Qualifying Facility Power Purchase Contracting Process
The GPSC has pre-approved a suite of QF Standard Offer Contracts to be used by Georgia Power when purchasing a QF’s output. A Generator selling its output only to Georgia Power under PURPA has a state-jurisdictional interconnection.
When a Generator with a state-jurisdictional interconnection executes one of the pre-approved “pro forma” QF Standard Offer Contracts, it is “deemed certified” by the GPSC in accordance with the Final Order. No substantive changes to the terms and conditions of the pro forma QF Standard Offer Contracts are permitted. Only non-substantive changes (such as changes to reflect the generating facility’s specific characteristics) are permitted.
A Generator making a wholesale sale in interstate commerce and only selling a portion of its output to Georgia Power under PURPA has a FERC-jurisdictional interconnection. If a Generator has a FERC-jurisdictional interconnection, or is interconnecting with an ITS Participant, the parties are permitted by the Final Order to modify the pro forma QF Standard Offer Contracts to include the total reasonable costs of the QF’s interconnection, which are determined by Georgia Power through a QF study that is discussed in more detail in the Power Purchase Contracting Process Steps. Georgia Power will submit any such modified QF Standard Offer Contract to the GPSC Staff at least 30 days prior to the effective date of the contract to afford the GPSC Staff an opportunity to review the contract and determine whether any modification to the standard form has been made that is material enough to require separate GPSC approval. Absent any contrary indication by the GPSC Staff within 15 days after Georgia Power’s submission, the QF Standard Offer Contract will be “deemed certified” in accordance with the Final Order.
However, if the GPSC Staff believes the modified contract deviates sufficiently from the intent of the QF Standard Offer Contract such that separate GPSC review and approval is required, Georgia Power will file the modified contract to request review and approval by the GPSC.
The QF Standard Offer Contracts
The "Energy-Only PPA"
The Energy-Only PPA is available for any eligible Generator, regardless of whether Georgia Power has an identified need for additional energy or capacity in its most-current IRP.
The full contract name is "Standard Offer Contract for the Purchase of Non-Firm Energy from a Qualifying Facility."
The “Capacity and Energy PPA”
The Capacity and Energy PPA is only offered to a Generator when Georgia Power has an identified capacity need in its most-recent IRP and has issued a capacity RFP pursuant to GPSC Rule § 515-3-4.04(3)(b). A Generator eligible for the Capacity and Energy PPA has a QF designed to meet a 90% availability requirement. A Generator with a QF > 30 MW is required to bid into the capacity RFP to receive a capacity payment. A Generator with a QF ≤ 30 MW is exempt from bidding into the capacity RFP and can request to receive a capacity payment by providing a notice of intent through the capacity RFP to fulfill a portion of the capacity need. Instructions for providing this notice will be included in each of Georgia Power’s capacity RFPs.
The full contract name is "Standard Offer Contract for the Purchase of Firm Capacity and Energy from a Qualifying Facility."
The “Proxy PPA”
The Proxy PPA is only offered to a Generator when Georgia Power has an identified capacity need in its most-recent IRP and has issued a capacity RFP pursuant to GPSC Rule § 515-3-4.04(3)(b). A Generator eligible for the Proxy PPA has a QF with operating characteristics equivalent to a baseload resource and designed to meet a 96% availability requirement. A Generator with a QF > 30 MW is required to bid into the capacity RFP to receive a capacity payment. A Generator with a QF ≤ 30 MW is exempt from bidding into the capacity RFP and can request to receive a capacity payment by providing a notice of intent through the capacity RFP to fulfill a portion of the capacity need. Instructions for providing this notice will be included in each of Georgia Power’s capacity RFPs.
The full contract name is "Standard Offer Contract for the Purchase of Firm Capacity and Energy from a Renewable Qualifying Facility Utilizing the Proxy Unit Methodology."
Georgia Power's QF Power Purchase Contracting Process
Power Purchase Contracting Process Steps
1) Generator contacts Georgia Power’s QF Manager to discuss Generator’s intent to sell the output from a QF to Georgia Power pursuant to PURPA.
2) Georgia Power’s annual avoided cost filings and publicly available historical avoided cost information can be found on the GPSC website. If Generator desires access to additional avoided cost information in order to assess the potential energy pricing it may be paid under the power purchase agreement, Generator may request to enter into a standard confidentiality agreement with Georgia Power to receive additional confidential information.
3) Generator submits the QF Notice of Intent (“NOI”) form.
4) Depending on the jurisdiction of the interconnection (i.e., state or federal jurisdiction), and the type of interconnection service needed (i.e., transmission or distribution), the QF Manager will direct Generator to the appropriate interconnection study process(es). (More information is available under the QF Interconnection Contracting Process page.)
- For interconnection with Georgia Power, the QF Manager will direct Generator with a state-jurisdictional interconnection agreement to contact the GPC Transmission Interconnections department or the Georgia Power Distribution Interconnections department, depending on the size of the QF.
- If Generator is interconnecting through an ITS Participant, it must contact the ITS Participant directly for information and the applicable procedures to obtain interconnection service.
- If Generator will have a FERC-jurisdictional interconnection, the QF Manager will direct Generator to OASIS to obtain interconnection service.
5) If Generator is interconnecting through an ITS Participant or has or will have a FERC-jurisdictional interconnection, Georgia Power also must perform a QF study to determine the appropriate allocation of PURPA interconnection costs. The pro forma QF Standard Offer Contract will then be modified to include the total reasonable costs of the QF’s interconnection. For the avoidance of doubt, this step applies to every Generator that will not execute a QFIA.
6) If Generator is interconnecting directly with Georgia Power, it begins the applicable interconnection process (i.e., state-jurisdictional or FERC-jurisdictional depending on how it intends to sell its output), through which Georgia Power will identify all the Interconnection Facilities and Refundable Network Upgrades, in accordance with the Final Order and the Commission’s subsequent Order dated December 21, 2021. (More information is available under the QF Interconnection Contracting Process page.)
7) Generator must submit proof of project site control and proof that it has applied for all applicable permits needed to construct and operate the facility.
8) Once the network upgrades and costs are identified and communicated to Generator, Generator and Georgia Power will proceed with the power purchase contracting process.
9) Georgia Power and Generator will establish the Georgia Power account for billing and payment to Generator once the QF is authorized for Commercial Operation.
Contact Information
Direct
Georgia Power Company
Renewable Development
Attn: QF Manager
Email: g2qulfac@southernco.com
Phone: (404) 506-3681
Mail Correspondence:
Georgia Power Company
Renewable Development
Attn: QF Manager
Internal Bin # 10196
241 Ralph McGill Blvd NE
Atlanta, GA 30308-3374