing information (including copies of tariff, guideline or other documents as relevant):

1. Xs FPL prepared to transmit the electric output of the QF for wholesale sales to one or more other entities.

2. What wou3.d be FPL's terms and conditions for such transmission service?

Arent, Fox, Kintner, Plotkin 8c Kahn 4~

3. Under what tariff or other established -provi-=-

sions would FPL transmit the electric energy?

4. Zf RRD'ells all of the electric output of the QF at wholesale to FPL or others a'. under what existing rate schedule would FPL render retail service to the-QF?-

b. under what proposed rate schedule would FPL render retail service to the QF if the Public Service Commission approves FPL's pending proposals?

5. Zf the QF chose to purchase energy needed for internal use from FPL at retail, under applicable rate schedules,-

would FPL also require the QF to buy "back-up" or "maintenance" power? Xf yes, why?

6. Mould FPL attempt to place any restrictions on its t ansmission services?

Ne would appreciate the favor of a reply within two weeks.

Very truly yours, David J. ar zn cc: Robert A. Ginsburg, Esp.

County Attorney Dade County Court House Room 1626 Miami, Florida 33130

APPENDXX C clari y, chac existing ~Les and Law would be available for I

zecours e.  !

3 NS. REFER: Yes, Florida Law.

COMNZSSTONER GUS<'R: There is sufficient Law the stacutes for che State of Florida to cake care of the situation you'e addressing.

RESER: Comm'ssioners, if there a e no ocher further questions of staff, perhaps we wou1d Like to move 'nto some statements for the nezc half hour or so.

ld COMMISSIONER GU~i ~

R: i chink we should.

PB. RESER: Okay. i would just, since we only have 12 a half hour, i have 20 speakers List d.:= there's anoche List circulating of people who want to speak, i wou1d need to gec that List and have it typed up. Viould you prefer chat.

read off che fi=st five so they could be prepa=ed co address 16 che Commiss ion'?

17 COHHESSiOHER GUi<WM: Since we don't have but a Limited cime period, why don'c you just scarc with che f-'rsc 19 one and we'l go from there' iM. RESET.;

\

Okay, if you wou1 d pLease idenc'y yourself for che cou-c reporter before you speak, ic wou' be appreciated. The first speaker wishing co address the Commis-0 sion is Governor Reubin Askew.

24 GOVERNOR ASZ=;i: H=. Chairman, members of che Com-mission, 'm Reubin Askew, a memoer of che Law fi~ of

L29 Greenberg, Trauzig, Askew, et al. T. apaea= on behalf of Dade Count j co.voice our strong support for che. Commission's oro-posed rules respecting ucilities'bligations to cogenera-tors and small power aroducers. T.'m submit.tting =or chal recozd, five copies of my ora1. stacemenc short of what Z may put in between, Dade County's written comments, and che sug-gested rev.sions of che cezt of the rule. Z do not aopear heze as an'~ert in this area, but T. am accompanied by the gentleman that qusc rose, 8>>. Hordhaus, Robe c i<ordhaus who was the general counse1. for the Federal Energy Regulatory Commission boch ac che time che legislation passed, PURPA passed, as well as che general counsel ror FEZC at the cime-chat'he regulation was adopted. So E chink that he is a resource chat the Commission may wish to make use of during the course of the hearing. l'm also accompanied by Pw.

Her ecc Stiezheim, who is che County Peonage of i~Ler opol'an Dade County; Dennis Carte , che Ass scant Councy Manager of

~fecropo1.itan Dade County; and Rooert Ginsberg, che County Attorney of Metropolitan Dade County.

i have listened with great interest to all that's been said. A couole of things have occur ed co me. F-sc of all, E chink c' ~ rache- oovious that, che private invesco-ucil'ties in this councry cion' come with greac enchusias coward this law. Tner oaoosec ic al osc every scca of che wa'.s

'cs considerac'on and i"s enact-enc as. we as che

126 regulacians. Sa i chink chat the hearing should. be puc ~m. che context that Ns. Rebe so eloquently said in one .o".hez state-ments when she mentioned bargain'ng leverage far .aualifycng, facilities. ilaw that is essentially what this.f.s all abouc.

Also she sa'd, mare likely to encourage cogene ation. bz.d the gentleman who pzesented your ecanom'c impact scacemenc, .which, in hi.s opinion, he poinced ouc what he thaught wa.s a myth of utilities,

'he monopoLy aez se af buc only'oward the crans-mission and distzibuc"'on as opposed to che gene>>ation and,pro-duction. bwd chat chere should be opportunity ca campet'ion on the production side.

