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FERC rejects PSE wind farm levy attempt

UNITED STATES: The Federal Energy Regulatory Commission (FERC) has rejected a wind tariff proposed by utility Puget Sound Energy (PSE).

FERC rejected PSE’s proposed $2.70/kW per month charge for its within-hour generation following service.

The utility proposed levying the charge on wind farms to pay for fast-start generation capacity, which would compensate for variations in wind output.

But FERC said that PSE had not shown that the rate was just and reasonable.

"Based on the information submitted, we cannot find that Puget’s proposed rate is a reasonably accurate representation of the opportunity costs Puget incurs in providing a following service to wind resources," FERC said in its decision.

The American Wind Energy Association (AWEA) had filed a motion against PSE’s proposal.

Commenting on FERC’s decision AWEA chief executive Denise Bode said: "No other generators have these charges assessed, and with this order, we expect utilities will give up their interest in assessing these charges to renewable sources."

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