STATE OF NORTH CAROLINA UTILITIES COMMIISSION RALEIGH DOCKET NO. E-100, SUB 113 BEFORE THE NORTH CAROLINA UTILITIES COMMISSION

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1 STATE OF NORTH CAROLINA UTILITIES COMMIISSION RALEIGH DOCKET NO. E-100, SUB 113 BEFORE THE NORTH CAROLINA UTILITIES COMMISSION In the Matter of: ) Rulemaking Proceeding to Implement ) NC WARN S COMMENTS Session Law ) PURSUANT to the Order Requesting Comments on Joint Motion to Modify and Delay 2018 REPS Requirements, September 13, 2018, now comes NC WARN, Inc., by and through the undersigned attorney, with its comments. 1. Duke Energy North Carolina President, David Fountain announced early this year, this is a major breakthrough for renewable energy in North Carolina, in reference to a project capturing methane from hog waste to produce electricity. 1 The Optima KV project in Duplin County converts methane from hog waste into usable biogas. The project is expected to produce 11,000 megawatt-hours of electricity per year. At the same time, Duke Energy also announced the possibility of other projects from which it could purchase swine gas. However, Duke Energy was unable to procure enough energy from swine or poultry waste to satisfy its REPS requirement. Once again, Duke Energy asked the NC Utilities Commission ( Commission ) to delay its swine and poultry waste set-aside requirements, continuing an annual trend since NC WARN believes that Duke Energy 1 Duke Energy using North Carolina based renewable energy natural gas in first-of-its-kind project. March 29,

2 will never comply because the technology is not predictable or sustainable enough to produce a significant amount of energy from hog waste. The Commission further concludes in its 2017, Order Modifying the Swine and Poultry Waste Set- Aside Requirements and Providing Other Relief, compliance with the swine waste set-aside requirement has been hindered by the fact that the technology of power production for swine waste continues to be in its early stages of development. 2. It remains quite uncertain as to whether the production of directed biogas can ever be achieved in a manner that protects neighbors of hog farms and production facilities, which is why the Commission established a pilot program. (Docket No. G-9 Sub 698). R6-30 requires that [a]ll gas supplied to customers shall be substantially free of impurities which may cause corrosion of mains or piping, or form corrosive or harmful fumes when burned in a properly designed and adjusted burner. 3. It is also important that we help eliminate the grief and suffering that local neighbors are experiencing from open hog waste lagoons. Open lagoons at many concentrated animal feeding operations ( CAFOs ) negatively impact the wellbeing of neighbors, as demonstrated in recent court cases. In addition a new study by Duke University published in the North Carolina Medical Journal concludes that people who live within three miles of hog farms have higher occurrences of disease and chronic health conditions. 2 The production of energy from swine waste should not only reduce but totally eliminate all negative impacts 2 Article by Ned Barnett with The News & Observer (September 23, 2018) on Duke University research report published in the North Carolina Medical Journal. 2

3 to local residents. Due to the continuing uncertainties regarding waste-to-energy technologies, it is doubtful that the production of energy from swine waste could ever eliminate the harm to CAFO neighbors. 4. According to G.S (e), in 2018, electric power suppliers, in aggregate, are required to satisfy 0.20% of their REPS requirement through the use of swine waste resources. An amended order by the Commission, Order Modifying the Swine & Poultry Waste Set-Aside Requirement and Providing Other Relief (October 2017), the electric power suppliers, in aggregate, are required to satisfy 0.07% in 2018 and 2019, 0.14% in 2020, of their REPS requirement using swine waste resources. Duke Energy now seeks, for the seventh time, to modify the 2018 compliance requirement from swine waste resources to only 0.02%, which is a significant reduction from even the 2017 requirement. Despite the issuance of request for proposals, negotiations with suppliers from in- and out-of-state, the execution of long-term REC purchase agreements, and collaborations with swine waste developers, Duke Energy was unable to meet the swine and poultry waste requirement once again. 5. Today, there is only one project online that produces energy from swine waste in North Carolina. Although there are other projects planned, there have been many challenges and it remains uncertain if they will ever be operational. Such challenges includes: basic technology, lack of experience developers, fuel supply, site selection, financing, interconnection, and fuel transportation. In addition, multiple contracts have been terminated due to bankruptcy, force majeure 3

4 situations, or failure to perform obligations. 3 Despite Duke Energy s major breakthrough for renewable energy, it will not meet the 2018 swine waste requirement. Furthermore, it is unlikely that Duke Energy and other electric suppliers will be able to meet 2019 and 2020 swine waste set-aside requirements. 6. Duke Energy was able to comply, and secured 0.20% of its REPS requirement from solar energy resources, although its total commitment to truly renewable energy in the Carolinas is in the seven percentage range by The Commission should consider increasing the portion of the REPS requirement to produce energy from solar energy resources to make up for not meeting the swine waste requirement. Respectfully submitted this 27 th day of September, 2018 /s/ Kristen L. Wills Kristen L. Wills Staff Attorney NC WARN, INC. Post Office Box Durham, NC Telephone: Kristen@ncwarn.org 3 DEC NC IRP 2018 Biennial Report p

5 CERTIFICATE OF SERVICE I hereby certify that I have this day served a copy of the foregoing COMMENTS (E-100, Sub 113) upon each of the parties of record in this proceeding or their attorneys of record by deposit in the U.S. Mail, postage prepaid, or by transmission. This is the 27 th day of September, /s/ Kristen L. Wills Kristen L. Wills Staff Attorney NC WARN, INC. Post Office Box Durham, NC Telephone: Kristen@ncwarn.org 5