12 Now T.'ve just had che distinct oppoztunicy of zepze-sentn" che United States of America foz LS monchs negoc acing all over the world, and i. wana co ce'1 you chat the e's no gzeacer problem facing us economically in the industrialized 18 0

Vest, chan our dependence on foreign oil and the fact chat we 17 are deaLing with a cartel. And cn's country Last yea>> importe by volume, 19/ less foreign oi1 chan ic dd the year before, 19 but we paid 63~ more pez average cosc per barrel which shows 2Q the c ic'caL importance af che enezgy package and ch's part 21 that 'c plays in ic af trying ca understand chat we aze gaing co have to develop 'some sauzces foz energy othe" chan just the traditional deoendence uDon a~ L. lilac s what p amp tee che Pres icenc, chat' what prompced che Congress co enact ch' to 25 begin w- ch, was s~~ply ca encourage campecic'on and "..e

production of energy.

Now one or che ch'ngs you Leam auice quickly in negaciac'on 's that if you can' negotiate'rom a posit'an or leverage, you'e in t-oubLe. And T. dan' Wow anyone right now, munic'pality or otherwise, chat can annroach a'la=ge utility company and negotiac fram a position of Leverage.

You can'. That's evactly why Ms. Rebe was so correct when she talked about bargaining leverage fc.. the qualifying zacili-.

Now if we'e serious, we'e going co" have co view 10 chis law and ics ~~Lementacian, that if it is noc maximized in term of how yau interprec it in favo- of a cualifying facility or smalL generac'on unit, chen L want to cell you, 13 you gec.caught up in a Loc of Legaliscics. Avd yau have some 14 of che most comnetenc neop1e in this state ac th's table represent'ng the uc lity campan'es, same representng noc-utility companies. And yau begin co see a1.L the Lega1isc'cs 17 you can gec tied up in. And I wane ca ask yau chat you scen 18 back frcm alL this when ic comes time to cec'ding and =ea1ize, 19 as you conscancLy co, chat you represent the pubLic interest.

20 And che publ'c interest ~ s seared for us t=ying co gec weanec away fram a cependence upon foreign ail. And when you ccmbine chat with one af. the mast criticaL prao1ema facing ch's count=

ind sc:ially, kept a canital for at'cn.

'sn' ic somewhat familiar whe.. ut'cy ccmnanie, I

I

'

say, "Give us same snec'aL rules as we =a -long ta t=y co he1p!

us buiLd ehe capacity in cap'cal fo~ation," and ch's is one

,of che areas that's desianed eo cry to help zeL'eve chem..of furche capac'ey in terms of cap'cal formation.

ilaw it'- quite right "ram ehe standoo'ne af che publ.ic utility, from the standpoint of ehe private-'investor pubLic util'ty. Zn che end, whacever ehey oay, their cuseame" are going co have eo oay. So they certainly have an interest ehemselves ocher chan just a oraf' fram che capital invesmentt chat personally peoole out in as an investor 'n che'r ut l'ty.

IO So i hope chat in aLL of chis chat we don' gec lose in what your staff has dane. There may be some d'sag cement in che staf=, but i want eo teLL you, how many attorneys can 13 you gec together representing different cliencs chae ag ee on 14 che same ching anyway~ So that's noe st=ange.

Dade County is commencing on these orooosed rules because ie is actively examin'ng che feasibiLity of a passible 17 cogeneration un'c. as well as a smaLL power production project.

18 Zn ehe planning scape, there are 25 megawatt cogeneration facil'ties eo supoly heac, ai candic'oning, and e ect"'c power for ehe praoosed government c neer downco~w. Second, a 21 was cewacer ereacmenc o Lane wh'h wiLL include a, smaLL oawer oroduccion facility 'ene acing 3.5 megawatts af power fram meehane derived from sewage sLu&~e. And, af eau se 24 it's no secrec chac in add'e'an chere is a 78 megawatt zesourc~

recovery gene ae'on fac lity, ehe scae s of wh'ch Ls ehe

L29 subject of d'spue between some of che conc=aceing. pa

~.'esand'hich faciL- cy may or may not become a"=actac- by- these. pro--

posed rules. And, of cou se, chere could be many oche -~nits in the future wh ch m'ght come under the rules.

