Hawaii Administrative Rules
Title 6 - DEPARTMENT OF BUDGET AND FINANCE
Division - PUBLIC UTILITIES COMMISSION
Chapter 74 - STANDARDS FOR SMALL POWER PRODUCTION AND COGENERATION
Subchapter 3 - ARRANGEMENTS BETWEEN ELECTRIC UTILITIES AND QUALIFYING COGENERATION AND SMALL POWER PRODUCTION FACILITIES UNDER SECTION 210 OF THE PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978, 16 USC SECTION 824A-3
Section 6-74-22 - Rates for purchases

Universal Citation: HI Admin Rules 6-74-22

Current through August, 2024

(a) Rates for purchases shall:

(1) Be just and reasonable to the electric consumer of the electric utility and in the public interest;

(2) Not discriminate against qualifying cogeneration and small power production facilities; and

(3) Be not less than one hundred per cent of avoided cost for energy and capacity purchases to be determined as provided in § 6-74-23 from qualifying facilities and not less than the minimum purchase rate.

(b) There shall be placed into effect with respect to each electric utility, standard rates for purchases from qualifying facilities with a design capacity of one hundred kilowatts or less. The standard rates for purchases under this subsection:

(1) Shall be consistent with subsection (a) and § 6-74-23; and

(2) May differentiate among qualifying facilities using various technologies on the basis of the supply characteristics of the different technologies.

(c) Each qualifying facility shall have the option either:

(1) To provide energy as the qualifying facility determines that energy to be available for those purchases, in which case the rates for such purchases shall be based on the purchasing utility's avoided energy costs calculated at the time of delivery, determined after consideration of the factors set forth in § 6-74-23; or

(2) To provide energy or capacity pursuant to a legally enforceable obligation for the delivery of energy or capacity over a specified term, in which case the rates for those purchases, at the option of the qualifying facility exercised prior to the beginning of the specified term, shall be based on either:
(A) The avoided costs calculated at the time of delivery, determined after consideration of the factors set forth in § 6-74-23; or

(B) The avoided costs calculated at the time the obligation is incurred, determined after consideration of the factors set forth in § 6-74-23.

As used in this subsection:

"Calculated at the time of delivery" means calculated using the basic projections and assumptions used to develop the system cost data provided by an electric utility pursuant to §§ 6-74-17 and 6-74-18 most closely preceding the actual time of delivery; and

"Calculated at the time the obligation is incurred" means calculated using the basic projections and assumptions used to develop the system cost data provided by an electric utility pursuant to §§6 74-17 and 6-74-18 most closely preceding the effective date of any legally enforceable obligation for purchase.

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