The Commission',s rules, .in my v'ew, subscanc'al.ly carry ouc ehe nac'onal objectives that the generation. and-smaLL power produce'on program is designed to ach'eve chai=

objective. And X would commenc eha sta f in thai= e" ores.

As X teLL you, E have participated in too many governmencaL hea- ngs. Xn fact, this is a t=emendous adj ustmane ~or me.

Th's is che f'c mace'ng X've attended in approximately LO

. years in Tallahassee X didn'c preside on. Ec certainly gives you a much greater freedom when you can preside. So ~hen you gee really soma of the highest pa~d Lawyers, of which X hope someday co became part of ehe ranks, tak'ng on your.sca=f, you raa1. ze chat a tremendous amoune of e fort has gone into this.

And, sure, you know, we gae paid by che hour. Tha c makes a 4

difference in carms of how br'ef we may appea co ba. And some valid ooines are be'ng made. And we have some we'd Like co make as welL. Buc, 'Gore lzpo tancly, chase rules w~ LL also provide valuable benef cs .." st, ut'cias in: or da, despica che'r best efforts co convert eo ocher Less ezpensive fuels a-a sc'll subscanc'ally dapendenc on all che =uels of chair generating fac'l'c'as. This nation anc "Lorida s cape..cence on oraign o.'1. ause, be "educed as rapi ly as s

I L30 economical.Ly feasible. Cogeneration and smaLL yowe . productio1 offer significant opportun ties to reduce dependence oy sub- --

stituting renewable sou ces for oil.

And E want, to tell you, we keep produc'ng an awzuL Lot of garbage, an awful lot of waste, so 3: think that can be.

considered renewable. As the energy 'nput for, eI.ect c gene a eXon and by promoting the more eff cient use of fueL that can be obtained through cogeneraton. Thes'e benef's can be ob-tained without any increase in electric rates to the c tizens of the state. The PSC's rul.es guarantee that no ut l'ty will be required to pay more for powe from cogenerat'on and smaL'owe 12 production facilities than the utilities'vo'ced cost.

13 That is a cost of the power 't wouId otherwise have generated or purchased.

15 The second benef't to the citizens of th's state is that this program w'3.l make it economicaLLy feasible for Dade 17 County and other local governments 'n the state to use munici-pal solid waste and sewage sLudge as fuel. Rather than using 19 increasingly scare or urban suburban Land for waste d'sposaL.

These Local. governments can use these by-products of ou" 21 urban society as an energy input.

The econom'c bene= ts to the citi"ens of Dade County 23 for ins tance, ~ n the fora of Lowe =as te disposal =ees, Lower ta ces y can amount to m '.l.ions oz do ars each year. Same of 1

these ut"ties have approac. ec th s whoLe idea d: ~

8 enc yp

L31 and Z'm nac he e ca aaint any one indusc-g vie l-a broad brush.

X will, however, say chat Larida Power Companylin working vice PineL1as County and work.ng ouc their races, T. chink you'l find that che peopLe rebresenting Florida Powe wil1. teL'L'you that they came cLose, almosc 957. co meeting P~>A.. And this is an ezampLa of what a utility can do when it reaLL'j gets together wi,ch a commun'cy and really wadts co encourage ic.

But aside ="ram che quest'an of che utility indus"ry, none of us, legaL or othe use, are particularI.y in che- bus'-

10 ness co encourage competition. But when ve g've a semb1ance of a manoooly, che over iding pubLic interest mus" remain clear. An essenc" aL element of the'proposed rules and one

.13 which is cr t'cal co provid'ng che necessary incent'ves -"or cogeneration and small power product'an is a requ'remenc chac ucii'cies pucchase ooue Ecom auaLi"yicm cecil'cies ac L00'/ oz~

18 avoided cost. This requiremenc is derived f=om che:c.RC ru1.es pLementng PURPA, and it' clearly necessary to encourage.

rapid utilization of this cechnoLogy.

Our written comments, vh'ch i viLL subm' =or che 20 ecord a c this pa inc, canca in a numbe o f surge sc 'ns '<<h':l, 21

'n our view, vilL clarify che proposec rules. :n my oral scacemenc, T. vil1 mene'on onI.y chose wh'ch are af major sub-scancive imbarc. c irst, che PSC shou'd adobe che same pro-24 ceduraL meehan's-. or decermi.".ing avoided ca"ac'cy casts as 'c has adapted for dece~in ng avas ced energy costs. Hame y, c..e

J L32 utility should be required Co file a ez i stating the, avoidee capacity costs payment it wiLL make Co a q1~alifying facil'Cy 3 \

wh'ch s really eo eneer into a 'egal'y en=orceabla commimanc to seLL power co ehe utf.licy. Under such a. tariff, ehe burden wouI.d be on che uc'liey to show why the offeree.capac'cy is noc reliabI.e or usafu1 rather chan on ehe qua1'fi d fac'1 cy ~

co show why che capacity 's ra iaoLe and use u co che ue'cy How just th'nk oack aboue '-hac you'e seen and the display of hor andous Legal taLanc ch's morning. if you think 10 chat you put che monkey on che back eo the qua1 '"ying uc~1iey, eo what extant ara you really going to gec to che merits~ Zn terms of having che cachnoiogy and che abity co understand ic, we say 'c should just be che ooooste. A cuaL'fy'ng facility is not 1'kaly co have che access co ehe soph'scicaead data necessary eo orove 'cne usefulness co the uciLicy or 's 16 offered capac'ey.

17 Second, che concepc oz decramencai. fuel cosc should 18 be c1arifiad so it is consistent with c cd rules. Avoided energy costs under Fc.RC' ru1es s noe Limited co avoided fuel 20 costs. ic also i..eludes avoided purchased oower and non-=uaL ooeracion and ma'ncenarce costs. These costs may, in some circumstances, be substantial comoonenes of avo'ded energy costs.

24 As i noted above, our praoared scacamenc has a num-be= of othe surges cions of a mora cachnica natura

L33 will a;Lso urge che Commiss on to consider. And, as L say, since!3."ve already admicted 3."m no expert co give greacer c edibiLicy to chat which is suggested, 3: would say chat, <~z.

Hordhaus, who played a very important role 'n do'ng chem, is che one who assisted us n the prepz acion of the comments as weIL as my testimony. Dade Councy v'ews che proposed rules as a significant st p for ard or our scate and urg s Commission in final fomi wich the changes che'doption

'ay che we sugges'ted.

10 Tn concLusion, adoption of PKPA 's intended co benef'c the public by encouraging developmenc of sma3.L power and cogeneration facilic-'es and thereby promote competition in the energy production field. That was no easy thing o" me 14 as Governor co say chat this business of reau'ring uc''c'es 15 every time chere' an increase 'n oil it will, have to come back for approval. A3.L chac was doing was add'ng expense co che process and evencua3.ly costing-'cheir own subscribers o" 18 purchasers, And, so 3: s=ongly supported c=ying co have some type of fue1. adjustment. Because utilic'es, unfortunately, 20 a e deaI. ng with che most expensive, the most volac'le eve 21 'noreas'ng 'cern chat they have, and che public isn'c always 22 ful,ly appreciative of how expensive che product 's and "ay c must essenciaLLy be bo ...e by chose ic serves.

24 i would hope chat the standard for any charge che proposed PSC ~ les --L be co assure mavin ~ development

134 oz small power and generation facilities, to promote .coma~z'-.-

cion, and thereby to best serve che public in .whose 'interest:

PURPA itself was acopted.

Now chat' my scatemenc. I'e been waitng ch-ee hours to give ic. I'm all loaded uo, and that.'s ic.

CONKZSSIOtKR i"~S: Governor, lec me. a:sk ch; s-quesc'on right, quick if I may, just as a genera'uestion 8 concerning'his whole idea. Do you believe chat the ru1e as presented by staff presently is 'n the best 'nceresc or the racepayers of this state?

GOVERNOR ASM': Absolute1 y.

CO'4HZSSIOHER '4LVLiS: You ta1ked about the spl't-the-savings concept ind =ectly somewhat. You didn' directly address chat. Do you believe tha" concept is a d'sincent've 15 'o cogeneration?

GOVERHOR ASrZH: I'm noc expert enough on thac co 17 respond to ic. If you want to ask me why our t=ade de"'C.'t 18'ontinues to have prob>ems because o ~sported oil, I Ll oe 19 happy to respond to chac.

20 COt&:SSIONER iif<RZS: I'm noc an expe c on. cha,c, so 21 don' even know how to ask that question.

GOVERNOR ASM': Although I w11 sa.y chat 8=.

23 Hordhaus is here, and he m'ghc wish co respond co it, 24 why we ve a,skec him to come *long.

COiQ;.'SIONc3. K&xS: ec me a,sk you a..oche c1'es t .

on

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